IRS Increases Interest Rates for First Time Since 2011

Effective as of the 2nd calendar quarter beginning April 1, 2016, the Internal Revenue Service has increased the interest rates by 1% for all non-corporate and corporate taxpayers.

For taxpayers other than corporations (individuals, trusts, etc.), the overpayment and underpayment rates have increased from 3% to 4%.

The corporate underpayment penalty has increased from 2% to 3% and the interest rate on corporate overpayments exceeding $10,000 has increased from 0.5% to 1.5%. The underpayment penalty for large corporations has also increased, from 5% to 6%.

These rate increases are due to the increase in federal short-term rates that took effect February 1, 2016.

California rates will remain unchanged throughout the 2nd quarter (June 30, 2016).

More details regarding the rate increase can be found on the IRS […]

By |May 16th, 2016|Categories: BCo Community News, Business Tax, Individual Tax, IRS, Trusts and Estates|Tags: , , , , |Comments Off on IRS Increases Interest Rates for First Time Since 2011

Maximizing Benefits of §529 Plans

Using a §529 plan to pay for higher education costs can be a great tax savings tool in itself; although contributions are not tax deductible federally or for California, they are deductible in 34 other states. All withdrawals and earnings are tax-free if used to pay for qualified higher education expenses (“QHEE”) for a designated beneficiary. The plans can be transferred to any ‘qualified member’ of the beneficiary’s family (as defined by the IRS in Pub. 970), so the funds do not have to be lost if there is excess after the first beneficiary completes their higher education or decides not to use it at all.

For estate planning purposes, the §529 accounts do not count towards the owner’s gross estate for […]

IRS Highlights Major Tax Changes for 2015

The IRS has issued a Fact Sheet (2016-8) that highlights major tax changes for 2015, including the renewal of many key taxpayer-favorable benefits through the PATH Act, a new way to save for retirement through myRA accounts, changes resulting from the Affordable Care Act, etc.  Click here for the complete IRS Fact Sheet.

By |February 18th, 2016|Categories: BCo Community News, Business Tax, Individual Tax, IRS, Retirement Planning|Tags: , , , , |Comments Off on IRS Highlights Major Tax Changes for 2015

Protecting Yourself from Predatory Emails and Phone Calls

Mail program on computer screen

In addition to our own personal experiences, our clients have been contacting us regarding predatory emails and phone calls that they have received.  These emails and phone calls are placed with the purpose of intimidating or tricking you into giving up personal information, placing you at risk for identity theft.  They appear to come from trusted places like the IRS, law enforcement agencies and your own family and friends.

The IRS has been very vocal about the fact that they will not send out unsolicited emails and will not make phone calls threatening lawsuits or jail.  They have published an informative article about ways you can protect yourself from these phishing scams.  Click here for the IRS article.

They have also […]

By |January 26th, 2016|Categories: Announcements, BCo Community News, IRS|Tags: , , , , |Comments Off on Protecting Yourself from Predatory Emails and Phone Calls

2015 Tax Planning Guide

New Year 2015 And Clock


Our 2015 Tax Planning Guide is now available. This online guide will give you access to updated tax and financial planning information throughout the year. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year. Just a few of the topics covered in the guide are:


  • Roth IRA conversions
  • Bunching income and expenses as a year-end planning strategy
  • Planning for restricted stock and stock options
  • Planning for real estate investments
  • Succession and retirement planning for business owners
  • Charitable giving strategies


If you have any questions after reviewing the information presented, please do not hesitate to […]