News

Tax Day now July 15

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Read more

Published: 03/23/20

Guidance on Deferring Tax Payments Due to COVID-19 Outbreak

U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.  The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest.  This guidance does not change the April 15 filing deadline. Read more

Published: 03/20/20

Virtual Appointments & COVID-19 Client Information

We understand this has been an extremely stressful time over the last ten days. The world has seemingly changed overnight with the global pandemic. First and foremost, we need to consider the health and safety of our family & friends, team members, clients, and the community as a whole over heightened concerns about the Coronavirus (COVID-19). We are closely monitoring the CDC’s recommendations to limit person-to-person contact and as public health authorities and our Federal Government indicate new policies and recommendations to combat the spread of the coronavirus, Hershkowitz & Kunitzer, P.A. is now taking additional precautions in our office. Read more

Published: 03/18/20

COVID-19 Should Push You to Get Moving on Your 2019 Taxes. Here's Why.

Getting your refund sooner could spare you a world of financial stress during otherwise trying times. Read more

Published: 03/15/20

What Happens When a Business Owner Dies? Three Steps to Cheat Death

When you’re dead, you’re dead. What happens to your business, however, will be whatever you planned for. What! No plan? That can be chaos for your family, business associates and the business itself — a completely avoidable mess. Don't expect to be remembered fondly. You should not feel alone, however. Fewer than 30% of small business owners have a succession plan. Read more

Published: 03/09/20

Child Tax Credit by the Numbers

Taxpayers may be able to claim the child tax credit if they have a qualifying child under the age of 17. Part of this credit can be refundable, so it may give a taxpayer a refund even if they don’t owe any tax. Read more

Published: 02/28/20

5 Ways the SECURE Act Could Harm Retirees

To avoid RMD penalties, tax bills that are (possibly MUCH) higher than necessary and other problems, make sure you understand this groundbreaking new retirement law and take steps to keep your plan on track. Read more

Published: 02/26/20

Tax Planning: Figuring Out if You Have Household Employees

There are plenty of tax, wage and compliance nuances to household employment that can trip up even the savviest of accountants and taxpayers. And it all starts with figuring out who should be considered a household employee. Read more

Published: 02/24/20

Proposed Regulations Govern Maximum Automobile Values

As promised in Notice 2019-08, the IRS issued proposed regulations that update the fleet-average and vehicle cents-per-mile valuation rules described in Regs. Secs. 1.61-21(d) and (e),... Read more

Published: 08/27/19

IRS Says Some Business Expenses Are Personal

Which expenses are business and which are personal? You might think it's obvious, but your view and the IRS view may differ. These days business and personal can often seem mixed up, such as when... Read more

Published: 08/20/19

IRS Cancels Postcard-Sized Income Tax Return

The IRS won’t be getting any postcards from taxpayers this year. 
It’s not like the nation’s tax collection agency was expecting pictures... Read more

Published: 08/02/19

Can I Expense That? LOL: The Most Absurd Expense Report Items

Finance departments continually develop rigorous expense reporting guidelines, but that hasn't stemmed the flow of eyebrow-raising requests by some employees, new research suggests. In a new... Read more

Published: 07/02/19

How To Respond To An IRS Notice? Very Carefully.

When you receive an IRS notice, you may get a knot in the pit of your stomach even before you open it. Every year the IRS sends millions of letters and notices. (This is the way the agency contacts... Read more

Published: 06/24/19

For Letter Rulings and Similar Requests: Electronic Payment of User Fees Starts June 15

Beginning June 15, taxpayers requesting letter rulings, closing agreements and certain other rulings from the Internal Revenue Service will need to make user fee payments electronically using the... Read more

Published: 06/07/19

Home Office Deduction Benefits Eligible Small Business Owners

Small business owners may qualify for a home office deduction that will help them save money on their taxes, and benefit their bottom line. Taxpayers can take this deduction if they use a portion of their home exclusively, and on a regular basis, for any of the following:

As the taxpayer’s main place of business.
As a place of business where the taxpayer meets patients, clients or custome... Read more

Published: 05/30/19

What Historic Building Owners Should Know About the Rehab Tax Credit

Organizations around the country continue to promote historic buildings and other important heritage sites as May is National Historic Preservation Month. As part of this month, anyone who owns a historic building should remember that the rehabilitation tax credit offers an incentive to renovate and restore old or historic buildings. Tax reform legislation passed in December 2017 changed when the c... Read more

Published: 05/23/19

Are Medically Necessary Home Improvements Deductible?

