Taxes

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  PRO-TAX

• Recently Married?

  30 Oct 2009 | 6:00 am

  Have you recently gotten married?  Are you planning on getting married by the end of this year?  Here are some tips to make your tax preparation go more smoothly next year:File form SS-5 with the Social Security Administration(SSA).  This will notify the SSA that you’ve changed your name and will ensure that your name and SSN match when you file your tax return.  You can access this form on SSA’s website by clicking here, or by calling 800-772-1213.  You can also receive the form at any local SSA office. If you’ve changed your address as well as your…

• Identity Theft Protection

  19 Oct 2009 | 1:00 am

  What Does PRO-TAX’s Bathroom Have To Do With Identity Protection?   (Hint: It has nothing to do with “Squeezin’ The Charmin”)   How PRO-TAX Protects Your Personal Information…And You Can Too!   If you have ever been to a PRO-TAX office and asked to use our bathroom, you probably wondered why we said “no.” It has nothing to do with us being “picky” about who uses our facilities, but it has everything to do with limiting public access to any area where our client’s personal information could be compromised.   Few…

• State Return Filing Due Dates

  5 Oct 2009 | 1:00 am

  Okay, so everyone knows that you have to file your Federal Income Taxes by April 15.  What about state returns? Here’s something interesting… Almost every state that is close to Virginia has to file by April 15 as well.  EXCEPT Virginia and Delaware!  Virginia and Delaware have filing due dates of May 1 and April 30, respectively.  But, Alabama, Kentucky, Maryland, North Carolina, Pennsylvania, Tennessee and West Virginia all have filing due dates of April 15. You’d be surprised at how many people e-file their Federal return and decide they’ll wait to…

• Your Social Security Benefits May Be Taxable

  21 Sep 2009 | 1:00 am

  There are two types of government benefits: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). SSDI provides income for the disabled while SSI may provide additional income for the disabled or elderly who demonstrate financial need. SSI is not taxable, SSDI is taxable depending on the circumstances.  More often than not, Social Security Disability Benefits do not surpass the threshold that requires taxes be withheld. However, it will depend on both your filing status and your total income to ascertain for sure, what if anything, is taxable.  For…

• 3rd Quarter Estimated Taxes Due Today!

  15 Sep 2009 | 6:32 am

  If you’re self-employed, it’s that time again; time to send the IRS an estimated tax payment. Didn’t I just do that, you ask? Well, in a sense, yes, it does kind of feel that way, doesn't it? That is because the third quarterly estimated tax payment is due three months after the second. Be forewarned, the fourth and final payment will follow in 4 months on January 15, 2010.  To begin with, if you are frustrated with trying to keep your head above water, it is a good idea to remember why you are paying the Internal Revenue Service estimated taxes. The greatest…

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  Don't Mess With Taxes

• The home buyer credit's three E's: extension, expansion and effective date

  skbell1

  6 Nov 2009 | 12:12 pm

  That's right! Politics trumps tax and economic policy yet again! Obama put pen to paper this morning and signed the Worker, Homeownership, and Business Assistance Bill of 2009 into law.Don't get me wrong, I'm happy for folks who can use this to buy a house. Despite the ongoing frustration of keeping a residence in good repair (even without a water heater disaster!), I've been a tax-deducting homeowner for almost three decades. I just hope that the first-time buyers and those who've lived in their homes for five or more years and are able to claim $8,000 and $6,500…

• Home buyer credit new definitions, limits

  skbell1

  5 Nov 2009 | 12:42 pm

  UPDATE: On Nov. 6, Obama signed the bill extending and expanding the first-time home buyer credit. Read more on the final tax credit inThe home buyer credit's three E'sThe House just voted to approve the Senate's latest changes to the first-time home buyer credit. Since the tax break is tied to unemployment benefits, Obama should sign it into law any time now. Yes, Capitol Hill is still calling it the first-time home buyer credit, even though some folks who currently own residential real estate can now benefit from the new soon-to-be law. More on that in a minute. I hit the…

• Senate OKs home buyer credit extension

  skbell1

  4 Nov 2009 | 3:55 pm

  UPDATE: On Nov. 5, the House passed the Senate's first-time home buyer credit provisions discussed in this post. Obama is expected to sign the bill, possibly as soon as Friday, Nov. 6.Read more on the final tax credit inHome buyer credit new definitions, limitsThe Senate finally extended unemployment benefits, with continuation of the first-time home buyer credit part of the deal late this afternoon.As expected, and blogged about in Reconfigured home buyer tax credit, the $8,000 credit would stay in place through April 30, 2010, with a two-month grace period for folks with signed…

• Voters opt to keep taxes

  skbell1

  4 Nov 2009 | 12:28 pm

  At least that was the case yesterday in Maine and Washington state.Tuesday's final votes in those two states highlight a tax conundrum. We love to complain about taxes, but often we decide to keep them or refuse to limit them because we like the services the revenue pays for.Did your state or county or city have any kind of tax issue on the Nov. 3 ballot? How did it turn out?What would you give up to get lower taxes?How would you convince your tax-paying neighbors to go along with you on cutting or restricting taxes?Related posts: The good side of taxes 'Tax us more,' say some…

• More first-time home buyer horror stories

  skbell1

  4 Nov 2009 | 11:08 am

  I know Halloween is over, but at the Capital of Texas Enrolled Agents (CTEA) meeting I attended this morning, I heard a few more first-time home buyer credit horror stories I thought you might find of interest. Many of the cases that the Austin Taxpayer Advocate Service office is dealing with right now are connected with amended returns filed in order to claim the credit. As you might expect, a fair share of taxpayer mistakes have led to IRS run-ins. Locally, as has happened everywhere, folks claimed the credit before they actually owned and occupied the residence. Some married couples who…

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  Our Taxing Times

• Surprise! You Will E-File

  Trish McIntire

  6 Nov 2009 | 1:15 pm

  Ya gotta love our system of government. You have a bill that has passed the House by a pretty good margin. It goes to the Senate where this amendment is added. The Senate passes the bill 98-0. Back to the House. They vote to accept the Senate version by 402 to 12 margin and off to the President it goes. There it is sure to be signed since there are some important economic measures and it's veto proof. Almost like the Schoolhouse Rock segment.This, however, is HR 3548 - The Worker, Home Ownership and Business Assistance Act of 2009. A bill all expected to pass since it extends unemployment…

• Tax Simplification?

  Trish McIntire

  5 Nov 2009 | 2:58 pm

  A small step to tax simplification. The IRS is dropping three forms from the 1040 A series and replacing them with the form from the 1040 series. Until now, if you filed a 1040A return with interest in dividends over $1500, you used a Sch. 1. On the 1040 side, reporting was done with the Sch B. Now, everyone will be using the same form to document interest and dividends. The same holds true for Schedule 2. Child and Dependent Care Credit will be taken on Form 2441. The third form is the Schedule 3 for the Elderly Credit. For the few who can use this credit, they will use the 1040 Schedule R.I…

• The RAL Question

  Trish McIntire

  29 Oct 2009 | 11:39 am

  It is that time of year. Leaves are changing, we no long try to save daylight, it's getting colder and tax preparers start to plan for the next season. That brings up lots of questions: do I increase prices, how can I bring in new clients, why can't Congress leave the tax code alone, do I have enough folders/receipts/paper clips, who has the least expensive paper...you get my drift. Usually, one of my questions is which RAL bank will I use but this year it's do I want to beat the rush and drop them now?I know that RALs (Refund Anticipation Loans) are controversial. They have been…

