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The Internal Revenue Service has moved the extended due date for partnership, estate and trust tax returns from Oct. 15 to Sept. 15 to avoid overlapping with the extended deadline for individual taxes.
The IRS has announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
If you bought a hybrid vehicle in 2007, you may be entitled to a tax credit on your 2007 return. The credit is worth as much as $3,000 for the most fuel-efficient models. The precise amount depends on the make and model of the vehicle and when the vehicle was purchased.
IRS has unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen,” highlighted by Internet phishing scams and several frivolous tax arguments. New to the “Dirty Dozen” this year is a scheme, which IRS auditors discovered, that relates to unreasonable and/or excessive fuel tax credit claims.
The EITC is for people who work, but have lower incomes. If you qualify, it could be worth up to $4,700 this year. So you could pay less federal tax or even get a refund. That’s money you can use to make a difference in your life.
If you have access to a computer and the Internet you may be eligible to prepare and file your 2007 federal tax return electronically—for free. Free File is an easy way to file your taxes and get your refund in half the time.
Want your refund faster? Have it deposited directly into your bank account. More taxpayers are choosing direct deposit as the way to receive their federal tax refunds. More than 61 million people had their tax refunds deposited directly into their bank accounts in 2007. It’s a secure and convenient way to get your money in your pocket faster.
Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself from a home computer, there are many reasons to consider e-filing your tax return this year.
The failure to file a federal tax return can be costly — whether you end up owing more or missing out on a refund.
Newlyweds and the recently divorced should ensure the name on their tax return matches the name registered with the Social Security Administration (SSA). A mismatch could unexpectedly delay a tax refund.
If you changed your home or business address, notify the IRS to ensure that you receive any refunds or correspondence. While the IRS uses the Postal Service’s change of address files to update taxpayer addresses, notifying the IRS directly is still a good idea.
If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
There are two easy and convenient options for obtaining copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
With the tax filing deadline close at hand, here are some tips for those still working on their paper tax forms:
Tax season just got two days longer, thanks to a holiday in the District of Columbia. The IRS has announced that filers will have until April 17 to file returns or extension requests because the traditional filing deadline of April 15 falls on a Sunday and April 16 is Emancipation Day, a legal holiday in Washington, D.C.
IRS has launched a new online tool designed to help individual taxpayers determine whether they might benefit by electing to deduct their state and local general sales taxes, the agency announced on Jan. 29.
Are you facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This updated publication, available on the IRS Web site, IRS.gov, contains a vast array of helpful information for individual taxpayers.
Don’t wait in line, go on-line. The IRS Web site is home to a great resource for answers to tax questions that arise during the filing season. Access 1040 Central at IRS.gov under the “Individuals” tab and discover user-friendly tools that will make completing your 2006 tax return quick and easy.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
You may be able to take advantage of certain tax breaks enacted in the final days of 2006. Claiming deductions for state and local sales tax, higher education tuition and fees, and educator expenses will require special handling if you file a paper income tax return for 2006.
Taxpayers who pay someone to do their taxes should choose a preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else
Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses, and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040. If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
Your federal tax filing status is based on your marital and family situation. It is an important factor in determining whether you must file a return, your standard deduction and your correct amount of tax.
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
On November 1, 2006, the Internal Revenue Services released the 2007 optional standard mileage rate to be used with the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Due to the closure of the IRS headquarters building, there is a temporary change of address for the delivery of taxpayer requests for rulings, requests for determination letters, Applications for Change in Accounting Method (Form 3115), and other documents that are permitted to be hand-delivered to the main headquarters building.
Every year, taxpayers hand over their financial records to tax preparers for the preparation of the annual tax return. Before choosing your tax preparer, do the following to assure yourself that your preparer will meet your needs.
Your state and federal tax filing status is based on your marital and family situation. This is an important factor in determining if you have to file a return, what your standard deduction is and the correct amount of tax liability.
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.
Earlier is better when it comes to working on your taxes. Taxpayers are encouraged to get a head start on tax preparation, especially since early filers avoid the last minute rush and get their refunds sooner.
