Typically, an estate plan includes accommodations for your spouse, children, grandchildren and even future generations. But you may overlook some older family members, such as your parents or in-laws. They may also need your financial assistance and help with their estate planning. How can you best handle the financial affairs of parents in the later … Read More
Certain IRS computers lack adequate security, a recent report said. After an examination of the tax agency’s mainframe computing environment, the Treasury Inspector General for Tax Administration (TIGTA) reported that improvement is needed. “The IRS mainframe platform is not satisfying minimum mainframe security requirements in several key areas,” it stated. TIGTA did confirm that access … Read More
As year-end draws near, many businesses will be not only be generating their fourth quarter financial statements, but also looking back on the entire year’s financials. And what a year it’s been. The COVID-19 pandemic and resulting economic fallout have likely affected your sales and expenses, and you’ve probably noticed the impact on both. However, … Read More
The IRS Whistleblower program gets another “sequestration reduction.” This program pays cash awards to individuals who provide specific or credible information to the IRS about unpaid taxes, if the information is used. For fiscal year 2021 (Oct. 1, 2020 through Sept. 30, 2021), those awards (along with other types of payments) will be reduced by … Read More
If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers and … Read More
The Social Security (SS) wage base increases to $142,800 for 2021, up from $137,700. Wages and self-employment income above this threshold aren’t subject to SS tax. The Federal Insurance Contributions Act (FICA) imposes SS tax and a Medicare tax on employees, employers and the self-employed. There’s no threshold for Medicare tax; all wages and self-employment … Read More
People who owe unpaid taxes now have a new, easier way to make payments. As of Oct. 2020, the IRS has added Quick Response (QR) barcode technology to certain notices (Notices CP14 and CP14 IA) sent to 8 million taxpayers who owe taxes each year. They can now scan a QR code with a smartphone, … Read More
If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares. Surprise sales You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way this can happen is if your mutual fund allows you to write checks against your fund … Read More
With the final quarter of 2020 underway, the IRS is reminding you to review your tax withholding. That can help avoid unexpected shortfalls when you file your tax return, or depending on the adjustment, boost take home pay this quarter. You can view the taxes owed, your payment history and other key details from your … Read More
You may view your will as the centerpiece of your estate plan. But other documents can complement it. For example, if you haven’t already done so, consider writing a letter of instruction. Elements of the letter A letter of instruction is an informal document providing your loved ones with vital information about personal and financial … Read More