Newsletter Article

What You Need to Know About Section 529 Plans

Answers to Several Common Questions How will you ever save enough money to pay for your children’s college educations? There are no absolute guarantees, but Section 529 plans may help you set aside funds, up to generous limits. Here are the answers to several common questions on this subject. Q. What exactly is a Section


IRS News – Audits & Other Tidbits of Interest

What’s going on at and with the IRS? Thought we would share the following items that run across our desk with you.   Brain drain is a big problem at the IRS as experienced tax examiners and managers continue to retire or go into the private sector and the agency has dwindling resources making it


Round Up of “Dirty Dozen” Tax Scams

IRS Updates its List for 2017 The IRS recently released its annual list of “Dirty Dozen” tax scams to watch out for in 2017. Here is a rundown gleaned from the IRS’ summary. 1. Phishing: Be on guard against fake e-mails or websites looking to steal personal information. Do not click on e-mails claiming to come


Tax Aspects of Refinancing a Home Mortgage

Jeffrey Arnol, KOS Managing Partner jarnol@koscpa.com When thinking about refinancing your home mortgage, it is important to understand the tax rules regarding the deductibility of the interest you will pay, the points you may pay and other fees incurred in connection with the refinancing. Interest that you pay on a home mortgage is deductible within


Be Sure About Estimated Tax Payments

How to avoid underpayment penalties Even though you just put your 2016 tax return to bed, you cannot rest easy. It is already time to pay attention to your tax liability for 2017. Significantly, you may be required to pay installments of “estimated tax” for this year, especially if you are self-employed or retired. The


This Retirement Planning Move Avoids Tax

Benefit from a rollover to an IRA If you receive a distribution from an employer’s retirement plan, such as a 401(k), you are generally required to pay ordinary income tax on the payout. However, with a timely maneuver, you can continue to postpone paying the tax until you are ready to make withdrawals. Basic rules:


Last Minute Email Scams

Reprinted From the IRS Website – www.irs.gov The IRS, state tax agencies and the tax industry urged both tax professionals and taxpayers to be on guard against suspicious activity, especially email scams requesting last-minute deposit changes for refunds or account updates. Recommendations for tax professionals: Verbally reconfirm any change of address or direct deposit change


Another Successful Peer Review for KOS

As members of the American Institute of Certified Public Accountants (AICPA), our firm is required to have a peer review every three years. A peer review is an external review of our firm’s quality control system in accounting and auditing and is also known as the AICPA’s practice monitoring program. The program is designed to


Do You Have to Pay the NII Tax?

Computing tax liability on 2016 returns As the deadline for filing 2016 tax returns approaches, some taxpayers are still struggling with the rules for the 3.8% tax on “net investment income” (NII). The tax law provision authorizing this special tax was included in the Affordable Care Act (ACA), the law known as Obamacare. Although the


Immediate Tax Benefits for Business Property

Section 179 provides generous tax break There is a unique tax break for business entities of all shapes and sizes contained in Section 179 of the Internal Revenue Code. Under this section, a business can elect to “expense,” or currently deduct, the cost of qualified property placed in service during the year, up to a