Once your 2018 tax return has been successfully filed with the IRS, you may still have some questions.
Here are brief answers to three questions that we’re frequently asked at this time of year.
File Your 2018 Income Tax Return Sooner Rather Than Later…
The IRS opened the 2018 income tax return filing season on January 28. Even if you typically don’t file until much closer to the April 15 deadline, this year you should consider filing as soon as you can. Why? You can potentially protect yourself from tax identity theft — and reap other benefits, too.
What is tax identity theft?
In a tax identity theft scheme, a thief uses your personal information to file a fraudulent tax return early in the filing season and claim a bogus refund.
You discover the fraud when you file your return and are informed by the IRS that the return has been rejected because one with your Social Security number has already been filed for the same tax year. While you should ultimately be able to prove that your return is the legitimate one, tax identity theft can cause major headaches to straighten out and significantly delay your refund.
Filing early may be your best defense: If you file first, it will be the tax return filed by a would-be thief that will be rejected — not yours.
Best Practices – Financials for Religious Congregations
Churches, synagogues, mosques and other religious congregations aren’t required to file tax returns, so they might not regularly hire independent accountants. But regardless of size, religious organizations often are subject to other requirements, such as paying unrelated business income tax (UBIT) and properly classifying employees.
Without the oversight of tax authorities or outside accountants, religious
The Differences Between Public Charities and Private Foundations
Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Annjeanette Yglesias, one of our tax managers and a member of our not-for-profit team. Annjeanette, welcome back to the Playbook.
Annjeanette: Thanks, Jen. It’s good to be here.
Jen: So, not-for-profit… you work with different organizations, and
How Private Foundations Can Avoid Costly IRS Attention
IRS rules governing private foundations are complex and include many exceptions, which is why your foundation needs to write and follow a detailed conflict-of-interest policy. Taking this proactive step can help you avoid potentially costly public and IRS attention.
Casting a Wide Net
Conflict-of-interest policies are critical for all not-for-profits. But foundations are subject to
What Can Be Deductible When Volunteering
Because donations to charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you — your time — would also be deductible. Unfortunately, that’s not the case.
Donations of time or services aren’t deductible. It doesn’t matter if it’s simple
Year-End Giving: What You Need to Know
Charitable giving can be a powerful tax-saving strategy: Donations to qualified charities are generally fully deductible, and you have complete control over when and how much you give. Here are some important considerations to keep in mind this year to ensure you receive the tax benefits you desire.
Delivery date
To be deductible on your
What to Do if Your Business is Audited by the IRS
If you recently filed your 2016 income tax return (rather than filing for an extension) you may now be wondering whether it’s likely that your business could be audited by the IRS based on your filing. Here’s what every business owner should know about the process.
Catching the IRS’s eye
Many business audits occur randomly,
Turn Next Year’s Federal Income Tax Refund into Extra Cash Now
Each year, millions of taxpayers claim an income tax refund. Receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of extra cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.
Fortunately,
The Rules for Documenting Deductions
If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions.
Case 1: Insufficient records
In the first case, the court found that a taxpayer with a consulting