As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Articles in category 'Individual Taxation'
It’s Easy to Steal IRS Refunds
Two years ago we addressed the IRS’s flawed refund procedure in False Refund Schemes and Backwards IRS Return Processing Rules. Today, Jay Weaver of the Miami Herald gives a distressing update in Scammers Steal IRS Refunds with Ease: “We are seeing defendants once involved in other types of crimes [such as drug trafficking] getting involved in identity-theft schemes,…
Read Full Article Categorized in: Individual Taxation, IRS Procedure, News, Tax CrimesTwenty Fake Dependency Exemptions Generate $300K Tax Refund?
Blake Ellis of CNNMoney writes about a woman who fraudulently claimed 20 child dependents on her income tax return: Tax fraudsters are getting more creative — and, in some cases, more daring. But the IRS is making it harder for them to get away with their tricks. Late last week, a Los Angeles woman pleaded guilty…
Read Full Article Categorized in: Individual Taxation, News, Tax CrimesTax No-Brainer of the Week: Don’t Have the IRS Prepare Your Tax Return
The IRS graciously gives taxpayers the following tips for how to choose a tax preparer: If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully…
Read Full Article Categorized in: Individual Taxation, Tax TipsDeadline Reminder for Taxpayers Living Abroad and Those with Foreign Bank Accounts
Taxpayers living abroad must file their 2010 tax returns by June 15, 2011. And individuals owning an interest in a foreign account must file form TD F 90.22-1 by June 30, 2011 or face steep penalties: June 15 Tax Deadline Nears for Americans Abroad; Don’t Forget to Report Foreign Accounts IR-2011-66, June 10, 2011 WASHINGTON…
Read Full Article Categorized in: Announcements, Individual Taxation, International Taxation, Voluntary disclosureWill Moving Signature Line to Top of Form Result in Less Tax Cheating?
Carmen Nobel of Harvard Business School’s blog Working Knowledge writes in Signing at the Top: The Key to Preventing Tax Fraud: [M]any taxpayers give in to the temptation to cheat on their taxes—in spite of the requirement for them to sign a statement declaring that the information on the form is “true, correct, and complete.”…
Read Full Article Categorized in: Individual Taxation, Tax CrimesIRS Identity Theft
The House of Representatives’ Committee on Oversight and Government Reform held hearings yesterday on IRS E-File Identity Theft. For you masochists out there, below is the entire eight hours of testimony and obligatory self-serving statements of congressmen:
Read Full Article Categorized in: Individual Taxation, IRS Procedure, Legislative WatchDeclaring Your Correct Filing Status is Not Lying
From Paul Caron: An organization called Refuse to Lie is recommending that gay couples whose marriages are recognized under state law but not for federal tax purposes because of the Defense of Marriage Act file their federal tax returns as single taxpayers but attach this disclaimer (detailed tax memo here): Attachment to Federal Tax Return Affirming Marriage The…
Read Full Article Categorized in: Individual Taxation2010 Tax Changes
Laura Sanders of the Wall Street Journal gives a rundown of some of the important tax changes for 2010 in Taxes – April 18 (Yes, that’s right) Is Coming Up: Here are [some major] changes affecting 2010 returns. First-time homebuyer tax credit: There have been several versions of this credit, but most taxpayers who claimed it for…
Read Full Article Categorized in: Individual Taxation, Tax TipsCPAs vs. Unenrolled, Unlicensed & Unaccountable Tax Preparers
CPA tax blogger Joe Kristan has written a rejoinder to Wandering Tax Pro Robert Flach, our favorite non-CPA, non-Enrolled Agent, non-lawyer, non-anything-that-requires-licensing-testing-and-accountability tax preparer: Robert D. Flach has put up another one of his occasional posts where he beats up on my profession: Don’t assume that because a person has the initials “CPA” after his name he…
Read Full Article Categorized in: Business advice, Individual Taxation, Regulation of Tax Preparers2011 Payroll Tax Relief
One of the more talked about provisions of the tax bill signed into law yesterday by President Obama is the temporary payroll tax reduction. WebCPA reports that the IRS has already issued guidance on the relief measure: Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation…
Read Full Article Categorized in: Employer Issues, Individual Taxation, IRS ProcedureIRS is Auditing More Taxpayers; Hire a Reputable Preparer
The Associated Press reports that the IRS is intensifying and expanding its tax return audit program: The IRS is making it a bit riskier to cheat on your taxes. The tax agency increased the number of returns it audited by nearly 11 percent this year, statistics released Wednesday show. Wealthy taxpayers and big businesses were most likely to…
Read Full Article Categorized in: Individual Taxation, IRS Audits, IRS Penalties, IRS Procedure, Tax CrimesIRS’s Home Mortgage Indebtedness Ruling Much Ado About a Little Bit
I got unduly excited when I read the following headline in the Journal of Accountancy: IRS Rules That Mortgages Over $1 Million Can Be Deductible Great, I thought. Now my heart surgeon client with a $2 million dollar home mortgage can deduct all of his interest. The taxosphere seems to have shared my excitement. See James Maule’s…
Read Full Article Categorized in: Court Cases, Deductible Expenses, Individual Taxation, IRS Procedure, NewsSwiss Parliament Ratifies U.S. Disclosure Agreement; Too Late for Voluntary Disclosure Program
Linda Beale reports that the Swiss Parliament has ratified the U.S.-Swiss agreement providing for the release of U.S. account-holder information on about 4,500 accounts: It is likely that the names will start flowing very soon, which moves the ball back to the U.S. The voluntary disclosure program that provided some assurance of limited penalties has ended. But…
Read Full Article Categorized in: Individual Taxation, International Taxation, Tax CrimesJohn Stossel’s $6,000 Income Tax Return
Kay Bell reports that Fox News’ John Stossel is ticked off that he has to pay his tax accountant thousands of dollars every year: This year’s anti-tax rant winner is Fox News’ John Stossel. But it’s not just taxing jurisdictions that make Stossel’s list. He also has no love for his accountant. The complexities of the…
Read Full Article Categorized in: Individual Taxation, Regulation of Tax PreparersKilling the Tax Messenger
Did you know that Professor Paul Caron is a Bolshevik for suggesting that the tax code requires that medal-winning Olympic athletes include the value of their gold, silver or bronze medals in their taxable incomes? Joe Kristan writes in Explaining Something Doesn’t Mean You Agree With It that the good Professor received the following letter calling him a dastardly Muscovite…
Read Full Article Categorized in: Gross Income, Individual Taxation, Opinion