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!Juicy Tax News!

Those taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. You should file when you’re ready to submit a complete and accurate tax return.

The U.S. tax system is pay-as-you-go. Taxpayers are required, by law, to pay most of their tax obligation during the year rather than at the end of the year. This can be done by either having tax withheld from paychecks or pension payments, or by making estimated tax payments.

Image result for tax humor images The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.

The IRS announced January 16, 2019, that it is waiving the estimated tax penalty for many taxpayers who’s 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. Taxpayers are urged to check their withholding again this year to make sure they are having the right amount of tax withheld. [ Withholding Calculator ]

Bloomberg articles of interest to small-business owners…

IRS Targets Loopholes for $415 Billion Business Owner Tax Break : The Internal Revenue Service provided some long-awaited answers for business owners hoping to dodge the limits on a juicy new tax break.

The IRS’s proposed regulations make it clear that the agency considers a planning technique known as “crack and pack” to be abusive. The move had been eyed by professional service providers, such as law and accounting firms, to get around income limits set for pass-through businesses, whose income is reported on their owners’ personal returns.

Here’s the Trump Tax Loophole Your Accountant Can Blow Wide Open : If exploiting a tax loophole is as much an art as a science, then the tax planning profession is poised for a creative renaissance. The inspiration is the tax law signed by President Donald Trump in December. The patrons are affluent Americans who can afford advice from the nation’s more ingenious accountants, tax lawyers and financial advisers. And the new medium they’re experimenting with? A 20 percent deduction for so-called pass-through businesses, whose income is taxed on firm-owners’ personal returns.

Big Tax Break for Business Owners at Risk as Shutdown Drags on : Owners of so-called pass-through entities such as partnerships and limited liability companies have to file their businesses’ returns by March 15 — and still don’t have the final word from the Internal Revenue Service about who, exactly, qualifies for the 20 percent deduction on business income. Those returns form the basis of their personal returns, which are due on April 15.

By C Fitts Tax Solutions, LLC Posted in Tax Talk