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E-News - February 26, 2019 - Businesses: e-File Cash Transaction Reports, Be Prepared to Validate Identity if Contacting the IRS, and more

by MICPA | Feb 27, 2019   ()

Businesses: e-File Cash Transaction Reports
The IRS urges businesses that file reports of large cash transactions to take advantage of e-file. Federal law requires reporting of cash transactions of more than $10,000 on IRS Form 8300. The information on the form helps law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities.
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Be Prepared to Validate Identity if Contacting the IRS
The IRS is requiring certain verification of identities during phone calls in an attempt to prevent tax fraud. Taxpayers and tax professionals must have the required verification in order for the IRS to answer questions regarding certain tax items. By law, the IRS telephone assistors will only speak with the taxpayer or the taxpayer’s legally designated representative.
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New IRS Data: Average Tax Refunds Down 16.7 Percent
Tax refund news only got worse when the IRS reported a 16.7 percent drop in average federal refunds so far this year, according to the Detroit Free Press. A weekly report, released after regular business hours last Friday, showed that the average refund was $2,640 for the first three weeks of tax season. The statistics are cumulative from the start of tax season Jan. 28 through Feb. 15. That compares to $3,169 a year ago through Feb. 16, 2018.
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Interest Rates Remain Same for the Second Quarter of 2019
The IRS announced that interest rates will remain the same for the calendar quarter beginning April 1, 2019, as they were in the first quarter of 2019.
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Taxpayers Will File QBI Deduction Computation with IRS Next Year
The IRS posted a draft of a form that certain taxpayers will submit with their 2019 tax returns showing how they computed their qualified business income (QBI) deduction under Sec. 199A. The Journal of Accountancy explains that taxpayers who have QBI, qualified real estate investment trust dividends, or qualified income from a publicly traded partnership will use Form 8995, Qualified Business Income Deduction Simplified Computation, to report the computation.
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AICPA Makes Recommendations on Proposed Regulations to Implement TCJA Limitations on Deduction of Business Interest Expense
The AICPA’s suggestions in a letter to Treasury and IRS cover a range of topics, including definition of interest and application of changes to consolidated groups, partnership items and international tax items.
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IRS to Focus More on Tax Compliance for Gig Economy Workers
The IRS is being urged to focus more on improving self-employment tax compliance as the so-called “gig economy” continues to expand. Accounting Today says a new report from the Treasury Inspector General for Tax Administration pointed to the importance of the IRS providing accurate guidance and notices about self‑employment tax obligations. The gig economy has been expanding as services such as Uber, Lyft, Airbnb and Handy sign up people to provide services such as driving cars and renting out rooms. But with many of the workers treated as self-employed, it’s up to them to handle tax withholding and compliance.
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What's Your Fraud IQ?
Can you spot the warning signs of contract and procurement fraud, which poses risk to most organizations? Take this Journal of Accountancy quiz and find out.
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55 Percent of C-Suite Execs Uncertain of Ability to Catch Financial Errors
Not only is there evidence of a disconnect between C-suite respondents and finance professionals when it comes to confidence in the accuracy of financial data, but nearly seven in 10 respondents believe that their organization has made significant business decisions based on inaccurate data. CPA Practice Advisor reports on a recent study that says many identified this as a hidden problem, with over a quarter stating concern over errors that they know must exist, but of which they have no visibility.
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Most CFOs Rely on External Support for Major Initiatives
In the face of rapidly changing market demands, companies frequently look outside their organization for immediate and specialized help, new research shows. A Robert Half Management Resources survey found nearly seven in 10 CFOs (69 percent) work with external resources, often in combination with internal staff, for major one-time business initiatives, such as a merger, acquisition or regulatory compliance transition.
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The Evolution of Expense Management
Even with the latest and greatest technology, travel and expense management is one area that remains ripe for fraud. While most employees would never dream of stealing from their employer, there are those that seem to lose their moral fortitude when completing an expense report.
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How to Afford Long-Term Care
You’ve heard it before: long-term care costs can shatter your retirement nest egg. The average cost of a private room in a nursing home is more than $100,000 per year, and the average amount of time people need some kind of long-term care is about three years. Kiplinger examines the options ranging from conventional coverage to tapping your life insurance benefits.
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MICPA+ Highlight: HR Critical Risks – How Prepared Are You?
Today's dramatically shifting business, regulatory and demographic landscape continues to challenge business leaders and HR professionals. As companies seek to protect their bottom line, they need to uncover potential HR compliance problems before they arise, leaving them vulnerable to the increasing number of federal and state department audits and the respective hefty fines. Contact QuadWest Associates to learn more and take advantage of a free one-hour consultation – call 248.590.2079!
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Source: MICPA
Source: MICPA

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