IR-2018-211

401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.  The IRS today issued technical guidance detailing these items in Notice 2018-83. Highlights of Changes for 2019 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000.
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Tips for Charitable Organizations Applying for Tax-Exempt Status

The IRS published Tax Tip 2018-138 with information for charitable organizations applying for tax exempt status. Charitable organizations should apply for tax-exempt status from the IRS.  In order to apply, a determination must be made as to its type:  trust, corporation or association. Once the determination has been made, there are three additional steps: 1. Gather organization documents: Each application for exemption except Form 1023-EZ  must be accompanied by an exact copy of the organization’s  organizing document.  This is generally one of these: Articles of incorporation for a corporation Articles of organization for a limited liability company Articles of association or constitution for
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2018 3rd Quarter Estimated Tax Payments

2018 3rd Quarter Estimated Tax Payments are due on September 17, 2018.  Instructions and a payment voucher can be found here.  Checks should be written to the United States Treasury with Form 1040-ES listed on the memo line along with the taxpayer’s social security numbers. When to Pay Estimated Taxes: Payment Period Due Date January 1 – March 31 April 15 April 1 – May 31 June 15 June 1 – August 31 September 15 September 1 – December 31 January 15* of the following year.
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Tips For Creating Strong Passwords

The IRS published Tax Tip 2018-129 to help tax professionals create strong passwords but the advice is good for all taxpayers to use to protect their data.  The list below is from the IRS and you can read the full tax tip by clicking here. Opt for a multi-factor authentication process when available. Many email providers now offer customers two-factor authentication protections to access email accounts. Use word phrases that are easy to remember rather than random letters, characters and numbers that are harder to remember. By using a phrase, preparers don’t have to write down the password, which exposes it to more
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Withholdings and the Tax Cuts and Jobs Act

The IRS has published several tax tips concerning withholdings and the new tax law.  Links for information about specific situations are below: Tax Payers With High Incomes And Complex Returns Taxpayers With Dependents Who Can’t Be Claimed For The Child Tax Credit Taxpayers With Children And Other Dependents  
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