Items You May Want to Discuss with Your Tax Preparer
By Charles M. Meadows, Jr. and Anthony P. Daddino on March 25, 2019
- Does the taxpayer have investments in cryptocurrency which resulted in taxable transactions in 2018 or reportable accounts requiring a “yes” answer to having a foreign account because of the situs of the exchange?
- Did the taxpayer make taxable gifts in 2018 or for transfers for value, should he/she file zero-gift tax returns to start the statute of limitations running on the ability of the IRS to challenge the valuation of the gifts?
- Is the taxpayer required to make disclosures on his/her tax return because of certain investments outside the United States made in 2018?
- Should the taxpayer consider additional wealth succession planning because of the increased transfer tax exemptions relating to gifts, estates and generation-skipping transfers and the possibility that those may be changed in the future?
- Were there any transfers of stock in S Corporations in 2018 which created the need for inadvertant termination relief? Does the taxpayer qualify for automatic relief from the IRS?
- Did the taxpayer’s marital status change in 2018? Are there any innocent spouse issues?
- Is the taxpayer’s business structured in a way to maximize the 20% qualified business income deduction under new Code Section 199? Did the taxpayer pay sufficient wages to avoid statutory caps on the deduction?
- Should the taxpayer opt-out of the new partnership audit rules whereby the IRS collects deficient taxes directly from the partnership, and if so, has a proper election on the partnership tax return been made.
Tax preparation time is a good time to discuss your financial situation with your Tax Advisor.