« Worker Misclassification Audits | Main | Tax Relief for Innocent Spouses »

November 09, 2018

IRS Publishes New Guidance on TCJA and Tips for Filing

Tax-cuts-and-jobs-act

    As tax attorneys in Columbus, Ohio, Nardone Limited routinely assists businesses with representation in tax examinations, audits, appeals, and civil litigation with the Internal Revenue Service (the “IRS”) and the Ohio Department of Taxation. As part of that representation, our tax attorneys keep individuals and businesses informed about new information and guidance provided by the IRS. As a follow-up to our prior blog article on posted non October 19, 2018, this article explores how to properly prepare for the new tax changes as a result of The Tax Cuts and Jobs Act (“TCJA”).

Publication 5307

    On October 30, 2018, the IRS published a news release informing taxpayers that it published new information—IRS Publication 5307 (the “Publication”)—that will help taxpayers learn how the tax reform affects their taxes, as well as tips for filing their 2018 tax returns. IR-2018-209. This news release is part of a series of information provided by the IRS regarding the effects of the TCJA. The Publication contains information about (i) increasing the standard deduction, (ii) suspending personal exemptions, (iii) increasing the child tax credit, and (iv) limiting or discounting certain deductions. In addition to the Publication, the IRS also indicated that it recently updated a special page on its website dedicated to helping taxpayers understand the tax changes. This page highlights information taxpayers should be aware of and provides tips to taxpayers before they file their 2018 tax returns.

Tips for Filing 2018 Tax Returns

    Because taxpayers are adjusting and responding to the TCJA for the first time, it is important for taxpayers to prepare in advance before filing their 2018 tax returns. The IRS warns taxpayers that refunds may be different in 2019 than in previous years, and that some taxpayers may even owe money this year. In order to avoid surprises or delays as it relates to filing tax returns for 2018, the IRS offers the following advice to taxpayers.

  1. IRS Withholding Calculator. If taxpayers are unsure or concerned that they may have a tax bill after filing their 2018 tax returns, they should perform a “paycheck checkup.” Taxpayers can use the IRS Withholding Calculator located on the IRS website. This tool will provide taxpayers guidance on whether they need to adjust their withholding or make estimated or early payments.
  1. Documents. Before filing their taxes, taxpayers should ensure that they have all of the necessary documents, and that all of those documents are complete. Filing before the taxpayer has gathered all of the necessary documents could result in the taxpayer having to file an amended return, which could significantly delay the taxpayer in receiving a tax return.
  1. E-File. Electronic filing is the most efficient and easiest way to avoid errors. The IRS indicated that it has been working with tax preparers to ensure that the new tax law changes are incorporated into the tax filing systems.
  1. Direct Deposit. In order to avoid delays in receiving tax refunds, the IRS suggests having the refund directly deposited into the taxpayer’s bank account, as opposed to having it sent via mail. This, in conjunction with electronically filing, is the fastest way for the taxpayer to get their refund.
  1. Renewing ITIN’s. Taxpayers who file using an expired Individual Taxpayer Identification Number (“ITIN”) are likely to experience processing delays. ITIN’s may expire in two ways: (i) the taxpayer has not used their ITIN on any tax return for years 2015, 2016, or 2017; or (ii) the ITIN has a middle digit of 73, 74, 75, 76, 77, 81, or 82. To avoid delays, expired ITIN’s should be renewed before the end of the year.

    Taxpayers should already be considering how the TCJA will affect their 2018 tax returns. Ensuring that you are up to date on the latest details and guidance regarding issues that may affect you or your business are necessary in order to avoid penalties or delays. If you or your business need guidance on navigating the TCJA and its affects, it is important that you seek guidance from a legal professional experienced in tax matters.

Contact Nardone Limited

    Nardone Limited represents employers with federal tax issues, including changes as a result of the TCJA. If you are unsure how the TCJA will affect you or your business, you should contact an experienced tax attorney before filing your taxes. Nardone Limited’s tax attorneys and professionals are well experienced with representing businesses regarding federal tax issues. Contact us today for a consultation to discuss your case.

Please view the site disclaimer regarding the advice on this blog.

Comments

The comments to this entry are closed.

« Worker Misclassification Audits | Main | Tax Relief for Innocent Spouses »

November 09, 2018

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.

-->