DC Updates

New Federal Withholding Tables

The 2018 federal withholding tables, which were issued later than usual due to enactment of the Tax Cuts and Jobs Act (the Act), must be used beginning Thursday, Feb. 15, 2018. That is also the deadline for changing the optional flat rate for withholding on supplemental wage payments of $1 million or less (bonuses, commissions,

Beware of Fake Calls to Return IRS Refund Money to a Collection Agency

The Internal Revenue Service today warned taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into their bank accounts. Following up on a Security Summit alert issued Feb. 2, the IRS issued this additional warning about the new scheme. In addition, the number of potential taxpayer victims jumped from a few hundred

How to avoid a surprise tax burden for 2016

As you come to the end of 2016, ask yourself a few simple questions in regard to your tax position. What will I do if my return is prepared and there is a large balance due that I am not prepared to pay? What can I do now to estimate what my tax liability may

The HSA … proof that the IRS really does give things away

Health Savings Accounts (HSAs) have little to no down side. HSAs allow anyone with an eligible high deductible health care plan to get a tax break. Generally speaking, medical expenses are only tax-deductible if you both itemize your deductions and your eligible medical expenses exceed 10% of your adjusted gross income. HSA accounts offer a full and current deduction of your future qualifying medical expenses regardless of your income as long as you have a qualifying high deductible health care plan.

Can you deduct your home office?

A deductible home office is an area in the home that is both used exclusively for business and is where you do a substantial amount of work, not just where you “manage” your investment. It is often the only fixed location for your business. You look at whether or not you can claim a home office deduction every year.

Required Minimum Distribution Tips

My father said that he quit having birthdays a long time ago, but hopefully he didn’t stop paying attention to birthdays when he reached the mystical age of 70 ½. That is the year he needed to take his first required minimum distribution (RMD) from his IRA account(s). Birthdays do matter when making this decision, and you should consider the timing of your first RMD for the best tax results.

Tax Credit Cash in Your Old Tax Returns

Although the passage of time has brought new rules about the Small Employer Health Insurance Tax Credit under the ACA (Affordable Care Act), there are still tax returns that may need amending even if you don’t qualify for the tax credit this year. The 2010 Tax return amending period is now over, but tax returns from 2011-2013 may be hiding a pile of cash for you and your business.

WARNING: New IRS Phone Scam

URGENT NOTICE: Taxpayer’s are receiving phone calls from various phone numbers posing as agents of the IRS.

Safe Harbors Provide Relief in Final Capitalization Regulations

The Final Capitalization Regulations included several safe harbors that provide some much needed relief from the originally proposed regulations. Three of the safe harbors are outlined below

Grow tax benefits as you grow your herd

Farmers have big decisions to make when growing their operations. One of the decisions that can have a long lasting business and cash flow impact is the way you grow your breeding herd.