Posts Tagged "statute of limitations"

Same-sex Couples Deemed Married for Federal Tax Purposes

Posted on Jun 13, 2018

The U.S. Treasury Department and the IRS issued ruling as a direct result of Supreme Court action regarding same-sex couples. In short: Under the ruling any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, or a U.S. territory that recognize same-sex marriage will be treated as married for all federal tax purposes. This includes: •filing status •personal deductions •dependency exemptions •standard deductions •employee benefits •tax credits •retirement plans and contributions More importantly, this ruling applies regardless of where the same-sex couple currently lives. The ruling applies to originally being married in jurisdictions that legally recognize their marriages. Other things to note: Beginning in 2013, same-sex couples within this ruling must file either married filing jointly or married filing separately. You may no longer file as a single taxpayer. You may choose to, but are not required to, file amended tax returns as being married for any prior tax years that are still open under the statute of limitations. This usually means three tax years. This ruling DOES NOT apply to registered domestic partnerships, civil unions or similar formal relationships. If you paid for same-sex health insurance coverage from an employer in after-tax dollars you may be able to shift these premiums into pre-tax dollars. State laws are more complex and are currently evolving so try to keep informed of any new developments on this front. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Tax records: What should you keep, and what can you toss?

Posted on May 31, 2011

Is your file cabinet overflowing? Do you hesitate to purge tax information because you’re not sure what to keep and what to discard? Here’s a quick guide to help you cut through the clutter. * Assets. Keep brokerage confirmations, equipment purchase invoices, mutual fund statements, and real property closing statements a minimum of seven years after you report the final taxable sale of the asset on your return. * Expenses. Substantiation for deductions includes charitable donation acknowledgments, receipts for employee business expenses, and automobile mileage logs. Retain these at least seven years after you file the return claiming them. * Income. The same seven-year rule also generally applies to common tax forms such 1099s showing interest, dividend, and capital gains from banks or brokerages, and Schedule K-1s from partnerships and S corporations. However, the IRS recommends holding on to your W-2s until you start collecting social security. Tip: Shred interim income reports once you’ve compared the totals to annual forms. * Retirement accounts. You may have to calculate the taxable portion of distributions, so keep records detailing your contributions until you’ve recovered your basis. * Tax returns. The statute of limitations is usually three years but can be six years if underreported income is involved. In cases of fraud or when no return is filed, the IRS has an indefinite time period for assessing additional tax. As a general rule, keep federal and state returns a minimum of seven years. For additional information, including how long you should store business papers and payroll reports, please call. We’ll be happy to help you establish a records retention...

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