• Buyer Education VI

  Trish McIntire

  20 Oct 2009 | 1:10 pm

  A couple more tips to protect you from the unscrupulous preparers out there.Contingency Fees Are a No-No!Actually, they aren't always but they are on an original return. Ok, let's look at the real world. You call a new preparer and of course you ask about fees. You probably won't get an exact quote but they should explain how they calculate fees. I charge by the forms required to prepare the return. (I'll add a time charge if I need to do bookkeeping first.) Some preparers just use time. Others based their fee on the level of complexity. But if you are told the fee is based on…

• Buyer Education V

  Trish McIntire

  18 Oct 2009 | 12:23 pm

  Just a reminder, this is an intermittent series highlighting what you need to know about  dealing with a tax professional. This is from my vantage point. The IRS has a page of tips for chosing a preparers.Your W-2's Can't Be Held Hostage......but there's not much you can do about it if they are. You've had an interview with a new preparer and for some reason you are not satisfied or you are concerned about the return. You have the right to ask for your original documents back and the preparer can't charge you. Circular 230 mostly covers enrolled preparers (E.A., CPA,…

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  TAX NEWS - Google News

• Ritter's proposed budget cuts education, taxes junk food - Denver Post

  7 Nov 2009 | 12:08 am

  Ritter's proposed budget cuts education, taxes junk foodDenver Post$153.6 million in revenue-generating actions, including keeping $131.8 million for the state by eliminating or temporarily suspending 13 tax exemptions and Colo. gov proposes sales tax on soda, online salesThe Associated PressEducation cuts, tax exemptions used to balance $1B budget shortfallFox 31 KDVR.comState cuts keep coming: Now it's schools, candyThe Durango HeraldDenver Business Journal -Grand Junction Sentinel -INDenverTimes.comall 85 news articles »

• Judge accepts plea deal for 'Girls Gone Wild' founder Joe Francis - Los Angeles Times

  6 Nov 2009 | 10:42 pm

  MiamiHerald.comJudge accepts plea deal for 'Girls Gone Wild' founder Joe FrancisLos Angeles TimesThe soft-porn mogul is sentenced to 301 days already served and a year of probation for filing false income tax returns and bribing Nevada jail workers. 'Girls Gone Wild' founder Joe Francis gets probabtion in tax fraud caseNew York Daily NewsJoe Francis Avoids Jailtime In Tax Return CaseCelebuzzJudge oks plea deal from 'Girls Gone Wild' founderThe Associated PressPhiladelphia Inquirer -CMR -WebCPAall 233 news articles »

• Tax credits may head up home sales - Omaha World-Herald

  6 Nov 2009 | 10:21 pm

  Boston GlobeTax credits may head up home salesOmaha World-Herald« National AP Federal tax credits to spur home sales will live on, and Omaha-area home building and real estate $8000 homebuyers tax credit extendedCNNMoney.comHome-buyer tax credit: Do you meet the time limit?Christian Science MonitorHomebuyer tax credit has its criticsKenosha News.comU.S. News & World Report -Hartford Courant -CBS42all 884 news articles »

• Treasury Blocks the Sale of Tax Credits by Fannie - Wall Street Journal

  6 Nov 2009 | 6:50 pm

  Los Angeles TimesTreasury Blocks the Sale of Tax Credits by FannieWall Street JournalThe US Treasury blocked Fannie Mae's proposed sale of nearly $3 billion in low-income housing tax credits to Goldman Sachs Group Inc. and Treasury Rejects Fannie Mae Sale of Tax CreditsBloombergUS Treasury to block sale of Fannie Mae tax credits - WSJReutersTreasury To Block Sale of Fannie Mae Tax Credits To Goldman SachsBenzingaWall Street Journal (blog) -Washington Post -CBS MoneyWatch.comall 874 news articles »

• Tax woes latest drag on Dellums' reputation - San Francisco Chronicle

  6 Nov 2009 | 6:29 pm

  Tax woes latest drag on Dellums' reputationSan Francisco ChronicleHe refused to offer an explanation for his tax troubles, which continues the pattern of aloofness and aversion to accountability that has defined his tenure Dellums needs to explain tax mess or step downSan Francisco Chronicleall 7 news articles »

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  Tax-News.Com Live Tax Headlines

• Tax-News.com: UAE Signs Double Tax Convention With Bangladesh

  6 Nov 2009 | 1:39 pm

  Tax-News.com: The government of the United Arab Emirates has confirmed the signing of a convention for the avoidance of double tax and fiscal evasion with respect to taxes on income with Bangladesh.

• Tax-News.com: Swiss Report Advocates Infrastructure Tax

  6 Nov 2009 | 1:28 pm

  Tax-News.com: Presenting a report outlining the infrastructure development strategy for Switzerland, Swiss Transport Minister Moritz Leuenberger emphasized the need to introduce a new tax on mobility (mobility pricing), in order to generate much needed additional revenue to finance future investment.

• Tax-News.com: Ireland's Lenihan Acknowledges OECD Recommendations

  6 Nov 2009 | 1:22 pm

  Tax-News.com: The Organisation for Economic Cooperation and Development's latest Economic Survey of Ireland, published on November 4 2009, has been welcomed by Irish Minister for Finance, Brian Lenihan, as a 'fair and balanced' assessment of the Irish economy.

• Tax-News.com: EU Completes Lisbon Treaty Ratification

  6 Nov 2009 | 1:11 pm

  Tax-News.com: The European Parliament has announced that it is preparing for increased powers after the Czech Republic became the last European Union member state to sign the controversial Lisbon Treaty on November 3, although powers over national tax affairs shouldn't be one of them.

• Tax-News.com: Qatar Readies 10% Corporate Tax For 2010

  6 Nov 2009 | 1:08 pm

  Tax-News.com: Qatari Finance Minister, Yousef Hussein Kamal, has confirmed that plans to implement a 10% flat corporate income tax rate, down from as high as 35%, are to enter into force from next year.

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  taxgirl

• I’m on the Radio!

  Kelly

  6 Nov 2009 | 12:27 pm

  I’m going all Clairee from Steel Magnolias on you. I’m on the radio! You can check out my interview with Jeff Horwich on Minnesota Public Radio about “sneaky rich people” here (I’m right after the vaccine report): Similar Posts: None Found

• Housing Credit Extended – What Else Is New?

  Kelly

  5 Nov 2009 | 2:11 pm

  If you’re opposed to extending the first time homebuyer’s credit (I am), you’re probably in the minority. And you’re definitely not in the Senate. The Senate voted unanimously to approve the bill and the House is expected to follow suit (at least the approval bit). Under the new law, the first time homebuyer’s credit would be extended to April 30, 2010 to sign a contract to buy a home and another sixty days to close. *Whew, just in time for the November elections.* The bill also extends the credit to homeowners who have lived in their current home for five of the…

• Maine Says No To Tax Cuts

  Kelly

  5 Nov 2009 | 4:35 am

  If you ask a Mainer about taxes, you’re liable to get an earful: Mainers have one of the highest tax burdens in the nation. Nonetheless, on election day, Maine voters turned down proposals to cut taxes. In a slow economy, Maine voters were leery of a proposal that would result in cuts in services. The controversial ballot issue, Question 4, asked voters if they wanted to limit future increases in state and local government spending and taxes to the rate of inflation plus population growth. The measure was known as the Taxpayer Bill of Rights campaign, or TABOR. Those opposed to the…

• Surprise! NJ Doesn’t Like High Taxes

  Kelly

  4 Nov 2009 | 4:33 am

  Despite three campaign appearances by President Obama, Governor John Corzine lost his gubernatorial seat in New Jersey to GOP challenger Chris Christie last night. Exit polls showed that the top two concerns for New Jersey voters were the economy and the state’s high property taxes. How high are those property taxes? For the year 2008, New Jersey holds the distinction of the state with both the highest property taxes per capita and the worst business tax climate in the nation, according to the Tax Foundation (note: report will download as a pdf). New Jersey residents also ranked highest…

• “Complexity of Tax Law” Not a Challenge for IRS?

