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Todd Greene

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So far Todd Greene has created 9 blog entries.
15 07, 2026

How to Avoid IRS Problems in the Future

2026-03-27T15:42:24-05:00July 15, 2026|0 Comments

Most IRS tax problems do not start overnight. They build slowly.

A missed estimated payment. Untracked income. Cash flow pressure in a growing business. A year that did not go as planned. By the time the IRS sends a notice, the issue has often been developing for months or longer.

The good news is that many IRS problems are preventable. Consistent planning and proactive review go a long way toward keeping your tax situation clean and your finances stable. If you live or operate a business in Charlotte, here are practical steps you can take right now to reduce your risk.

Stay Current on Estimated Tax Payments

One of the most common causes of IRS balances is missed or underestimated quarterly payments. This is especially true for self-employed individuals, small business owners, independent contractors, and real estate professionals.

Quarterly estimates are based on projected income, not guesswork. If your income increases during the year and your estimates are not adjusted to reflect that, penalties can follow even if you pay your full balance at tax time. Todd Greene CPA helps clients stay ahead of this by reviewing projections throughout the year and adjusting estimates before problems develop.

Keep Clean and Accurate Records

Disorganized bookkeeping creates cascading problems. Incorrect deductions, missed income reporting, and audit triggers are all more common when records are inconsistent or incomplete. Maintaining accurate financial records throughout the year reduces errors, supports your tax return, and protects your position if documentation is ever requested by the IRS.

Clean records are your first line of defense.

File Every Required Return

Unfiled returns can create larger problems than an unpaid balance. When a return goes unfiled, the IRS may submit what is called a Substitute for Return using income reported by third parties. These filings do not include deductions or credits you may qualify for, which can significantly inflate the assessed balance.

Filing every required return, even when you cannot pay the full amount owed, preserves more resolution options and demonstrates good faith. If you have unfiled returns from prior years, Todd Greene CPA can help you get current and address any outstanding balances strategically.

Respond Promptly to IRS Correspondence

Even a minor IRS notice deserves careful attention. Responding early prevents penalties from compounding, preserves your negotiation flexibility, and reduces the risk of escalation. Small issues are almost always easier and less expensive to resolve than cases that have advanced to enforcement.

If you receive any correspondence from the IRS and are unsure how to respond, that is exactly the kind of situation Todd Greene CPA is here for.

Schedule Annual Tax Planning, Not Just Tax Preparation

Tax preparation looks backward at what already happened. Tax planning looks forward and helps you make better decisions before the year closes.

Annual planning with Todd Greene CPA allows you to adjust estimated payments, evaluate your business structure, identify deduction opportunities, and prepare for cash flow fluctuations before they become tax problems. The clients who avoid IRS issues most consistently are the ones who treat tax strategy as a year-round conversation rather than a once-a-year transaction.

Seek Guidance When Your Income Changes

Major life events and business changes often come with unexpected tax consequences that catch people off guard. Selling property, receiving a large commission, expanding your business, realizing significant investment gains, or taking retirement account withdrawals can all create tax obligations that are easy to underestimate.

Reviewing these events with Todd Greene CPA before year-end gives you the opportunity to plan for what is coming rather than react to it after the fact.

Prevention Is Always Less Expensive Than Resolution

IRS tax resolution services exist to address problems that have already developed. Strategic tax planning reduces the likelihood of those problems arising in the first place.

If you want to minimize your IRS risk and stay in compliance year over year, Todd Greene CPA offers planning consultations designed to review your current tax structure, identify exposure, and build a proactive strategy around your specific situation.

Call 704.919.3220 or visit toddgreenecpa.com to schedule a planning consultation with Todd Greene CPA today.

15 06, 2026

Should You Handle Your IRS Problem Yourself?

2026-03-27T15:42:48-05:00June 15, 2026|0 Comments

When you receive an IRS notice or realize you owe back taxes, one of the first thoughts that crosses your mind is probably this: can I just handle this myself?

The honest answer is yes. In many cases, you are allowed to contact the IRS directly. But the better question is whether that is the most strategic move — and the answer to that depends entirely on your specific situation.

If you are dealing with IRS tax problems in Charlotte, here are a few important things to consider before picking up the phone.

