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Tax Cuts “2.0” Draft Expected in July
Posted On 06/ 29/ 18

A tax cuts "2.0" draft will likely be unveiled to House Republicans in July, the House’s top tax writer has said. A draft of the tax reform "phase two" legislative outline is expected to be released generally in August. Tax Cuts Phase Two Timeline "I think the Ways and Means Committee timetable will be to begin circulating a draft to House Republicans when we return after the fourth of July break," House Ways and Means Committee Chairman Kevin Brady, R-Tex. said in a televised June 26   Read More...

Tax bill this year? Check withholding soon, avoid another one next year
Posted On 06/ 29/ 18

Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service. The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain   Read More...

Alternative Surtax and Decoupling Bill Passed by New Jersey Legislature, Sent to Governor
Posted On 06/ 29/ 18

The New Jersey Legislature passed an initial bill that would: impose a surtax on corporations for two years; decouple from certain provisions of the federal Tax Cuts and Jobs Act; reduce the dividend exclusion; impose a tax on certain dividends; and clarify treat provisions. If enacted, the bill would take effect immediately and apply as noted below. The bill has been sent to Gov. Phil Murphy. However, the governor has threatened to veto the bill. Surtax on   Read More...

IRS to Propose Rules on Transfers Made to Avoid New Limit on SALT Deductions
Posted On 05/ 31/ 18

The IRS has announced that it intends to issue proposed regulations regarding the federal tax treatment of payments made by individuals to funds controlled by state and local governments in exchange for credit against state and local taxes (SALT). Some state legislatures have adopted or are considering such proposals as means to get around the limitation on the itemized deduction of state and local taxes after 2017. The aim of the legislation is to allow individuals to characterize any   Read More...

Paid Sick Leave Now the Law in New Jersey
Posted On 05/ 31/ 18

New Jersey has now become the tenth state to enact a statewide mandatory paid-sick-leave law. The New Jersey Paid Sick Leave Act was signed into law on May 2 by Gov. Phil Murphy and will go into effect on Oct. 29. Once effective, it will require New Jersey employers of all sizes to provide up to 40 hours of paid sick leave per year to covered employees. Just about every employer with workers in New Jersey will feel the impact of this new law in one way or another. Consequently, you should   Read More...

IRS Warns of Variation of Form W-8BEN Scam
Posted On 05/ 31/ 18

The Internal Revenue Service warned of a new twist tied to an old scam aimed at international taxpayers and non-resident aliens. In this scam, criminals use a fake IRS Form W-8BEN to solicit detailed personal identification and bank account information from victims. Here’s how the scam works. Criminals mail or fax a letter indicating that although individuals are exempt from withholding and reporting income tax, they need to authenticate their information by filling out a phony version of   Read More...

IRS Offers Relief to Taxpayers with Family HSAs
Posted On 04/ 27/ 18

The Internal Revenue Service is granting relief to taxpayers who have family coverage under a high deductible health plan and who contribute to a health savings account. For 2018, taxpayers with family coverage under a high deductible health plan, or HDHP, can treat $6,900 as the maximum deductible contribution to their HSA. A change in the inflation adjustment calculations for 2018 under the new tax reform law, the Tax Cuts and Jobs Act, decreased the maximum deductible HSA contribution   Read More...

Missed the Tax Filing Deadline?
Posted On 04/ 27/ 18

While the federal income tax-filing deadline has passed for most people, there are some taxpayers still facing tax-related issues. This includes people who still haven’t filed. There is no penalty for filing a late return after the tax deadline if a refund is due. Penalties and interest only accrue on unfiled returns if taxes are not paid by April 18. The IRS provided taxpayers an additional day to file and pay their taxes following system issues that surfaced early on the April 17 tax   Read More...

IRS Warns of New Twist on Phone Scam
Posted On 04/ 27/ 18

The Internal Revenue Service warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers (TACs) to trick taxpayers into paying non-existent tax bills. The IRS and its Security Summit partners – the state tax agencies and the tax industry – urge taxpayers to remain alert to tax scams year-round, especially immediately after the tax filing season ends. Even after the April deadline passes, the tax scam season doesn’t end. In   Read More...

IRS Reminds Retirees of April 1 Deadline To Take Required Retirement Plan Distributions
Posted On 03/ 30/ 18

The Internal Revenue Service reminds taxpayers who turned age 70½ during 2017 that, in most cases, they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Sunday, April 1, 2018. The April 1 deadline applies to all employer-sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs,   Read More...