Are you aware of the tax breaks and loopholes that cost the IRS billions of dollars each year? The following areas are legal ways to keep your money and lessen the amount of tax that you send to the government each year.
When an employer provides health insurance as a benefit for its employees, the premiums that employer pays are one of the few compensations an employee is not taxed for. Over the next five years, the IRS will miss out on $760 billion tax dollars thanks to this little perk. Pension plans and retirement funds are tax-free until the worker takes out the money—estimated as costing the IRS an additional $548 billion over the next five years. Continue reading
Have you received a phone call from a person identifying themselves as an IRS employee, claiming you owe the IRS money? The IRS is warning taxpayers of a fraudulent phone call scheme, designed to trick you into wiring money to the scammers running it. Continue reading
Thousands of people holding security clearances are also tax cheats — a major problem considering that financial troubles are frequently considered a threat to national security. The reason? The farther in debt a person is, the more likely it is that they will turn to illegal activity to obtain needed funds. Russia has shown repeatedly that it is willing to pay cash for national secrets and has previously bought off former CIA and FBI agents. Continue reading
A New Jersey taxpayer requested a Letter Ruling regarding the New Jersey Sales and Use Tax Act in connection to dog sitting and dog training activities. Letter Ruling 2013-1-SUT is binding on the Division of Taxation and the taxpayer requesting guidance exclusively. Therefore, a Letter Ruling cannot be relied upon for precedent.
The taxpayer who requested guidance was a certified dog trainer that offered dog owners the following services: 1) instruction on how to properly handle their dogs; 2) dog sitting services; and 3) selling clients trained dogs that were purchased by the taxpayer. The taxpayer wanted to know if the foregoing services were subject to NJ Sales and Use Tax. Continue reading
In post-Hurricane Sandy months, residents along the New Jersey coastline should be concentrating on important things such as family and putting their homes and lives back in order. The last thing they should be spending their time worrying about is sales and use tax.
New Jersey residents, however, may be able to take advantage of certain provisions in the state’s sales and use tax when it comes to being excused from paying taxes for tangible personal property and services associated with disaster recovery efforts. Continue reading
For the past 20 years, online retailers have been exempt from collecting sales tax from customers who live in states where the retailer does not have a physical presence. While the preferential treatment was meant as a way to encourage retailers to expand their businesses by selling their products online, it has given online-only businesses an unfair advantage over brick and mortar stores. Continue reading