Yes, You Can Call the IRS Yourself

The IRS does not require you to hire representation. You can call the number on your notice, request a payment plan, submit documentation, or respond to an audit letter entirely on your own. Many taxpayers do exactly that.

The outcome, however, often depends on what you understand before you make that call.

What Most People Underestimate

The IRS operates within a structured system built around financial formulas, deadlines, and procedural rules. Most taxpayers are not familiar with how that system works, which creates real risk.

When you contact the IRS without preparation, you may not be aware of all the resolution options available to you. You may agree to a payment amount that strains your finances more than necessary. You may unintentionally limit future negotiation opportunities. You may provide information that is incomplete or that works against your position.

Once certain agreements are in place, reversing them is difficult. Strategy matters before communication begins.

The Risk of Reacting Instead of Reviewing

Most people who call the IRS on their own do so in a moment of stress. They want the issue resolved quickly, and that impulse is understandable.

But without first reviewing your full account transcripts, penalty history, collection status, and financial disclosure standards, you are responding without seeing the complete picture. A solution that feels like relief in the short term can create significant strain over the long term.

When Handling It Yourself May Be Reasonable

Not every IRS issue requires professional intervention. There are situations where reaching out directly may be entirely sufficient.

If the balance is small and easily paid, if a simple documentation error just needs to be corrected, or if you fully understand the notice and what your options are, direct contact with the IRS may be all you need. The key is honestly assessing which category your situation falls into before deciding how to proceed.

When Working with Todd Greene CPA Makes Sense

There are situations where professional representation is not just helpful but genuinely protective of your financial interests.

Consider reaching out to Todd Greene CPA if the balance is significant, if multiple tax years are involved, if enforcement action has been threatened, if you are unsure which programs you qualify for, or if you simply feel overwhelmed and unsure where to start.

Professional IRS representation through Todd Greene CPA includes obtaining and reviewing your IRS transcripts, evaluating your eligibility for installment agreements or settlement options, structuring payments based on your actual ability to pay, communicating directly with the IRS on your behalf, and protecting you from avoidable penalties and escalation.

The difference is not simply making a phone call versus hiring someone to make it for you. The difference is approaching your situation with a complete plan rather than reacting without one.

Cost vs. Consequences

Many people hesitate to seek professional help because they are concerned about the cost. That is a fair consideration. But what often goes unconsidered is the potential cost of the alternative.

Overpaying because of an improperly negotiated arrangement, committing to an unsustainable payment plan, triggering additional enforcement action, or missing eligibility for penalty relief can all carry significant financial consequences. A structured review upfront with Todd Greene CPA can prevent problems that are far more expensive to fix later.

IRS Tax Help in Charlotte

If you are weighing whether to contact the IRS on your own or work with a professional, start by getting a clear picture of where things actually stand.

A confidential consultation with Todd Greene CPA gives you the information you need to make that decision before committing to anything. IRS issues are manageable. The key is handling them with a strategy in place, not in a moment of stress.

Call Todd Greene CPA at 704.919.3220 or visit toddgreenecpa.com to schedule your consultation today.

 

15 05, 2026

How Todd Greene CPA Helps with IRS Tax Problems in Charlotte

2026-03-27T15:33:25-05:00May 15, 2026|0 Comments

When you are facing the IRS, it is easy to feel like you only have two options: pay in full or hope it goes away.

Neither of those is a strategy.

There are structured, legal resolution paths available to most taxpayers. The key is knowing which one applies to your specific situation and having the right representation to pursue it correctly. If you are dealing with IRS tax problems in the Charlotte area, here is what working with Todd Greene CPA actually looks like.

What Does IRS Representation Mean?

IRS representation means a licensed tax professional communicates with the IRS on your behalf and guides your case from start to resolution.

When you work with Todd Greene CPA, that process includes pulling your IRS account transcripts, reviewing prior tax filings, identifying any compliance gaps, evaluating enforcement risk, and handling all direct communication with the IRS. Instead of navigating phone calls, notices, and deadlines on your own, you have a structured advocate managing the process for you.

That matters more than most people realize. The IRS has its own procedures, timelines, and documentation standards. Knowing how to work within that system is often the difference between a manageable resolution and a costly mistake.

