Tax Matters - The Top Tax Defenders Blog

As a response to the disruption of COVID-19 precautions, the federal government issued an emergency declaration on March 13, instructing the Secretary of the Treasury to provide relief in the form of delayed tax deadlines.

The federal government loves to change the tax rules every year or so. Sometimes, it's in the taxpayers' favor. Some tax reform legislation provides for annual updates, so a new tax law remains in effect and creates changes automatically.

Yes, it’s that time again. Something called tax season, like it’s some sort of holiday.

Still, it is coming and, like every year before, we want to provide some tips to prepare for the 2020 tax season. Some of the advice will sound familiar, but it bears repeating. Some involves changes to the way the IRS and tax rules have evolved.

Telling people not to panic at the threat of an IRS audit is like telling a Kardashian to avoid self-promotion. It’s an impossible dream. Now the powers-that-be are saying the chances of an audit (even though they’re already pretty small) may increase in 2020.

In 2003, the IRS launched a program called Free File. Since then, it has served nearly 57 million taxpayers, saving them an estimated $1.7 billion. So why aren’t more people using it? Maybe a little lack of awareness and a little computer coding got in the way. Here’s what you need to know.

Holding profits in offshore tax havens isn’t a new thing. Any time a business or individual can find a way to lower taxes, they will do it. When those profits are kept outside of the US, they aren’t available or used to invest in the business. They just sit there. 

Every so often, the IRS itself is audited to make sure it’s following all the rules, regulations, and laws effectively and efficiently. Most businesses should do something similar to make sure nothing falls through the cracks. But when it’s the IRS, the results of resolving an audit issue can have ripple effects.

Sometime before the big, jeweled ball drops on January 1, 2020, you should take some time to maximize your tax savings, not only for 2019 but as a tribute to yourself for 2020. There are only a few weeks left. You need to fit it in between all the holiday prep and celebrations.

Well, 65 might be the new 50 to you, but to Uncle Sam, it means you're elderly. Embrace it! Being considered elderly could have a positive effect on your taxes, as in you may not need to pay as much in taxes as that 64-year-old whippersnapper.

Once again, in 2017, the federal government pledged to simplify the income tax code. And they did…sort of. The Tax Cuts and Jobs Act of 2017 had a lot to unpack. Some things changed. A few stayed the same. It’s a lot to digest, even after filing in 2019. Now seems like a good time to put some of the changes in tax law in one place, plus highlight a few items that differ for filing in April 2020.