While we all pray that natural disasters do not impact our lives, the IRS reminds us taxpayers of ways to prepare before the unthinkable strikes. We can reduce the stress when it comes time to file claims or rebuild after a hurricane or other catastrophic event.
National Small Business Week is in full-swing through May 5. Small business owners and the self-employed will find a plethora of online products to help them gain a good comprehension of their tax responsibilities, including special webcast education during National Small Business Week.
In our Building a Sellable Business series, you’ve publicized your intent to sell your business. You’ve given your sales presentation and received a buyer’s Letter of Intent to purchase your business. As you determine how you will get paid upon the sale of your company, you’re getting into the financial terms of negotiations now. Friends, you must know that if money is changing hands, taxes follow. Sellers who understand that the purchase price is only the beginning of sales negotiations soon find themselves trying to figure out how to minimize negative tax implications when selling a business.
If you’ve reached the age of 70 and started living off your nest egg, then you know the IRS requires you to withdraw a certain amount of money from your Individual Retirement Accounts (IRAs) each year. The term used for this distribution is called a Required Minimum Distribution or RMD. So basically we work our whole life, place money in our retirement accounts, never pay taxes on that investment (there are exceptions to this), and now Uncle Sam wants his fair share for letting you save for the future. The IRS says, “Look, we want to get some money from you before you die.” So now you must withdrawal a certain percentage out and pay taxes on it. However, did you know that using your RMD for charity could save you on your taxes?
Some taxpayers are not required to file a tax return, however, you may want to do so because it is possible you might qualify for a tax refund due to new tax credits. You will need to submit a 2017 tax return in order to claim these credits.
Taxpayers can appeal an IRS decision in an independent forum. This is one of ten basic rights citizens have when dealing with the IRS. It is known as the Taxpayer Bill of Rights. The IRS Office of Appeals handles each taxpayer’s case separately from the IRS office, which initially reviewed the case. Normally, Appeals won’t talk about a situation with the IRS to the extent that those communications seem to compromise the independence of Appeals.