Category Archives: IRS Changes

IRS International Focus – Paul Gaulkin CPA

globe with international flags

With globalization continuing to grow and the IRS facing numerous problems from evasion of tax obligations through offshore entities and activities, there is a new international focus and priority that the IRS has underway. Cross Border Audits The IRS is working on various protocols for joint audits with other countries around the world. This process would not be simultaneous, it would be a process where two or more countries carry out a single audit of a company with cross-border business … Read more

100 Percent Bonus Depreciation Reduced

Cutting Money in Half

For the year 2011 a company or employer was able to deduct 100 percent of the cost of qualified property that the company or employer placed into service that same year. This type of depreciation is referred to as bonus depreciation and was only allowed for the year 2011. If a company or employer had put into service any qualified property after December 31, 2011 the 100 percent bonus depreciation would not apply. All qualified property placed into service after … Read more

Reporting Foreign Financial Assets & Form 8938

foreign currency

Any individual taxpayer that holds specific foreign financial assets must file a Statement of Specified Foreign Financial Assets (Form 8938) starting with the 2011 tax year and all years moving forward. What Are Foreign Financial Assets Here are some examples of what the IRS considers a foreign financial asset: 1. Financial accounts maintained by a foreign financial institution 2. Any interest that you may have in a foreign entity 3. Stock or securities that have been issued by someone who … Read more

2012 Tax Changes for Businesses

Time for Change

2012 Tax Changes for Businesses There have been quite a few changes made in the tax code for 2012 that you will find listed below. Payroll Tax Cut The Middle Class Tax Relief and Job Creation Act of 2012 extended a 2 percentage point payroll tax cut to the end of 2012. This effectively lowers the social security tax withholding rate to 4.2 percent from the normal 6.2 percent. Workers can expect to receive larger paychecks as long as this … Read more

2012 Tax Changes for Individuals

Tax Changes in 2012 for Individuals There have been quite a number of changes that have taken place within the tax code for 2012. Most of these changes are beneficial to taxpayers. All the major 2012 tax changes for individuals will be listed below. These changes will come in handy when you file your tax return in 2013. Form 1040 Reporting Changes 1. Using Form 8949 Previously, capital gains were reported on Schedule D-1 but the IRS is now requiring … Read more

IRS Concessions

The IRS appears to be doing a major public relations revamp in order to soften its image and turn around its bad reputation. It is doing this by making several concessions on taxes which make them more user-friendly and less likely for taxpayers to find themselves in arrears. New IRS Change Benefits Tax liens are filed by the IRS when there are unpaid property taxes. These liens are filed automatically when the past due tax reaches $5,000 or more, but … Read more