August 17, 2011
In December of 2002, Norma Coronel gave birth to one child; but that’s not what her tax return says.. Coronel was indicted on 35 counts and arrested after claiming 19 children, 18 fake dependents on her tax return. Unbelievable we know, but this type of activity happens everyday due to the earned income credit. She was caught […]
August 11, 2011
About 20,000 individuals and 24,000 businesses have been randomly chosen and will soon get letters from the IRS. Don’t panic, these are not collection letters. These IRS surveys will help them update their estimates of what sort of burden they place on you. They are looking to see how much time you spend on filling out IRS […]
August 4, 2011
The IRS is increasing audit examinations of tax exempt organizations, specifically with regard to related party lending. They are looking for disqualified transactions to disqualified people who are personally involved with the not for profit or tax-exempt organization. This includes lending between the non-profit and any of its directors or staff, related party lending, especially […]
July 22, 2011
What’s the difference between a delinquent taxpayer and the IRS? Delinquent taxes are due right away, but the IRS now has a 16 week waiting period to even process most amended returns or other claims for refund. In addition to amended returns, paper filed returns are also subject to these extended wait times. Certain credits, […]
June 21, 2011
If you have a financial interest in a foreign bank account, you should be familiar with filing Form TD F 90-22.1. Regulations regarding this form have changed as recently as June 6, 2011 . These changes affect a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, […]
May 24, 2011
The IRS has released new statistics on audits for 2010 and your chance for an audit is the highest it has been since 1997. For individual returns, 1.11% of all returns were audited. For upper income earners, the statistics were even worse. Filers with income between $200,000 and $1 million were audited at twice that […]
April 13, 2011
E-filing can speed up the tax filing process, and that is really nice…sometimes. When they process your return before they process your extension, that can cause some headaches in the form of IRS Notices. Already we are starting to see late filing notices go out for corporate returns that we filed in the last half […]
April 8, 2011
We are now about 15 hours away from the deadline. No, I’m not talking about the tax deadline, I am talking about the deadline for the government to pass a funding bill to prevent a government shutdown. Many of us, frustrated with how poorly Washington has done at coming together to pass this budget, might […]
March 24, 2011
The Internal Revenue Service has agreed with recommendations in a newly released government report urging the agency to increase its examinations of individual tax returns that report rental real estate losses. For many Americans this could mean a decrease in the amount of tax losses they report on their tax returns and increases in income […]
February 14, 2011
With the administration budget revealed, and it appears taxes and deficits are going up. At least that’s the plan if the President’s budget passes as is. President Obama will try once again to increase taxes by limiting mortgage, tax and charitable deductions for upper income earners. This proposal did not pass a Democrat majority in […]
February 4, 2011
Unfortunately, the unemployment compensation bills you received in the mail from the State of Florida is not another scam. Florida has had to borrow from the Federal Government to fund unemployment benefits. Now all Florida businesses who employ workers and pay wages are being billed for the interest. Florida businesses who pay unemployment taxes are […]
January 26, 2011
The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 provided much needed direction in the area of U.S. estate tax law. This act, which had lawmakers on both sides of the isle compromising and defending themselves to constituents, has provided a window into some of the most exciting estate planning opportunities in […]
January 6, 2011
Would you be willing to lose your credits and deductions including mortgage interest deduction, charitable giving deduction, education credits, child tax credits, IRA deduction and tax free health benefits from your employer? What if it meant cutting your marginal tax rate in half and making tax prep easier? The only thing growing at a faster rate […]
December 17, 2010
The tax compromise bill passes! After the House defeated an amendment to remove the Estate Tax fix and an all nighter of debate, they passed the original Senate bill 277-148. What are the implications? Tax rates will not go up for anyone until 2013. The Estate Tax will have an exemption of $5 million starting […]
December 16, 2010
Honestly, we didn’t see this coming. For people who are excited about the potential for a reduction of 2% on their Social Security taxes, you might not realize why the President put this into the compromise. President Obama’s Making Work Pay Credit is expiring January 1, 2011 and it now looks as though it will […]
December 8, 2010
