McFarlane Law Tax Blog

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Remember: An extension to file is not an extension to pay taxes

For most taxpayers (including individual, businesses, and fiduciaries), the filing and payment deadline for their 2019 federal and state tax returns was postponed to July 15. Those who need more time to file beyond the postponed date (July 15) can request an extension to file and must request that extension to file by July 15. The federal extension gives taxpayers until October 15 to file their federal tax return.Taxpayers need to check with their individual state’s laws to determine the effect of an extension. In Arizona, a federal
Continue Reading The Honeymoon is Over – It’s Time to Think Taxes!

As you know, the deadlines to file and pay 2019 federal income taxes have been postponed to July 15, 2020. If you need more time to file taxpayers can request an automatic extension to file until Thursday, October. 15. Contact your tax professional for assistance. Taxpayers should remember that an extension of time to file is not an extension of time to pay. Penalties and interest may apply to taxes not fully paid by July 15.The post Have You Filed Your 2019 Tax Returns? appeared first on McFarlane Law.
Continue Reading Have You Filed Your 2019 Tax Returns?

As you know, the deadlines to file and pay 2019 federal income taxes have been postponed to July 15, 2020. If you need more time to file taxpayers can request an automatic extension to file until Thursday, October. 15. Contact your tax professional for assistance. Taxpayers should remember that an extension of time to file is not an extension of time to pay. Penalties and interest may apply to taxes not fully paid by July 15.The post Have You Filed Your 2019 Tax Returns? appeared first on McFarlane Law.
Continue Reading Have You Filed Your 2019 Tax Returns?

As we come out of the COVID-19 societal lockdown and you have significant tax problems to resolve, don’t be duped into giving money to non-tax professional outfits who claim to be “Tax Relief Experts.” Most times they will take your money but cannot resolve your tax issues. They do not have the expertise or relationships that are essential in efficiently resolving your tax problems. So, do not waste your money! Rather, call a local tax attorney who you can meet and depend upon.

We at McFARLANE LAW – A Tax Law Firm – T.991-991-0032 – are licensed attorneys who are
Continue Reading As Society Reopens, Don’t Be Duped by ‘Tax Relief Experts’

As we come out of the COVID-19 societal lockdown and you have significant tax problems to resolve, don’t be duped into giving money to non-tax professional outfits who claim to be “Tax Relief Experts.” Most times they will take your money but cannot resolve your tax issues. They do not have the expertise or relationships that are essential in efficiently resolving your tax problems. So, do not waste your money! Rather, call a local tax attorney who you can meet and depend upon.

We at McFARLANE LAW – A Tax Law Firm – T.991-991-0032 – are licensed attorneys who are
Continue Reading As Society Reopens, Don’t Be Duped by ‘Tax Relief Experts’

On a regular basis I get clients who have taken a distribution out of their qualified individual retirement account or retirement plan before reaching 59 ½ years of age (the time when you can take a distribution and be subject to the 10% penalty). They do this before informing their bookkeeper, CPA, or attorney of their intent. This can trigger an additional tax on top of other income tax they may owe.

Early Withdrawals. An early withdrawal normally is taking cash out of a retirement plan before the taxpayer is 59½ years old. The IRS charges a 10 percent penalty
Continue Reading I took an Early Withdrawal from my Retirement Account. Now what?

On a regular basis I get clients who have taken a distribution out of their qualified individual retirement account or retirement plan before reaching 59 ½ years of age (the time when you can take a distribution and be subject to the 10% penalty). They do this before informing their bookkeeper, CPA, or attorney of their intent. This can trigger an additional tax on top of other income tax they may owe.

Early Withdrawals. An early withdrawal normally is taking cash out of a retirement plan before the taxpayer is 59½ years old. The IRS charges a 10 percent penalty
Continue Reading I took an Early Withdrawal from my Retirement Account. Now what?

States are increasingly looking to audits and enforcement to raise much needed revenue, and Arizona is especially aggressive. The State is employing newly acquired technology and new audit methodologies to find delinquent or noncompliant business taxpayers. Auditors and supervisors are taking increasingly aggressive positions on tax matters and documentation requirements.

If this is a concern, or if you have been contacted by the ADOR, call
McFARLANE LAW – Your Tax Law Firm at T.480.991.0032

We represent businesses and individuals before the ADOR and all administrative levels, and before he Arizona Tax Court. We can help you better prepare for sales
Continue Reading Is your Business Subject to a Transaction Privilege (Sales) or Use Tax Audit?

