Five Things to Remember about Hobby Income and Expenses

From scrapbooking to glass blowing, many Americans enjoy hobbies that are also a source of income. A taxpayer must report income on their tax return even if it is made from a hobby. However, the rules for how to report the income and expenses depend on whether the activity is a hobby or a business…. Read More

Eight Things to Do When an IRS Letter Arrives

The IRS mails millions of letters to taxpayers every year for many reasons. Here are seven simple suggestions on how individuals can handle a letter or notice from the IRS: 1. Don’t panic. Simply responding will take care of most IRS letters and notices. 2. Read the entire letter carefully. Most letters deal with a… Read More

Four Things to Know about Taxes and Starting a Business

New business owners have tax-related things to do before launching their companies. IRS.gov has resources to help. Here are some items to consider before scheduling a ribbon-cutting event. Choose a business structure When starting a business, an owner must decide what type of entity it will be. This type determines which tax forms a business… Read More

How to Know if the Knock on Your Door is Actually Someone from the IRS

Every Halloween, children knock on doors pretending they are everything from superheroes to movie stars. Scammers, on the other hand, don’t leave their impersonations to one day. They can happen any time of the year. People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does… Read More

IRS Announces 2018 Pension Plan Limitations; 401(k) Contribution Limit Increases to $18,500 for 2018

SACRAMENTO — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. The IRS today issued technical guidance detailing these items in Notice 2017-64. Highlights of Changes for 2018 The contribution limit for employees who participate in 401(k), 403(b), most 457… Read More

Trump names Kautter as acting IRS commissioner

Kautter formerly worked for the accounting firms RSM US and Ernst & Young and was confirmed for his position at the Treasury Department in August (see RSM’s Kautter confirmed in Treasury tax post). He will succeed John Koskinen when Koskinen’s term ends on November 12. The designation will take effect on November 13. Treasury Secretary… Read More

2017 Form 1040 Schedule A Draft

2017 Form 1040 Draft

Fake Insurance Tax Form Scam Aims at Stealing Data from Tax Pros, Clients

SACRAMENTO – The Internal Revenue Service today alerted tax professionals and their clients to a fake insurance tax form scam that is being used to access annuity and life insurance accounts. Cybercriminals currently are combining several tactics to create a complex scheme through which both tax professionals and taxpayers have been victimized. There may be… Read More

IRS Gives Tax Relief to Victims of California Wildfires; Extension Filers Have Until Jan. 31 to File

SACRAMENTO –– Victims of wildfires ravaging parts of California now have until Jan. 31, 2018, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. This includes an additional filing extension for taxpayers with valid extensions that run out this coming Monday, Oct. 16. Currently, the… Read More