Taxes

• Most Topular Stories

• What’s New in QuickBooks 2012?

  seebeyondthenumbers.com

  Lisa Grossman

  25 Jan 2012 | 11:00 am

  The program enhancements for QuickBooks 2012 can be divided into two areas: Enhancements for the user Enhancements for their accountants Enhancements for the user are designed to make day-to-day accounting easier and provide better information about your business. We have listed many of the User Enhancements that apply to most versions of QuickBooks below. Refresh Excel Data – provides user better integration with Microsoft Excel Contributed Reports – allows user to share report templates with other QuickBooks users Lead Center – allows user to manage sales prospects within QuickBooks…

• Tax Problems Associated With Our Tax System

  Tax Resolution Blog

  Dean Alexander

  26 Jan 2012 | 5:57 pm

  We said previously that our tax rates are high and our code reflects the power center's arrangements. Now, we discuss the complication of the code, the fairness issues and IRS collection practices that come with the territory.  No one needs to explain how complicated the code is with thousands of pages and the annual changes and modifications. It takes the highly specialized knowledge of a CPA or an IRS tax attorney to navigate through the maze of forms and complications in order to provide the tax help that citizens need.  An example of the complication is the alternative minimum…

• Must I Pay Taxes on Unemployment Benefits?

  PRO-TAX

  20 Jan 2012 | 8:00 am

  Unemployment is rampant throughout the US (and the world, for that matter) and many of us, some for the first time, are collecting unemployment as a way to get by until we are able to find suitable employment. It seems like we are having enough trouble paying our rent and usual living expenses. Do we really have to pay taxes on our unemployment benefits as well? Although it feels like having salt rubbed into a wound, unemployment benefits are considered taxable income at both the federal and state levels. Taxable unemployment compensation generally includes any amounts received under the…

• Tax refunds delayed by fraud fine-tuning

  Don't Mess With Taxes

  skbell1

  27 Jan 2012 | 10:42 am

  Few folks are as eager as those awaiting a tax refund. Well, there's bad news for some of you early filers. New anti-fraud measures implemented this tax filing season have caused the Internal Revenue Service to be a bit slow in sending out refunds. After getting calls from taxpayers and tax professionals wanting to know why folks were still waiting for refunds -- e-filers generally can expect their directly deposited refunds in about 10 days -- the IRS announced that the tax cash could be delayed a week because of a new anti-fraud safeguards. Here's the official email word from the…

• Update: Refund Issues - Edited

  Our Taxing Times

  trishmc

  26 Jan 2012 | 10:52 am

  According to Phil Drake of Drake Software, the IRS has confirmed that there are a high number of refunds being delayed.  While the IRS has released no numbers or explanation as to why the delay, they are working on the issue. While many taxpayers are finding that their refund has been delayed, others are getting their money faster than expected due to Customer Account Data Engine (CADE). In fact, they will probably the only taxpayers getting their refund this week. Ya gotta love the IRS 1/27/2012  From an IRS QuickAlert: The one-week delay for some refunds relates to fine-tuning IRS systems…

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  PRO-TAX

• Do I Need to File a Tax Return This Year

  27 Jan 2012 | 8:00 am

  United States citizens are required to file a federal income tax return if income is above a certain level, which varies depending on filing status, age and the type of income. To find out if you need to file, you can check the Individuals section of the IRS website at www.irs.gov. However, perhaps the easiest way to determine whether you need to file a tax return is to contact your PRO-TAX Professional Preparers - click Here for locations. We would be happy to help you determine whether you’ll need to file this year. To get you started with information about gathering your important…

• Must I Pay Taxes on Unemployment Benefits?

  20 Jan 2012 | 8:00 am

  Unemployment is rampant throughout the US (and the world, for that matter) and many of us, some for the first time, are collecting unemployment as a way to get by until we are able to find suitable employment. It seems like we are having enough trouble paying our rent and usual living expenses. Do we really have to pay taxes on our unemployment benefits as well? Although it feels like having salt rubbed into a wound, unemployment benefits are considered taxable income at both the federal and state levels. Taxable unemployment compensation generally includes any amounts received under the…

• IRS Kicks off 2012 Tax Season with Deadline Extended to April 17

  13 Jan 2012 | 8:00 am

  Again this year there is a later date than the traditional April 15 date to file taxes.  Taxpayers will have until Tuesday, April 17 to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. If you will need more time to get your paperwork complete, IRS…

• Entertainers and Taxes...That's Show Biz!

  6 Jan 2012 | 8:00 am

  Entertainers and artists face unique challenges when filing their income tax returns. To start with, entertainers and artists are typically paid by multiple entities, on an irregular basis, in many states and possibly more than one country. Having that many “employers” alone can add up to income tax headaches. In addition, depending on whether the artist is paid as a regular employee or as freelance, they may need to put money aside to cover payroll taxes. And then there is keeping track of the expenses that might be deducted on the tax return. It’s a challenge for all you…

• Ho, Ho, Ho!

  25 Dec 2011 | 6:00 am

  That’s the Jolly Song you will be singing when the professionals at PRO-TAX attend to your 2011 Income Tax returns.  No more will Bah Humbug be the feeling when you think about income taxes – since your tax “worries” will be in our hands. Income tax time starts very early in the new year – we know that many people put off to the last minute all the preparation needed to file your federal and state income tax returns – and unfortunately, this can be a cause of stress.  And you certainly do not need more stress as you approach the holidays! You will be…

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  Don't Mess With Taxes

• How your future retirement tax bracket affects today's Roth IRA decisions

  skbell1

  28 Jan 2012 | 1:43 am

  A couple of years ago -- Yikes! Has it been that long!? -- I asked in a post Are you ready for a Roth conversion? It looked at the elimination of the income limit on converting a traditional IRA to a Roth account. Back then, my fellow personal finance blogger and Twitter pal JoeTaxpayer. was among those who offered some answers to that question so I invited him to elaborate. He graciously agreed to write a guest post then and now he's updated it with 2011-2012 tax data. Today, I'd like to offer a look at what it would take to be in a higher tax bracket at retirement. Since no one…

• New York offers debit card refund option

  skbell1

  27 Jan 2012 | 4:00 pm

  Tax refunds via debit cards didn't work for Uncle Sam last year, but maybe the Empire State will have better luck. The New York Department of Taxation and Finance announced this week that the state's taxpayers can now choose to receive their personal income tax refunds on a prepaid MasterCard debit card.   Click image to view a video on the NY tax refund debit card option. The option was created to provide folks without a bank account a way to have their refunds directly deposited.  New Yorkers can choose the debt card refund method when they file their tax returns. Once the return…

• Tax refunds delayed by fraud fine-tuning

  skbell1

  27 Jan 2012 | 10:42 am

  Few folks are as eager as those awaiting a tax refund. Well, there's bad news for some of you early filers. New anti-fraud measures implemented this tax filing season have caused the Internal Revenue Service to be a bit slow in sending out refunds. After getting calls from taxpayers and tax professionals wanting to know why folks were still waiting for refunds -- e-filers generally can expect their directly deposited refunds in about 10 days -- the IRS announced that the tax cash could be delayed a week because of a new anti-fraud safeguards. Here's the official email word from the…

• Federal workers and retirees owe more than $3 billion in taxes

  skbell1

  26 Jan 2012 | 2:28 pm

  Lost in the political sniping this week about which candidate pays how much in taxes was a report on which federal workers aren't paying what they owe. The latest tax delinquency data shows that at the end of fiscal 2010, about 98,000 federal, postal and Congressional employees owed $1.03 billion in unpaid taxes. Add in federal retirees and military personnel, and the Internal Revenue Service says the total comes to nearly 280,000 people owing $3.4 billion. The numbers are from the IRS' Federal Employee/Retiree Delinquency Initiative (FERDI). Since 1993, FERDI figures have been send…

• State of taxes in Obama's State of the Union address.

  skbell1

  25 Jan 2012 | 8:59 am

  Tuesday was the day that news really wasn't new. First, Mitt Romney released his tax returns, which didn't tell us very much we didn't already know. Then came Obama's 2012 State of the Union address, which also contained a lot of tax ideas that we've heard before. And we've still got a week until Groundhog Day! In case you missed it, you can watch the White House video of the speech. Or you can read the transcript. Or you can peruse a collection of Twitter comments posted while Obama spoke. But since you've stopped by the ol' blog, here are the tax…

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  Our Taxing Times

• Licensing Update

  trishmc

  27 Jan 2012 | 12:40 pm

  While most tax preparers have been busy getting ready for tax season and preparing returns, a few have taken the minimum competency test for their RTRP designation. Unfortunately, they’ll have to wait until early March to find out if they pass or not. According to Prometic: A sufficient volume of tests is required to determine a statistically valid passing score. The score setting process was delayed until a sufficient number of tests were administered. We apologize for the delay. Originally test takers were told that their wait would be 6 – 8 weeks. The IRS is also reminding preparers…

• EITC Awareness Day

  trishmc

  27 Jan 2012 | 9:34 am

  Who said? “The Earned Income Tax Credit is the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.” Today (1/27/12) is Earned Income Awareness Day. So in honor of the program, here is a little information. The Earned Income Tax Credit (EITC) is a refundable credit targeted at low income families. It was enacted in 1975 to offset the social security taxes taxpayers with children paid through withholding. At that time, the credit was 10% of wages up to $4000. But in 1986, the credit was seriously expanded. There have been several more expansions of…

• Update: Refund Issues - Edited

  trishmc

  26 Jan 2012 | 10:52 am

  According to Phil Drake of Drake Software, the IRS has confirmed that there are a high number of refunds being delayed.  While the IRS has released no numbers or explanation as to why the delay, they are working on the issue. While many taxpayers are finding that their refund has been delayed, others are getting their money faster than expected due to Customer Account Data Engine (CADE). In fact, they will probably the only taxpayers getting their refund this week. Ya gotta love the IRS 1/27/2012  From an IRS QuickAlert: The one-week delay for some refunds relates to fine-tuning IRS systems…

• IRS Office Not Taking Returns from Preparers

  trishmc

  26 Jan 2012 | 10:39 am

  While I don’t live close enough to an IRS office to take returns in, some readers might. I caught this on one of the web boards I check. The verification came from the NAEA Partners The Internal Revenue Service will no longer accept tax returns from tax return preparers in their Taxpayer Assistance Centers beginning with the 2012 filing season. Tax returns include, but are not limited to, Form 1040  Series including Form 1040X, Form 4868, Form 2290, Form 94X series, and Form 1041. Tax return preparers include individuals or businesses who prepare returns on behalf of another individual or…

