phone: 978.774.3000    fax: 978.774.8170    185 Centre St., Danvers, MA 01923


Archive for November, 2018

Changes to the Entertainment & Meals Deductions for 2018

Thursday, November 29th, 2018

The new tax law eliminates the deduction for expenses related to entertainment, amusement, or recreation. These entertainment expenses were previously 50% deductible but as of 2018 they are not deductible. This means that if you bring a client to a sporting event, you cannot deduct any of the costs associated with the event such as the cost of the tickets, transportation, parking, etc. Meals, on the other hand, are still 50% deductible.

Taxpayers can still deduct 50% of the costs of a meal as long as the purpose of the dinner was for business reasons, basically meaning business must be discussed during the meal. The 50% deductible meals include meals with clients, employees/coworkers, and meals while traveling.

Please consult your tax advisor on all the above issues.

“Tax Transcript” Email Scam

Tuesday, November 20th, 2018

The scammers are back at it again, they seem to never take any days off. This time they are impersonating the IRS and are claiming to be sending you your tax transcript in order to trick you into opening documents that contain malware. The scammers are pretending to be from “IRS Online” and have been using the title “Tax Account Transcript” (or something close to this title) to try to get taxpayers to open the email.

As a reminder, the IRS WILL NEVER send unsolicited emails to the public and would never email documents containing your personal information. If you should receive the email the IRS urges taxpayers not to open the email or the attachment.

Please consult your tax advisor on all the above information.

The New Tax Laws and Your Tax Return

Friday, November 2nd, 2018

The IRS is urging taxpayers to review the new tax laws prior to filing their 2018 in order to avoid any unexpected surprises. The IRS has created Publication 5307, which is a great guide to help taxpayers get ready for the new changes for 2018. The guide breaks down the information in basic terms so it is easier to follow and understand. It goes over certain topics such as:

• The child tax credit increasing.
• Suspension of personal exemptions.
• The standard deduction increasing.
• A new credit for other dependents.
• Certain deductions being eliminated.
• Updating your withholdings from your paychecks.
• Paying estimated taxes.

Every taxpayer should be prepared for these changes. The link to the publication is:

https://www.irs.gov/pub/irs-pdf/p5307.pdf

Please consult your tax advisor on all the above information.