Step One: A Full Review of Your Tax Picture

Before any negotiation happens, Todd Greene CPA conducts a thorough review of your full tax situation.

That means looking at outstanding balances, missing tax returns, penalty history, collection status, and your overall financial condition. This step is not optional. It is essential. Not every taxpayer qualifies for every resolution program, and entering the wrong arrangement can create more problems than it solves. A proper evaluation sets realistic expectations and protects you from agreements that are not sustainable long-term.

Common IRS Resolution Options

Depending on your circumstances, resolution may involve one or more of the following programs:

Installment Agreement. A structured monthly payment plan based on your ability to pay. This is one of the most common resolutions for taxpayers who owe a balance but cannot pay it all at once.

Offer in Compromise. A negotiated settlement that allows you to resolve your tax debt for less than the full amount owed, if you meet the IRS qualification criteria. This option requires careful documentation and financial disclosure. It is not available to everyone, but when it applies, it can be significant.

Currently Not Collectible Status. If you are experiencing genuine financial hardship, the IRS may temporarily suspend collection efforts while your situation stabilizes.

Penalty Abatement. If reasonable cause exists, certain penalties can be reduced or removed entirely. This is an area where many taxpayers leave money on the table simply because they did not know to ask.

Audit Representation. Todd Greene CPA handles audit correspondence and documentation requests directly, ensuring your response is accurate, complete, and strategic.

Each of these options requires documentation, financial disclosure, and careful preparation. Having Todd Greene CPA manage that process significantly reduces the risk of errors that could limit your options or trigger additional scrutiny.

Why Strategy Matters

The IRS evaluates your financial situation using specific formulas and documentation standards. What you submit and how you submit it has real consequences.

Providing incomplete information, agreeing to payment terms before understanding your full options, or entering the wrong program can increase your long-term financial burden, invite additional scrutiny, lead to a defaulted agreement, or close off resolution paths that might have otherwise been available. A structured, strategic approach from the beginning protects your interests throughout the entire process.

Not Every Case Requires Negotiation

It is worth noting that not every IRS issue is as complex as it first appears.

Sometimes income was misreported by a third party. Sometimes a payment was not properly applied to your account. Sometimes documentation is all that is needed to resolve an audit inquiry quickly and cleanly. Todd Greene CPA reviews your situation thoroughly before assuming the worst, because unnecessary escalation helps no one.

Professional review ensures you respond accurately the first time, which is almost always better than correcting a mistake after the fact.

When Should You Reach Out?

Consider contacting Todd Greene CPA if:

  • The balance is significant
  • You have received a notice threatening enforcement action
  • Multiple tax years are involved
  • You disagree with the IRS assessment
  • You feel uncertain about your options or next steps

Early intervention typically leads to better outcomes. The longer an IRS issue goes unaddressed, the fewer options remain.

If You Are Facing IRS Problems in Charlotte

IRS problems are serious. But they are manageable when addressed correctly and with the right team behind you.

Todd Greene CPA works with individuals and business owners across the Charlotte area who are navigating IRS collection actions, penalties, audits, and back-tax situations. We review your full tax history, communicate with the IRS directly, and build a clear, strategic path forward.

Schedule a confidential consultation with Todd Greene CPA today. Understanding your options is the first step toward resolving them.

15 04, 2026

I Got an IRS Notice. What Happens Now?

2026-03-27T15:26:28-05:00April 15, 2026|0 Comments

Opening your mailbox and seeing a letter from the IRS can stop you cold. Your mind goes straight to worst-case scenarios.

Take a breath. Most IRS notices are not criminal investigations. They are requests for information, clarification, or payment. What happens next depends almost entirely on how you respond and how quickly you act.

If you received an IRS notice in the Charlotte area, here is what you need to know.

Step One: Do Not Ignore It

Ignoring an IRS letter does not make it disappear. It makes everything worse.

When notices go unanswered, penalties and interest continue to accrue, response deadlines pass, and your available options narrow. The IRS escalates. What started as a manageable situation becomes significantly harder to resolve.

Even if you cannot pay the balance in full, responding preserves flexibility. Silence does not.

What Do IRS Notices Usually Mean?

The IRS sends notices for a wide range of reasons. Most are not as alarming as they feel. Some of the most common include:

Balance Due Notices. You owe taxes from a previous year and the IRS is requesting payment or a response.

