Changes in Federal Income Tax Withholding

The tax reform bill signed into law in December will result in significant changes to the federal income tax withholding and exemption process in 2018. The IRS has not yet issued definitive guidance on this topic. See the IRS statement below: The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December…

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Newly Signed “Tax Cuts and Jobs Act” Could Benefit Private Elementary and Secondary Schools

The newly signed “Tax Cuts and Jobs Act” has some changes that could benefit private elementary and secondary schools. Under pre-Act law, funds in a Code Section 529 college savings account could only be used for qualified higher education expenses. The new Law now includes tuition, at an elementary or secondary private or religious school as being “qualified higher education…

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Exemption to Double for Estate Taxes

As the new tax bill becomes finalized, the estate and gift tax exemption will double for 2018.  The figure given to individuals will be $11,000,000 and $22,000,000 for those who are married.  The increase in the estate and gift exemption will not be a permanent provision, and is set to expire at the end of 2026.  With this increase, taxpayers…

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Tax Scams to be Aware of

As we inch towards tax season, tax-payers and tax professionals prepare to take on Uncle Sam.  Another group preparing to get it on the action, unruly scammers.  In an age where information is highly coveted, scammers use every possible way to obtain it.  Scammers use the telephone, mail or email to set up individuals, businesses, payroll and tax professionals. An…

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Tax Consequences of Gifts to Employees for the Holidays

As we approach year end and many employers give gifts or other bonuses to employees, Rackers & Fernandez LLC, wants to remind our clients of the rules on these items. The IRS does not require that “De Minimis Fringe Benefits” be taxed to the employee (and social security taxes withheld). De Minimis Fringe Benefits include: Birthday or holiday gifts of…

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Unsolicited Calls from the IRS can Indicate Scam

In an article written by UHY LLP, a Michigan practice, the rise of unsolicited calls from the IRS can mean scams. Even in the age of email/text message and ransomware scams, phone calls continue to be one of the most common tactics used by thieves to obtain personal information from taxpayers. Scammers take the information and use it to gain…

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Changes for Missouri Sales & Use Tax Return Online Filing

The Department will implement a new MyTax Missouri portal service to electronically file sales and use tax returns after September 6, 2017. This new feature for electronic filing is part of a new integrated tax system implementation. With the introduction of this new system, the current sales and use tax electronic filing application will be replaced. The current application will…

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Back to School Sales Tax Holiday

By state law, the sales tax holiday begins on the first Friday in August and continues through the following Sunday. Certain back-to-school purchases, such as clothing, school supplies, computers, and other items as defined by the statute, are exempt from sales tax for this time period only. In 2017, the Sales Tax Holiday begins at 12:01 a.m. on Friday, August…

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New Telephone Scam Hits Missouri Residents

Last week, State Treasurer Eric Schmitt warned Missourians about a new tax scam making the rounds. Callers pose as intelligence officers or special agents with the treasurer’s office and demand payment on overdue taxes. According to the treasurer’s office, the scammers use a fake caller-ID featuring a phone number that belongs to the Missouri State Treasurer’s Office. If you get a call…

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Happy Tax Day!

To all clients, Happy Tax Day!  On behalf of the team at Rackers & Fernandez, we would like to extend our gratitude for another successful tax season.  We really appreciate having you as a client and being part of your team. As a friendly reminder, we will be closing at noon on April 18th and all day April 21st.