As was the case in prior years, some Forms W-2 for the 2017 tax year will contain a 16 character verification code in box 9 of the form. The IRS has requested that practitioners who see this code in box 9 of Form W-2 enter it into their tax preparation software for the applicable client recipient. However, entering the code is not required. This is a pilot program started by the IRS in ea...
A health savings account (HSA) allow taxpayers (or their employers) with high deductible health insurance plans to contribute funds on a pre-tax basis to the HSA for the purpose of paying future medical expenses. The dollar limit for contributions to HSAs for the 2018 tax year was announced in 2017. However, as part of the new tax law that was enacted on December 22, 2018, the inflation adju...
Important Reminder: 2017 Partnership Tax Returns are due on Thursday, March 15, 2018. Last year was the first year when partnership tax returns (Forms 1065) were due on March 15th, instead of the later due date that used to apply in earlier tax years. Some entities missed that due date for the 2016 tax year, and the IRS later provided special relief provisions for those who missed the new du...
The IRS has released its new withholding calculator, but tax professionals have likely already been using the withholding calculators available in their payroll and tax preparation software to estimate the withholding expected for clients during 2018. As discussed in an earlier post, it is essential for practitioners to project the 2018 tax liability for their clients using the new provisions ...