  Kelly

  2 Nov 2009 | 5:22 pm

  What challenges are the IRS facing this year? Apparently not the complexity of the Tax Code. The Treasury Inspector General for Tax Administration (TIGTA) released its perspective two weeks ago on the most serious management and performance challenges confronting the IRS. The top 10 challenges in order of priority are: Modernization; Security; Tax Compliance Initiatives; Implementing Tax Law Changes; Providing Quality Taxpayer Service Operations; Human Capital; Erroneous and Improper Payments and Credits; Globalization; Taxpayer Protection and Rights; and Leveraging Data to Improve Program…

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  About.com Tax Planning: U.S.

• Worker, Homeownership & Business Assistance Act

  6 Nov 2009 | 3:05 pm

  Congress has passed and President Obama has signed into law HR 3548, the Worker, Homeownership & Business Assistance Act of 2009. This law extends unemployment compensation benefits. "The extension provides for 14 weeks of extended benefit coverage for every state and an additional 6 weeks, for a total of 20 weeks, in high unemployment states where unemployment is over 8.5%," reports Alison Doyle, About.com's Guide to Job Searching. The law provides a number of tax law changes as well. Some extend or enhance current tax breaks, while other changes are designed as revenue raisers. Here's…

• Foreign Earned Income Exclusion Increases Slightly for 2010

  2 Nov 2009 | 10:34 pm

  The maximum foreign earned income exclusion for 2010 is $91,500, an increase of $100 over the 2009 maximum.Foreign Earned Income Exclusion Increases Slightly for 2010 originally appeared on About.com Tax Planning: U.S. on Tuesday, November 3rd, 2009 at 06:34:58.Permalink | Comment | Email this

• Personal Exemption Amount Unchanged for 2010

  2 Nov 2009 | 10:20 pm

  For the year 2010, the personal exemption amount is $3,650 for yourself, your spouse and each dependent you are eligible to claim. This amount is unchanged from the 2009 amount. However there's one significant change for 2010. Unlike previous years, personal exemptions will not be reduced as a person's income increases.Personal Exemption Amount Unchanged for 2010 originally appeared on About.com Tax Planning: U.S. on Tuesday, November 3rd, 2009 at 06:20:27.Permalink | Comment | Email this

• Adoption Tax Credit Updated for 2010

  2 Nov 2009 | 9:54 pm

  For the year 2010, the maximum adoption tax credit will be $12,170. The IRS updated this figure as part of their annual update for several inflation-indexed figures as released in Revenue Procedure 2009-50. The adoption credit is scheduled to sunset at the end of the year 2010, and revert back to its pre-2001 dollar limit of $5,000, or $6,000 if a special needs child is adopted.Adoption Tax Credit Updated for 2010 originally appeared on About.com Tax Planning: U.S. on Tuesday, November 3rd, 2009 at 05:54:07.Permalink | Comment | Email this

• Retirement Plan Limits for 2010

  27 Oct 2009 | 4:42 am

  The maximum dollar amounts that can be contributed to various types of retirement plans will remain the same for 2010, according to an announcement from the Internal Revenue Service. The 2010 retirement plan limits will be as follows: Read more...Retirement Plan Limits for 2010 originally appeared on About.com Tax Planning: U.S. on Tuesday, October 27th, 2009 at 11:42:38.Permalink | Comment | Email this

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  Tax Policy Center: The Numbers

• Affordable Health Care for America Act, Surcharge on High Income Individuals

  28 Oct 2009 | 10:00 pm

  Distribution tables for the surcharge on high income individuals included in the Affordable Health Care for America Act This set of estimates consists of the following related tables: (T09-0417) America's Affordable Health Choices Act of 2009 Surcharge on High Income Individuals, Baseline: Current Law, Distribution of Federal Tax Change by Cash Income Level, 2011 (T09-0418) America's Affordable Health Choices Act of 2009 Surcharge on High Income Individuals, Baseline: Current Law, Distribution of Federal Tax Change by Cash Income Percentile, 2011 (T09-0419) America's Affordable Health Choices…

• Effective Marginal Tax Rates

  12 Oct 2009 | 10:00 pm

  Set of distribution tables regarding the effective marginal tax rate under 2009 current law. This set of estimates consists of the following related tables: (T09-0413) Average Effective Marginal Tax Rate (Percent), 2009 (T09-0414) Percentage of Tax Filers with Effective Marginal Tax Rate Less than, Equal to, or Greater than Statutory Tax Rate, 2009 (T09-0415) Average Difference Between Effective Marginal Tax Rate and Statutory Rate (Percentage Points), 2009

• Repealing the 10 percent bracket

  8 Oct 2009 | 10:00 pm

  A set of distribution tables and revenue tables showing the effects of repealing the 10 percent bracket. This set of estimates consists of the following related tables: (T09-0404) Repeal 10 Percent Bracket Baseline: Administration's Baseline Distribution of Federal Tax Change by Cash Income Level, 2011 (T09-0405) Repeal 10 Percent Bracket Baseline: Administration's Baseline Distribution of Federal Tax Change by Cash Income Percentile, 2011 (T09-0406) Repeal 10 Percent Bracket Baseline: Administration's FY2010 Budget Distribution of Federal Tax Change by Cash Income Level, 2011 (T09-0407)…

• Estate Tax Projections and Distribution Tables

  5 Oct 2009 | 10:00 pm

  Distribution and revenue tables of gross estate and net estate tax paid under current law and alternative exemption levels and rates. This set of estimates consists of the following related tables: (T09-0396) Current-Law Distribution of Gross Estate and Net Estate Tax By Size of Gross Estate, 2011 (T09-0397) $3.5 Million Exemption, Indexed for Inflation and 45 Percent Rate, Distribution of Gross Estate and Net Estate Tax By Size of Gross Estate, 2011 (T09-0398) $3.5 Million Exemption and 45 Percent Rate, Distribution of Gross Estate and Net Estate Tax By Size of Gross Estate, 2011 (T09-0399)…

• Alternative Minimum Tax Projections

  30 Sep 2009 | 10:00 pm

  Projected data relating to the AMT including the number of AMT taxpayers; the amount of AMT revenue; the average AMT payment; the distribution of AMT taxpayers by income, filing status, and level of state taxes; the distribution of AMT liability by income; and the interaction of the AMT with the 2001-2006 tax cuts. Tables cover various years from 2009 through 2020. Also includes distribution tables for repeal and a revenue table for the extension of the 2009 AMT patch. This set of estimates consists of the following related tables: (T09-0384) Aggregate AMT Projections, 2009-2020 (T09-0385)…

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  NYT > Property Taxes

• Rising Taxes Squeeze Local Operations

  21 Oct 2009 | 9:00 pm

  Property taxes are a greater part of a small business’s total tax bill, but entrepreneurs have less clout to get relief from local taxing jurisdictions.

• As Property Taxes Become a Real Burden, Can Backlash Be Far Off?

  4 Oct 2009 | 9:00 pm

  With census data showing that the 10 counties with the highest median property taxes are in New York or New Jersey, the question is, when will voters reach their breaking point?

• Another Way to Lose the House

  27 Aug 2009 | 9:00 pm

  The federal government should take steps to reduce the risk of foreclosure from unpaid property taxes.

• Tax Bill Appeals Take Rising Toll on Governments

  4 Jul 2009 | 9:00 pm

  Many homeowners are challenging their property tax bills as the value of their homes drop, threatening local governments with another big drain on their budgets.

• New Jersey Passes Budget Fueled by $1 Billion in Tax Increases

  25 Jun 2009 | 9:00 pm

  The bulk of the new revenue, which is $4 billion less than the current budget, will come from a one-year increase in the income tax on people making more than $400,000 a year.