• More Ways to Use Educational Expenses

  trishmc

  25 Jan 2012 | 2:12 pm

  In a previous post, I talked about using educational expenses to qualify for the educational credits and deductions. But educational expenses can also be used to offset income or penalties on IRA distributions and savings bond redemptions. We currently have 2 types of IRAs which can be used to fund education. The Qualified Tuition Programs (OTP) and Educational Savings Programs (ESA) are set up along the lines of the Roth IRA. Contributions aren’t deductible but distributions of earnings can be tax free if the funds are used to pay for education expenses. The Qualified Tuition Program, also…

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  TAX NEWS - Google News

• France's Hollande Targets Rich in Tax-Rise Manifesto - CNBC.com

  28 Jan 2012 | 7:33 am

  CNBC.comFrance's Hollande Targets Rich in Tax-Rise ManifestoCNBC.comFrench presidential frontrunner Francois Hollande says he will raise taxes on banks, big firms and the rich to help him wipe out the public deficit while pumping more funds into education and state-aided job creation if he wins power in May.Socialist Hollande Pledges Tax Breaks End, Eased Pension MeasureBusinessWeekTransaction Tax Would Weaken Asset Management Sector -French RegulatorWall Street JournalSarkozy Transaction Tax May Weaken French Position, Jouyet SaysBloombergThe Provinceall 488 news articles »

• 2012 Could Hold Big Tax Changes for Investors - Investorplace.com

  28 Jan 2012 | 7:05 am

  Fox News2012 Could Hold Big Tax Changes for InvestorsInvestorplace.comMuch has been made of the fact that Warren Buffett pays a lower effective tax rate than his secretary – in large part due to the difference between investment income subject to long-term capital gains taxes vs. conventional wages subject to graduated Warren Buffett's Secretary SpeaksWall Street JournalBuffett's Secretary Qualifies for Obama Tax HikeFox NewsWould the 'Buffett Tax' work in the US?WJBC NewsExaminer.com -Forbes -Reutersall 267 news articles »

• The Coming Corporate-Tax Scrum - Barron's

  28 Jan 2012 | 4:23 am

  CNBC.comThe Coming Corporate-Tax ScrumBarron'sPresident Obama signaled in his State of the Union address his intention to tackle a problem that has perplexed politicians since the Nixon administration: How do you tax foreign-sourced earnings of multinational corporations in a way that reduces the President Obama's hybrid approach to taxing manufacturersWashington Postall 21 news articles »

• Sundance film weighs into US tax debate - AFP

  28 Jan 2012 | 3:55 am

  AFPSundance film weighs into US tax debateAFPPARK CITY, Utah — US multinationals make billions of dollars in profit but can pay no federal tax due to "legal but immoral" tax arrangements, according to a scathing film at the Sundance film festival. "We're Not Broke" tackles head on issues and more »

• Volunteer Income Tax Assistance site open - The Daily News Journal

  28 Jan 2012 | 3:02 am

  KEPR 19Volunteer Income Tax Assistance site openThe Daily News JournalBrian Hercules, right, president and CEO of United Way of Rutherford and Cannon Counties, discusses the new partnership with Greenhouse Ministries to provide volunteer income tax assistance. At left are Beth Gill, a tax consultant with the IRS, Community Renewal Team Offers Free Tax Preparation Services in ManchesterPatch.comTAX TIP: IRS Reminds Parents of Ten Tax BenefitsLahontan Valley NewsCan you can claim the Earned Income Tax Credit?The Rolla Daily NewsSunHerald.com -Santa Cruz Sentinel -Huffington Postall…

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  Tax-News.Com Live Tax Headlines

• Tax-News.com: Irish Fiscal Advisory Council Issues Report

  27 Jan 2012 | 12:19 pm

  Tax-News.com: Ireland's Fiscal Advisory Council has issued its latest report which assesses elements of the government's plans for overhauling the country's budgetary framework.

• Tax-News.com: Time For Tax Transparency, Says UK Lawmaker

  27 Jan 2012 | 12:09 pm

  Tax-News.com: UK taxpayers could receive yearly statements detailing how their money is spent, under new legislation put forward by a member of parliament.

• Tax-News.com: US Treasury Aims To Lower FATCA Burdens

  27 Jan 2012 | 11:22 am

  Tax-News.com: During her remarks at the New York State Bar Association Annual Meeting, Acting Assistant Secretary for Tax Policy, Emily McMahon, indicated that regulations for the implementation of the provisions of the Foreign Account Tax Compliance Act are in the final stages of clearance at the United States Treasury and the Internal Revenue Service.

• Tax-News.com: Malta Signs TIEA With Gibraltar

  27 Jan 2012 | 9:32 am

  Tax-News.com: Malta has welcomed the signing of a Tax Information Exchange Agreement with Gibraltar, which will provide both countries with tax information on request when there is evidence of fiscal crime.

• Tax-News.com: Bill To Extend US Social Security To Puerto Rico

  27 Jan 2012 | 9:25 am

  Tax-News.com: Puerto Rico’s Resident Commissioner, Pedro Pierluisi, has introduced proposed legislation into the United States Congress that looks to extend the Supplemental Security Income programme to Puerto Rico, as well as to Guam, the US Virgin Islands and American Samoa.

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  taxgirl

• Tax Talk 2012: Vern Wuensche

  Kelly

  11 Jan 2012 | 5:51 pm

  We’re coming down to the wire for presidential nominations. Election coverage is heating up and it seems like there’s a debate on television nearly every night. Despite all of the press, there are still a number of questions about where candidates stand on the issues. In terms of what affects voters the most, I feel strongly that it’s important to understand what it is that each candidate hopes to bring to the table in terms of tax incentives, tax policy and tax proposals. With that in mind, I contacted each of the candidates who has officially declared an intention to run…

• IRS Offers Taxpayers ‘One More Chance!’

  Kelly

  10 Jan 2012 | 1:18 pm

  My seven year old has a penchant for getting herself into trouble. She’s that kind of kid who pushes boundaries to see exactly how far she can get. Lucky for her, she also has a pretty quick wit and a couple of looks up her sleeve. When she gets into trouble, she peers up at me and begs, “One more chance!” You, of course, know exactly why she does this: I usually give in. Yeah, I know better. But I do it anyway. I feel like maybe this time – this time – she’ll learn her lesson. The IRS isn’t so very different. In a surprise move, the IRS has announced…

• My Best Tax Advice Ever, Part II: Get Some Help

  Kelly

  9 Jan 2012 | 10:43 am

  Last week, I advised that my best tax advice ever was to open the mail from the IRS. I find that to be, for many taxpayers, the single hardest thing to do. Of course, opening the mail isn’t always enough. Generally, the notice or letter advises you to take some sort of action, whether that’s send a copy of a check or receipt, make a payment or contact the IRS. With respect to the latter, that’s the sort of thing that stops many taxpayers dead in their tracks. They don’t want to have to communicate with the IRS in any way. The good news is that you don’t always…

• IRS Kicks Off Tax Season, Announces Extra Time to File

  Kelly

  6 Jan 2012 | 9:24 am

  The IRS has announced that the 2012 tax season is officially open. Well, sort of. The IRS has opened its doors for the season but what you can do just yet is still limited: e-file and Free File returns won’t be accepted until January 17, 2012. Today, however, you can (and should) start getting your information in order. The IRS opening the tax season is kind of the equivalent of catchers and pitchers reporting for spring training. The IRS also announced that taxpayers will have a couple of extra days to file their 2011 tax returns in 2012. Taxpayers will have until Tuesday, April 17,…

• My Best Tax Advice Ever, Part I: Open Your Mail

  Kelly

  5 Jan 2012 | 3:15 pm

  A client contacted me this week with a tax problem. He sent over a big pile of correspondence that he had received from the IRS. On the front of one of the letters, it read in big letters: Last Date to Respond to this Letter: XXXX 2011. Um, it’s 2012. The client missed the deadline. It’s a common mistake, one that I deal with on a pretty regular basis. And 9 times out of 10, the reason is quite simple: the taxpayer didn’t open the mail. I get it. It’s scary to get something from IRS. So the whole “I’ll just ignore it” mentality kicks in for taxpayers.

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  About.com Tax Planning: U.S.

• Tips for Resolving Disputes over Dependents

  24 Jan 2012 | 1:53 am

  Quite frequently readers will ask how they can resolve disagreements among family members over who get's to claim a dependent. It's helpful to start with some ground rules, and my number one rule here is to prevent (if at all possible) the IRS from getting involved in family disputes. Now the IRS will get involved only if two or more people attempt to claim the same person as a dependent. So if at all possible, it's best to resolve your differences before anyone has filed their tax return....Read Full Post

• Differences between Dependents, Head of Household, and Earned Income Credit

  24 Jan 2012 | 12:56 am

  People often ask me about whether they can claim dependents, whether they qualify for the head of household filing status, and whether they qualify for the earned income credit. These three tax benefits are very closely related, as are designed to help minimized the tax burden for working families. The rules in this area often cause confusion, because each tax benefit has its own, separate requirements. The first thing to start with is dependents, for that is a common element is all three tax incentives. Both head of household and the earned income credit require that a taxpayer claim (or be…

• When to Expect Your Federal Tax Refund

  23 Jan 2012 | 10:08 pm

  The Internal Revenue Service issues federal tax refunds on a schedule, which they call the "refund cycle." For tax returns accepted by the IRS by 11 am on Wednesday, the IRS issue refunds the following week, with direct deposits issued on Wednesdays and checks mailed out on Fridays. By accepted, we mean that the IRS's computers have acknowledged the receipt of an electronically filed return....Read Full Post

• Tips for Finding the Right Tax Professional For You

  17 Jan 2012 | 12:50 am

  Consumers have a wide range of choice when it comes to preparing their tax return. You can prepare a tax return using forms downloaded directly from the IRS, use tax preparation software from independent software publishers, or hire a professional tax preparer. You can even combine these choices, for example you could draft out your tax return on paper forms or using software before seeking out professional help....Read Full Post

• Tips for Preparing Form 1099-MISC

  16 Jan 2012 | 11:17 pm

  Self-employed persons and businesses of any size are required to report payments for services rendered by independent vendors by using Form 1099-MISC. For the year 2011, Form 1099-MISC reporting has become more complex, so I'll attempt to clarify the situation....Read Full Post

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  Tax Policy Center: The Numbers

• The Santorum Tax Plan

  17 Jan 2012 | 11:00 pm

  Distribution of Rick Santorum's tax plan. This set of estimates consists of the following related tables: (T12-0011) The Santorum Tax Plan; Baseline: Current Law; Distribution of Federal Tax Change by Cash Income Level, 2015 (T12-0012) The Santorum Tax Plan; Baseline: Current Law; Distribution of Federal Tax Change by Cash Income Percentile, 2015 (T12-0013) The Santorum Tax Plan; Baseline: Current Policy; Distribution of Federal Tax Change by Cash Income Level, 2015 (T12-0014) The Santorum Tax Plan; Baseline: Current Policy; Distribution of Federal Tax Change by Cash Income…

