Even if a person claimed an appropriate number of withholding allowances on Form W-4, there’s no guarantee that the total withholdings will match one’s tax liability for the year. Many people learned this lesson the hard way during the 2018 tax liability for the year. Many people learned this lesson the hard way during the 2018 tax filing season, receiving smaller refunds than expected or even owing the IRS more taxes. This article explains the problem with withholding tables and discusses how to avoid surprises next year.

The Bipartisan Budget Act of 2015 established a new “centralized audit” regime for partnerships, including LLCs taxed as partnerships. although the audit rules apply to partnership tax returns for tax years beginning after 2017, the IRS didn’t finalize regulations on these rules until December 2018. This article reviews the new audit rules and discusses steps partnerships should take if they’re audited.

These brief tips explain the guidance the IRS provided to one employer regarding paying down employees’ student debt; explore the concept of “upstream” estate planning; and detail overlooked charitable deductions.

The Tax Cuts and Jobs Act doubled the generation-skipping transfer (GST) tax exemption to $10 million beginning last year. The exemption is adjusted annually for inflation. (For 2019, the exemption amount is $11.4 million) However, even through most families won’t be affected by the GST tax, it’s important to note that, beginning in 2026, the GST tax exemption is scheduled to return to a pre-TCJA level of $5 million. This article defines the GST tax and explains potential allocation pitfalls.

You may have heard about a proposal in Washington to cut the taxes paid on investments by indexing capital gains to inflation. Under the proposal, the purchase price of assets would be adjusted so that no tax is paid on the appreciation due to inflation. While the fate of such a proposal is unknown, the long-term capital gains tax rate is still historically low on appreciated securities that have been held for more than 12 months. And since we’re already in the second half of the year, it’s a good time to review your portfolio for possible tax-saving strategies.

If you own an interest in a closely held business, it’s critical to have a well-designed, properly funded buy-sell agreement. Without one, an owner’s death can have a negative effect on the surviving owner. If one of your co-owners dies, for example, you may be forced to go into business with his or her family or other heirs. And if you die, your family’s financial security may depend on your co-owners’ ability to continue operating the business successfully.

When the TCJA took effect at the beginning of 2018, the IRS updated the withholding tables employers use to determine how much money to withhold from employees’ paychecks. The new tables caused employers to withhold substantially less than they had in the past, which increased paycheck amounts. But this past tax filing season, many people were surprised to receive smaller refunds than they expected. This article advises that, if it’s necessary for employees to increase their withholding, it’s not a good idea for them to wait until the end of the year; it’s better to spread the additional withholding over as many paychecks as possible, so each paycheck bite will be smaller.

Owners typically spend a lot of time and energy trying to attract customers to their businesses and keep them, while rarely asking whether those customers are actually desirable ones. This article points out that, while it may seem counter intuitive to intentionally let go of customers, sometimes doing so can create a healthier, more profitable company. The article notes several strategies for evaluating customer value, including tracking their purchase history and sorting them by profitability level.

A homeowner’s insurance policy provides protection against damage from weather events like lightening and hail, as well as fire and theft. many also offer some coverage for the costs homeowners will incur if they need to live somewhere else while their homes are being repaired after being damaged. But the specific coverage of each policy can vary greatly. This article looks at the different types of policies and what they cover. It suggests that it’s important to regularly review coverage to determine if adjustments are needed.

These brief tips explain steps to take to hold on to a passport when one has seriously delinquent tax debt; detail the benefits of a cash balance retirement plan; and discuss why having a formula-funding clause in an estate plan can unintentionally disinherit a spouse.