A Smarter Way to Donate Qualified Charitable Distributions (QCDs

Qualified Charitable Distributions (QCDs May people donate cash to charity, but QCDS are much more tax efficient way to donate if you qualify. Under the TCJA a QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as, certain rules are met. In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact

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MillerMusmar CPAs Participates in Greater Reston Chamber of Commerce Business-to- Government (B2G) Matchmaking Event

  MillerMusmar Platinum Sponsor in Greater Reston Chamber of Commerce Business-to-Government (B2G) Matchmaking Event Reston, Virginia – April 4, 2019: MillerMusmar CPAs, is proud to be the Platinum sponsor of the 7th Annual Northern Virginia B2G Matchmaking Conference and Small Business Expo. This is a unique opportunity for government contractors to meet and mingle with procurement and small business liaison officers from federal, state, and local government agencies. Designed for emerging to mid-size government contractors, this will be an event that government contractors will want to attend with their entire business development team. The B2G Matching Conference and Small

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General Assembly, Governor Strike Conformity Deal

The shifting saga of tax conformity appears to be coming to a close. A positive resolution appears to be in sight in the form of a deal between both parties and the Governor’s administration that would conform Virginia’s tax code with the U.S. Internal Revenue Code effective Dec. 31, 2018. HB 2529 and SB 1372 passed their opposite chambers and are on track to reach the Governor’s desk by the end of this week after the amendments are affirmed in their chambers of origin. The bills are identical, and each contains an emergency clause, meaning they will take effect

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Foreign Financial Asset Reporting Guidance Matrix Form 8938 and/or FBAR for Filings

Published  February 11, 2013, by G.F. Joey Musmar, Managing Partner MillerMusmar CPAs/ AICPA This table can help you identify which foreign financial assets and accounts must be disclosed for 2011 on: Form 8938, Statement of Specified Foreign Financial Assets; Form FINCEN114, Report of Foreign Bank and Financial Accounts (commonly referred to as FBAR); or, Both Form 8938 and Form FINCEN114. The table is based on information and FACTA guidance available as of September 1, 2018. Footnotes:  1 The data presented in this table is based on statutory language and final instructions to final Form 8938 for 2011, as well

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Certain Fringe Benefits Provided by Not-for-Profits May Be Considered Taxable Income

TCJA, also known as the Tax Cuts and Jobs Act of 2017, contains changes to fringe benefits that may impact not-for-profit organizations significantly, resulting in unexpected tax liabilities. One of the most impactful changes is that certain employer-provided fringe benefits are now considered unrelated business income (UBI), which is subject to income tax at the organizational level. Fringe Benefits Classified as UBI As of January 1, 2018, the following fringe benefits are classified as UBI: Qualified transportation benefits. These include commuter vehicle and vanpooling as well as transit passes and vouchers for mass transit, such as buses and trains.

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IRS Backup Withholding Tax Rate Changes to 24%

The IRS has announced a change to the backup withholding rate, as a result of the recent tax reform law. IRS Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s), posted last month on IRS.gov, has been updated to reflect a key change made by the Tax Cuts and Jobs Act (TCJA). Because of this change, effective Jan. 1, 2018, the backup withholding tax rate dropped from 28 percent to 24 percent. In general, backup withholding applies in various situations including, but not limited to, when a taxpayer fails to supply their correct taxpayer identification number (TIN) to a

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New Employer Tax Credit for Paid Family & Medical Leave

  The IRS has announced that eligible employers who provide paid family and medical leave to their employees may qualify for a new business credit for tax years 2018 and 2019. In addition, eligible employers who set up qualifying paid family leave programs or amend existing programs by Dec. 31, 2018, will be eligible to claim the employer credit for paid family and medical leave, retroactive to the beginning of the employer’s 2018 tax year, for qualifying, leave already provided. In Notice 2018-71  the IRS provided detailed guidance on the new credit in a question and answer format. The credit

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District of Columbia Tax Rates Changes Take Effect Monday, October 1

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) reminds tax professionals, software providers, businesses, and others about tax rate changes that will take effect on Monday, October 1, 2018. The changes will apply as required by the Fiscal Year 2019 Budget Support Emergency Act of 2018 for the following tax types: Sales and Use Taxes General sales: The general sales and use tax rate will increase from 5.75 percent to 6 percent. Off-premises alcohol: The rate for sales or charges from the sale of malt liquors, beers, and wine sold for consumption off the

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April 1 Deadline for Retirement Plan Distributions

In most cases, taxpayers who turned 70 1/2 during 2017 must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Sunday, April 1, 2018. The April 1 deadline applies to owners of traditional (including SEP and SIMPLE) IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans. The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by December 31. In other words, a taxpayer who turned

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Revised Form W-4: Check Your Withholding

The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions and changing the tax rates and brackets. As such, a new version of Form W-4, Employee’s Withholding Allowance Certificate, was released on February 28. Taxpayers with less complex tax situations–single, married couples with only one job, or those who have no dependents, and who have not claimed itemized deductions, adjustments to income or tax credits–might not need to make any changes to their withholding or revise their Forms W-4.

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