• Composition of Cash Income, 2011

  16 Jan 2012 | 11:00 pm

  Shares and distribution of the components of 2011 cash income, by income group and demographic status. This set of estimates consists of the following related tables: (T12-0009) Sources of Cash Income by Cash Income Level (T12-0010) Sources of Cash Income by Cash Income Percentile

• The Romney Tax Plan

  4 Jan 2012 | 11:00 pm

  Distribution of Mitt Romney's tax plan. This set of estimates consists of the following related tables: (T12-0001) Mitt Romney's Tax Plan; Baseline: Current Law; Distribution of Federal Tax Change by Cash Income Level, 2015 (T12-0002) Mitt Romney's Tax Plan; Baseline: Current Law; Distribution of Federal Tax Change by Cash Income Percentile, 2015 (T12-0003) Mitt Romney's Tax Plan; Baseline: Current Policy; Distribution of Federal Tax Change by Cash Income Level, 2015 (T12-0004) Mitt Romney's Tax Plan; Baseline: Current Policy; Distribution of Federal Tax Change by Cash Income…

• Temporary Payroll Tax Cut Continuation Act of 2011

  4 Jan 2012 | 11:00 pm

  The following tables present the distributional effects of the Temporary Payroll Tax Cut Continuation Act of 2011, for the calendar year 2012. The legislation extends the 2011 OASDI tax rate of 4.2 percent for employees through the first two months of calendar year 2012, subject to a cap of $18,350. This set of estimates consists of the following related tables: (T12-0005) Temporary Payroll Tax Cut Continuation Act of 2011; Baseline: Current Law; Distribution of Federal Tax Change by Cash Income Level, 2012 (T12-0006) Temporary Payroll Tax Cut Continuation Act of 2011; Baseline: Current Law;…

• H.R. 3467, The Sensible Estate Tax Act of 2011.

  14 Dec 2011 | 11:00 pm

  Distribution of Gross Estate and Net Estate Tax By Size of Gross Estate This set of estimates consists of the following related tables: (T11-0406) H.R. 3467, "The Sensible Estate Tax Act of 2011" $1 M Exemption (Indexed from 2000), 55 Percent Top Rate Distribution of Gross Estate and Net Estate Tax By Size of Gross Estate, 2013

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  THE WANDERING TAX PRO

• WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’

  28 Jan 2012 | 4:00 am

  +Check out the January issue of LOIS.  +My tax tip this week at MAINSTREET.COM was “How to Prepare Your Tax Preparer”.  And then there was “How to Correct an Error on Your W-2”.+Go to the MISSOURI TAXGUY blog and look for my Robert F page at the “Store”.+The Tax Foundation has issued its “2012 State Business Tax Climate Index”,which presents the tax climate of each state as of July 1, 2011, the first dayof the standard 2012 state fiscal year.The10 best states in this year’s Index are, from 1 to 10 – Wyoming, South Dakota, Nevada,Alaska, Florida, New Hampshire,…

• WHAT'S THE USE?

  27 Jan 2012 | 6:59 am

  Justabout every state resident tax return now has a line for the taxpayer to enter “UseTax on Out of State Purchases”.  It isline 44 on the NJ-1040 and line 59 on New York’s IT-201.  Many states require that you make an entry onthis line – even if it is 0.00.Theinstructions for the 2011 NJ-1040 tell us –“If you were a New Jersey resident and youpurchased items or services that were subject to New Jersey sales tax, you areliable for use tax at the rate of 7% of the purchase price {the normal NJsales tax rate – rdf} if sales tax hasnot been paid.  If sales tax has…

• TAXES AND THE STATE OF THE UNION ADDRESS

  26 Jan 2012 | 4:00 am

  While I have not yet read it through carefully (nor did Isit through it), there appears to be nothing new on taxes from BO in the State of the Union address.  No mention that Ihave seen of the need to totally rewrite the mucking fess that is our currentTax Code.  Just more of the same –continue to complicate the Tax Code with more targeted deductions and credits.The “Buffet Rule” and the general concept of taxing therich more because they can afford it was one of BO’s themes -“Tax reform shouldfollow the Buffett rule: If you make more than $1 million a year, you shouldnot…

• MITT'S 1040

  25 Jan 2012 | 4:00 am

  So now we haveseen Mitt Romney’s tax return.  We already knewhe was rich – now we know just how rich.What did Mittdo?  Certainly nothing illegal.  He invested his money for the best return, asyou or I would do.  It is just that hehas a lot more to invest than we do.Did heparticipate in any shady tax dodges or shelters?  Not that I can see.  He invested in stocks and earned a ton ofdividends, most of which were taxed at a special rate of 15%.  And he his investments did well – resulting inhumungous long-term capital gains.  Didhe do anything sneaky…

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

  25 Jan 2012 | 4:00 am

  +Check out the January issue of LOIS.  + I suggestyou read my NJ TAX PRATICE BLOG post “Everybody Wants To Get Into The Act”.+Go to the MISSOURI TAXGUY blog and look for my Robert F page at the “Store”.+The WISDOM JOURNAL, by Ron, lists “57 Avoidable Tax Mistakes”.Rondoes a good job in listing mistakes to avoid when preparing your taxreturn.  However there are some errors.Forone thing, “many of these mistakes areeasily avoidable if you use {tax preparation software} to prepare your taxes” is a false statement.  Tax preparation software is no substitute…

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  NEW JERSEY TAX PRACTICE BLOG

• EVERYBODY WANTS TO GET INTO THE ACT!

  23 Jan 2012 | 4:00 am

  Enoughalready!Imust register with the IRS and get a number (PTIN) if I want to continue toprepare tax returns for a fee, which is how I make my living.  I also have to take a test to prove to theIRS that I know what I have been doing for 40 years now.  And I have to maintain a minimum number ofannual credits in continuing professional education in federal income taxation(I take more than the required annual CPE each year anyway – so this is not anissue).BecauseI do about 20 New York resident and non-resident state income tax returns Ialso have to register with the State of New…

• THE TAX PROFESSIONAL

  19 Jan 2012 | 7:49 am

  Youdo know that, in addition to THE WANDERING TAX PRO and this blog, I also writea blog titled THE TAX PROFESSIONAL.Thisblog is written for NJ tax professionals, and tax pros who prepare NJ stateincome tax returns.  THE TAX PROFESSIONALis for tax pros everywhere.Asstated in the blogs inaugural post . . .“. . . the purpose of this site is to provideupdated advice, information, and resources for tax professionals who prepareindividual federal income tax returns.  It will addressindividual income tax topics and issues relevant to both newcomers to the fieldand experienced veterans.I…

• A LETTER TO THE DIRECTOR OF THE NJ DIVISION OF TAXATION

  18 Jan 2012 | 4:00 am

  AsI had mentioned in my “review” of the recent NJ-NATP “Famous State Tax Seminar”,a member of the audience brought up a very serious problem with the NJ Divisionof Taxation.  To follow up on this I havesent the following letter to Michael Bryan, Director of the NJ Division ofTaxation:DearMr. Bryan:Thankyou for addressing the NJ chapter of the National Association of TaxProfessional’s annual State Tax Seminar last Saturday, and for bringing alongthe state’s new Taxpayer Advocate, and speakers John Kelly and Jim Gordon.  Mr. Gordon’s annual presentation is always,at…

• OOPS - THEY DID IT AGAIN! PART II

  17 Jan 2012 | 6:04 am

  Themorning session ended with an update on New York state taxes presented byNY-NATP chapter president Michael Novick, an EA and an attorney, who was anexcellent last-minute substitute for scheduled speaker Katherine Keane.  Michael was not as “colorful” a speaker as KK,but that is not necessarily a bad thing. Mr.Novick told us –·     NY,unlike the IRS, does “correspond” with taxpayers via email.·     Clientscan no longer “opt-out” of electronic filing of NY returns by tax preparers.·     NYLottery…

• OOPS - THEY DID IT AGAIN! PART I

  16 Jan 2012 | 7:26 am

  Conductedanother successful “Famous” State Tax Seminar, that is.Iam talking about the New Jersey chapter of the National Association of Tax Professionals, whose annual state tax update seminar I attended on Saturday, asusual at the Woodbridge Hilton in Iselin. I have been to just about every one of the 20+ the chapter has sponsored,missing only a couple due to the weather. Theroom was packed full – thanks to the relatively good weather.  I was surprised that there were only two“vendors” who had rented tables.  While Ipersonally do not visit the vendors at this…

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  Start Making Sense

• Financial arbitrage is fun when it actually works

  27 Jan 2012 | 2:43 pm

  According to this article, one aspect of the New York Mets' financial problems is that they owe a huge amount of deferred income to former Mets players. Disastrous former Met Bobby Bonilla is the most famous example, as he is owed almost $1.2 million annually for each of the next 25 years, but there are others as well.The article offers the following explanation for the Mets' willingness to accept huge deferred salary obligations:"The Mets once were comfortable pushing salary obligations for their players into the future because the Wilpons were, Picard alleges, getting 18 percent average…

• Tax policy colloquium on 1/24/12 - Amy Monahan paper on healthcare

  26 Jan 2012 | 12:33 pm

  This past Tuesday, Amy Monahan presented her paper, "Will Employers Undermine Healthcare Reform By Dumping Sick Employees?"The basic argument is as follows. Under the recently enacted healthcare reform (HCR), employers have an incentive to seek the situation where employees who are likely to be high-cost health insurance customers opt NOT to be covered by the available employer-provided health insurance (EHI), but instead to opt out and seek coverage under the public insurance exchanges that HCR provided for. Employers can't, as a legal matter, directly tell their high-expected cost employees…

• The White House "Blueprint for an America Built to Last"

  25 Jan 2012 | 1:08 pm

  In principle, I am in great sympathy with the White House's turn towards a stance of treating high-end wealth concentration as an important tax policy concern. But, like many commentators across the political spectrum, I am less than thrilled by what I know of the details of the White House plan that featured in the State of the Union speech.Called the "Blueprint for an America Built to Last," it is available here. I guess that label must have beaten out "Making America Ford-Tough" in the focus group sessions. But let's go beyond snark to substance by covering most of the main tax suggestions…

• A couple of last words on Romney's taxes

  25 Jan 2012 | 6:59 am

  As many people have said, the Romney tax return story is in the end less about him as an individual than about how it shows and dramatizes the workings of the current U.S. income tax system.I considered the biggest revelation of his 2010 tax return to be the net capital loss carryover, showing that he had zero net income from capital gains (including carried interest) in 2009. I noted that no doubt he had a lot of genuine loss stocks given the stock market price drop, but that (even without tax sheltering to create fake tax losses) he may have engaged in "loss harvesting," or selling losers…