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  THE WANDERING TAX PRO

• WHO CAN YOU BELIEVE?

  6 Nov 2009 | 2:00 am

  I ended last Saturday’s (Halloween) BUZZ, appropriately, with Prof Jim Maule’s holiday-themed post “Unmasking the Deductibility of Halloween Costumes”.In this post Prof Maule responds to some tax advice on deducting the cost of a Halloween costume that was presented in an email by a published tax preparer and, apparently, former tax blogger. He took exception to some of the advice given in the email, which said, “Yes, if you bought it to attend a client's Halloween party”.It seems that I was not the only one who’s eye was caught by this, as I originally described it,…

• MORE THIS JUST IN

  5 Nov 2009 | 1:56 pm

  The House has passed the bill that extends and expands the First Time Homebuyer Credit and unemployment benefits. The Senate had passed in unanimously yesterday.I will wait until BO signs the Act and I get a chance to review it in detail before posting an analysis.

• THIS JUST IN

  5 Nov 2009 | 11:34 am

  From the IRS –The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”All a taxpayer has to do is update his or her address once. The IRS will then send out all checks due.

• ONE MORE REASON TO AVOID H+R AND THEIR ILK

  5 Nov 2009 | 2:00 am

  During my “wandering” on the net I came across another sting operation aimed at tax preparers.This time the operation was conducted in Philadelphia by Community Legal Services of Philadelphia and the Campaign for Working Families, and in Durham, NC by the Community Reinvestment Association of North Carolina. The details of the operation are reported in “Tax Preparers Tax a Bite Out Of Refunds: Mystery Shopper Test Exposes Refund Anticipation Loan Abuses in Durham and Philadelphia” compiled by the Consumer Federation of America and the National Consumer Law Center.While, as the title…

• WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’ – WEDNESDAY EDITION

  4 Nov 2009 | 2:00 am

  * Oi vey! How could I have missed the November Tax Carnival? See what those GD extensions can do!Even though I completely forgot to submit a post I managed to close out the Carnival in a unique way.Anyway – make sure you do not miss “Tax Carnival #59: Standard Tax Time” compiled by Kay Bell, the yellow rose of taxes, over at DON’T MESS WITH TAXES.* Bruce, the MISSOURI TAX GUY, has resurrected his regularly Sunday BUZZ-like “Passing the Week” post, which has been renamed “Reads From Last Week”.Bruce visits a lot more personal finance blogs than I do, and this post links to some…

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  Start Making Sense

• Foreign tax credits

  5 Nov 2009 | 1:08 pm

  I'm nearing completion of a short, somewhat preliminary, but I think also provocative and surprising yet correct, article entitled "The Case Against Foreign Tax Credits." Not ready to post it, but the time may come fairly soon.

• Waiting for 2012

  5 Nov 2009 | 7:28 am

  No, that isn't a presidential election reference. I'd predict that Obama is reelected (running against an actual or simulated loon) after tough midterms in 2010, but that's not what I have in mind here. By now the 2009 elections are so earlier-this-week anyway, whereas last night's baseball travesty remains fresh for another few hours.The 2012 reference, rather, is to when I am hoping baseball's owners will lock out the players after expiration of the current labor contract.OK, I am not actually hoping for a lockout, but there is no other realistic scenario for restoring the basic competitive…

• Available for free - unused paper title

  27 Oct 2009 | 10:19 am

  "Tagging" is a popular idea in tax policy scholarship these days. The idea goes back to a 1978 paper by 2001 Economics Nobelist George Akerlof, called "The Economics of 'Tagging' as Applied to the Optimal Income Tax, Welfare Programs, and Manpower Planning." The idea is finding observable attributes (tags) that correlate, e.g., with high income earning ability, and basing tax burdens on that. An example might be a height tax.With that in mind, I've come up with a paper title that almost doesn't need that good a paper to justify itself. Offered to the world, as I don't plan to use it. Perhaps…

• True to life?

  26 Oct 2009 | 7:35 pm

  Two novels I've read this month - Claire Messud's The Emperor's Children and David Lodge's Deaf Sentence - appear to be building towards unpleasant or even horrific climaxes for the lead characters, but then they kind of trail away instead. I half-wanted the worst to happen, though also finding the prospect painful. Traditional plot structuring would have suggested ending with explosions rather than damp firecrackers (though Messud's 9/11 ending is hardly comforting). I suppose they picked the quieter endings in order to avoid formulaic predictability (like when showing the gun in Act 2 means…

• All three of them

  25 Oct 2009 | 5:12 pm

  They're getting along better these days, though Seymour and Buddy still stage the occasional squeakfest or batting practice. We are still building the trust level with Seymour (look what 7 years have done for us with the once-shy Ursula). Constant love-bombing gradually breaks down their defenses. A la Ringo Starr, who once scribbled that his favorite type of person was "Enyone who likes me."Buddy UrsulaSeymour

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  MauledAgain

• New Jersey to Follow in California’s Tax Footsteps?

  James Edward Maule

  6 Nov 2009 | 5:01 am

  So the “lower taxes” candidate won the governor’s race in New Jersey. That doesn’t mean taxes will be reduced, because the New Jersey legislature will have something to say about that. And the governor-elect may discover that reducing taxes isn’t necessarily the best choice.If the governor-elect succeeds in lowering taxes, what will happen? It’s not as though there’s no precedent for this sort of thing. The anti-tax crowd has done well in California. Proposition 13 has been described as the opening salvo in the attempt to reduce and even eliminate taxes and to derail tax…

• Tax Illiteracy as a Threat

  James Edward Maule

  4 Nov 2009 | 5:01 am

  Friday’s post, Unmasking the Deductibility of Halloween Costumes got the sort of attention that wild costumes attract at off-the-wall Halloween parties. A quick google search picked up these mentions:Tax Prof Blog: Deductibility of Halloween CostumesThe Wandering Tax Pro: What’s the Buzz? Tell Me What’s A Happennin’ (“* Since today is Halloween I must include at least one holiday-specific tax post. Prof Jim Maule’s as usual scholarly and well-documented “Unmasking the Deductibility of Halloween Costumes” at MAULED AGAIN certainly fits the bill.”)Wall Street Journal Popular…

• I’ll Show You My Taxes if You Show Me Yours?

  James Edward Maule

  2 Nov 2009 | 5:01 am

  In How Can Asking Questions Improve Tax and Spending Policies?, I considered what would happen if the Norwegian practice of disclosing taxpayers’ incomes and tax liabilities were adopted in the United States. After suggesting some of the consequences that would follow, I predicted that it would not happen. Well, perhaps it won’t happen, but it did, once, a long time ago. A former Commissioner of the Internal Revenue Service pointed out to me that in the Income Tax Act of 1862, provision was made for disclosure of tax returns to the public.So there is precedent in this country for doing…

• Unmasking the Deductibility of Halloween Costumes

  James Edward Maule

  30 Oct 2009 | 5:01 am

  Ah, yes, Halloween again looms, and once again it’s time to make MauledAgain particularly frightening. In years past, I have focused on sugar, candy, and, yes, pumpkins: In 2004, I looked at the idea of Taxing "Snack" or "Junk" Food. In 2005, I had some fun with Halloween and Tax: Scared Yet?. For 2006, in Happy Halloween: Chocolate Math and Tax Arithmetic, I simply lamented my inability to find four-pack versions of Reese's Peanut Butter Cups. In 2007, I added Tricky Treating: Teaching Tax Trumps Tasty Tidbit Transfers, while also noting that Halloween Brings Out the Lunacy. Finally, 2008…