Some of our clients incur sizeable medical expenses for themselves and family members. I tell them not to expect much help from the IRS when it comes to deducting such expenses.
The agency requires them to pass several tests. To begin with, they have to forego the standard deduction and itemize on Schedule A of Form 1040 in order to deduct their expenditures. Another stipulation is that their expe... Read more

Published: 05/16/19

Switching From S To C Corporation? How You Do It Could Save (Or Cost) You Millions

You're the sole shareholder of an S corporation. You've operated as a flow-through business since formation in 2016, and you've been perfectly content to do so. What's not to like about a... Read more

Published: 05/15/19

Taxpayers Must Report Virtual Currency Transactions

The Internal Revenue Service reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns.
Virtual currency transactions are taxable by law just like... Read more

Published: 05/14/19

The Best Big Cities for Starting a Business? They're Almost All Down South

The top U.S. city for entrepreneurs boasts cool breezes, white-sand beaches, and attractive economic conditions for businesses.
Entrepreneurs in Tampa and St. Petersburg, Florida, may be in... Read more

Published: 05/13/19

Small Business Can Benefit from Deducting Vehicle Costs on Their Taxes

Businesses that use a car or other vehicle may be able to deduct the expense of operating that vehicle on their taxes. Businesses generally can use one of the two methods to figure their deductible... Read more

Published: 05/10/19

Businesses Should Review Depreciation Deductions Rules

Businesses should know the tax rules for deducting depreciation on certain property. This deduction can benefit eligible business taxpayers. The Tax Cuts and Jobs Act made changes to the rules... Read more

Published: 05/09/19

Home Office Deduction Often Overlooked by Small Business Owners

For small business owners who work from a home office, there are two options for claiming the Home Office Deduction. The Home Office Deduction is often overlooked by small business owners.
As part... Read more

Published: 05/05/19

Deferral of Gains for Investments in a Qualified Opportunity Fund

The Internal Revenue Service today issued guidance providing additional details about investment in qualified opportunity zones. 
The proposed regulations allow the deferral of all or... Read more

Published: 04/17/19

Want To Make Millions And Pay No Taxes? Try Real Estate

Real estate is a cyclical business. Markets crash. Deals sour. But hard landings are rare for a savvy property mogul, thanks to the U.S. tax code.
Take Harry Macklowe, a New York City developer.... Read more

Published: 04/16/19

The Case for Extending the Tax Filing Deadline

The shaky start to this year’s filing season should be addressed by extending the filing deadline for one month, according to Andrew Moylan, executive vice president of the National Taxpayers... Read more

Published: 03/12/19

Florida Sales Tax on Commercial Real Property Leases Reduced Beginning January 2019

As commercial real property owners in Florida are likely aware, the Sunshine State imposes its sales tax on rental payments for the lease of real property. The general 6 percent state-level tax was... Read more

Published: 02/19/19

What is the penalty for not having health insurance in 2019?

The federal tax penalty for not being enrolled in health insurance will be eliminated in 2019 because of recent changes made by the Trump Administration. However, those that received a penalty for... Read more

Published: 02/18/19

IRS Waives Penalty for Many Whose Tax Payments Fell Short in 2018

The Internal Revenue Service announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total... Read more

Published: 01/25/19

Shutdown Impact on Tax Court Cases

The United States Tax Court shut down operations on Friday, December 28, 2018, at 11:59 p.m. and will remain closed until further notice.  The IRS reminds taxpayers and tax professionals the... Read more

Published: 01/24/19

Small Business Tax Planning Looms - Tips To Make it Easier!