• Death of Ursula

  24 Jan 2012 | 8:23 pm

  One thing about cats, if you have a typical human lifespan and your norm is to have 3 cats in the house, you will repeatedly experience their mortality, which is not pleasant (although the journey is still very much worth it as a whole).Today Ursula died of kidney disease. There's an element of relief to this, because for the last few days we had been operating a hospice. It was horrible to see how gaunt and skeletal she looked, and how inert she was becoming. By the last few days (though not before that) her quality of life appeared clearly to be approaching zero. But at least we had 9 good…

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  MauledAgain

• Lying About Tax Myths

  James Edward Maule

  26 Jan 2012 | 7:01 am

  Peter Pappas is at it again. In More Lies about Tax Lies, he attempts to rebut the points I made in Tax Myths, Tax Lies, and Tax Twisting. In his effort, he engages in the same sort of twisting and misrepresentations that are at the root of what I set out to debunk.Though the myths I discussed were those presented on another web site, Pappas persistently refers to them as “Maule’s . . . Myth” in a blatantly obvious attempt to cause his readers to think that I developed the myths. No, I simply was commenting on a list developed by someone else.Pappas claims that “No serious person on…

• A Must-Read Tax and Economic Policy Book

  James Edward Maule

  25 Jan 2012 | 7:01 am

  When I characterize a book as a must-read, I try to put my characterization into context. Thus, some books that I have read are tagged as a must-read for those doing family history, whereas others are tagged as a must-read for those interested in model trains or the medicinal properties of chocolate. Today, I tag as a must-read, for every citizen of this nation who has attained high-school reading level ability, Bruce Bartlett’s book, published yesterday, with the descriptive title, The Benefit and the Burden: Tax Reform, Why We Need It and What It Will Take. If I were still teaching the…

• Tax Myths, Tax Lies, and Tax Twisting

  James Edward Maule

  23 Jan 2012 | 7:01 am

  For me, the difference between a myth and a lie is that the folks believing in the former don’t know any better and those spreading the latter surely do. In between is the twisting, which can reflect ignorance but also can be the consequence of deliberate word choice that suggests one thing even though it literally means something else. Recently, a distant cousin sent me a link to The Top 5 Tax Myths To Watch Out For This Election Season. All five so-called myths are ones that I had already seen and heard, many times.The first myth, that “47% of Americans do not pay taxes” is a fairly…

• Some Tax Lessons Are Difficult for Some People to Learn

  James Edward Maule

  20 Jan 2012 | 7:01 am

  Though the decision to cut taxes while initiating military action turned out to have had serious adverse consequences for the American economy, the temptation of using the “everyone gets a tax cut” as a political campaign ploy continues. And politicians continue to fall for it. Cutting taxes when the need for the revenue expires, such as the conclusion of a war during which taxes had been increased, makes sense. Cutting taxes when a government and its constituent agencies and localities are struggling to provide basic services is long-term foolishness for the sake of short-term political…

• Is It Any (Tax) Wonder?

  James Edward Maule

  18 Jan 2012 | 7:01 am

  The other day, in a conversation with someone, the focus turned to lotteries, sweepstakes, and whether it made any sense to enter allegedly “free” contests. One of the “opportunities” available to the other person was for a $1,000,000 annual prize. At one point, the other person commented, “Plus, why bother? If I win anything, the government will take fifty percent of it.” I asked why they thought half the winnings would be taken by the government. “Taxes” was the reply. I explained that the highest federal income tax rate was 35 percent, a rate that would apply to only part…

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  AccountingWEB.com - News

• Regional Accounting Resources Now Available in Southern Georgia

  27 Jan 2012 | 11:35 am

  By AccountingWEB Staff  read more

• Marien + Company, LLC Merges with O'Connor Davies Munns & Dobbins, LLP

  27 Jan 2012 | 9:23 am

  By AccountingWEB Staff read more

• Karen Goodfriend Receives AICPA's 2011 PFP Distinguished Service Award

  26 Jan 2012 | 3:34 pm

  By Deanna C. Whiteread more

• Review of the PCAOB's Enforcement and Investigations Program

  26 Jan 2012 | 9:46 am

  By AccountingWEB Staff read more

• SEC Seeking Public Comment on Dodd-Frank Financial Literacy Study

  25 Jan 2012 | 9:09 pm

  The Securities and Exchange Commission is requesting public comments on financial literacy and investor disclosure issues that it is studying as part of a review mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. read more

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  Tax Questions and Answers

• Can I file an Oregon Form 40P?

  Richard Panick, IRS Media Relations

  27 Jan 2012 | 4:04 pm

  Question from John January 27, 2012 at 11:08am Richard, My wife has always worked in Washington and I have always worked in Portland. I finally got fed up, and sold my house in June. Beginning July 2011, began commuting to...

• Easements

  Richard Panick, IRS Media Relations

  27 Jan 2012 | 3:58 pm

  Question from Merrill January 27, 5:57am Richard, Thanks for your advice on my easement question. It helps a lot in determining the tax situation. I didn't know about Publication 551. Thanks again. Answer:  Merrill - Easements can be a bit...

• Can my brother claim this loss?

  Richard Panick, IRS Media Relations

  27 Jan 2012 | 3:06 pm

  Question from Shauna January 26, 2012 at 7:32pm Richard, My brother was deployed this year and I handled his affairs. He had a friend who was selling a car that he was familiar with. The seller said, it was running,...

• Will my refund be offset?

  Richard Panick, IRS Media Relations

  27 Jan 2012 | 10:33 am

  Question from Chris January 26, 2012 at 9:26am Richard, I was audited and deemed unable to pay and my collection case was temporarily closed by the IRS. I got a part-time job toward the end of the year totaling $4400,...

• Can I claim my daughter and grandchild as dependents?

  Richard Panick, IRS Media Relations

  27 Jan 2012 | 9:39 am

  Question from Lilly January 26, 2012 at 8:51am Richard, I'M A SINGLE MOTHER AND I SUPPORTED MY DAUGHTER, GRANDCHILD THAT LIVED WITH ME FOR 9 MONTHS LAST YEAR. CAN I CLAIM THEM. Answer:  Lilly - Thank you for your question....

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  TaxProf Blog

• A Comparative Critique of the U.S. Marital Deduction

  Paul Caron

  28 Jan 2012 | 5:00 am

  Sara Burns (J.D. 2010, Temple), Comment. Expanding the Marital Deduction: An Analysis of International Systems of Transfer Taxation, Their Treatment of the Taxable Unit, and the United States' Inadequate Marital Deduction, 25 Temp. Int'l & Comp. L.J. 247 (2011): The US' definition of the “taxable unit” should be expanded for...

• The Tenure Tax

  Paul Caron

  28 Jan 2012 | 3:05 am

  Christopher Meskill (J.D. 2010, St. John's), Comment, The Tenure Tax: Social Security Withholdings on Academic Retirement After University of Pittsburgh v. United States, 25 J. Civ. Rts. & Econ. Dev. 937 (2011): Part I of this Comment lays out the university‟s and the government‟s arguments, as stemming from the vagueness...

• The Legal Whiteboard

  Paul Caron

  27 Jan 2012 | 2:19 pm

  I am thrilled to welcome The Legal Whiteboard: Trends, Facts and Ideas on Law and Legal Education, edited by Bill Henderson (Indiana) and Andy Morriss (Alabama), to our Law Professor Blogs Network. From Bill's inaugural post: According to a lot of reputable media outlets, the sky is falling for both...

• Lederman Presents Measured Tax Enforcement Today at Miami

  Paul Caron

  27 Jan 2012 | 1:55 pm

  Leandra Lederman (Indiana-Bloomington) presents Measured Tax Enforcement (with Ted Sichelman (San Diego)) at Miami today as part of its Speaker Series: Governments rely largely on tax revenues. Traditional economic models of tax compliance typically assume that it is in the government’s best interest to maximize the amount of tax due...

• Howard Abrams Named Dean Finalist at Emory

  Paul Caron

  27 Jan 2012 | 1:19 pm

  Tax Prof Howard Abrams has been named a Dean Finalist at Emory, along with Robert Schapiro and Frank Vandall. From The Faculty Lounge: Emory Law announced its dean search on Jaunary 12, 2012 with a call for nominations of tenured Emory faculty. Based on the timeline set out in this...

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  Roth & Company, P.C.

• On the road

  Joe Kristan

  27 Jan 2012 | 1:00 am

  Family matters call me out of town today, so no posts. May that whistle mean your train has arrived!...

• The rich guy can't pick up the tab

  Joe Kristan

  26 Jan 2012 | 8:27 am

  For all of the controversy surrounding the President's depressing and lame proposals to soak the rich, the most important aspect...

• Shooting jaywalkers, wrist-tapping GE

  Joe Kristan

  26 Jan 2012 | 7:55 am

  GE just lost an appeal on a big basis-shifting tax shelter, to the point of getting hit with a 20%...

• Is 'Harel Goldstein' Harold Hill's real name?

  Joe Kristan

  25 Jan 2012 | 10:34 am

  Iowa achieved another economic development milestone with a guilty plea by imprisoned California filmmaker Harel Goldstein on charges arising out...

• Des Moines revenue cameras: $32,305 per accident 'prevented'

  Joe Kristan

  25 Jan 2012 | 7:00 am

  Des Moines' red light cameras cost motorists at least $32,000 per accident "prevented" in the last six months of 2011,...