• Revamping Philadelphia’s Tax System

  James Edward Maule

  28 Oct 2009 | 5:01 am

  Last week, the City of Philadelphia Task Force on Tax Policy and Economic Competitiveness delivered to the mayor and City Council its final report,Thinking Beyond Today: A Path to Prosperity. Although the report includes analyses of and recommendations with respect to things such as business activity regulations, zoning, publicity, government procedures, health care and pension spending, and other steps to making the city economically viable, it’s the tax proposals that caught my attention.The premise of some of the tax recommendations is that the city should tax things that are immobile…

• 
  AccountingWEB.com - News

• Wanted: Taxpayers who want to claim their refunds

  6 Nov 2009 | 8:10 am

  The Internal Revenue Service is looking for taxpayers who are due to receive a combined $123.5 million in the form of 107,831 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors. “We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.” read more

• IRS reports two out of three individuals using e-file

  6 Nov 2009 | 8:03 am

  The IRS is reporting that individuals e-filed a record 95 million federal income tax returns during 2009, up almost 6 percent from last year’s total of nearly 90 million. About two out of three taxpayers e-filed this year; out of the 141 million returns filed so far this year, over 67 percent were e-filed, compared to 59 percent last year. read more

• Ohio CPAs teach local students 'Smart Money Management' skills

  4 Nov 2009 | 9:35 pm

  On November 12, fifth-grade students at Brecksville-Broadview Heights Central School in Brecksville, OH will play the stock market and learn the risks and rewards of real-life investing from CPAs with Howard, Wershbale & Co. (HWCO) in Cleveland.  read more

• California tightens restrictions on CPAs

  4 Nov 2009 | 9:29 pm

  It’s not often that a bill passes unanimously.  But when the California legislature voted on AB117, a bill that will regulate the state’s CPAs, there was not a single “no” vote cast.  The bill was introduced at the request of CalCPA, which shares with legislators the goal of increased transparency.  read more

• More tightening for California CPAs: Peer Review

  4 Nov 2009 | 9:13 pm

  As California seeks to bring its CPAs into alignment with standards of the majority of other states, lawmakers have recently passed bills that raise the educational requirements for the accounting profession and require that CPAs with inactive licenses disclose that fact when acting in a professional capacity. One other significant change is the addition of mandatory peer review, as addressed by AB138.    read more

• 
  Tax Q&A

• We won a government lawsuit. Is it taxable?

  Kathy Howell, IRS Tax Senior Tax Consultant, Community Blogger

  27 Oct 2009 | 2:49 pm

  Question from evelyn October 27, 2009 at 12:24pm Kathy, We won a governtment lawsuit for guillain barre syndrome. Do we have to pay taxes on the amont won? Answer:  Evelyn - To determine if settlement amounts you receive by...

• Can my mother claim me as a dependent?

  Kathy Howell, IRS Tax Senior Tax Consultant, Community Blogger

  27 Oct 2009 | 2:46 pm

  Question from Iesha October 22, 2009 at 2:31am Kathy, I am 18 with a newborn baby i lived with my mom half the year but still supported my self before i lived on my own my question is can...

• What can I expect at tax time?

  Kathy Howell, IRS Tax Senior Tax Consultant, Community Blogger

  26 Oct 2009 | 3:20 pm

  Question from Teresa October 25, 20009 at 5:21pm Kathy, MY husband, myself, and my 4yr old son moved from Missouri to Oregon the end of Aug. 2009. I went from making$12.50/hr to $40,000/yr. Imagine my shock when I received...

• Can I claim my son as a dependent?

  Kathy Howell, IRS Tax Senior Tax Consultant, Community Blogger

  26 Oct 2009 | 2:53 pm

  Question from frank October 24, 2009 at 9:47am Kathy, My 27 yr old son is moving home to go to college full time; can I claim him as a dependent on my fed tax return and can I deduct...

• Do I have to file a return this year?

  Kathy Howell, IRS Tax Senior Tax Consultant, Community Blogger

  26 Oct 2009 | 2:34 pm

  Question from Kia October 22, 2009 at 5:57am Kathy, I worked a part time job this year, and will have made a little under $13,000. I am the head of my household with one child. Will I have to...

• 
  TaxProf Blog

• New Issue of Houston Business & Tax Law Journal

  Paul Caron

  6 Nov 2009 | 12:05 pm

  The Houston Business & Tax Law Journal has published Vol. 9, Part 3 (2009): Stephen J. Olsen, Chuck vs. Goliath: Basis of Stock Received in Demutualization of Mutual Insurance Companies, 9 Hous. Bus. & Tax L.J. 360 (2009) Donald Crump, Criminals Don't Pay: Using Tax Fraud to Prohibit Organized Crime,...

• Donaldson: 2009 Federal Tax Update

  Paul Caron

  6 Nov 2009 | 12:00 pm

  Samuel A. Donaldson (U. Washington) has posted 2009 Federal Tax Update on SSRN. Here is the abstract: This paper examines significant developments in the federal income, gift, and estate taxation of individuals and small businesses from August, 2008, through August, 2009. It covers important cases, rulings, regulations, and legislation during...

• More Celebrity Tax Woes

  Paul Caron

  6 Nov 2009 | 11:48 am

  Cathy Lee Crosby (acress: That's Incredible): IRS $47,649 tax lien, California $12,449 tax lien Ron Dellums (Oakland Mayor): IRS $238,998 tax lien Alex English (former Denver Nuggets basketball player): IRS $88,071 tax lien, South Carolina $40,200 tax lien Rachel Harris (actres: The Daily Show, Cougar Town): IRS $19,800 tax lien...

• Dinan: Reducing Greenhouse Gas Emissions with a Tax or a Cap

  Paul Caron

  6 Nov 2009 | 11:00 am

  Terry M. Dinan (Congressional Budget Office) has published Reducing Greenhouse Gas Emissions with a Tax or a Cap: Implications for Efficiency and Cost Effectiveness, 62 Nat'l Tax J. 535 (2009). Here is the abstract: This paper compares a tax on greenhouse gas emissions with a cap-and-trade program for reducing those...

• Florida Tax Review Publishes 4th Annual International Tax Symposium

  Paul Caron

  6 Nov 2009 | 10:00 am

  The Florida Tax Review has published the papers from its Fourth Annual International Tax Symposium: Jane G. Gravelle (Congressional Research Service), International Corporate Income Tax Reform: Issues and Proposals, 9 Fla. Tax Rev. 469 (2009). Here is the Conclusion: Our current stance on international taxation involves both misallocation of investment...

• 
  Roth & Company, P.C.

• Transformer Blowout Closes Roth & Company for the day

  Joe Kristan

  6 Nov 2009 | 1:05 pm

  A transformer blowout has closed the Financial Center, World Headquarters for Roth & Company and the Tax Update Blog. We...

• House passes homebuyer credit, NOL bill

  Joe Kristan

  6 Nov 2009 | 5:29 am

  The bill to extend and expand the fraud-ridden $8,000 First-time Homebuyer tax credit passed the House of Representatives yesterday on...

• Maybe surface dirt wasn't all they skimmed

  Joe Kristan

  6 Nov 2009 | 4:59 am

  When you face a hefty tax bill, the temptation to cheat on your taxes can be hard to resist --...

• 179 days and nights in Manhattan

  Joe Kristan

  6 Nov 2009 | 4:53 am

  April15.com blog tells how careful recordkeeping allowed a billionaire to avoid millions of dollars in New York city and state...

• Can you get film tax credits by making a film about film tax credits?

  Joe Kristan

  6 Nov 2009 | 4:41 am

  Iowa Public Television ran a half-hour feature about Iowa's 30 or so "economic development" tax credits last night. These credits...

