May 2018 Article Archives

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Phone Scams and Phishing Featured in 2018's Dirty Dozen Tax Scams

Published on May 03, 2018

The IRS released its updated 2018 list of the top 12, or “Dirty Dozen,” tax scams on Tuesday. Like last year’s list, the biggest story this tax season was phishing attempts, with all types of taxpayers, businesses, and tax preparers being targeted. Another one of the Dirty Dozen that has been in the news frequently this filing season is phone scams, with taxpayers getting threatening calls from criminals, as well as other schemes.

Here are the Dirty Dozen: 

1. Falsely padding deductions (IR-2018-54): The IRS described this tax scam as one in which unscrupulous tax return preparers overstate deductions including charitable contribution deductions, business expenses, and claiming credits that the taxpayer is not entitled to — e.g., the earned income tax credit (EITC) or the child tax credit. 

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The Cooperative Provisions Contained in the Proposed Section 199A "Fix"

Published on May 03, 2018

Today’s article focuses on how the modification would impact cooperatives. As you will see below, essentially Section 199A for cooperatives reflects Section 199 as we have known it for years. 

Section 199A(g) is expected to be amended as follows:

Applies to taxpayers that are an agricultural or horticultural cooperative (no other types of cooperatives will qualify).

Deduction is 9% of the lesser of qualified production activities income (QPAI) or taxable income for the taxpayer’s taxable year. The deduction is further limited to 50% of W2 wages.

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