CP2000 Notices. The IRS believes income was underreported based on third-party reporting such as W-2s or 1099s. This is not an audit. It is a proposed change that you have the right to dispute.

Audit Letters. The IRS is requesting documentation to verify items reported on your return.

Intent to Levy or Lien Notices. This is one of the most urgent notices you can receive. It means the IRS is preparing to begin collection action, including seizing wages, bank accounts, or property, if the balance is not addressed. If you receive one of these, do not wait.

Not every notice means you did something wrong. Sometimes income was reported incorrectly by a third party. Sometimes payments were misapplied. Sometimes all that is needed is clarification. But the only way to know is to review the notice carefully and respond.

What Happens If You Do Nothing?

When a notice is ignored, the process escalates in predictable stages.

Reminder notices are issued. Penalties and interest increase. A federal tax lien may be filed against your property. Wages or bank accounts may be levied.

By the time enforcement begins, resolution becomes more complex and more expensive. The IRS is not waiting for you to feel ready.

Addressing the issue early keeps more options available.

What Should You Do Immediately?

If you receive an IRS letter, slow down before you act.

  1. Read the entire notice carefully.
  2. Confirm the tax year it references.
  3. Identify the response deadline.
  4. Do not call the IRS until you understand your position.
  5. Do not agree to payment terms before reviewing all possible solutions.

That last point matters more than most people realize. Many taxpayers commit to arrangements that are not in their best interest simply because they responded too quickly without a full picture of their options.

When Should You Contact a CPA?

If you are unsure how to respond, that uncertainty alone is reason enough to seek professional guidance.

You should reach out for a review if:

  • The balance is larger than you can comfortably pay
  • The notice references liens, levies, wage garnishment, or an Intent to Levy
  • You disagree with the IRS findings
  • Multiple tax years are involved
  • You have already tried to resolve the issue without success

An experienced CPA can pull your IRS transcripts, determine whether the notice is even accurate, identify legitimate resolution options, and communicate directly with the IRS on your behalf. That last part matters: Form 2848 is the IRS Power of Attorney, and with it your CPA can speak to the IRS for you so you do not have to navigate those calls alone.

When you are facing IRS correspondence in Charlotte, working with someone who understands both federal procedure and your full tax picture makes a real difference.

The Good News

The IRS has established programs specifically designed to help taxpayers resolve their balances. Depending on your situation, you may qualify for:

  • An installment agreement to pay over time
  • Penalty abatement to reduce what you owe
  • An Offer in Compromise to settle for less than the full balance
  • Currently Not Collectible status if you genuinely cannot pay
  • Audit representation to protect your rights through the review process

Not every option applies to every case. A structured evaluation determines what makes the most sense for your specific situation.

If You Received an IRS Notice in Charlotte

Do not panic. Do not ignore it. And do not assume your only option is writing a check for the full amount right now.

Before you respond to the IRS, schedule a confidential consultation to review your notice and understand your options clearly. Handling an IRS letter correctly the first time can prevent consequences that are far more difficult and expensive to address later.

25 03, 2026

What Is IRS Tax Resolution, and Could It Help You?

2026-04-02T16:03:13-05:00March 25, 2026|0 Comments

If you’ve ever opened a letter from the IRS, you know the feeling. Your stomach drops. Questions race through your mind. How much do I owe? What happens if I can’t pay? Is this as bad as it looks?

Sometimes the answer is: it’s not as bad as it looks. Sometimes the IRS has made an error, and you may not even owe what they’re claiming. Either way, you have options. That’s exactly what IRS tax resolution is about.

So, What Is IRS Tax Resolution?

IRS tax resolution is the process of addressing and resolving unpaid tax balances, penalties, audits, or collection actions. It works legally and strategically. It’s not about making your tax debt disappear. It’s about finding a structured path forward that protects your finances and brings you back into good standing.

Depending on your situation, resolution can involve:

  • Setting up a manageable payment plan
  • Negotiating your total balance owed
  • Requesting penalty relief
  • Stopping wage garnishments or bank levies
  • Responding to audit notices with proper documentation
  • Correcting IRS errors on your behalf

That last point matters more than most people realize.

Wait. The IRS Can Be Wrong?

