Monthly Archives July 2016

Most gifts are not subject to the gift tax. There is usually no tax when: –you give a gift to your spouse –you give a gift to a political organization for its use –you give a gift to a qualified charity –your gift to anyone besides your spouse or dependent does not exceed the annual exclusion –you’ve paid tuition or medical expenses directly to an educational institution or medical facility for anyone that you don’t claim as a dependent on your tax return (If you pay tuition or medical expenses for yourself, a spouse, or a dependent, you may be
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Employees may be able to deduct the amount of work-related expenses when they purchase items required for their job and they are not reimbursed for those expenses. Amounts spent on work-required expenses that are over two percent of an employee’s adjusted gross income may be deducted as an employee business expense. Schedule A is used to claim employee business expense deductions on individual tax returns.  Records such as receipts, cancelled checks, and credit card statements must be kept to prove the expenses that are deducted. Some costs that employees may be able to deduct include uniforms and other required work clothing
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Effective July 1, 2016, the Internal Revenue Service  lowered the application fee for organizations with annual gross receipts of $50,000 or less or assets of $250,000 or less to apply for 501(c)(3) tax exempt status.  The application fee is being lowered from $400 to $275. Organizations who meet income and asset requirements may use Form 1023EZ, to apply for 501(c)(3) tax exempt status. The $275 fee may be submitted through www.pay.gov. The IRS introduced Form 1023EZ in 2014 to streamline the process for small organizations to apply for tax-exempt status under Section 501(c)3 of the Tax Code.
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Happy 4th of July!  We are blessed to live in the USA.  As Americans we enjoy many freedoms and protections.  The Taxpayer Bill of Rights is listed below: The Right to Be Informed Taxpayers are entitled to clear explanations of the laws and IRS procedures on all tax forms, instructions, publications, notices and correspondence. Taxpayers have the right to know what they need to do to comply with tax laws. Taxpayers have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes. The Right to Quality Service Taxpayers have the right
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