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  Rubin on Tax

• REPORTING OF TAX INFORMATION WITH YOUR PASSPORT APPLICATION

  Charles Rubin

  26 Jan 2012 | 6:23 pm

  Passports are not under the purview of the IRS, and generally do not involve tax administration issues. However, since 1986, U.S. passport applicants have to report certain information when they make their application. Code §6039E. Proposed Regulations on what must be reported were issued in 1992, but never finalized. Treasury has now issued new proposed Regulations. Under these, the items to be reported are: (1) the applicant's full name and, if applicable, previous name; (2) address of regular or principal place of residence within the country of residence and, if different, mailing…

• APPLICABLE FEDERAL RATES–FEBRUARY 2012

  Charles Rubin

  21 Jan 2012 | 7:53 am

• FOREVER IS A LONG TIME

  Charles Rubin

  17 Jan 2012 | 8:02 pm

  Usually, a taxpayer cannot obtain a charitable income tax deduction for a contribution of property if the taxpayer transfers less than his or her entire interest in the property. However, Code §170(h) does allow for a charitable deduction for a conservation easement granted in property owned by a taxpayer. To qualify, the easement must be granted “in perpetuity” (among other requirements). In a recent Tax Court case, the taxpayers conveyed a conservation easement in their Colorado property to a charitable organization. The deeds restricted the charity’s use of the gift to “preserve…

• REPORTING OF SPECIFIED FOREIGN FINANCIAL ASSETS – TRUSTS & ESTATES

  Charles Rubin

  15 Jan 2012 | 11:20 am

  [The following was also published on Leimberg Information Services on January 9, 2012] EXECUTIVE SUMMARY. Taxpayers with non-U.S. financial assets are subject to new and extensive reporting, commencing with the 2011 tax year filings. The IRS has recently issued guidance, which includes specific rules relating to grantor trusts and interests in foreign trusts and estates. All return preparers should have some familiarity with these new rules. FACTS. Code §6038D, enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act, will result in the first foreign asset disclosure filings…

• VALUE OF AN LL.M. DEGREE

  Charles Rubin

  11 Jan 2012 | 7:08 pm

  I almost never link to other blogs, but I am making an exception today. I am often asked about the value of an LL.M. degree. This blog post suggests that the only worthwhile LL.M. degree in law is for tax, and then only if it is obtained from NYU, Georgetown, or the University of Florida. I would also add degrees from the University of Miami School of Law - perhaps there are others, but I don't know enough about them to comment. The Value of the LL.M. Degree? Still Low, by Elie Mystal

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  Tax Problem Attorney Blog

• Swiss Bank Clariden Leu to Turn in Its U.S. Clients

  26 Jan 2012 | 7:59 am

  In a little noticed development, Switzerland's oldest private bank Clariden Leu has informed some of its U.S. clients that it has been ordered to turn over their names, and website dated Nov. 29, 2011 to that effect. This is bad news for U.S. offshore account owners who have not previously made a criminal tax fraud charges against them, or criminal charges related to willful announced that it is in the process of integrating Clariden Leu's operations into Credit Suisse. The treaty request appears to be limited to U.S. account holders who hold their accounts through "domiciliary companies."…

• California State Board of Equalization (BOE) Continues Offensive Against Medical Marijuana Dispensaries

  20 Jan 2012 | 8:00 am

  The California State Board of Equalization (BOE or SBE) California sales tax. The announcement resulted from a hearing before the BOE involving Berkeley Patients Group. In that case the BOE decided that medical marijuana was not exempt from sales tax as a medicine. The decision was not surprising in light of a previous notice issued by the BOE that medical marijuana dispensaries were not exempt from collecting and paying sales tax. Fast forward one year later. Our sales tax audits by the BOE. The M.O. of the BOE seems to be to stand at a discrete location outside of the clinic, and count the…

• Innocent Spouse Relief Gets A Bit Easier in IRS Notice IR 2012-8

  13 Jan 2012 | 12:30 pm

  In IRS Notice IR 2012-3 the IRS announced that IRC Section 6015(f) will become a little easier. Generally there are three different kinds of innocent spouse defenses, each with its own rules and exceptions. innocent spouse relief is based upon all of the facts and circumstances. Only by discussing your case with a knowledgeable

• More Swiss Banks to Turn Over Offshore Bank Account Information to IRS?

  23 Dec 2011 | 8:00 am

  According to tax evasion ortax attorneys it would be unlikely that the Swiss banks could comply with turning over documents that quickly, and there would have to be notification of the clients, and an opportunity to appeal if past experience with the UBS settlement is any guide. Still it is a reminder that in all likelihood that at least the larger Swiss banks will be turning over the names of their U.S. account holders to the IRS sometime in the not too distant future. Those U.S. persons who still have undisclosed Swiss bank accounts, or for that matter any voluntary disclosure before the…

• Felony Criminal Tax Charges Filed Against New York CPA for Non-Payment of Trust Fund Taxes

  21 Dec 2011 | 8:00 am

  The IRS has filed felony Internal Revenue Code Section 7202 for willful failure to collect, truthfully account for and pay over trust fund taxes. This is yet another in a series of criminal tax charges being brought against responsible officers who haven't paid over corporate Internal Revenue Code Section 6672. This is generally referred to as thetax lawyers found this case interesting because the amount of unpaid trust fund taxes was not terribly large. The total the IRS alleged as unpaid was approximately $108,000, fairly small potatoes, as payroll tax cases tend to go. I thought it was…

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  Taxable Talk

• Tax Foundation Releases 2012 Business Tax Climate Index; California, New York and New Jersey at the Bottom

  Russ

  25 Jan 2012 | 9:33 pm

  The Tax Foundation released their 2012 State Business Tax Climate Index today. And it was no surprise to see the bottom three composed of California, New York and New Jersey. These states have high taxes overall (California adds high regulatory costs, too; however, the business climate index ignores this). Meanwhile, Wyoming, South Dakota, and Nevada are the top three states. No surprise: These states don’t have high taxes (they don’t have personal or corporate income taxes at all). Here are the top ten: 1. Wyoming 2. South Dakota 3. Nevada 4. Alaska 5. Florida 6. New Hampshire 7.

• Illinois: Proving Laffer Correct

  Russ

  22 Jan 2012 | 1:19 pm

  Arthur Laffer popularized the Laffer curve. The father of Supply Side Economics noted that in many cases, increasing the tax rate decreases the amount of tax revenues. It appears that Illinois is proving Dr. Laffer correct. Moody’s just downgraded Illinois’ bond rating to A2 from A1. Illinois now has the worst rating of all 50 states–even worse than California. But wait: Didn’t Illinois pass a massive tax increase a year ago? Wasn’t that supposed to help Illinois’ financial condition? Here’s how the Wall Street Journal put it: So much for that. In its…

• Heaven Can’t Wait

  Russ

  22 Jan 2012 | 1:06 pm

  My understanding is that we can’t take it with you: Our worldly possessions won’t be with us in the hereafter. One Florida man believes he is already a resident there, and is thus exempt from trivialities such as the income tax. The results are what you might expect. That said, if you read the terse statement from the Department of Justice you wouldn’t know of the underlying issue. The statement does note that Russell Gentile of Melbourne is accused of: [C]orruptly tried to obstruct and impede the IRS in performing its duties by sending a series of letters claiming that he…

• Browns’ Convictions Upheld

  Russ

  20 Jan 2012 | 7:22 am

  Tax protesters Edward and Elaine Brown were convicted in 2007 of tax evasion. They were sentenced to spend some time at ClubFed. Instead of reporting to prison, they decided to barricade themselves in their New Hampshire home. After a stand-off that ran many weeks, US Marshals arrested the Browns. They were tried and convicted on numerous weapons counts and received 37 and 35 additional years at ClubFed, respectively–effectively a life sentence (the Browns will be over 100 when their sentences are up). They appealed their sentences; yesterday, the 1st Circuit Court of Appeals upheld…

• It Pays to Read the Lease

  Russ

  19 Jan 2012 | 8:50 pm

  Today the Tax Court looked at whether a rental was passive or active. But there was a major difference from most such cases: The taxpayer claimed his lease was passive while the IRS thought it was not passive. Most of the time, rental income is passive. There are some exceptions: The most common is a Realtor (who meets the time requirements). The petitioner in today’s case was a doctor, and in almost all cases the rental would be passive. However, the lessee was his business (a professional corporation), so the self-renting rules apply (unless there’s an exception). The petitioner…

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  IRS Tax Problem Solver Blog - IRS Help

• Claim Tax Deductions from your Hobby (part 2)

  Darrin Mish

  26 Jan 2012 | 10:25 pm

  Are you a hobbyist? In my previous article I shared some ways you can turn your hobby into a tax-deductible business. The four ways were: 1. Keep accurate records 2. Three in five profit ratio 3. Plan when you spend and get paid 4. Draw up a business plan Here are some other things you ought to do: 5. Carry out your hobby/business full-time The IRS flags anyone who claims expense deductions from a hobby against his or her 40-hour a week day job income. Here is a fact – the IRS considers what you do full-time as your vocation, so if you want to silence all questions from the IRS, consider…

• Claim Tax Deductions from your Hobby (part 1)

  Darrin Mish

  26 Jan 2012 | 12:15 am

  Can you claim deductible expenses from your hobby? You can if you make your hobby become your business. If you are spending a substantial amount of money on your hobby, you might as well turn it into a business. Look at it this way – suppose you spend $20,000 a year in your hobby, then you can report that loss on a Schedule C and write if off against your salary on your Form 1040. Assuming your combined state and federal income tax rate is 40%, maintaining your hobby will really only cost you $12,000, and the federal and state governments would have subsidized your hobby. Doesn’t that…

• Eight Tax Benefits of Children

  Darrin Mish

  25 Jan 2012 | 7:07 pm

  Having children can help you to save on your taxes. The IRS has just revealed the ten tax benefits you can have when you have kids. 1. The most obvious tax benefit in having children is being able to claim dependency deductions. Most of the time, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. 2. You can claim Child Tax credit for each of your children so long as they are below 17 years of age. If you do not benefit from the full amount of the Child Tax Credit, you may be…

• How the IRS Chooses Who To Audit

  Darrin Mish

  24 Jan 2012 | 3:00 pm

  An IRS audit is the thing most taxpayers are afraid of. But most of this fear comes from not knowing what an audit is all about, what it entails and most of all, what to do when you receive and audit notice. So if you know a few basic things about the whole matter, it takes a lot of fear out of it. Receiving an audit notice does not mean that you have committed an offence. In fact, audits can result in acceptance of the tax return without change or even a refund. If that be the case, how does the IRS choose who to audit in the first place? There are several factors that govern who the IRS…

• What if You Face the IRS in Court

  Darrin Mish

  23 Jan 2012 | 12:25 pm

  What if You Face the IRS in Court If you have to face the IRS in court, would you know how to defend your case? Preparation is the key, but preparation depends on what your case would be about. Another important factor is whether you have a lawyer represent you or you choose to represent yourself. Taxpayers who choose a lawyer to represent them in cases of dispute with the IRS are successful 58% of the time whereas those who represent themselves are successful only 34% of the time. There are a slew of cases that taxpayers and the IRS most frequently contend over in court. Here are some of…

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  California Tax Attorney Blog

• New Guidelines For Innocent Spouse Relief

  27 Jan 2012 | 6:02 am

  Right after the New Year, the Internal Revenue Service released new proposed guidelines designed to provide relief to more innocent spouses requesting equitable relief from income tax liability. In an earlier blog post, other rule changes were discussed. A Notice proposing a new revenue procedure revises the threshold requirements for requesting equitable relief and revises the factors used by the IRS in evaluating these requests. The factors have been revised to ensure that requests for innocent spouse relief are granted under section 6015(f) when the facts and circumstances warrant and…

• Real Property Sales In California Probate

  23 Jan 2012 | 5:50 am

  Q: Where is the list for probate properties that are for sale in Los Angeles? A: There is no list. However, posting for upcoming petitions in the Central District can be found on the 1st Floor of the Stanley Mosk Courthouse. Each Courthouse has a posting area of their upcoming petitions as well. Q: Does the Court provide a list of probated property? A: The Court does not provide such a list.

• Pennies On The Dollar - NOT!

