IRS to Launch New Digital System to Spot Frivolous Tax Returns

The IRS is about to launch yet another digital system designed to spot “frivolous” tax returns after the last several systems let too many bogus claims through, according to a recent tax audit released this month. The tax agency had thought it had solved the problem when it moved to a new system in 2012, but there was a major drop in…

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2017 Tax Reform: Anticipated Trump Tax Cut Accelerating Debt Limit Showdown

As reported by Reuters, the U.S. Congress may be headed for a reckoning with the federal debt limit sooner than expected, thanks to wealthy Americans and corporations deferring tax payments in the hope that they would benefit from the lower tax rates promised by President Trump. This article examines the tax revenues received this year and a number of ways…

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Missouri Refund Status

State tax refunds were due back last week — June 2, to be precise — to every Missouri resident who filed by the April 18 Tax Day deadline. But according to Missouri State Auditor Nicole Galloway, more than 1,000 people have called her office’s whisteblower hotline with complaints about accessing their refunds. “They report long wait times, disconnected calls, the…

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Rising Student Loan Interest Rates Will Hurt Taxpayers

Interest rates on federal student loans will rise slightly next year. Loans to undergraduates issued in the 2017-18 academic year will be 4.45%, up from 3.76% currently. Rates on standard loans to graduate students will rise to 6%, while rates on PLUS loans to graduate students and parents will reach 7%. While all of these rates represent an increase from the current…

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St. Louis City Minimum Wage Law

The City’s minimum wage law is effective May 5, 2017. Covered employers are required to pay their employees $10.00 an hour, which will increase to $11.00 an hour on January 1, 2018. Information regarding exemptions, notice requirements, complaints and other details are available on the links below. Inquiries may also be directed to the City’s Minimum Wage Compliance Section by…

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Be Prepared to Validate Identity When Calling the IRS

IRS has issued some tips regarding taxpayer phone calls to IRS, including what information callers need to be able to provide to IRS call center assistors to validate their identity. Noting that mid-February marks the agency’s busiest time of the year for telephone calls, IRS has passed along the following tips regarding phone calls: Validating your identity. Callers should have…

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5 Questions that Remain on Trump’s Estate Tax Plan

Estate Tax Here To Stay? President-elect Donald Trump has promised to introduce a tax plan that includes estate tax repeal as a priority in his first 100 days, however several questions must be addressed before repeal becomes reality. 1. Will repeal occur? The most important question is whether estate tax repeal will actually occur, and if so, will it be…

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Social Security Wage Base Increases 7% for 2017

The Social Security Administration (SSA) recently announced a 2017 cost-of-living adjustment for the Social Security taxable wage limit. The maximum amount of earnings subject to Social Security tax for 2017 will increase by 7% to $127,200 from $118,500 in 2016. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed workers. The first one is for…

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2016 Tax Developments

Interest Expenses, Taxes & Losses • IRS agrees that the qualified residence interest $1 million acquisition indebtedness limitation and the $100,000 home equity debt limitation are applied on a per-taxpayer basis rather than a per-residence basis. • The treatment of mortgage insurance premiums as qualified residence interest was extended through 2016. • Real property taxes may be deducted under a…

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Standard Mileage Rates Down for 2017

The IRS issued Notice 2016-79, updating optional standard mileage rates for business, charitable, medical or moving purposes. As of Jan. 1, 2017 the standard mileage rates for the use of a car, van, pickup or panel truck are as follows: 53.5 cents per mile for business miles driven (down from 54 cents for 2016) 17 cents per mile driven for…

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