I was hoping to write a tax relief blog this morning about the pending political compromise between the White House and Congressional Republicans that would extend current tax rates for all Americans, set a $5 million exemption for the Estate Tax, cut Social Security taxes, and extend unemployment benefits. While I think some version of this […]
November 24, 2010
Will there be another 2011 tax hike? While many are baulking at the $700 billion over 10 years to renew the 2001 tax cuts for families who make over $250,000, and no decision has been made on these tax cuts for everyone else in America, there is another tax break that is set to expire […]
November 14, 2010
Do you have your eye on an office condo? Thinking of offering a discounted price due to the current market conditions. You might have an additional hurdle to clear that you didn’t think of. Did you know that many condo associations have a “Right of First Refusal” clause, which has the ability to hand your […]
October 21, 2010
As the midterm election storm is brewing, we are closely watching the potential effects of party and committee changes on taxes and tax law. One thing is for certain, this election has the potential to have a big impact on your wallet through the stay or repeal of recently passed health care bill. More of a […]
October 8, 2010
It’s scamming season again! Last year about this time an email was going around about unreported income claiming to be from the IRS. This year’s scam alert is an email claiming that your EFTPS payment didn’t go through. The IRS will never send unsolicited email. This email starts by saying Your Federal Tax Payment ID:(some made […]
October 1, 2010
Did you enjoy the rain from Tropical Storm Nicole? We are in one of those weather patterns where every morning there is a new storm to read about. As Congress goes on vacation, the pattern of tax storms heading right towards us remains uninterrupted as well. Last time we talked about tax rates and personal […]
September 27, 2010
The latest small business tax bill won’t bail anyone out, keep any company from failing, or help stagnant companies grow. However, if you are already expanding and need capital the Small Business Jobs and Credit Act of 2010 will help. The latest small business tax bill to help grow jobs and stimulate the economy offers two ways […]
September 13, 2010
In most cases, tax-exempt organizations have little to be excited about when the government starts handing out cash. Since they don’t pay taxes, they usually don’t get tax deductions or credits. A tax refund for tax-exempt organizations is highly unusal to say the least. Fortunately, for most tax-exempt organizations, the Affordable Care Act has them […]
August 13, 2010
Before you go burnin’ down the house for the tax write off, make sure you’re affairs are in order. At least that’s what one couple may discover after their charitable deduction was denied for their $330,000 home that they donated to the local fire department. ESPN commentator Kirk Herbstreit and his wife claimed the charitable […]
July 30, 2010
If you are hoping to find out if your taxes are going up next year, you might have to wait until next year. The sluggish economy, mixed with election year politics and increasing deficits, are making good tax policy and the future of tax law more and more difficult to nail down or anticipate. While the […]
July 7, 2010
A couple times a year, the Taxpayer Advocate Service files a report showing the trends and concerns they have with how the IRS is doing business and treating taxpayers. The midyear report recently submitted shows that the IRS is difficult to deal with, moreso now than previously. Fortunately, recognition of this problem could help lead […]
July 1, 2010
If you haven’t signed that contract, don’t get your hopes up. However, if you signed a contract before April 30, 2010 and haven’t managed to close by the July 1 deadline, there still is hope. Congress has passed an homebuyer credit extension for people who had signed contracts in place before April 30 to now […]
June 8, 2010
Accidents happen. More often, mistakes happen. In some cases, you just didn’t know. In other cases, maybe you did and need to come clean. Beginning soon, Florida embraces debt forgiveness, along with several states who are now offering a window of forgiveness. From July 1 through September 1, Florida will be offering amnesty to help bring […]
June 2, 2010
We have discussed whether you you qualify for the HITECH Medicare and Medicaid credits and what type of Electronic Medical Record program will qualify you. No doubt you are left with that all important question of “How do I get started?” In this final blog of the series, we will help you answer that question. […]
March 8, 2010
The government is coming up with new ways to incentivize you to “go green”. Cash for clunkers got us to trade in those old gas guzzlers for new clean and efficient vehicles. Believe it or not there are even government credits that allow some people to get paid to ride their bicycles to work. Now […]
January 23, 2010
We wrote last year about some of the payroll reporting issues you can run into switching from one payroll provider to another. Here we want to look indepth at some things your current payroll service provider may not know about your situation. This is part one in a short series regarding what things you should […]
December 30, 2009
