Day: August 8, 2018

#Know the #telltale #signs of a #scam

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Summertime tends to be when thieves increase their scam attempts. They try to get
people to disclose personal information like Social Security numbers, account
information and passwords.
To avoid becoming a victim, remember these telltale signs of a scam:
The IRS and its authorized private collection agencies will never:
• Call to demand immediate payment using a specific method, such as a prepaid
debit card, gift card or wire transfers. Generally, the IRS will first mail a bill to any
taxpayer who owes taxes. All tax payments should only be made payable to the
U.S. Treasury. Never make checks out to third parties.
• Threaten to immediately bring in local police or other law-enforcement groups to
have you arrested for not paying.
• Demand that you pay your taxes without first giving you the opportunity to
question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.
• Use email, text messages or social media to discuss personal tax issues, such
as those involving bills or refunds.
For anyone who doesn’t owe taxes and has no reason to think they do, should:
• Not give out any information and hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report a call or
email. Recipients should also send emails to phishing@irs.gov.
• Report it to the Federal Trade Commission. Add “IRS Telephone Scam” in the
notes.
For anyone who does owe taxes or thinks they do, can:
• View tax account information online at IRS.gov to see the actual amount owed.
You can then also review your payment options.
• Call the number on the billing notice they received.
• Call the IRS at 800-829-1040. IRS workers can help.
Date: August 10, 2018

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#IRS issues proposed regulations on new #20_percent_deduction for #passthrough #businesses

WASHINGTON — The Internal Revenue Service issued proposed regulationstoday for a new provision allowing many owners of sole proprietorships, partnerships, trusts and S corporations to deduct 20 percent of their qualified business income.

The new deduction — referred to as the Section 199A deduction or the deduction for qualified business income — was created by the Tax Cuts and Jobs Act. The deduction is available for tax years beginning after Dec. 31, 2017. Eligible taxpayers can claim it for the first time on the 2018 federal income tax return they file next year.

The deduction is generally available to eligible taxpayers whose 2018 taxable incomes fall below $315,000 for joint returns and $157,500 for other taxpayers. It’s generally equal to the lesser of 20 percent of their qualified business income plus 20 percent of their qualified real estate investment trust dividends and qualified publicly traded partnership income or 20 percent of taxable income minus net capital gains.

Deductions for taxpayers above the $157,500/$315,000 taxable income thresholds may be limited. Those limitations are fully described in the proposed regulations.

Qualified business income includes domestic income from a trade or business. Employee wages, capital gain, interest and dividend income are excluded.

In addition, Notice 2018-64, also issued today, provides methods for calculating Form W-2 wages for purposes of the limitations on this deduction. More information may be found at www.IRS.gov.

Taxpayers may rely on the rules in these proposed regulations until final regulations are published in the Federal Register.

Written or electronic comments and requests for a public hearing on this proposed regulation must be received within 45 days of publication in the Federal Register.

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