  18 Jan 2012 | 5:26 am

  JK Harris & Co. - "the nation's largest tax representation firm" - is in bankruptcy. It may stop trying to restructure its business to liquidating its business instead. This case shows how hard it can be to settle tax disputes for “pennies on the dollar”. JK Harris advertised that it could resolve people's tax debts for "pennies on the dollar." It appears that it had its own problems: the cost of large settlements related to multiple claims that it misled consumers. In many cases, attorneys general complained that the company told consumers it could resolve their tax problems, and took…

• Offshore Voluntary Disclosure Program Reopens

  13 Jan 2012 | 6:09 am

  As of this past Monday, the Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs. The IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The third offshore program comes as the IRS continues working on a wide range of international tax issues and follows ongoing…

• Two New Types of Corporations In California

  9 Jan 2012 | 5:55 am

  California became the seventh state to adopt two new subtypes of stock corporations — a “flexible purpose corporation” and a “benefit corporation" as of January 1, 2012. Now, investors and entrepreneurs can pursue both social and economic objectives allowed by the new corporation subtypes. These two types of new entities may sound like marketing hype but they help shield them against lawsuits brought by shareholders who say that company do-gooding has diluted the value of their stock. The new stock corporation subtypes differ from traditional for profit corporations that are organized…

• 

  IRS Hitman

• IRS Wins Case Against GE for Abusive Tax Shelter

  27 Jan 2012 | 11:38 am

  You cannot cheat the IRS! I've said it before and I'll keep on saying it. It may seem like you have really pulled the wool over their eyes when you try stuff like using an abusive tax shelter. But, the IRS will eventually figure it out. And, when they do…they'll be mad. So, what is an abusive tax shelter? It's when you invest money some place in an effort to reduce income tax, and serves no other economic purpose. Donating large amounts of money to an established charity is serving an economic purpose; therefore you can deduct the amount of income you sent to them from your taxes. Hiding a…

• Finding IRS Relief: Consumer Tax Reports

  20 Jan 2012 | 10:59 am

  Finding the right tax resolution company for your IRS problems can be difficult. There are so many companies that make so many promises. No one has the time to interview and thoroughly investigate all of these places. So, who do you know you can trust? Fortunately, a site called ConsumerTaxReports.org has done the work for you. So far, fifty companies have been reviewed. Every company is laid out according to its rank on the site on a table that lists all of the following information: Consumer Tax Reports score (up to 100) and rating (A+ through F). Cost: Average fee, flat fee vs retainer,…

• IRS Hitman Team Spotlight: Laura Kennington

  19 Jan 2012 | 11:07 am

  People seem to only think of tax attorneys, when they are looking for IRS relief. Very few taxpayers know what an enrolled agent does and how they can help. Personally, I believe enrolled agents are just as helpful as tax attorneys for most tax problems. The National Association of Enrolled Agents gives this description: An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for…

• Meet Eileen: A Real Tax Resolution Story

  17 Jan 2012 | 1:54 pm

  My father was a big shot in the IRS. I was an IRS Hitman for nearly a decade. I have been helping Tax Defense Network help tax problems for a long time now too. What I'm trying to say here is, I have heard a lot of stories. Unfortunately, most of them have been tragedies. But, now that I help taxpayers, I get to give those stories happy endings. I have heard so many glowing testimonials from our clients. However, some of our cases stand out more than others. Eileen's case is a shining example of why you should reach out for help, if you have too much IRS tax debt to handle. I've put it into a…

• Phishing Season

  16 Jan 2012 | 2:35 pm

  According to Nancy Olson from the Taxpayer Advocate service, 2010 was a record year for identity theft and fraudulent electronically filed tax returns. DON’T become just another victim of phishing! Follow this advice and keep safe. Phishing Emails You simply will not receive any emails from the IRS. The IRS does not communicate like that. If you receive any phishing emails claiming to be from the IRS, follow these directions. Don't reply. Don't open attachments. Don't click on links. Forward the email without any changes to phishing@irs.gov. After the email is forwarded, delete the original…

• 

  Tax Law Forum

• Friday's Tax Quote - January 27, 2012

  Rob Teuber

  27 Jan 2012 | 2:48 pm

  “Why is it inflationary if the people keep their own money, and spend it the way they want to, [but] not inflationary if the government takes it and spends it the way it wants to?”-Ronald Reagan

• Friday's Tax Quote - January 20, 2012

  Rob Teuber

  20 Jan 2012 | 12:47 pm

  “I know everybody’s income and what everybody earns;And I carefully compare it with the income-tax returns;But to benefit humanity, however much I plan,Yet everybody says I’m such a disagreeable man!And I can’t think why!”-William D. Gilbert and Arthur S. Sullivan (“Princess Ida”)

• The Wisconsin Department of Revenue’s "My Tax Account."

  Rob Teuber

  15 Jan 2012 | 2:41 pm

  The Wisconsin Department of Revenue is continuing its push to encourage business taxpayers to manage their tax obligations online by using the "My Tax Account" system.  The system is set up to be simple and easy to use.  In addition to filing and paying numerous types of taxes online, registered users can also use the system to appeal various Department of Revenue notices.An existing or new business can register for and access "My Tax Account" by clicking here.  FAQs are answered by clicking here.  The Wisconsin Department of Revenue has also produced six simple, but…

• Friday's Tax Quote - December 30, 2011

  Rob Teuber

  30 Dec 2011 | 12:00 pm

  “The income tax created more criminals than any other single act of government.”-Barry M. Goldwater

• Friday's Tax Quote - December 23, 2011

  Rob Teuber

  23 Dec 2011 | 12:00 pm

  “The sales tax seems to be more politically acceptable than the income tax.”-Raymond C. Scheppach

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  JD Supra Taxation

• A Retirement Plan Sponsor’s Guide To Choosing A Third Party Administration Firm

  The Rosenbaum Law Firm P.C.

  27 Jan 2012 | 9:59 pm

  Contributor: The Rosenbaum Law Firm P.C. [View: Profile | Documents]

• Taxation & Wealth Planning Department Alert - $5.12 Million Gift Giving Window of Opportunity: 11 Months and Counting!

  Fox Rothschild

  27 Jan 2012 | 8:10 pm

  Contributor: Fox Rothschild [View: Profile | Documents]

• How Bankruptcy Can Help Eliminate Wage Garnishment

  Tampa Bay Bankruptcy Center, P.A.

  27 Jan 2012 | 8:02 pm

  Contributor: Tampa Bay Bankruptcy Center, P.A. [View: Profile | Documents]

• How Bankruptcy Can Help Eliminate Tax Debts

  Tampa Bay Bankruptcy Center, P.A.

  27 Jan 2012 | 6:47 pm

  Contributor: Tampa Bay Bankruptcy Center, P.A. [View: Profile | Documents]

• Claim Tax Deductions From Your Hobby (Part 1)

  Darrin Mish, Tampa Tax Attorney

  27 Jan 2012 | 6:43 pm

  Contributor: Darrin Mish, Tampa Tax Attorney [View: Profile | Documents]

• 

  seebeyondthenumbers.com

• What’s New in QuickBooks 2012?

  Lisa Grossman

  25 Jan 2012 | 11:00 am

  The program enhancements for QuickBooks 2012 can be divided into two areas: Enhancements for the user Enhancements for their accountants Enhancements for the user are designed to make day-to-day accounting easier and provide better information about your business. We have listed many of the User Enhancements that apply to most versions of QuickBooks below. Refresh Excel Data – provides user better integration with Microsoft Excel Contributed Reports – allows user to share report templates with other QuickBooks users Lead Center – allows user to manage sales prospects within QuickBooks…

• Educating Our Students Today to Prevent Fraud Tomorrow

  Craig Hirsch

  10 Jan 2012 | 7:56 am

  Did you know that it is estimated that the typical organization loses 5% of its annual revenue to fraud? Did you also know that 75-98% of college students admit to having cheated in academics compared to only 20% back in 1940? And did you know that these two variables are more than likely correlated with each other? I recently had the pleasure of speaking to Hollywood Hills High School‘s Advanced Placement Government class taught by Larry Neuschaefe about my profession as a forensic accountant and the connection between their world and mine. More importantly, the students and I…

• Identity Theft and Tax Fraud – Are You a Victim?

  Scott Berger

  6 Dec 2011 | 1:58 pm

  Identity theft and tax fraud are serious problems that continue to increase in number and complexity as each tax season rolls by.  Don’t think you will ever be affected? Accounting Today recently reported that the IRS identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds, as of April 30, 2011. The good news – the IRS prevented the issuance of $4.4 billion (96%) of those claims which is an increase of 171% over the previous year. Unfortunately, 4% of those victims were not so lucky. Becoming a victim of identity theft and tax fraud can cause great hardship for you…

• What should you do before you board a helicopter?

  Janet Kyle Altman

  1 Dec 2011 | 10:22 am

  I thought I was pretty savvy about money, but when I met earlier this week with the panelists for Thursday’s free breakfast seminar, Money Mistakes Savvy Businesswomen Should Avoid, I learned how much I don’t know.   This is going to be a great panel, nothing like your typical financial planning seminar.  Panelists Lisa Grossman, Tanya Ferreiro, Debbie Morrison, and Ellen Siegel will share personal stories as well as their expertise.  We’ll discuss a variety of topics including: the changing definition of  “emergency” fund the longevity trap the special…

• Now is the Time to Update Your Estate Plan with a CLAT

  James Barnett

  30 Nov 2011 | 2:16 pm

  Attorneys Robert Esperti and Renno Peterson define estate planning best as “giving what you have to whom you want, the way you want, and when you want, and if possible, saving every fee and tax possible”.  While the definition above appears concise and simple, estate planning, and more specifically wealth transfer, is potentially a complex undertaking requiring periodic updates to your plan.  As your objectives, family dynamics, property and tax laws, current and projected economic environment, and a host of other factors change, it becomes incumbent to make adjustments to the plan. …

• 

  The Missouri "taxguy"

• The Importance of Good Recordkeeping

  Bruce Mc

  20 Jan 2012 | 7:00 am

  Benjamin Franklin said: “An ounce of prevention is worth a pound of cure.” When it comes to record keeping, the inventor could not have been more correct. Earlier this year Joplin Missouri was devastated by a tornado that destroyed a big part of the town. I had a chance to visit there (I took a truck load [...]

• The Missouri 1099-G in 2012

  Bruce Mc

  17 Jan 2012 | 3:25 pm

  Missouri now provides 1099-G information online over a secure server that is available anytime. Form 1099-G reports the amount of refunds, credits and other offsets of state income tax during the previous year that must be reported on your federal income tax return if you itemized your deductions last year. If you are expecting one [...]