In addition to the Hope Credit and Lifetime Learning Credit, the IRS is adding a new education credit to the mix. The American Opportunity Tax Credit (AOTC) sweetens the deal and picks up where the Hope Credit and Lifetime Learning Credit leave off. The AOTC provides a maximum credit for 2009 and 2010 of $2,500. […]
December 28, 2009
The Senate has been as busy as Santa’s elves on Christmas Eve trying to pass their healthcare bill, even though most of the provisions won’t even go into effect until 2011 and 2014. In the meantime, they have tabled many important tax issues that will affect 2010. Every year Congress promises an AMT fix, and […]
December 7, 2009
The First Time Homebuyer Credit has been extended once again. This time, it has been extended to more than just first time homebuyers. You may be able to take advantage of this credit now even if you already own a home. Under the Worker, Homeownership and Business Assistance Act of 2009, taxpayers buying their first […]
December 7, 2009
Thursday afternoon, December 3rd, 2009, the House of Representatives voted 225-200 in favor of H.R. 4154 which makes the current estate tax (death tax) exemption, or and rates permanent. For the majority of Americans this is good news. For many others, it could have been better. H.R. 4154 makes the first $3.5 million of an individual’s estate exempt […]
November 24, 2009
Normally, new tax credits can be a great way to stimulate the economy. Here is why Making Work Pay tax credit could end up making you owe taxes at the end of the year. Earlier this year, the administration passed a massive stimulus program that included Federal grants, projects and a tax credit for many […]
November 20, 2009
Every year we get calls from our clients regarding scam emails and notices that they have received. The nature of the financial and accounting industry makes computer stored information a valuable resource. Here are some tips on protecting account and routing numbers, personal information and/or your identity in one of these scams. Computer privacy attacks are on […]
November 19, 2009
From Cash for Clunkers to new vehicle credits, the government is brainstorming ways to save Detroit with new vehicle tax breaks. The result is that this may be the best time to purchase a new vehicle personally or for your business. One of the significant tax breaks for new vehicles is a sales tax deduction […]
November 12, 2009
For those who travel for their job, the solution to your shoebox full of receipts just got a little sweeter. The IRS allows standard reimbursement amounts for travel, Per Diem, to simplify record keeping for businesses, and in 2009 these Per Diem deductions increased. As of October 1, the IRS is increasing the amount businesses […]
October 27, 2009
The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit. Both are 30 percent tax credits for different types of qualified home energy improvements. Tax credits, unlike deductions, are direct dollar for dollar reductions in […]
October 23, 2009
According to the Mortgage Bankers Association, 1 out of every 200 homes will be foreclosed upon. In an effort toward reducing foreclosure tax consequences associated with the cancellation of debt that often times accompany foreclosure, Congress passed The Mortgage Forgiveness Debt Relief Act of 2007 (“Mortgage Act”). The Mortgage Act provides taxpayer relief by excluding […]
October 21, 2009
Another deadline has come and gone. Perhaps many out there have not yet filed their income tax return because you know you have a substantial balance due to the IRS and you just can’t pay it right now. Maybe you have that one project or deal that you are waiting on to come through so […]
September 25, 2009
After years of studying Scripture, Hebrew, Greek, history, theology, and a wide variety of other spiritual subjects, clergy members sometimes find that they could have used a business tax course or two as well. This is especially true for smaller ministries. Fortunately, the IRS offers guidance in Publication 517 on complicated pastor payroll issues such […]
August 28, 2009
If you are forced to file bankruptcy there are certain assets your creditors cannot normally touch. Typically, your IRA is one of those protected assets. It may now be necessary ensure bankruptcy protection for your IRA. A district court has recently decided that you can lose that bankruptcy exemption if you misuse your IRA. Although creditors cannot […]
August 25, 2009
Signing up with a payroll service is a great way to facilitate the sometimes complicated payroll process with a minimum exposure to IRS and state penalties. Payroll companies are able to track your payroll in real-time, help with any audits, and provide accurate and up to date records to you and your accountant as needed. […]
August 20, 2009
Gold and precious metal investments have often been considered a “safe” investment during times of economic instability. Unfortunately, the IRS has ruled privately that capital gains from the sale of precious metals in exchange-traded funds do not receive the same favorable treatment as other long term investments. Investors of exchange traded funds that include precious […]
August 19, 2009
Do the wealthy pay their fair share? The IRS has just released the statistics for 2007 on who is paying what portion of the total income tax burden in the United States, and in answer to the quesiton, yes, the rich pay taxes. The upper incomers of our nation continue to bear a record share […]