• 
  Rubin on Tax

• TAX INCREASES IN HEALTH BILL NOT INDEXED FOR INFLATION, AND WILL ALSO REACH CAPITAL GAINS AND DIVIDENDS

  Charles Rubin

  6 Nov 2009 | 8:44 am

  In 1960, only 3% of tax filers paid a 30% or higher marginal tax rate. By 1980, after the inflation of the 1970s, the share was closer to 33%. In 1981, Congress realized the inequity in these "stealth" tax increases by requiring tax brackets be indexed for inflation. Without such indexing, lower income persons are eventually subjected to higher marginal rates of tax as their income rises with inflation, even though they have not really increased their income on after-tax basis. Similar "bracket creep" has occurred in the context of the alternative minimum tax, which once-upon-a-time only…

• WILLFUL FAILURE TO PAY OVER WITHHOLDING TAXES APPLIES, EVEN THOUGH EMPLOYER DID NOT HAVE THE MONEY TO PAY IT OVER

  Charles Rubin

  3 Nov 2009 | 1:11 pm

  A nursing home operator collected payroll taxes from his employees. Instead of paying the collected taxes over to the IRS, the operator spent them on other expenses. The IRS obtained criminal tax convictions under Code Section 7202. The nursing home operator appealed the conviction, claiming he could not have “willfully” failed to pay over the taxes since he did not have the money to pay them even if he wanted to.  The taxpayer argued that willfullness required “bad faith or evil intent” - which had to be absent if he didn't have the funds to pay over the taxes. The 9th Circuit…

• STATE AND LOCAL TAX ISSUES RELATING TO PASS-THROUGH ENTITIES

  Charles Rubin

  29 Oct 2009 | 3:49 pm

  The U.S. allows pass-through treatment for partnerships and limited liability companies for federal income tax purposes. The issue remains how such entities and their owners will be taxed in those states and localities that impose income taxes. Most states and localities will respect the pass-through treatment of pass-through entities when applying their local income taxes. However, there are other state and local tax issues and consequences that relate to pass-through entities that can yield surprising or unexpected results. A recent article discusses some of these.In regard to taxes imposed…

• NEXT IN THE IRS' SIGHTS - HIGH NET WORTH INDIVIDUALS

  Charles Rubin

  27 Oct 2009 | 4:42 pm

  Basking in the glow of the recently completed offshore voluntary compliance program, IRS Commissioner Shulman in a recent speech revealed a new direction for IRS enforcement - high net worth individuals. The Commissioner noted the recent formation of a Global High Wealth Industry group housed in its Large and Mid-Size Business operating division. The IRS is concerned that the complicated legal structures of high net worth individuals often mask aggressive tax strategies.Areas of possible abuse cover a large gamut of legal and tax structures, including trusts, real estate investments, royalty…

• SECTION 2053 REGULATIONS ADOPT "WAIT AND SEE" APPROACH

  Charles Rubin

  25 Oct 2009 | 5:54 am

  The IRS has issued final Regulations regarding the influence of post-death events on deductions under Code Section 2053 for claims and expenses. The Regulations intentionally adopt an interpretation under Section 2053 that events occurring after a decedent's death are to be considered when determining the amount deductible under all provisions of section 2053 and that deductions under section 2053 generally are limited to amounts actually paid by the estate in satisfaction of deductible expenses and claims.This means that for claims against an estate that cannot be paid before the due date of…

• 
  IRS Tax Problem Solver Blog - IRS Help

• US Targets Other Banks

  Darrin Mish

  6 Nov 2009 | 7:15 pm

  After the IRS had made settlement with UBS over the disclosure of information on thousands of suspected tax evaders holding UBS bank accounts, the agency is now looking at investigating similar cases in other Swiss banks. According to IRS Commissioner Doug Shulman, the IRS intends to go after other banks, law firms and entities that help Americans place their cash in offshore accounts without paying taxes. However, Michael Ambuehl, chief negotiator on behalf of the Swiss government in the settlement stated that a similar arrangement with other banks would be 'questionable' since UBS…

• The Shoe is on the Other Foot

  Darrin Mish

  5 Nov 2009 | 6:15 pm

  Most of the time, you hear about the IRS suing an individual or a company for fraud. But in this case, you have a tax fraud investigator suing the IRS instead. Miami fraud investigator, Lewis B. Freeman is suing the IRS for allegedly wrongly assessing a $4.8 million penalty it levied against him. Freeman's company, Lewis B. Freeman & Partners Inc. is a well-known company that is hired to investigate fraud cases and has often been appointed by the court to stand as trustees or receivers. The million dollar penalty the IRS imposed on Freeman dates back to an incident 5 years ago when…

• Tax News

  Darrin Mish

  4 Nov 2009 | 5:15 pm

  Sysco's Deal with the IRS Restaurant food supplier Sysco Corp. has finalized a deal with the IRS over the agency's demands of taxes deferred by its subsidiary, Baugh Supply Chain Cooperative. Baugh is the subsidiary through which Sysco buys products for its business. The dispute arose when Sysco contended that Bough's structure allows it to defer its tax payments under federal tax codes. But the IRS disagreed and audited the company's tax returns from 2003 to 2006. Under the audit, the IRS challenged the validity of Sysco's contention and proposed accelerated tax…

• Even Billionaires Do Not Always Get What They Want

  Darrin Mish

  3 Nov 2009 | 5:15 pm

  When billionaires declare their assets for taxation, they also make billion dollar tax deductions. Andrew Beal, the billionaire founder of Beal Bank in Plano, Texas and financier of Donald Trump's Atlantic City casinos made such a deduction based on losses incurred in connection with loans his bank acquired from Chinese companies. Federal court judge Ed Kinkeade ruled on August 18th that Beal's tax deduction of $1.1 billion due to non-performing Chinese loans was not justified because it was based on a 'distressed asset/debt' (DAD) transaction. Such transactions created a…

• Swiss Bank Secrecy Laws No More?

  Darrin Mish

  2 Nov 2009 | 4:15 pm

  In the aftermath of the IRS UBS settlement, a pertinent question arises – how secret are Swiss bank secrecy laws? Once the unquestionable bastion of confidential banking, now with Swiss bank UBS revealing details of 4,450 of its US account holders suspected of tax evasion to the IRS, the secrecy in Swiss banking is no longer a given. Doug Shulman, IRS Commissioner noted that the IRS UBS agreement "blows a big hole in bank secrecy". In reality, complete secrecy is a myth. There are always circumstances that justify releasing private banking information. For instance, if the…

• 
  California Tax Attorney Blog

• Decline Executor's Fees

  5 Nov 2009 | 4:00 am

  California's probate fees paid to both the probate lawyer and to the estate's executor are set by law. In an earlier blog, I laid out the 4-3-2-1 statutory fee system. Your California probate attorney probably won't decline being paid the statutory probate fee. But as the executor, you may want to consider waiving the fee. As is the case with any income you earn, the probate fee is subject to income tax. If you are the only beneficiary, then you will inherit the entire estate income tax free; in that case, why pay yourself the taxable fee when you can get all the property tax free? You may…

• California Wills: Myths

  3 Nov 2009 | 3:28 am

  About a week ago, USA Today ran an article entitled "5 Myths About Wills, and What You Should Do". These myths apply in California and ought to result in contacting a knowledgeable estate planning attorney about what can be done. Those myths are: After I create my will or living trust, I'm all set. If I die without a will, everything will go to my spouse. I could be held responsible for a deceased parent's debts. Estate planning is for rich people. If I have a will, my estate won't go through probate. Call attorney Mitchell A. Port with questions about California probate, estate planning,…

• Death And Debts

  30 Oct 2009 | 5:05 am

  A long illness and nursing home or hospital expenses for our parents can quickly add up to a lot of debt in California. You are not liable and cannot be sued personally for their debt so long as you didn't agree to pay it. You may get letters or phone calls from creditors asserting that as heirs of your parents’ estate, you are liable for their debts. In California, children are not responsible for paying their parent's debts unless they agree to be. The estate of the person who died is liable but if there is no money or assets in the estate, the creditors lose. When a person dies, his or…