States are increasingly looking to audits and enforcement to raise much needed revenue, and Arizona is especially aggressive. The State is employing newly acquired technology and new audit methodologies to find delinquent or noncompliant business taxpayers. Auditors and supervisors are taking increasingly aggressive positions on tax matters and documentation requirements.

If this is a concern, or if you have been contacted by the ADOR, call
McFARLANE LAW – Your Tax Law Firm at T.480.991.0032

We represent businesses and individuals before the ADOR and all administrative levels, and before he Arizona Tax Court. We can help you better prepare for sales
Continue Reading Is your Business Subject to a Transaction Privilege (Sales) or Use Tax Audit?

The Treasury Department and the IRS intend to propose regulations addressing the federal income tax treatment of certain payments made by taxpayers for which taxpayers receive a credit against their state and local taxes. The IRS does not like the fact that some state legislatures are trying to circumvent the tax deduction restriction.

Section 11042 of “The Tax Cuts and Jobs Act,” Pub. L. No. 115-97, limits an individual’s deduction under § 164 for the aggregate amount of state and local taxes paid during the calendar year to $10,000 ($5,000 in the case of a married individual filing a separate
Continue Reading The $10,000 Federal Tax Deduction Limit on Payments for State & Local Taxes

The Treasury Department and the IRS intend to propose regulations addressing the federal income tax treatment of certain payments made by taxpayers for which taxpayers receive a credit against their state and local taxes. The IRS does not like the fact that some state legislatures are trying to circumvent the tax deduction restriction.

Section 11042 of “The Tax Cuts and Jobs Act,” Pub. L. No. 115-97, limits an individual’s deduction under § 164 for the aggregate amount of state and local taxes paid during the calendar year to $10,000 ($5,000 in the case of a married individual filing a separate
Continue Reading The $10,000 Federal Tax Deduction Limit on Payments for State & Local Taxes

Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes changing the filing status and dependents, or correcting income, credits or deductions. What you may not know is that every amended return gets a set of eyes – this is different from filing your initial return, in which the computer scans the informational entries. By filing an amended return, you subject your return to a higher scrutiny, and therefore a greater likelihood that the return may be picked up for other items. So be aware of
Continue Reading Considerations for Taxpayers Who Need to Amend a Return

Taxpayers who discover they made a mistake on their tax returns after filing can file an amended tax return to correct it. This includes changing the filing status and dependents, or correcting income, credits or deductions. What you may not know is that every amended return gets a set of eyes – this is different from filing your initial return, in which the computer scans the informational entries. By filing an amended return, you subject your return to a higher scrutiny, and therefore a greater likelihood that the return may be picked up for other items. So be aware of
Continue Reading Considerations for Taxpayers Who Need to Amend a Return

The 2017 federal income tax-filing deadline has passed for most people who did not extend the filing date for the 2017 tax return. So, the people who still haven’t filed a return or an extension to file, and those who also haven’t paid their 2017 taxes (there is no extension permitted to late-pay the 2017 tax due) need to address their non-compliance. Failing to file a return (when required under the law) or pay the tax is a misdemeanor crime.

Didn’t file by April 18? There is no penalty for filing a late return after the tax deadline if a
Continue Reading Missed the 2017 tax return filing or payment deadline? Here is what you need to do

I am often asked, “how many years of records do I need to keep?” As a general rule, I advise clients to keep seven (7) years of tax records. Other records you may want to keep longer, for both tax and non-tax reasons. So, before you throw all of your tax documents up in the air to celebrate the passing of the 2017 Tax Season, put those documents and info in a safe and secure place.

The Three-Year and Six Year Limitations for the IRS to audit and assess more tax against you:

When we talk about tax documents, we’re
Continue Reading How Long Should I Maintain My Tax Records?

The Internal Revenue Service has updated the tax year 2018 annual inflation adjustments to reflect changes from the Tax Cuts and Jobs Act (TCJA). The tax year 2018 adjustments are generally used on tax returns filed in 2019, but it is good that you know about these changes now.

The tax items affected by TCJA for tax year 2018 of greatest interest to most taxpayers include the following dollar amounts:

  • The standard deduction for married filing jointly rises to $24,000. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,000; for heads of households, $18,000.
  • The


Continue Reading How Does the TCJA Effect the 2018 Tax Year Inflation Adjustments