IRS Penalty for Underpayments Soars to 8% – Gig workers and Consultants at Risk
The Internal Revenue Service penalty for tax underpayments has nearly tripled since 2021, putting gig economy workers and consultants at the largest risk of having to cough up big bucks to Uncle Sam. As of Oct. 1, the IRS will now charge 8% interest on estimated tax underpayments, up from 3% two years ago, according …
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Texas No Tax Due Report Discontinued Beginning With 2024 Report Year
If you are a business owner in Texas, recent changes in the franchise tax law will affect your filing obligations. The Texas Comptroller of Public Accounts has announced that the No Tax Due Report (Form 05-163) will be discontinued for the 2024 report year and beyond. This means that some businesses will no longer have …
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Careful…S-Corp Health Insurance Premiums Are Wages
In general, health and accident insurance premiums paid, on behalf of a greater than 2-percent S corporation shareholder-employee, are deductible by the S corporation. It is to be reportable as wages on the shareholder-employee’s Form W-2, subject to income tax withholding. A 2% shareholder-employee is eligible for an above-the-line deduction in arriving at Adjusted Gross …
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20% QBI Deduction? Likely Not for Expats.
Section 199A of the Internal Revenue Code was created by the Tax Cuts and Jobs Act (TCJA) signed into law in 2017. A provision of the law provides for a 20% deduction for so-called “qualified business income” (“QBI”). If a taxpayer can utilize the new law, the taxpayer can save a bundle in taxes. However, an American …
Charitable Write-Offs Have Their Limits
Claiming large charitable write-offs for clothing donations, without following proper procedures can be costly, relative to tax filings. A recent tax court decision defines the landscape. As shown in a new case, Bass, TC Memo 2023-41, 3/27/23, you must obtain an independent appraisal if the total value of your gifts exceeds an annual threshold. A …
New Austin, TX Location
The J.Rosio Tax Services Austin regional office has moved its location from Bee Cave, TX to within the city limits of Austin. New Office Location: 901 S MoPac Expy, Austin, TX 78746
