tax return Archives | SF Tax Counsel

18Mar 2020 by Pat Geddie

The IRS Has Deferred 2020 Income Tax Payments by 90 Days. What Happens in 90 Days?

By Anthony Diosdi Treasury Secretary Steven Mnuchin recently announced that the Internal Revenue Service (“IRS”) is deferring income tax payments for the 2019 tax year by 90 days. Steven Mnuchin says that taxpayers will not be assessed interest and penalties on the late payments. According to Mnuchin, individuals can defer up to $1 million in federal taxes. Businesses can defer up to $10 million in federal taxes. The deferral is only available for tax payments. It does not permit the deferral of payroll taxes or estate and gift taxes. The announcement also does not impact estimated tax payment requirements. As of now, the income and corporate tax filing deadlines still have not pushed back. Although the announcement this is a step in the right direction. It does not go nearly…

12Mar 2020 by Pat Geddie

The Trump Administration will Likely Delay the April 15th Tax Filing Deadline in Response to the Coronavirus Outbreak

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By Anthony Diosdi The Wall Street Journal recently reported that in response to the coronavirus outbreak the Trump administration will most likely delay the deadline for filing individual income tax returns. At this point it is unclear how long the deadline would be extended or who would be eligible to delay the filing of their tax returns. The Trump administration plan may also waive penalties associated with not timely filing tax returns, penalties associated with not timely paying taxes, and interest associated with not timely paying tax liabilities. The details of this Trump administration’s plan are still being worked out. As more details are available, we will write a complex article discussing the details of the plan. Anthony Diosdi is a partner and attorney at Diosdi Ching & Liu, LLP…

06Jan 2020 by Pat Geddie

Tax Return Changes for 2020

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Every year, certain states or the IRS might make changes that impact the tax returns of certain households or businesses. The following are brief overviews of some changes taking place for 2020. Adjustments for Inflation Tax laws are adjusted based on inflation, and recent adjustments that will impact your returns include an increase in standard deductions ($200 for individual filers and $400 for joint returns), two percent increases in tax brackets, and an increased alternative minimum tax exemption. New Forms for Seniors In the past, people over the age of 65 used the same tax forms as younger adults. This year, the IRS has a new form for seniors over 65, which is the 1040-SR. This form has no maximum income limit, and it looks more like the older 1040A…

23Aug 2019 by Pat Geddie

Getting Divorced in 2019? Speak to a Tax Lawyer Before You Agree to an Alimony Order

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If two spouses get divorced and have a substantial income discrepancy, they may be subject to an alimony order. Until 2019, the individual paying alimony would get a tax break, as they could deduct the payments from their taxes to lower their liability. The spouse receiving alimony would pay taxes on the funds, though that tax rate was generally much lower because of their lower tax bracket. The Tax Cuts and Jobs Act significantly changed how alimony payments are taxed, effective for divorce agreements after December 31, 2018. It is highly important to discuss the implications of an alimony order with a tax lawyer in San Francisco before you sign an agreement. Reversing Tax Benefits Under the new law, the person paying the alimony no longer gets to deduct alimony…

15Apr 2019 by Pat Geddie

How Long Can the IRS Audit Your Tax Return?

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Many people are concerned about a possible IRS audit, as anyone can be audited, even without suspicions of misconduct. How long do you have to worry about a particular return being audited? It depends on the situation, and the following are some timelines for IRS audits. If you receive notice of an audit, you should immediately contact an experienced tax lawyer in San Francisco. Three years - Generally speaking, the IRS has three years from the due date of your returns to begin an audit. However, there are many exceptions to the three-year rule. Six years - If the IRS believes that your returns included at least a 25 percent understatement of income, it has six years to conduct the audit of those specific returns. For example, if you earned…