Yes. And it happens more often than you’d think.

We’ve had clients come to us after receiving notices claiming they owe thousands of dollars, only to discover after a thorough review that the amount was incorrect. Sometimes returns were filed on time, but the IRS has no record of it (and we can prove it). Sometimes a 1099 was issued that created a tax event the client didn’t fully understand, leading to an apparent discrepancy that has a legitimate explanation.

One example: a client had self-prepared their 2017 tax return and had stock options. A 1099-B was generated and reported to the IRS, but the cost basis wasn’t properly accounted for, making the taxable gain appear much larger than it actually was. We were able to identify the issue, work through the numbers, and reach a resolution that accurately reflected what was owed.

The point is this: a notice from the IRS is the beginning of a conversation, not a final verdict.

Who Actually Needs IRS Tax Resolution?

Most people assume IRS problems only happen to others. Businesses that did something wrong. High earners hiding income. That’s rarely the case.

The clients we work with are ordinary people facing ordinary life circumstances:

  • Small business owners who missed quarterly estimated payments during a slow season, or whose payroll tax obligations became unmanageable during a period of rapid growth.
  • Individuals with back taxes who fell behind after a job loss, divorce, medical emergency, or unexpected expense. Life doesn’t pause for the tax calendar.
  • People who self-prepared returns and didn’t fully account for things like crypto activity, investment income, stock options, or freelance earnings. All of these can trigger IRS correspondence.
  • Audit recipients who received a notice requesting documentation or clarification and aren’t sure how to respond.
  • IRS issues don’t discriminate by income level, profession, or how careful you’ve been in the past.

What Happens If You Ignore It?

This is where things can get serious, and fast.

Ignoring an IRS notice doesn’t make it go away. Penalties and interest continue to accumulate. Collection actions escalate. The options available to you narrow with every passing month.

Potential consequences of inaction include:

  • Wage garnishment
  • Bank account levies
  • Federal tax liens on your property
  • Passport restrictions
  • Increased enforcement activity

The earlier you respond, the more flexibility you typically have. Waiting rarely works in your favor.

What Are the Actual Resolution Options?

The IRS has formal programs designed to help taxpayers resolve their situations. A qualified CPA can evaluate which options apply to your circumstances:

  • Installment Agreements. A structured monthly payment plan to resolve your balance over time without full immediate payment.
  • Offer in Compromise. In qualifying cases, the IRS may accept a settlement for less than the full amount owed.
  • Currently Not Collectible Status. If you genuinely cannot pay, the IRS may temporarily suspend collection activity.
  • Penalty Abatement. If you have a history of compliance or a valid reason for falling behind, penalties may be reduced or eliminated.
  • Audit Representation. A CPA can represent you directly before the IRS, communicate on your behalf, and ensure your rights are protected throughout the audit process.

Not every option works for every situation. That’s why a structured review matters before taking any action.

How a CPA Represents You Before the IRS

One tool that makes a real difference is Form 2848, the IRS Power of Attorney. When a CPA is authorized with this form, they can communicate directly with the IRS on your behalf, so you don’t have to.

That means no more dreaded phone calls. No more confusing correspondence. No more worrying that you’ll say the wrong thing or miss a deadline. Your CPA handles the communication, reviews your full tax history, identifies legitimate resolution paths, and works toward a clear plan forward.

You Don’t Have to Figure This Out Alone

If you’ve received an IRS notice or are concerned about unpaid taxes, the most important step is getting a clear picture of where things actually stand. Sometimes the situation is better than it looks. Sometimes it needs immediate attention. Either way, knowing is always better than wondering.

At Todd Greene CPA, we work with individuals and business owners across the Charlotte area who are navigating IRS issues, from simple correspondence to complex back-tax situations. We review your full tax history, communicate with the IRS directly, and help you find a resolution path that makes sense for your life and your finances.

Schedule a confidential consultation today. There’s no obligation, and the sooner you start, the more options you’ll have.

17 07, 2025

Todd Greene CPAs Named to UAB’s Blazer Fast 40 List

2026-04-02T16:05:12-05:00July 17, 2025|0 Comments

Growth you can count on, literally.