• Negotiate your debts with the IRS

  Bruce Mc

  6 Jan 2012 | 7:00 am

  Choosing a tax professional to formally negotiate your debts with the IRS As the tough new rules on bankruptcy laws hit the debt industry, debt settlement is often chosen as a more palatable option for all the debtors in the US. Debt settlement is an agreement with the debtor and the creditor to settle an [...]

• More of “Things your tax pro may not tell you”

  Bruce Mc

  1 Jan 2012 | 10:26 am

  “You wouldn’t believe it.” Complaints about tax preparers, including allegations of inaccuracies and returns that weren’t filed on time, are up 80% in the past five years, says the Council of Better Business Bureaus. But when it comes to the Internal Revenue Service policing problem preparers, “the lifeguard is still asleep.”  Less than 1.5% of [...]

• Merry Christmas 2011

  Bruce Mc

  25 Dec 2011 | 8:34 am

  I hope yours is a great one and I wish you all a Very Merry Christmas. I will be taking the next week off. Have a great day.

• 

  Canadian Tax Resource Blog

• Get Ready To File Your Income Taxes

  Tax Guy

  4 Jan 2012 | 3:13 pm

  A colleague of mine ran out last week and purchased tax preparation software so he could get a head start on his taxes!Filing your taxes is often in the same category as visiting the dentist to have your teeth drilled. You know you need to do it, but would rather put is off until the pain is so unbearable, that you just can’t avoid it any longer. Filing your taxes does not have to be that difficult. Getting prepared takes very little time and can help you feel better about filing your return on time before April 30th (or June 15th if you are self-employed).What Is Involved?There are…

• 2010 Year End Tax Planning Strategies

  Tax Guy

  7 Dec 2011 | 9:32 am

  The end of 2011 is near! If you have not considered your tax options, now is the time to consider the year end tax planning strategies that must take place before the end of 2011.Be mindful of the timing of investment transactions. Many stock and mutual fund transactions must happen before the end of the tax to take effect in 2011!Investment Planning1. Take Advantage of Any Losses – Take the opportunity to review your investment portfolio. If you have some stocks or other investments that have decreased in value, you may consider selling them to realize any losses for income tax purposes.

• 2012 RRSP Contribution Deadline

  Tax Guy

  2 Dec 2011 | 2:28 pm

  It seems that there is some confusion around the 2012 RRSP deadline and a lot of websites are proclaiming the wrong RRSP deadline for 2012.Contributions made in the current tax year or within the first 60 days of the following year can be deducted on your tax return [s.146(5)].The deadline for contributing to an RRSP and claiming the contribution on your 2011 income tax return is February 29th, 2012 (not March 1st because 2012 is a leap year).If you want to most up-to-date dates check out the CRA site.Make sure you don’t miss the deadline!Related ArticlesRRSP Over Contribution &…

• Selling Your Business & Saving Taxes

  Tax Guy

  24 Nov 2011 | 2:14 pm

  You started your business from scratch and built it into a successful enterprise.Perhaps you want to retire and spend time with your family or maybe you want to move on to something different.Either way the value built up in your business will result in a tax a tax bill.Luckily the Income Tax Act provides you the opportunity to save on taxes when you sell your business through the capital gains exemption.$750,000 Capital Gains ExemptionIf you are the owner of a small business corporation, you may be able to take advantage of the capital gains exemption on the sale of your business.The…

• Income Tax and Short Selling Stocks

  Tax Guy

  6 Oct 2011 | 6:35 am

  Savvy investors who feel the value of a stock will go down can use a strategy know as a short sale.Short sales have their own unique tax profiles and anyone considering a short sale should be aware of the tax consequences.A visitor to The Canadian Tax Resource Blog asked about how dividends were handled from a tax perspective in a short sale:What is the tax treatment of money paid on short sales of a stock that pays a dividend? For example – stock XYZ pays a dividend of $1.50/share. If you had shorted 100 shares, what happens to the $150 that gets taken from your account? Would this be…

• 

  Tax Resolution Blog

• Tax Problems Associated With Our Tax System

  Dean Alexander

  26 Jan 2012 | 5:57 pm

  We said previously that our tax rates are high and our code reflects the power center's arrangements. Now, we discuss the complication of the code, the fairness issues and IRS collection practices that come with the territory.  No one needs to explain how complicated the code is with thousands of pages and the annual changes and modifications. It takes the highly specialized knowledge of a CPA or an IRS tax attorney to navigate through the maze of forms and complications in order to provide the tax help that citizens need.  An example of the complication is the alternative minimum…

• Tax Resolution for Our Current Tax System

  Dean Alexander

  26 Jan 2012 | 9:11 am

  We discussed previously the high tax rate of our tax system. We believe that our rate is driven by the economic and social allocation of our resources. Those in turn are propelled by political motives and the arrangements of power and pressure centers in our society. Our tax rate is high because we made our needs require a high tax rate.  We found that we can have a tax resolution or tax help if we have both the imagination and the courage to implement honest, original and rational ideas. Basically, we need to cut everything that can be cut. We pass the savings to the taxpayer or in the…

• The Current Tax System and The Cry for a Tax Relief

  Dean Alexander

  25 Jan 2012 | 9:34 am

  No one complaints that they are paying too little tax except for Warren Buffet. Even Buffet would never say that he is paying too little tax if he were to be taxed on his deferred gains. The poor definitely are not complaining that they are paying too little tax. To be sure we pay taxes because we must. But do we have to pay taxes the way it is imposed on us? The answer is no. What we need are two things. We need courage and imagination.  But the basic question is why do we need to do away with our current tax system. There are several good reasons to trash our system. The first reason…

• Your Child Can Offer You Tax Relief

  Dean Alexander

  24 Jan 2012 | 3:04 pm

  Owing tax at the end of the year can pose an IRS tax problem that, if not paid, may cause the IRS to initiate collection actions against you such as IRS levy, tax lien and wage garnishment. The options that you have then are to pay the tax immediately, negotiate an installment agreement, or even submit an offer in compromise. Some people may not qualify for an offer in compromise, but will qualify for what is called a currently-not collectible status.  The best option is to reach a tax resolution before the tax problem arises. This can be accomplished by tax planning. Tax planning can…

• Can Flat Tax Abate IRS Problems?

  Dean Alexander

  23 Jan 2012 | 5:17 pm

  There are three ideas floating around regarding our income tax system. The first is the idea of the wise, the balanced, those who have it all together. Follow these people and remain stagnate forever.  The second idea is that of a flat tax. It is of those that we can call the daring timid. They will indeed make a change, mind you. Their change is good. But it does not eliminate our tax problem and does not provide the tax resolution that this country needs and the tax help that its citizens deserve.  The advocate of the total elimination of the income tax is the third group. They…

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  Value Added Tax Blog

• Rates, rates, rates

  mark

  23 Jan 2012 | 11:17 am

  These days are all about VAT rate increases, and how VAT replaces income taxes as a reliable source of government revenue. Simpler than cross-border services - but much more contentious.

• Round-up of 2012 VAT changes

  mark

  3 Jan 2012 | 11:49 am

  Round-up of 2012 VAT changes

• A VAT pilot in Shanghai, Beijing next?

  mark

  3 Jan 2012 | 9:05 am

  China is piloting a VAT reform in Shanghai, and Beijing has expressed interest as well.

• Sarko: Bonne annee – a swap between VAT and social tax is in the works

  mark

  3 Jan 2012 | 8:38 am

  In his New Year's speech French president Nicolas Sarkozy mentioned that he intends to implement the "social VAT"

• French Court approves 7% reduced rate

  mark

  28 Dec 2011 | 11:35 am

  From this AFP report it appears that the proposed, then rejected increase in the French reduced rate from 5.5 to 7% will happen.

• 

  Tax Attorney and Tax Resolution Services: IRS Help Blog

• False Tax Return Filed by Alabama Woman, Now Faces Prison

  TRS

  27 Jan 2012 | 11:51 am

  Shenita Nicole James, 33, of Montgomery, Ala., pleaded guilty to preparing and filing false and fraudulent federal income tax returns. James was employed as an office manager and income tax preparer at We Finance Auto Sales in Montgomery in 2008 and 2009. We Finance Auto Sales prepared income tax returns for individuals who could choose to use their tax refunds to purchase or make down payments for automobiles. On or about Feb. 3, 2009, James prepared and filed an individual income tax return for an individual identified as J.W. for the calendar year 2008. James put on this fraudulent return…

• Friday Tax Relief Round Up: Top IRS Stories of the Week

  TRS

  27 Jan 2012 | 11:39 am

  Its Friday, and that means time for my weekly tax news round up. Here’s a look at some of the IRS and tax related stories that caught my eye this week. Lets begin with one of my favorite topics: Avoiding an IRS Audit. Being audited by the IRS is no laughing matter and I want to help taxpayers avoid it whenever possible. I was very happy to be quoted in How to Avoid an IRS Audit in US News World and Report. I also shared my tips on avoiding an IRS Audit in the Big Biz Show Blog, 5 Tax Return “Red Flags” that Could Trigger an IRS Audit. Now that tax season is here, many of us will…

• Tax Relief for Parents

  TRS

  27 Jan 2012 | 11:28 am

  Parents of children and those with dependents should keep in mind the tax relief benefits and deductions available to them this tax season. The IRS has issued a brief reminder to all parents to keep these tax relief tips in mind as they file their 2011 taxes: Dependents: You can start claiming a child as a dependent the year they are born, so if you gave birth to little bundle in 2011 you can start claiming on your next return (See more information on IRS Publication 501). Child Tax Credit: Parents with children under age 17 can take this credit (See more info on IRS publication 972).

• IRS Cyber Scams – Protect Your Personal Information

  TRS

  27 Jan 2012 | 6:26 am

  The IRS is issuing information to all taxpayers to stay on the lookout for fraudulent emails and correspondences claiming to be the IRS this tax season. Each year the IRS receives thousands of reports about suspicious calls, emails, faxes and notices claiming to be from the IRS. The goal of these fraudulent notices is an attempt to collect your personal information for identity theft or to take your money! The IRS is sharing tips on how to avoid problems with these IRS cyber scams and internet phishing on their website. You can read some tips below: Know that the IRS never asks for personal…

• IRS Tax Help for Small Businesses and Self-Employed

  TRS

  26 Jan 2012 | 4:25 pm

  As we move into tax season it is important to stay up to date and educated on the current regulations and laws surrounding taxes. By staying educated on important tax issues you can help keep yourself out of future IRS tax problems such as back taxes and tax liens. To help make the tax process easier for small businesses and the self-employed the IRS has created a tax center on their website, full of incredible information to help when filing your business and personal returns. The Small Business and Self-Employed Tax Center – Your Small Business Advantage helps by giving taxpayers a…

• 

  Diane Kennedy's USATaxAid

• Embezzlement Stats Are Out

  Diane Kennedy

  27 Jan 2012 | 6:29 pm

  The 2011 embezzlement stats are out. This is a list you don’t want to be on! It means that you, your business and/or your state is more at risk for employee theft. When you consider all of the challenges with running a business today, what with state and federal tax complexities and increases, global competition and reduced demand, it is horrible to think that you could lose everything because you hired someone who stole from you. And make no mistake, as much as someone may try to minimize the crime by calling it “white collar”, embezzlement is stealing. And it’s stealing from you.

