Watch out for Phone Scams and Phishing E-mails

Cyber-criminals typically increase their activity in the first part of the year through phone scams and email phishing schemes. These scammers try to obtain personal information using different tricks and tactics so they can file income tax returns and claim refunds on behalf of unsuspecting taxpayers. Some scammers may also allege a taxpayer owes taxes and aggressively demand payment for…

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IRS Issues New Withholding Tables

The Internal Revenue Service released updated tax withholding tables for 2018 to reflect changes for the Tax Cuts and Jobs Act, amid warnings that the tables may not be accurate and will need further refinements. To see the updated tax withholding tables for 2018 please click on the following link: https://www.irs.gov/pub/irs-pdf/n1036.pdf Notice 1036 is only the first in a number of…

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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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What is Missouri Use Tax & Do I Need to File?

Sergio sits down and simplifies Missouri Use Tax.  He also answers if you need to file or not. Almost everyone knows what sales tax is, you can even ask my kids. In an effort to fight off the spending at Target and the dreaded $1 section (strategically placed just inside the entrance), I used sales tax as a learning experience…

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2017 Tax Organizer and Business Engagement Letters

Your Client Organizer is the important first step in analyzing your tax position for the year. It is designed to help you quickly and conveniently provide us with critical information in order to maximize your deductions and minimize the hassles. Follow the steps below to access and print your 2017 Client Organizer via our Client Center on our website! Step 1:…

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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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Taking Advantage of State Tax Deduction for 2017

Please be aware that pending tax legislation may limit deductbility of state income taxes in 2018 and forward. Accordingly, Rackers & Fernandez recommends to all of our clients that you pay any anticipated state liability and 4th quarter state tax estimated by December 31, 2017. An example of potential tax savings (for those not in Alternative Minimum Tax) is as…

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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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