Year-end tax planning, something that should be part of a small business owner's annual routine, is particularly important now because of the tax law enacted nearly a year ago. The IRS has cleared... Read more

Published: 11/26/18

This New Tax Break Can Make a Big Difference for Small Business Owners

The IRS has issued eagerly-awaited regulations that provide details on the new deduction for up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction was a major... Read more

Published: 11/16/18

5 Tips for Savings Money on Your 2018 Tax Bill

Let's face it: Few of us are going to wake up the morning of Dec. 31 and finish all the year-end action items on our list for cutting taxes. It's thus best to get started with about a month... Read more

Published: 11/15/18

For Tax Year 2017, E-File Closes on Nov. 17

The Internal Revenue Service reminds people, including those in disaster areas, who want to file a 2017 tax return electronically to do so by Saturday, Nov. 17, 2018. Filing of paper tax returns... Read more

Published: 11/09/18

Here are some important things taxpayers need to know as they plan for the tax-filing season in early 2019:

Child Tax Credit increased
Higher income limits mean more families are now eligible for the Child Tax Credit. The credit begins to phase out at $200,000 of modified adjusted gross income, or... Read more

Published: 11/07/18

How the New Tax Law Revised Family Tax Credits

More families will be able to get more money under the newly-revised Child Tax Credit, according to the Internal Revenue Service.
The Tax Cuts and Jobs Act (TCJA), the tax reform legislation... Read more

Published: 11/07/18

Detailed Description of Adjusted and Unchanged Limitations

Section 415 of the Internal Revenue Code (Code) provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Secretary of the... Read more

Published: 11/01/18

Highlights of Limitations that Remain Unchanged from 2018

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000. Read more

Published: 11/01/18

401(k) Contribution Limit Increases to $19,000 for 2019; IRA Limit Increases to $6,000

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.  
Highlights of... Read more

Published: 11/01/18

Reduced 24% Withholding Rate Applies to Small Businesses and Other Payers

Backup Withholding for Missing and Incorrect Name/TIN(s), posted last month on IRS.gov, has been updated to reflect a key change made by the Tax Cuts and Jobs Act (TCJA). As a result of this... Read more

Published: 10/26/18

Tax Law Changes Affecting Business Owners' Bottom Lines

The Internal Revenue Service today reminded business owners that tax reform legislation passed last December affects nearly every business.
With just a few months left in the year, the IRS is... Read more

Published: 10/22/18

7 Year-End Tax Planning Strategies for Small Businesses

You still have time to significantly reduce your 2018 business income tax bill. Here are seven year-end moves to consider, taking into account changes included in the Tax Cuts and Jobs Act... Read more

Published: 10/17/18

IRS Provides Expanded Tax Relief for Victims of Hurricane Michael

Hurricane Michael victims in parts of Florida and elsewhere have until Feb. 28, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service... Read more

Published: 10/12/18

Top 10 Tips for Deducting Losses from a Disaster

If you suffer damage to your home or personal property, you may be able to deduct the losses you incur on your federal income tax return. Here are 10 tips you should know about deducting casualty... Read more

Published: 10/05/18

Divorce: What Tax Reform Means for Alimony Deduction

If you're unfortunately planning to get divorced, get the paperwork started sooner rather than later if you intend to preserve the tax deduction for alimony payments under the new Tax Cuts and Jobs... Read more

Published: 06/01/18

Crackdown on SALT Deduction Workarounds

The Internal Revenue Service and the Treasury Department said Wednesday they intend to issue proposed regulations to address the question of deductibility of state and local tax payments, as states... Read more

Published: 05/24/18

6 Groups of Taxpayers Most Affected by Tax Reform

Due to the tax reform passed in December, many taxpayers will be seeing tax changes in their 2018 tax return. Some changes are positive and some negative, and it is important to keep as updated as... Read more

Published: 05/23/18

How Tax Reform Hurts Many Small Businesses

The Tax Cuts and Jobs Act gives big business an even bigger edge.
While the Republican-led tax reform bill contains some benefits for small businesses, it also hurts them -- at least... Read more

Published: 05/04/18

How to Navigate that 20% Tax Break for Small Businesses

Small business owners may benefit from kinder tax treatment under the new law. They should think twice before becoming incorporated.
The Tax Cuts and Jobs Act offers a 20 percent... Read more

Published: 04/02/18

5 Ways to Hack the New Tax Law

Now that tax season has arrived, you’re likely digging through receipts and tax forms to pull together your 2017 returns — and your 2018 taxes may be the furthest thing from your mind.... Read more

Published: 03/02/18