We’re proud to announce that Todd Greene CPAs has been named one of the Blazer Fast 40, a distinction awarded by the University of Alabama at Birmingham National Alumni Society to the fastest-growing businesses owned or managed by UAB alumni.

This recognition celebrates companies demonstrating exceptional growth, strong leadership, and a commitment to business excellence.

Founded by UAB grad Todd Greene, our firm has always been focused on people first, helping clients make smart financial decisions with clarity, confidence, and the occasional joke. If you’ve worked with Todd, you know what makes him different. He’s smart, yes, but he also brings warmth, humor, and genuine care to everything he does. He’s the go-to for small business owners, growing families, and even nationwide enterprises looking for a trusted advisor, not just during tax season but all year long.

This award is a direct reflection of our hard work, Todd’s excellent leadership, and the trust our clients have placed in us over the years. Without them, none of this would be possible. Click here to learn more about the Blazer Fast 40 and UAB Excellence Awards. 

We’re honored to be recognized among such an impressive group of Blazer-led businesses and excited for what’s ahead.

Thank you for growing with us! 

Want to see what our award-winning team can do for you?

Schedule a free consultation 

31 07, 2020

July Cares Act Update

2022-09-28T19:21:19-05:00July 31, 2020|0 Comments

As you may be aware, the Paycheck Protection Program that was passed into law earlier this year has seen some major changes since the law has passed. Remember, initially, you could borrow up to 2.5 times your average monthly payroll, and then utilize the proceeds for payroll for 8 weeks, rent, lease payments, and utilities. If you did utilize the proceeds for payroll over the next 8 weeks, and no more than 25% of the proceeds were used for rent, utilities, and lease payments, the loan would be considered forgivable, and therefore, you would not have to pay it back.

A couple of weeks ago, the SBA issued the Paycheck Protection Program Loan Forgiveness Application. It is highly convoluted, and we are looking into what it would cost for us to assist our clients with it. Please let us know if you have interest in us completing this application on your behalf. Click here for the application.

Regardless, below are some highlights of H.R. 7010 (THe Paycheck Protection Program Flexibility Act of 2020) that was passed into law this past Friday.

Since then, the IRS has issued guidance that although the loan forgiveness would not be considered taxable, any deductions paid from the proceeds would not be deductible. In effect, this would mean that the PPP loan would be taxable income. Our hope is that Congress was going to address this, but H.R. 7010 does not address this, and it doesn’t seem likely at this point that it will be addressed. A link to H.R. 7010 is below. https://www.congress.gov/bill/116th-congress/house-bill/7010/text

1. Unforgiven PPP loans maturity will now be over 5 years, instead of 2.
2. You can now apply for a PPP loan up until December 31, 2020. Previously June 30, 2020 was the deadline.
3. The 8 week period covered period has been extended to 24 weeks, but no later than December 31, 2020. 4. This changes the amounts that can be utilized for compensation from an 8 week period to a 24 week period, although you can elect to utilize the 8 week period if you received your loan proceeds before June 5, 2020. This also means that more compensation will be eligible to be used from PPP loan proceeds.
5. Non-payroll Costs may be up to 40% of the loan amount, up from 25%.

We understand that these are confusing times, so please contact us if you have any additional questions or concerns.

1 04, 2020

Coronavirus Relief

2021-01-19T12:12:22-06:00April 1, 2020|0 Comments

As things continue to change with the pandemic, many clients have called or emailed concerning the new deadline, potential relief package, and how tax returns and payments will be affected. Since the outbreak started, we have had many of our staff members working remotely, and continue to utilize that option. It is not as efficient, and due to that, many returns will be delayed. Be aware that we are working as diligently as possible, so please be patient. Also, please understand that all income tax returns and estimated tax payments that were due April 15th, are now not due until July 15th. No penalties or interest will be due on returns that were due on April 15th until July 15th.

The best summary of some of the individual provisions of the new CARES Act that affects most of our clients was posted in an article yesterday by the National Law Review. Please review, and understand that this is the federal piece, and that there are also state pieces that we disseminated earlier this week.

https://www.natlawreview.com/article/coronavirus-senate-passes-cares-act-summary-tax-provisions-bill

In addition to this relief, the IRS has unveiled a new “People First Initiative” thereby delaying the tax return deadline to July 15. A link to this initiative is below.

https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-temporarily-adjusts-suspends-key-compliance-program

In the meantime, our recommendation is that all business owners run 13 weeks of cash flow analysis to determine when or if you are going to have an issue. We have a cash flow spreadsheet that we are glad to share with you, which may assist. Please let us know if you would like for us to send it to you, or want to discuss further.

