Ullmann & Company CPAs Financial Update
Willfully Failing to Report Foreign Accounts Can Lead to a Stiff Penalty But courts are split on whether the fine is capped. Under the statute, the fine is the greater of $100,000 or 50% of the highest balance in the accounts. Meanwhile, regulations state that the penalty shall be no Read more…
Common Red Flags for IRS Audits Last year’s individual audit rate was 0.59%… one in every 170 returns filed on the 1040 and such. But this figure doesn’t tell the full story. Lots of red flags can increase your audit risk. Some are identified by the agency’s computer formulas for Read more…
IRS Targets Virtual Currency Revenue agents are on the hunt for those who deal in virtual currency. They’re mailing letters to people they believe have virtual currency accounts. It’s part of IRS’s efforts to clamp down on unreported income from these transactions. Two of the letters aren’t threatening, asking taxpayers Read more…
The United States Relies More on Individual Income Taxes and Property Taxes than Other Developed Countries Developed countries raise tax revenue through a mix of individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes. However, the extent to which an individual Read more…
Hackers Steal Nearly Every Bulgarian Adult’s Personal Records The breach of servers at the Bulgarian tax agency happened at the end of June and an official there said it was probably carried out from abroad. A person claiming to be a Russian hacker emailed local media this month offering access Read more…
Tax Planning for Millennials Millennials (ages 22-37) range from just entering the workplace to being fully settled into their careers. However, the entire generation can benefit from some general tax planning considerations. Here are some tax planning tips to be considered by any member of this generation: If you have Read more…
Roths Rock with the Young 29% – The percentage of Roth IRA contributors in tax year 2016 who were under age 35, more than twice than their share of contributors to traditional IRAs (12%). A Roth IRA is an individual retirement account that allows a person to set aside after-tax income up to Read more…
ADOR Updates Guidance Regarding Income Tax Conformity The Arizona Department of Revenue recently issued the following guidance for individual income taxpayers now that the Arizona legislature has determined the matter of conforming to the Internal Revenue Code (IRC). Tax year 2018 For tax year 2018, Arizona now conforms to the IRC. Read more…
MLPs in Your IRA Could be Subject to Tax in the IRA IRAs may invest in master limited partnerships, but there is a catch. MLPs tend to make big distributions to investors. So many IRA owners may find these to be good investments. MLPs issue Schedule K-1s to their owners Read more…
Student and Child Withholdings A tip for college grads who are starting a full-time job this summer: Use part-year withholding to boost your paycheck and have less tax withheld. The standard federal tax withholding tables assume you’ll earn a full year’s income when figuring how much income tax to take Read more…