• Three Sets of Financial Statements

  Diane Kennedy

  24 Jan 2012 | 2:01 am

  You may have heard about the three financial statements: Balance Sheet, Income Statement and Statement of Cash Flows. That’s not what I’m talking about here, but let’s go over this really quickly. The Balance Sheet is like a snapshot of your assets, liabilities and equity as of a certain date. Assets are things you own such as your bank account, inventory, accounts receivable and other items that have a value. Liabilities are amounts you owe. It includes your accounts payable, mortgages, notes payable and credit cards payable. Equity is what is left. Your Income Statement shows income…

• Next Wave of Walk Away Real Estate Owners

  Diane Kennedy

  19 Jan 2012 | 2:01 am

  In the past week, I’ve had two different people ask me questions about walking away from their seriously underwater real estate. Real estate started its nosedive in 2007, but as long as no one lost their job, had reduced business income or had to move, the market value could seem irrelevant. As long as you could afford the payment and were prepared to stay put until the market recovered, you could just hold on. But then the market decline drug on and on and on. There are a lot of people who are in properties now with loans that are as much as double what the house is worth. It may take…

• Series LLC – Okay for Solo 401(k) Pensions?

  Megan Hughes

  17 Jan 2012 | 2:01 am

  I’m seeing strong interest in Series LLCs these days. Real Estate investors are coming to the Series LLC in numbers, fascinated by the idea of having solid asset protection without paying to form and maintain multiple state entities. Business owners are also looking at the Series LLC as a great way to start multiple businesses, or create separate business identities quickly and easily, and without spending thousands in legal and filing fees. Recently, Series LLCs got another boost – this time in terms of acceptance by a pension custodian, in connection with a Solo 401(k) plan. Using an…

• Four Words That Will Change Your Business Life Forever

  Diane Kennedy

  12 Jan 2012 | 2:01 am

  If you have a business, please attention to these next few paragraphs. Following these guidelines will make one huge difference in your business: You can run your business or it can run you. Those four words: Measure Results, Change Activities It really is that simple to have a business that works. Measure Results: You need an accurate set of financial statements within 30 days of month end. We also recommend that you have them prepared using a complete accrual method. You likely will file using cash basis for your tax return, but you still need the accrual basis so you can make good…

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  IRS Tax Center - Free Online Tax Preparation, Tax Extension

• Get a 6 Month Tax Extension at FileLater.com

  admin

  25 Jan 2012 | 3:36 am

  The IRS grants tax extensions by submitting Form 4868. FileLater.com offers an simple online application for submitting this form electronically. FileLater.com features:  All 1040 Personal Federal Returns Sole Proprietorships (Schedule C) Single Member LLCs E-file IRS Form 4868 How It Works: Step 1 The IRS requires that you provide some personal information in order to request a tax extension online. This includes your name, address, Social Security Number (or ITIN) ― and the same information for your spouse if you are married filing jointly. Tax forms (including W-2s, 1099s, and prior…

• Do You Have to File a Tax Return?

  erosen

  23 Jan 2012 | 2:00 am

  You are required to file a federal income tax return if your income is above a certain level, which varies based on your filing status and age, as well as the type of income that you receive. For the year 2011, the following individuals must file a Federal income tax return: • If your filing status is SINGLE and at the end of 2011 you were UNDER AGE 65, then you must file a return if your GROSS INCOME was at least $9,500. • If your filing status is SINGLE and at the end of 2011 you were AGE 65 OR OLDER, then you must file a return if your GROSS INCOME was at least $10,950. • If your…

• What Is Taxable Income?

  erosen

  23 Jan 2012 | 1:59 am

  Taxable income, generally speaking, is the gross income of an individual or corporation, less any allowable tax deductions. Your taxable income is, in other words, the amount of your income that is subject to income tax. In the USA, what qualifies as “taxable income” is defined in the Internal Revenue Code Section 63.  “Gross income” is defined in Section 61 of the Internal Revenue Code. Taxable income can encompass more than just your annual salary.  Taxable income can include profits from stocks or real estate sales, winnings from the lottery, betting the dogs or horses, and…

• Understanding Payroll and Withholding Taxes

  erosen

  23 Jan 2012 | 1:58 am

  PAYROLL TAXES The term “payroll tax” can be used to describe two different types of similar taxes. The first type, known as withholding tax, is withheld from an employee’s wages by their employer. The employer then sends the withheld amount to the appropriate taxing authority. It is also referred to as a “pay-as-you-earn” tax. The second type of payroll tax is paid by the employer, from his/her own funds. The amount of payroll tax that an employer owes depends on the jurisdiction, and may be fixed or proportional to the employee’s salary. Employers withhold payroll taxes (and…

• Claiming Dependents and Exemptions

  erosen

  23 Jan 2012 | 1:57 am

  Dependents A dependent is a person (other than the taxpayer themselves or their spouse) for whom the taxpayer can claim a dependency exemption. Each dependency exemption lowers the amount of income that can be taxed. For 2011, the exemption amount is $3,700 for each qualifying dependent. The term “dependent” refers to a qualifying child or relative, determined by various dependency tests. If you are a full-time college student, you may still be claimed as a dependent on your parent’s tax return. A dependent may have to file their own tax return, based on their gross income, earned…

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  E-File Magic 1099 Software - Blog

• Positive Feedback on our Videos!

  mberrygal

  25 Jan 2012 | 8:39 pm

  If you haven’t heard yet.  E-File Magic is in the middle of our busy season (hence why you haven’t seen a blog post in a while, I bet you’ve missed me! )  Well today I received an email from an extremely happy customer.  She said she was having a hard time importing her recipient data from an Excel Sheet to the E-File Magic Software. She decided she would do some research on our website to see if she could find a tutorial on how to do it.  Low and Behold she found our Video on Importing Recipient Information.  She said it was very easy to follow and she was able to…

• 1099-Q

  mberrygal

  19 Jan 2012 | 6:42 pm

  1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) is a form that needs to be sent out if you have paid from a Qualified Tuition Program (QTP), under section 529 to the recipient or a Coverdell ESA (CESA) under section 530.  E-File Magic’s website has copies of the Form you can look at and copies of the Instructions that you can download.  If you need to send out a 1099-Q to your recipients you should give E-File Magic’s 1099 Software a try.  It works like a charm!

• Creating a Company/Filer in E-File Magic

  mberrygal

  18 Jan 2012 | 8:03 pm

  Creating a Company/Filer/Payer is one of the most fundamental steps in the E-File Magic Software.  If you do not complete this section the software will not let you go to the next step of adding recipient data.  This section of the software is where you put the company’s information that is sending the 1099 to the recipient.  I suggest watching the video on how to complete this step.  It’s very entertaining!  Once you have watched the video, if you would like to download our 1099 software please do so!

• Form 1099-LTC

  mberrygal

  17 Jan 2012 | 4:48 pm

  You must send a 1099-LTC, Long Term Care and Accelerated Death Benefits if you paid any long-term care benefits, including accelerated death benefits during 2011.  Most people who are responsible for sending out 1099-LTC’s could probably do them in their sleep since they are mainly in the business of Long Term Health Care.  But I thought I would let you know who receives these forms and where you can find the instructions for them.  As always E-File Magic provides instructions to all of the forms we offer on our website and in our software.  It’s fast, easy, and simple!  Give…

• How to Register E-File Magic Software

  mberrygal

  16 Jan 2012 | 5:25 pm

  Registering your E-File Magic software is a very important step in our 1099 Software process.  Make sure you add all the fields in correctly with a current phone number and email address.  If anyone needs to contact you from E-File Magic, we will use your registration details information for contacting.  Please check out this video, which is short and sweet about Registering E-File Magic. Download E-File Magic’s 1099 Software Today!

• 

  Ashworth College Community : Blog List - Tax Preparation Group

• Whats New in the 2012 Tax Year.

  27 Jan 2012 | 1:05 am

  Came across a few interesting tax changes for 2012 and thought I would share. Even though Ashworth has an excellent Tax Preparation program, sadly some of our studies are a little dated. A lot of our studies are based off of tax laws, deductions etc for the year 2004. I am finding that much of those tax laws, deductions etc are no longer in effect for 2012. So I figured I would share what I've learned. -Due date of return file Form 1040 by April 17, 2012. The due date has changed due to April 15th falling on a Sunday and April 16th being the Emancipation Day Holiday in the district of…

• Vow to Hire Heroes Act 2011

  24 Jan 2012 | 1:30 am

  This one really seem's like a win, win situation! One November 21, 2011, The President signed into law the Vow to Hire Heroes Act 2011. This new law provides an expanded work opportunity tax credit to businesses that hire eligible unemployed veterans and for the first time also makes part of the credit available to tax exempt organizations. Businesses claim the credit as part of the general business credit and tax-exempt organizations claim it against their payroll tax liability. The credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and…

• Tax facts that can help you file your Armed Services Men's taxes properly.

  23 Jan 2012 | 12:00 am

  Info for taxpayers serving in the Armed Forces. Member of the U.S. Armed Forces who serve in a combat zone or qualified hazardous duty area can exclude certain pay for income. Enlisted personnel, warrant officers, and commissioned warrant officers can exclude:1. Active duty pay earned in any month served in a combat zone.2. Imminent danger/hostile fire pay, and military pay earned while hospitalized as a result of wounds, disease or inury incurred in the combat zone.3. A reenlistment bonus if the voluntary extension or reenlistment occurs in a month served in a combat zone.4. Pay for…

• How To Avoid An Audit

  18 Nov 2011 | 11:59 am

  It's the nightmare you see played out on tv or maybe even have experienced it yourself.  The threat of being audited by the IRS is a frightening thought for anyone, even the most seasoned tax preparer.  Having to explain your finances and have someone else comb through them is a daunting thought.  You may think those who are audited are chosen at random, but there are some red flags that will make the IRS take notice.  Some of those are: Math mistakes - The biggest reason people receive letters from the IRS is addition or subtraction goofs. Fortunately, math errors…

• Unemployed? Here Are Tax Tips For You

  11 Nov 2011 | 12:50 pm

  Filing taxes can be a pain but when you have no income coming in, it can truly be depressing.  Even if you are making less charitable donations as of late or shopping at Goodwill instead of dropping things off there, tax tips are available for you.  The IRS has put out a list of tax breaks for the unemployed such as: You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if:You are looking for a job in a new occupation,There was a substantial break between the ending of…