The Treasurer of Ohio announced this week that taxpayers in his state will be able to pay business taxes with cryptocurrency - making Ohio the first state in the U.S. to do so.
The Internal Revenue Service (IRS) is seeking applicants for places on its Advisory Committee on Tax Exempt and Government Entities (ACT), specifically to assist with the employee plans, exempt organizations, and tax exempt bonds segments. The Department of the Treasury appoints members for three-year terms. Applications are accepted through September 18, 2017.
On February 9, 2017, the U.S. Tax Court released its opinion in Schieber v. Commissioner, T.C. Memo 2017-32, ruling that the lump-sum value of CalPERS pension benefits should not be included in asset calculations to determine a taxpayer's ability to immediately pay tax on canceled debt income.
The California Franchise Tax Board (FTB) implemented a "no cash" policy in its field offices effective September 1, 2015. However, recognizing that this could create a hardship for some taxpayers, the FTB has established an exemption policy effective July 1, 2016. Taxpayers may sign a No Cash Policy Exemption Request form and submit it to the FTB with an explanation for their inability to pay using an alternative method. If accepted, exempt taxpayers will need to make an appointment at an FTB field office to pay in cash.
For one reason or another, some people can only pay bills by making cash payments. Until now, taxpayers wanting to pay the IRS in cash had to travel to the IRS Taxpayer Assistance Center nearest them, but no more. Now, through the IRS' new program, a taxpayer can make tax payments of up to $1,000 per day at more than 7,000 7-Eleven stores nationwide. Taxpayers can still pay online by credit or debit card, or mail in tax payments by check.
The tax code is highly complex. Yet, any number of mistakes and missteps may result in interest and penalties that can outweigh the cost of your initial tax liability. Under some circumstances, you could face criminal charges and jail time.
Sometimes a client cannot pay their bill. When this happens, some business owners will look to the goods or services provided by the client in her business, to see if a trade can be made to satisfy the debt. While most business owners would rather be paid for services rendered, a new copy machine, air conditioner or janitorial services are better than a past due accounts receivable. What many taxpayers forget, however, is that the value for the services exchanged is treated just like a cash payment, for income tax purposes. Consider a scenario where an attorney provides services to a client who owns a luggage store; the amount billed for legal services is $5,000. If the client offers $5,000 in luggage instead, then both the attorney and the luggage store owner must reflect $5,000 in income in the transaction. This is true whenever bartered services are made between businesses (except corporations) of $600 per more, per year. The payments are reported on Form 1099-MISC. For more information, view the IRS' Bartering Tax Center http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Bartering-Tax-Center
The IRS offers a free online interactive program entitled "Understanding Taxes." Designed in partnership with teachers for use in middle school, high school, or community college classrooms, the program can be used by anyone to learn about the history, theory, and application of taxes in the United States. It features 38 lessons on different aspects of the American tax system, including the basics of tax preparation, glossary of tax terms, and tax trivia. The program is available all year and there are no registration or login requirements so you can return at any time. The IRS generally updates the program each fall to reflect any updates to tax law and forms. You can access the "Understanding Taxes" program here: http://apps.irs.gov/app/understandingTaxes/index.jsp
Apple, Inc., which is based in the northern part of California, is best known for its iPhones, iPads and Mac computers, along with several other innovative tech gadgets. It is not as well known for being able to avoid paying the IRS approximately $30 billion in taxes. That fact may not have gotten the attention of the general public, but it certainly caught the attention of Congress.
Taxpayers in California and across the nation may have to wait a little longer for their tax refunds this year, in part because the IRS is trying to minimize the risk of identity theft. This has become a big problem in recent years, not only for the IRS, but for anyone who becomes a victim. Refunds can be delayed by several months for the legitimate taxpayer if there is a case of identity theft. In addition, the National Taxpayer Advocate states that victims do not get enough assistance from the IRS.