• Estate Tax Deductions

  27 Oct 2009 | 4:52 am

  Pursuant to Internal Revenue Code section 2053(a), “the value of the taxable estate shall be determined by deducting from the value of the gross estate such amounts: (1) For funeral expenses, (2) for administration expenses, (3) for claims against the estate, and (4) for unpaid mortgages on, or any indebtedness in respect of, property where the value of the decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate, as are allowable by the laws of the jurisdiction, whether within or without the United States, under which the…

• California's Tax Preparers' Mistakes On Our Tax Returns

  22 Oct 2009 | 5:00 am

  The IRS is interested in what are the top mistakes on individual income tax returns filed on paper and by e-file. Errors are categorized by whether you filed Form 1040EZ, 1040A, or 1040. 1. We computed your recovery rebate credit for you. 2. We changed the amount of the recovery rebate credit you claimed on your tax return because the amount entered was computed incorrectly. 3. We changed the amount of tax shown on your return. The amount entered was incorrect based on your taxable income and filing status. 4. We changed the amount of taxable income on your return because there was an error…

• 
  IRS - Hitman

• Somebody's Watching You...and it's the IRS. Watch out for IRS Debt

  6 Nov 2009 | 8:11 am

  Ever have the feeling... that you're being watched? It could all be in your head. Or is it? Sorry to give you the bad news, but you actually are being watched. The IRS doesn't have spies out there peeking through your blinds. But they do watch what you claim as deductions very carefully.Somebody's watching me! So is it time to panic if you already claimed false deductions on prior tax returns? That all depends on the time frame. The IRS can audit a tax return up to 6 years after it has been filed. So if you made false deductions in that period, maybe you should be a little wary. What do I do?

• Taxpayers Strike Back: Fight Back and Beat the IRS

  5 Nov 2009 | 7:42 am

  Finally Caught: You may have found the way to beat the system for a little while. But no one escapes Uncle Sam or his team of IRS Hitmen for long. The IRS has many weapons they use to make you pay. Know the enemy. Then when the IRS strikes, you can fight back.Bank Robbery: One of the most dreaded methods the IRS uses to collect on taxes is the Bank Levy. The IRS locks you out of you own bank account. Then they seize everything you have in it. This may seem illegal, but it's not. You or your bank has no say in this matter, it's a legal weapon they use to collect the IRS debt. - Fight Back:…

• IRS Tax Issues: The Top 3 Most Requested IRS Forms and How They Save You Money

  4 Nov 2009 | 7:16 am

  Knowledge is Power it sounds corny, but it's true. Most people don't have a clue when it comes to IRS rules and regulations. And naturally, few people have knowledge of the countless forms and documents the IRS requires taxpayers to fill out. So get out your pen and take notes, the more you know about the IRS the better.The Top 3 Forms: These are the top 3 most requested IRS Forms according to the IRSForm W-9 Request for Taxpayer Identification Number and CertificationForm Purpose: Use this to retrieve your Taxpayer Identification Number (ITIN)How it Saves You $$$: Failure to Furnish your…

• IRS Tax Lien- 3 Ways to Remove an IRS Tax Lien

  3 Nov 2009 | 6:06 am

  An IRS Tax Lien can have a devastating effect on your financial life. Your credit is ruined, and you assets are in constant danger of being seized the longer you wait to pay the IRS. So what should you do? There are three ways you may be able to remove your Tax Lien. No effort is guaranteed, but it doesn't hurt to try them. 1. Appeal the Lien FilingThe IRS has five business days after filing the lien to provide you with written notice. The written notice must include notice of the right to request a hearing within 30 days from the sixth day after the Lien filing. If you win the appeal, the…

• IRS Tax Debt- What Do IRS Notices Mean, And How Do I Respond

  2 Nov 2009 | 5:52 am

  Threatening Letters If you have a problem with the IRS, they automatically send you a notice. A common notice is “Notice of Tax Due and Demand for Payment”. When you pull something like that out of your mailbox, most people panic and then ignore the letter. Bad idea! If you follow the steps below, you can resolve the notice quickly.- Read, Read, Read: It looks like I'm stating the obvious, but I'm not. Most of the people I called didn't even read the notices the IRS sent them. Sometimes the IRS Notice is simply asking for more information from you, or is letting you know there was a…

• 
  Tax Law Forum

• Friday's Tax Quote - November 6, 2009

  Rob Teuber

  6 Nov 2009 | 5:00 am

  "[Tax law jurisprudence is] a field beset with invisible boomerangs."- Robert H. Jackson

• Friday’s Tax Quote – October 30, 2009

  Rob Teuber

  30 Oct 2009 | 9:14 am

  Today’s quote comes from Bruce the Tax Guy over at the quality tax law blog lrtaxprep.com."Too bad that all the people who know how to run the country are busy driving taxicabs and cutting hair."- George BurnsBack in November 2008, Bruce compiled an anthology of tax quotes that you can read by clicking here.

• The Best Tax Advice Ever

  Rob Teuber

  26 Oct 2009 | 7:40 am

  Recently, I began writing a regular tax column for the Wisconsin Law Journal (a fine publication). In the most recent article, I explained the two practical practices that I believe have the largest impact on the success of a business and the ability to deal with unexpected tax issues. The article can be found here: The Best Tax Advice

• Friday's Tax Quote - October 23, 2009

  Rob Teuber

  23 Oct 2009 | 5:57 am

  "Only God knows where we got our tax system."-Sam Gibbons

• Friday's Tax Quote - October 16, 2009

  Rob Teuber

  16 Oct 2009 | 5:55 am

  "Death and taxes are inevitable."- Thomas Chandler Haliburton

• 
  The Missouri "taxguy"

• Moving Day.

  Bruce

  27 Oct 2009 | 11:09 am

              Okay so here I am all full of “I’m back. . . “ and all that then I don’t post anything.              As you might imagine, I have gotten a lot of inquires to this and have not answered any of them until today.              I have moved this blog to its own Domain.              To get my further ramblings you will need to go to www.themotaxguy.com. I am still working on the meticulous things that make it all work, but it is up and most things are working.              RSS readers – I am having trouble getting the…

• A little Professionalism, if you please.

  Bruce

  19 Oct 2009 | 10:00 am

            Earlier this past week I noticed a post(1)from a blogging colleague. I mention this as although his said intentions were set and designed to inform taxpayers, I found not only a few things wrong with the post, but also felt like the post was an attack. The attack was not to just a good blogging friend and colleague, but to other such professionals as well. Moreover, I am not just referring to tax professionals. Please, let me explain better.           There has been an ongoing, somewhat group, discussion about the pending and upcoming regulation of tax preparers.

• Back for more. . . . , somewhat. . . .?

  Bruce

  15 Oct 2009 | 11:32 am

              Okay it has been a month since I last put something up here, and has been almost two months since I actually wrote something. I really have missed being here, so I have decided that giving this up is not something I am ready to do.             Some of this decision was based on a friend of mine has a daughter who is an English teacher. I mention this as through communications from them both I have learned that my spell is “atrocious”.              So why bring all that up? Well I have learned that as I wrote more post my spelling improved…

• American Recovery & Reinvestment Act of 2009: Information Center

  Bruce

  16 Sep 2009 | 11:38 am

  Straight from the IRS.          The IRS is implementing the tax-related provisions of the American Recovery and Reinvestment Act of 2009 (ARRA) as quickly as possible. More information on these and other provisions of the recovery program will be available on this Web site as it becomes available. Information for Individuals Some of the provisions of the law primarily affect individuals. Making Work Pay Tax Credit. This tax credit means more take-home pay for many Americans. To make sure enough tax is withheld from their pay, taxpayers can use the IRS withholding calculator. See…

• 
  JD Supra Taxation

• U.S. to Prohibit Drawback Claims for Excise Tax on Imports?

