LOS ANGELES (PRWEB) October 15, 2019
As tax season is drawing near, Platinum Tax Defenders has released a reminder to all taxpayers of the taxable non-cash items that they must remember to report on their upcoming taxes. For those taxpayers who want to get a head start on filing taxes for this year, Platinum Tax Defenders has also announced it will offer free consultations for new clients.
When it comes to tax season, Platinum Tax Defenders reminds its clients and all taxpayers to think about all the income they’ve collected for the prior year. Many taxpayers will find it easy to calculate their income for the previous year by collecting W-2 and 1099 forms, depending on their employment status. However, Platinum Tax Defenders reveals that many of its clients are surprised to find that there are a variety of events that can give you taxable income, even if you don’t see any cash.
In an article in the International Business Times titled “Beware Non-Cash Items IRS Says You Must Report on Your Taxes” (Oct. 5, 2019), an example of a non-cash taxable item is given—a bonus check from your employer. The article states that if your employer hands you a bonus check at the end of the year, and you insist on receiving it in January so you can postpone the taxes, the income will still be taxable for that year because you had the right to receive it in December. However, if your company agrees and pays and reports the bonus for January, you can likely delay the taxes until the following year. However, the IRS may still come back and say you had the right to receive the money earlier.
Other taxable non-cash items include income without cash if you have a discharge of debt or cancellation of debt. If a relative or bank loans you money, you receive cash as a loan; however, the loan isn’t income the IRS can tax because you have to repay the debt eventually. However, if you are relieved of the obligation to repay the loan, the article states that then the loan is usually taxed as income.
Non-cash income can also arise during legal matters. If you’re settling a lawsuit, you may refuse to sign a settlement agreement unless you are guaranteed to be paid in installments. Therefore, while it sounds like you could have gotten the money sooner, the IRS may find no constructive receipt because you signed and agreed to receive the payment when you wanted it.
As tax season draws near, Platinum Tax Defenders urges taxpayers to remember non-cash income. Failing to consider non-cash income when filing taxes can create future tax problems. For that reason, it’s best to seek out the advice of tax professionals when filing taxes for the upcoming year.
About Platinum Tax Defenders
The experts at Platinum Tax Defenders have been helping clients to settle back taxes and prevent future tax issues for more than 20 years. The Platinum team is made up of tax attorneys, enrolled agents, certified public accountants, and former IRS agents. Platinum’s experience in helping businesses and individuals with taxes makes them an excellent resource for any client looking for information on non-cash income items. Platinum Tax Defenders is currently offering free consultations to new clients. For more information, visit http://www.platinumtaxdefenders.com.