How Does the IRS Contact Taxpayers?

From the IRS | IRS Summertime Tax Tip 2017-14 | August 2, 2017

When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. The IRS doesn't normally initiate contact with taxpayers by email, nor does it send text messages or contact through social media channels.
Read more ...

Tips to Know for Deducting Losses from a Disaster

From the IRS: Summertime Tax Tip 2017-01 | July 5, 2017

The IRS wants taxpayers to know it stands ready to help in the event of a disaster. If a taxpayer suffers damage to their home or personal property, they may be able to deduct the loss they incur on their federal income tax return. If their area receives a federal disaster designation, they may be able to claim the loss sooner.

Ordinarily, a deduction is available only if the loss is major and not covered by insurance or other reimbursement.

Here are 10 tips taxpayers should know about deducting casualty losses:
Read more ...

Reduce Certain Summertime Costs with the Child and Dependent Care Tax Credit

From the IRS | IRS Summer Tax Tip 2017-05 | July 12, 2017

Many parents send their children to summer day camps while they work or look for work. The IRS urges those who do to save their paperwork for the Child and Dependent Care Tax Credit. Eligible taxpayers may be able to claim it on their taxes in 2018 if they paid for day camp or for someone to care for a child, dependent or spouse during 2017.
Read more ...

IRS Cautions Taxpayers to Watch for Summertime Scams

From the IRS | IR-2017-112 | June 26, 2017

The Internal Revenue Service issued a warning that tax-related scams continue across the nation even though the tax filing season has ended fo rmost taxpayers. People should remain on alert to new and emerging schemes involving the tax system that continue to claim victims.
Read more ...

City of Philadelphia Department of Revenue Announces Wage Tax Reduction for July 1, 2017

The City of Philadelphia has reduced the City Wage Tax rate effective July 1, 2017. The new Wage Tax rate for residents of Philadelphia is 3.8907% (previously 3.9004%). The new Wage Tax rate for non-residents of Philadelphia who are subject to the Philadelphia City Wage Tax is 3.4654% (previously 3.4741%).

Employee or Independent Contractor? Know the Rules

From the IRS | Tax Tip 2017-02 | May 1, 2017

The IRS encourages all businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor.

An employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Employers normally do not have to withhold or pay any taxes on payments to independent contractors.

Here are two key points for small business owners to keep in mind when it comes to classifying workers:
Read more ...