The Internal Revenue Service (IRS) periodically reviews employers’ tax liabilities to determine appropriate federal tax deposit schedules. Recently, the IRS has been issuing Notice CP136 to inform employers of changes to their deposit requirements for Form 941, the Employer’s Quarterly Federal Tax Return. Understanding this notice is essential for maintaining compliance and avoiding potential penalties.
tax
Taxing “Climate Criminals”
Last week, we discussed how the 2017 tax cuts are scheduled to expire at the end of 2025—and how the election results make it likelier that Washington will extend them. Here’s the problem: it won’t be cheap. The Congressional Budget Office estimates extending the current rules will blow a $4 billion hole in the budget over the next 10 years, along with an unknown amount of higher interest payments on the new debt. That’s making life difficult for a new administration that also wants to eliminate tax on tips, overtime pay, and Social Security benefits, along with other giveaways.
Gaze Into Our Crystal Ball
As President Donald Trump’s first year in office drew to a close, Washington gave us the Tax Cuts and Jobs Act of 2017. That legislation reformed the system in conventional Republican fashion by broadening the base (subjecting more income to tax) and lowering rates. On the corporate side, they did this mainly by closing avenues to avoid tax on international income. On the individual side, they did it by raising standard deductions and eliminating or limiting personal deductions such as mortgage interest and state and local taxes.
Good News Bad News
Dying without a will is a great way for a celebrity to waste money on unnecessary taxes. It also means their assets can wind up with someone they never would have chosen. When Doors frontman Jim Morrison died at age 27, his estate passed to his wife, Pamela Courson. Just a few weeks after a court finalized her inheritance, she OD’d, with no will—and Morrison’s estate passed to her parents. Morrison’s mom and dad had to spend six years fighting in court for 50% of the Lizard King’s royalties.
There’s Gold in Them Thar . . . Hills?
It’s morning on January 24, 1848, and a sawmill operator notices some shiny flecks in the American River just downstream of his mill. The Gold Rush is on, and San Francisco explodes from a village of 200 to a boomtown of 36,000.
Nearly 200 years later, a new breed of San Francisco-area companies are mining a new form of gold. Except, instead of yellow metal, they’re digging for personal data. And state governments are still struggling to tax the boom. Two law school professors have just released a paper in the Notre Dame Law Review advocating one possible solution.
Their answer: a digital service tax like the one recently adopted in Maryland.
IRS Extends Tax Deadlines for Hurricane Helene Victims – Relief for Individuals and Businesses
In the wake of Hurricane Helene’s devastation across the Southeastern U.S., the IRS has announced significant tax relief for those impacted. If you’re a business or individual in Alabama, Georgia, North Carolina, South Carolina, or parts of Florida, Tennessee, or Virginia, here’s what you need to know. The IRS has extended various tax filing and […]