The IRS continues to ramp up suggestions and security to fight back against hackers. Recently, the IRS began to urge tax professionals to consider using ‘drive encryption’ in order to protect all the data stored on their computers. Drive encryption is one of the most secure ways a personal computer or smaller network can be protected. Drive encryption uploads software that attaches itself to every file and all the software on the computer, it then encrypts all the files to make them unintelligible to any unauthorized people. This comes as the IRS continues to enhance their compliance for paid tax preparers. To further their goals of taxpayer security, the IRS has released Publication 4557

People who pay close attention to the news may have noticed, the Supreme Court recently destroyed a previous ruling that set a physical nexus for a state to collect sales taxes from remote vendors. The decision of South Dakota v. Wayfair changed all that, the Supreme Court ruled that it was unrealistic and unnecessary to require a physical nexus in order for a state to tax a remote vendor. Instead of the physical nexus, South Dakota had implemented (as well as several other states) an economic nexus. The interesting part of the case and where the uncertainty lies, is that the Supreme Court has not actually specifically held that South Dakota’s law is valid. This is not to say the Court wo

Everyone remembers when the Tax Cuts and Jobs Act was rolled out in December, it was widely regarded as the largest tax reform in over thirty years. If you thought it was the end, it appears as though the TCJA was only the beginning. In June it was reported that Chairman of the House Ways and Means Committee, Kevin Brady, was planning on releasing a “phase two” tax reform outline in August. The exact time and date of the release remains to be seen, but Kevin Brady seemed optimistic about releasing the outline prior to the August recess. Brady stated that “phase 2” will be focusing more on the individual side of the tax code. Furthermore, the new act will have the target of making the piec

As the cost of schools and education increase, more parents are stuck wondering how they can afford to pay their children’s tuition. Should they start saving money? If they do what sort of account should they open? Luckily, the IRS has provided two types of plans that parents can use to save for their children’s future. The first type of plan is the Prepaid Tuition Plan. Prepaid tuition plans allow the account holder(typically parents or guardians) to purchase units or credits are the participating schools for the current price. This works to benefit the parents as the price of credits continues to raise, so investing sooner will save more money in the long term. An issue with this pla

Millions of people suffer from identity theft every year, it’s important to understand how you can avoid it and protect yourself. Previously, we’ve covered how tax-preparers can prepare and stay alert to protect their clients, but there are a procedures that the individuals can take as well. First, it’s important for taxpayers to make sure they are always logging onto secured websites that will protect their information. For instance, sites that use the https:// are providing a form of encryption for your data so it is significantly harder for hackers to view and steal your information as you put it in. Accordingly, if you decide to keep personal information on your computer, you should c

Recently, the House Budget Committee has approved a tool that Republicans could use for tax reform phase two. If the budget resolution is approved by both chambers of Congress, it would allow Congressional Republicans to approve tax reform phase two without Democratic support. The House Ways and Means Committee Chairman, stated that the outline for phase two could come as early as August. Furthermore, Majority Leader predicted they would be able to get the resolution passed before the midterm elections in November. The new resolution titled, A Brighter American Future, is a movement toward “pro-growth” provisions of the TCJA. Kevin Brady has insisted multiple times that the new resolution

As we reach the midpoint of the 2018 year, it is already time to begin thinking about next year’s tax season. Maybe not necessarily in terms of filing, but how about the pieces necessary to file such as ITINs (Individual Taxpayer Identification Numbers)? When it comes to submitting taxes, avoiding delays and filing with ease is of the utmost importance. In order to take full advantage and avoid delays, the IRS has instructed taxpayers with ITINs with middle digits of 73, 74, 75, 76, 77, 81, or 82 to renew their number even if they received the number in the last three years. The IRS is allowing taxpayers to renew for their entire family at the same time as well. For this reason, the IRS

As landlords there are several different ways tenants may choose to pay rent, they may pay monthly, yearly, or perhaps all at once. How do advance payments count when it comes to filing taxes? Do security deposits count under income or are they filed differently? These questions can be difficult to answer for new or experienced landlords, we’ll examine them shortly here. First, let’s consider advance rent. Advance rent is any amount of rent you receive before the period that it covers. You must include any amount that is received in that year’s tax form regardless if the rent is covered in that year or not. For instance, if you have signed a tenant to a two year lease and the tenant pa