Taxpayers should be on the lookout for a new, email-based phishing scam now circulating that targets Department of Defense military members, retirees, and civilian employees. The email appears to come from Defense Finance and Accounting Services and displays a .mil email address. The email states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. Email recipients are then asked to send various VA and IRS documents containing their personal and financial information, such as copies of VA award letters or their income tax returns, to an address in Florida. The information on these documents is then used by the scammers to commit identity theft.
The IRS offers resources for business owners and taxpayers who believe they have received an email scam, or have experienced identity theft. Click here to view the resource page.
Link for resource page http://www.irs.gov/newsroom/article/0,,id=155682,00.html
A woman who ran a cash-intensive massage therapy business at home failed to file tax returns and did not cooperate with the Internal Revenue Service during an audit. IRS reconstructed her income relying on the income she listed on a credit application she filed with a bank.
The Tax Court sided with the IRS.
GOOD NEWS FOR RESTAURANTS AND RETAILERS!!
IRS says in new guidance meant to settle a long standing argument that these businesses are able to now deduct 75% of remodeling costs. Many eateries and stores remodel their premises every five to 10 years to keep up with trends and make the property look new and modern. At an audit, disputes would arise as to which costs of remodeling should be deducted immediately and which need to be capitalized and depreciated over time. Now, under a safe harbor, 75% of the remodeling cost can be written off as repairs and 25% are capitalized.
See Rev.Proc 2015-56 for details including a list of qualifying remodeling activities.
Sal Censoprano is a Certified Public Accountant (CPA) and tax practice owner for over 40 years. He was born and raised in Brooklyn, New York and earned his master’s degree in taxation.