We are here to help. Please let us know how we can assist you at this critical time in our history.

19 01, 2018

New Tax Changes Effect Charlotte Businesses and Individuals

2021-01-19T10:15:48-06:00January 19, 2018|0 Comments

There are significant changes to our current tax code effective January 1, 2018. I have outlined many of the major changes that may affect you as my client;

  1. Individual tax rates have changed to 10%, 12%, 22%, 24%, 32%, 35%, and 37% from the prior rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
  2. The Kiddie Tax has changed so that unearned (investment) income is to be taxed at trust rates instead of the parent’s rate. That would 10% on taxable income up to $2,550, and then 24% from $2,551 to $9,150, then going to 35% and 37%

  3. The new standard deductions are now $24,000 for joint filers, $12,000 for separate and single filers, and $18,000 for head of household filers.
  4. Personal exemptions have been repealed. For 2017, the personal exemption is $4,050 per person subject to phase out. $0 in 2018.
  5. The child tax credit is increased to $2,000 per child under the age of 17 subject to phase out at $400,000 for joint filers, and $200,000 for single filers. The old child tax credit was $1,000 per child phased out at $110,000 for joint filers, and $75,000 for single filers.
  6. They have repealed the AGI phase out for itemized deductions.
  7. They have repealed the miscellaneous itemized deductions subject to the 2% floor. These are things like accounting or investment fees, safety deposit boxes, unreimbursed employee expenses, union dues, job education expenses.
  8. Home mortgage interest acquisition indebtedness incurred after December 15, 2017 is limited to $750,000 of principal indebtedness, down from $1,000,000. Married filing separate filers would be limited to $375,000.
  9. Home equity indebtedness is no longer deductible mortgage interest.
  10. There is now a $10,000 ($5,000 for married filing separately) limit on the amount of state and local property and income taxes that you can claim as an itemized deduction.
  11. The deduction for personal casualty and theft losses has been repealed.
  12. Alimony payments for divorces executed after December 31, 2018 are no longer deductions or income.
  13. Moving expenses deduction and reimbursement has been eliminated.
  14. The unified exclusion for estate tax is now $11,200,000.
  15. Alternative minimum tax exemptions have been increased to the following; $109,400 for joint filers, $70,300 for single and head of household filers, $54,700 for married filing separate filers.
  16. AMT exemption phase-out beginning AMTI thresholds have been increased as follows; $1,000,000 for joint returns, $500,000 for single, separate or head of household.
  17. The shared responsibility payment for individuals has been repealed starting in 2019.
  18. C corporation income tax rates are a flat 21%.
  19. There is a new 20% deduction for Qualified Business Income if your joint taxable income is lower than $315,000 or $157,500 for anyone else. You may still be eligible to claim the deduction if your taxable income is over that amount with limitations.
  20. Businesses with average gross receipts of $25 million or less would be permitted to use the cash method of accounting regardless of industry or amount of inventory.
  21. Business interest is capped at interest income plus 30% of business adjusted taxable income plus floor plan financing interest.
  22. Net Operating Losses will generally not allowed to be carried back anymore, and will be limited to 80% of taxable income and then carried over.
  23. Like-kind exchanges are allowed for real property only.
  24. The domestic production activities deduction has been repealed.
  25. Deductions for entertainment, amusement, recreation, membership dues to any club organized for business, pleasure, recreation, or social purpose has been repealed.
  26. The 100% deduction for meals provided to employees on employer’s premises is now reduced to a 50% limitation.
  27. Partnership technical terminations have been repealed.
  28. There is a new general business credit for employers that allow at least 2 weeks and up to 12 weeks credit for 12.5% of wages paid at 50% normal pay, and 25% at 100% normal pay.
  29. The 10% rehabilitation credit for pre-1936 buildings has been repealed.

At Brader Greene, we want to educate all of our clients about the tax laws and how they affect you. Please let us know if you have any questions, or need clarification on any point. We look forward to working with you.

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