There may be as many as 9 million Americans who are living abroad. Those who have overseas bank accounts of $10,000 or more need to declare them to the IRS. This could also be the case for those living in Georgia or elsewhere in America who have money in overseas accounts. Those who believe that they have run afoul of reporting guidelines may participate in a voluntary disclosure program.
The Tax Cuts and Jobs Act (TCJA) will have an impact on those who are retired as well as those who are still working. Retirees in Georgia who receive pension or annuity checks must generally pay income taxes on those earnings. While many choose to have taxes withheld on their behalf, others decide to receive the full amount of each check. This means making quarterly tax payments directly to the IRS.
Georgia residents and others who owe a significant tax debt could be in danger of losing their passport. If the IRS determines that a person is trying to evade paying taxes or leave the country to avoid paying taxes, it will notify the State Department. At that point, the State Department will then either not issue a passport or decline to renew one that a debtor already has.
Georgia residents and others who are making student loan payments may struggle to contribute to a 401(k) plan. However, one company recently received permission from the IRS to make contributions on an employee's behalf. It is believed that the company that offers this benefit is a health care company called Abbot. To qualify, an employee must make student loan payments equal to 2 percent or more of his or her yearly salary.
S corporations have in recent years seen increasing popularity as the choice by many Atlanta, Georgia small business owners for the type of corporation they will establish for federal tax purposes. Although both the traditional C corporation and the S corp establish a separate entity and provide limitations on liability, the primary difference between the two is in how they are taxed.
When the Internal Revenue Service issues a summons to a taxpayer in Georgia or third-party performing services for taxpayers, the document represents a serious request for information. Failure to comply with a summons for information could prompt the federal government to file a lawsuit against the person or organization. Although a party might have a good reason to resist disclosing information, the chances of gaining a favorable ruling in court against the IRS are low.
Revamped rules governing small business taxes may result in tax breaks for Georgia business owners. The Internal Revenue Service has proposed regulations that shed light on the qualified business income deduction, including which company owners might be able to claim the deduction. According to the rules, many small business owners can take a deduction of 20 percent of qualified business income.
For roughly 50 years, the Johnson amendment has prohibited nonprofit organizations in Georgia and throughout the country from engaging in political campaigns. However, the House of Representatives voted to prevent the IRS from taking away the tax-exempt status of any church that supports a political candidate. The head of the National Council of Nonprofits was critical of the rule and said that it could erode the trust people have in nonprofit entities.
Some tax-exempt organizations in Georgia and across the country may no longer need to comply with some reporting requirements under guidance released by the IRS and the Treasury Department in July. Every year, charitable organizations that have a tax exemption under section 501(c)(3) must give the IRS the names and addresses of their large donors. Other types of organizations, like 501(c)(4) membership groups, also have to provide this information to the tax agency. While the information is expected to remain private, it has been exposed to the public on previous occasions.
The demand for unpaid taxes understandably strikes fear into some Georgia residents. Unfortunately, scammers use this emotional response to trick people into handing over their money. Although people need to take legitimate notices from the Internal Revenue Service seriously, the agency routinely issues warnings about scammers who try to pressure people into paying fake taxes. In general, the IRS informs people about real tax issues through the U.S. Postal Service. The agency issues paper bills for amounts owed, and people have a right to appeal tax bills. People also have the option to pay their taxes by check, debit or credit card. Checks would be mailed to a U.S. Department of Treasury address, and credit or debit payments would be made with select processors at the agency's website.