Tax Breaks Newsletter discusses various tax-related matters in the recent issue, starting with unexpected travel delays due to a widespread computer glitch in Philadelphia airport. This situation serves as a reminder of the importance of having a backup plan, just like in tax matters where taxpayers can be grounded for delinquent taxes. The newsletter also highlights the risks of relying on social media for tax advice, cautioning against misinformation circulating online about tax credits.
In tax audits or examinations, taxpayers have choices, including giving the IRS more time for auditing, which can sometimes lead to a favorable resolution. Settlement is another option offered by the IRS, especially in cases like the syndicated conservation easement campaign, where settlement offer letters are sent out to certain taxpayers to clear Tax Court dockets. The newsletter also provides insights on finding breathing room in case of assessments, such as penalties for failing to file information returns properly.
Staying out of trouble with the IRS is essential, and the newsletter emphasizes the importance of proper planning and compliance, including detailed guidance on inherited IRAs. Final regulations on inherited IRAs require withdrawals from retirement accounts each year after a certain age, with the new 10-year RMD Rule allowing beneficiaries to withdraw all the money as a lump sum or over ten years.
The newsletter also delves into the tax implications of a home office deduction, which has changed for employees due to the Tax Cuts and Jobs Act. Self-employed individuals can still deduct qualifying home office expenses, provided the space is used exclusively for business. The article also touches on wealth statistics, and estate planning strategies like the Optimized Charitable Lead Annuity Trust for high-income individuals aiming to minimize inheritance taxes.
In a deeper dive section, the newsletter discusses Maryland’s controversial digital advertising tax and recent legal challenges surrounding it. It highlights upcoming tax filing deadlines and events, along with positions and guidance from organizations like the American Institute of CPAs. Career news updates from law firms like Baker McKenzie, Edwin Coe, and Connell Foley are also included.
Further, readers are tested with trivia on the IRS “Dirty Dozen” scams, with the answer revealed as 2002. The newsletter provides links to recently popular articles and encourages feedback for improvement. Overall, the Tax Breaks Newsletter covers a breadth of tax topics, offering valuable insights and updates for taxpayers and professionals alike.