  Duane Morris LLP

  6 Nov 2009 | 9:25 am

  Contributor: Duane Morris LLP [View: Profile | Documents]

• New Property Tax Legislation

  Morrison & Foerster LLP

  4 Nov 2009 | 8:43 am

  Contributor: Morrison & Foerster LLP [View: Profile | Documents]

• IRS to Randomly Audit Businesses for Employment Tax Compliance

  McAfee & Taft

  4 Nov 2009 | 12:34 am

  Contributor: McAfee & Taft [View: Profile | Documents]

• The New Enterprise Income Tax Law of China

  Jaime Ubilla

  3 Nov 2009 | 10:09 am

  Contributor: Jaime Ubilla [View: Profile | Documents]

• Foreign Account Tax Compliance Act of 2009 – Congress Sets Its Sights On Overseas Tax Evasion

  Morrison & Foerster LLP

  31 Oct 2009 | 9:31 am

  Contributor: Morrison & Foerster LLP [View: Profile | Documents]

• 
  The CEN-TA Group

• Transferring funds to Canada tax free after landing - Canadian-US-Global Income tax help - david ingram expert US CANADA cross b

  4 Nov 2009 | 12:14 am

  My_question_is: Applicable-to-other-jurisdiction question: I'm planning on landing in Canada as a PR next spring. Currently living in the USA, but Hungarian citizen. How can I transfer funds tax free after landing? I understand that Canada taxes its residents based on their world income. Should I declare my Hungarian and US bank accounts at landing, so they will not be treated as income? I also own 2 properties in Hungary. If I sell them in a few years, I understand I will have to pay taxes on capital gain? Should I have the properties appraised at/around the time of landing? What about the…

• Canadian Resident of Egypt wants to bring Qtar wife to Canada - Canadian-US-Global Income tax help - david ingram expert US CANA

  23 Oct 2009 | 9:07 pm

  XXXXX XXXXXXX wrote: Dear Mr. Ingram,I am writing to inquire as to your services and service rates. I am aCanadian citizen resident in Egypt (on a standard 1-year renewablework visa), where I work for xxxxxxxxxx group. I have been a legal resident ofEgypt since 1996 and pay full taxes here.I left Canada over a decade ago. While I return once or twice a yearto visit family (parents, siblings), my wife is a non-Canadian and Iconsider Egypt our place of permanent residence.That said, we have just had a son whose only citizenship isCanadian. This has caused me to examine my ties to Canada in…

• Arizona, Manitoba, California and British Columbia tax rates on vacation property - Canadian-US-Global Income tax help - david

  9 Oct 2009 | 9:06 am

  Hi Mr Ingram, Vacation property! I last spoke to you regarding purchasing in either Palm Springs or Scottsdale,Arizona.  I am still finding it out to wrap my head around the tax treatment  for either cities.    Not being an accountant I can only understand by simplifying the transaction by asking that if I do happen to sell the vacation property down the road and come out with a gain of $100,000.00 what would the tax be a) on the Palm Springs property B) on the Scottsdale property if my tax Bracket in Canada is in the 25% range.  I understand that both states…

• Moving to canada from US under Treaty NAFTA - Occupations that qualify to work between the USA, Canada and Mexico - Canadian-US-

  9 Oct 2009 | 1:54 am

  XXXXX XXXX wrote: David, I just called you.  I read the October newsletter and I understand that I will have to file a tax return in the US while I work in Canada.  My more immediate concern is in moving to Canada.  I intend to work and live in Canada for at least 5 years.  I am a professional engineer in the states.  My employer is XXXXXXXXXX company in Edmonton and they have received an opinion from the CIC that I can apply for a work permit at the border under some provision of NAFTA.  I would like to learn more about the services you provide with regard to…

• Canadian Artist wants to paint in USA and sell in the USA - Canadian-US-Global Income tax help - david ingram expert US CANADA c

  9 Oct 2009 | 1:48 am

  X X  wrote: Hi I found your site today and thought maybe you could answer a simple question. We are currently looking at staying in Maui for a few months because a design firm would like to represent my paintings and sell them. Do I have to paint them all in Canada first and then ship them or can I paint them there and the design firm sell them? Simple question but no one seems to know the answer.I look forward to your replyThanks so muchX X   david ingram replies: I looked at your website and recognize that you are a force in the art world and would not just be there painting a…

• 
  Stacie's More Tax Tips

• What's Happening With The Homebuyers Credit - Well I'm Going to Tell Ya

  Stacie Clifford Kitts

  6 Nov 2009 | 7:43 am

  By Stacie Clifford KittsThe House has voted to extend the Homebuyers credit as part of H.R.3548 Worker, Homeownership, and Business Assistance Act of 2009What's new for the credit? Well if President Obama signs the bill here is a quick outline of what we get: (The entire section of the bill that relates to the Homebuyers credit is listed below my outline)The applicable period is extended until April 30, 2010. (see binding contract rules below)If you are on qualified official extended duty outside the US the applicable period is extended until April 30, 2011. (Members of the military serving…

• Shameless Self Promotion - OCTalkRadio.net Here is My Interview

  Stacie Clifford Kitts

  5 Nov 2009 | 11:18 am

  By Stacie Clifford Kitts CPALast week I announced my interview on OCTalkRadio.net with Ric Franzi of Critical Mass.Interestingly, Ric wanted to find out how social networking including my blogs Stacie's More Tax Tips and The Business Perspective was affecting my CPA practice. Although I was excited about being on the show and talking about how I am utilizing social networking, I must admit I was nervous. I mean, accountants tend to stay in the shadows rather than in the limelight. And, I am definitely not the exception to that stereotype. So here is the link to the recorded show at Critical…

• Treasury Allocates $2.2 Billion in Bonds for Renewable Energy Development

  Stacie Clifford Kitts

  5 Nov 2009 | 7:19 am

  WASHINGTON--As part of the Obama Administration's efforts to spur renewable energy production, the U.S. Department of Treasury announced the allocation of $2.2 billion in Clean Renewable Energy Bonds (CREBs) for 805 recipients across the country. Funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act), these energy bonds help government agencies, public power providers, and cooperative electric companies obtain lower cost financing for clean energy development projects."The Recovery Act's innovative bond programs provide…

• Guidance - Payroll Form 944 Rev Proc 2009-51 - Know Who is Eligible to File Annual Form Rather Than Quarterly

  Stacie Clifford Kitts

  4 Nov 2009 | 7:01 am

  Revenue Procedure 2009-51 sets forth the procedures for employers who are eligible to file Form 944, Employer’s Annual Federal Tax Return, to request to file Form 944 instead of Forms 941, Employer’s Quarterly Federal Tax Return, for tax years beginning on or after January 1, 2010. In addition, this revenue procedure sets forth the procedures for employers who previously were notified to file Form 944 to request to file Forms 941 instead for tax years beginning on or after January 1, 2010.Revenue Procedure 2009-51 will be published in Internal Revenue Bulletin 2009-45 on November 9, 2009.

• Disaster Relief - American Samoa

  Stacie Clifford Kitts

  3 Nov 2009 | 7:26 am

  From the IRSAmerican Samoa — Victims of the recent Tsunami in American Samoa may qualify for tax relief from the Internal Revenue Service.Following severe storms and flooding on Sept.29, the President declared the Territory of American Samoa a federal disaster areas qualifying for individual assistance.As a result, the IRS is postponing until Dec. 28 certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between Sept. 29 and Dec. 28.In addition, the IRS…