Taxation of Rewards Programs A recent US Tax Court case illustrates how the taxation of hotel rewards programs, gift cards, or points programs could be a potential tax trap for the unwary. In Hyatt Hotels Corp v. Comm’r (TC Memo 2023-122), the Hyatt hotel chain ended up with a hefty assessment as a result of
taxes
IRS Announces New Tax Rates for 2024
IRS Tax Rates for 2024 The IRS recently announced new tax rates for the 2024 calendar year. The tax tables can be found below. The standard deduction will be $29,200 for Married Filing Join Taxpayers, $21,900 for Taxpayers filing head of household, and $14,600 for single taxpayers and Married Filing Separate Taxpayers. Learn more about
US Tax-Savings for your Intellectual Property
Intellectual Property Are you a business using intellectual property – such as software, trade secrets, trademarks or tradenames, copyrighted materials, patents, or other intellectual material? Strategies for US tax-savings for your intellectual property may add substantial value to your business! Strategy 1:Take advantage of special federal tax deductions and tax credits, as well as capital
Self-Employment Taxes
What Are Self-Employment Taxes?Self-employment taxes include both Social Security tax and Medicare tax which are then paid to federal and state taxing agencies. Wage-earning employees also pay these taxes with one major difference. Typically, employers are required to match the amount of social security and Medicare tax withheld from employee paychecks, while self-employed persons are
Tax and Vice – Tax on Social Media Influencers
Tax on Social Media Influencers This installment of the Tax and Vice Blog series will focus on social media influencers and the potential tax issues they may face at audit. Social Media influencers have businesses just like everybody else, there is a tax on social medial influencers just like everybody else, and they get audited
Frivolous Tax Returns Can Be a Serious Matter
Frivolous Tax Returns The IRS can charge penalties of $5,000 for Frivolous Tax Returns and other Frivolous submissions made to the IRS. The US Tax Court may impose penalties of up to $25,000 when a Taxpayer makes frivolous arguments in Tax Court. A list of some of the frivolous arguments that can lead to penalties
Tax Preparer Penalties – When Your Accountant Makes an Error
Tax Preparer Penalties The IRS (and other taxing authorities such as the Franchise Tax Board) may assess accuracy related penalties against taxpayers when taxpayers tax returns contain errors like understated income and disallowed deductions. At times, taxpayers who hired a CPA, accountant, or other tax advisor may find themselves being audited because the return their
Covid-Related Late Filing Tax Penalties
Covid-Related Late Filing Tax Penalties Many people have experienced covid-related tax problems that could lead to Covid-Related late filing tax penalties. COVID-19 has directly or indirectly caused many people to file tax returns and/or pay their taxes late resulting in tax penalties. One issue the California Office of Tax Appeals recently ruled on was how
Put Your Home in a Trust
Put Your Home in a Trust Owning a home is a quintessential part of the American Dream. During the excitement and joy of signing closing papers and receiving keys, very few homeowners stop to consider how to protect their home in the event they pass away. One way homeowners can protect their homes, amongst other
IRS Tax Brackets 2023
Will New Tax Brackets for the 2023 Calendar Year Help You? The IRS updates tax rates annually based on inflation—and with this year’s monthly inflation numbers struggling to dip below seven percent, income tax thresholds are changing fairly dramatically compared to past years. The new IRS Tax Brackets 2023 reflect the substantial changes to prices