Cash Transactions of More Than $10,000 Must Be Reported to the IRS

Has your business ever received a large cash payment? The general rule is that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

The Form 8300 provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering. This is an important effort, since money laundering is a tool used to hide proceeds from various criminal activities such as terrorist financing or drug dealing.

If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurred. A person can file Form 8300 electronically or by mailing the form to the IRS.

Contribute to an IRA by April 15 to Claim it on 2018 Tax Returns

It’s not too late to contribute to an Individual Retirement Arrangement (IRA) and still claim it on a 2018 tax return. Anyone with a traditional IRA may be eligible for a tax credit or deduction on their 2018 tax return if they make contributions by April 15, 2019.

An IRA is designed to enable employees and the self-employed to save for retirement. Most taxpayers who work are eligible to start a traditional or Roth IRA or add money to an existing account.

Contributions to a traditional IRA are usually tax deductible, but distributions are generally taxable. While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. In addition, low- and moderate-income taxpayers making these contributions may also qualify for the Saver’s Credit.

Generally, eligible taxpayers can contribute up to $5,500 to an IRA for 2018. For someone who was 50 years of age or older at the end of 2018, the limit is increased to $6,500. Qualified contributions to one or more traditional IRAs are deductible up to the contribution limit or 100 percent of the taxpayer’s compensation, whichever is less.

If a taxpayer is covered by a workplace retirement plan (such as a 401(k)), the deduction for contributions to a traditional IRA is generally reduced depending on the taxpayer’s modified adjusted gross income (and the income thresholds are relatively low). But the taxpayer can still deduct the 401(k) contributions. And the taxpayer can still make contributions to the IRA up to the contribution limits, even if the contributions are not deductible.

Identity Theft Remains on IRS "Dirty Dozen" List Despite Progress

Despite a steep drop in tax-related identity theft in recent years, the Internal Revenue Service today warned taxpayers that the scam remains serious enough to earn a spot on the agency’s 2019 “Dirty Dozen” list of tax scams.

Tax-related identity theft occurs when someone uses a stolen Social Security number or Individual Taxpayer Identification Number (ITIN) to file a fraudulent tax return claiming a refund. Reversing the damage caused by identity theft is often a frustrating and complex process for victims.

The IRS reminds taxpayers to do their part to help in this effort. Taxpayers should:

● Protect personal data. Don’t routinely carry a Social Security card, and make sure tax records are secure.

● Learn to recognize and avoid phishing emails and threatening phone calls and texts from thieves posing as legitimate organizations such as banks, credit card companies and government organizations, including the IRS.

● Do not click on links or download attachments from unknown or suspicious emails.

● Always use security software with firewall and antivirus protections.

● Use strong passwords.

The IRS “Dirty Dozen” list is compiled annually and outlines a variety of common scams taxpayers may encounter any time during the year. Many of these schemes peak during filing season as people prepare their tax returns or hire someone to help with their taxes. Don’t fall prey.