A captive insurance company is one that is created by a business as protection against certain risks. And, Section 831(b) of the Internal Revenue Code allows certain small insurance companies the option of paying tax on only their investment income. There are other tax advantages to captives, as well. It’s perfectly legal and quite commoncontinue reading…
Received a lawsuit award or settlement? You could owe taxes
If you’ve won or settled a lawsuit this year, you need to be aware that some kinds of awards and settlements are taxable. Moreover, you will be taxed on the entire award or settlement, even though 30% or 40% may have gone to your lawyer. The Tax Cuts & Jobs Act increased the tax ratecontinue reading…
The rules for claiming disaster losses changed with tax reform
If you’re a Minnesota snowbird, you may have been watching Hurricane Dorian with special attention. Was your second home or vacation property damaged? Or, you may have a farm or agricultural property that was damaged in the spring flooding. Either way, you might have a casualty loss deduction to claim on your federal tax return.continue reading…
Too much tax debt and you could lose your passport. Act now.
Many people don’t realize that they could lose their passports if they are found to be seriously delinquent in their tax liabilities. This is a relatively new penalty for nonpayment that was created under the 2015 Fixing America’s Surface Transportation Act (FAST Act). The Act requires the IRS to certify seriously delinquent debts to thecontinue reading…
Got an unsolicited email claiming to be from the IRS? It’s not.
The IRS doesn’t send unsolicited emails at all, and it certainly doesn’t email taxpayers about the status of their refunds. That’s the first thing you need to know if you receive an email that looks like it came from the IRS. The agency and its Security Summit partners just announced a new email phishing scamcontinue reading…