On December 2, 2005, the Internal Revenue Services released the optional standard mileage rate to be used with the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The IRS has announced an increase in the optional standard mileage rates used by employees, self-employed individuals, and other taxpayers for the last four months of 2005. The rate has been increased to 48.5 cents per mile for all business miles driven between September 1 and December 31, 2005. This represents an increase of eight cents from the 40.5-cent rate in effect for the first eight months of 2005, as provided under Rev. Proc. 2004-64, I.R.B. 2004-49, 898. The increased four-month rate used for computing deductible medical or moving expenses is 22 cents per mile. The 14 cents-per-mile rate used for providing services to charitable organizations is set by statute and did not change.
Internal Revenue Service officials announced today the launch of a study to assess the reporting compliance of S corporations. The study, carried out under the National Research Program (NRP), will examine 5,000 randomly selected S corporation returns from tax years 2003 and 2004.
Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return — even faster when you choose direct deposit.
If you can't meet the April 15 deadline to file your tax return, you can get an automatic four-month extension of time to file from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.
Although electronic filing is becoming more and more the filing method of choice for taxpayers, there are many who file paper returns. If you are one, the IRS recommends you take a few minutes to make certain that all information is complete and accurate before sealing that envelope. This simple precaution could help you avoid mistakes that can delay your refund or result in correspondence from the IRS.
If you haven’t contributed funds to an Individual Retirement Arrangement (IRA) for tax year 2004, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15, 2005, due date for filing your tax return for 2004, not including extensions.
Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans.
Qualified housing interest, which generally is deductible for alternative minimum tax purposes, includes interest paid on a mortgage that has been refinanced more than once, the Internal Revenue Service confirmed today (March 17, 2005).
Reservists called to active duty and enlistees in the armed forces may qualify for a deferral of taxes owed if they can show that their ability to pay taxes was affected by their military service, according to the Internal Revenue Service. The Servicemembers Civil Relief Act provides this benefit.
As is often the case, the end of matrimony often leads to the start of alimony. However, what individuals usually don’t think about is how this will affect your tax liability at the end of each year.
What should you do if you don’t receive or receive an incorrect W-2, 1099 and/or Schedule K-1? What should you do if the company responsible for generating these documents to you refuses to respond to your requests?
According to the IRS, Return Preparer Fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may also manipulate income figures to obtain fraudulent tax credits, such as the Earned Income Tax Credit.
IRS establishes Tax Tips web page for all tax payers
Congress recently passed legislation that is supposed to result in a more "sensitive" Internal Revenue Service. You know, not such a lean, mean, tax-collecting machine. I DON'T THINK SO! Here's why:
More than half the nation's taxpayers sharpen their pencils or boot up their computers to prepare their own tax returns every year, according to the Internal Revenue Service. But the rest need help, and that means finding a good tax preparer.
Most have heard the phrase, “If it sounds too good too be true, then it probably is!” Then why do honest tax paying citizens fall for tax avoidance schemes?
HEAVY sport utility vehicles (SUVs) have come under attack not only for being gas guzzlers and hazards for smaller cars on the road, but also for generating unintended tax breaks for taxpayers who use them for business driving. The "American Jobs Creation Act of 2004," which passed both the House and Senate, addresses some of the unintended tax consequences by limiting the cost of a SUV that may be expensed to $25,000, effective for SUVs placed in service after the enactment date. (Code Sec. 179(b)(6), as amended by Act Sec. 910).
Basic tax planning starts with accelerating deductions into the current tax year while deferring income into the following year.
The IRS has advised educators to save their receipts for books and other classroom supplies. They will be able to deduct up to $250 of these expenses again this year, following recently enacted legislation.
The IRS will double the business expense threshold to $5,000 from $2,500 for filing the Form 1040, Schedule C-EZ. The change will mean a savings of 5 million hours of paperwork burden for small business taxpayers.
Many people are taking advantage of college savings plans ("529 plans") as a way to put money aside for the increasing cost of a college education.
If you are considering making charitable contributions before the end of the year, it may be advantageous to contribute property -- such as stock, artwork, or antiques -- that have appreciated in value.
Despite the recent run-up in the stock market, you may still be sitting on some losers in your current portfolio. Although capital gain rates were lowered by the new tax law, it may still be the right time to salvage some tax benefits from those losses.
One of the ways the IRS classifies their notices is by the type of tax form they're about. They call notices they send about business-related tax forms such as Forms 941, 1065, and 1120, business filer notices. Notices they send about Form 1040, 1040A, 1040EZ, or any related schedules, forms, or other attachments are called individual filer notices and are listed elsewhere. If the business filer notice you have isn't listed below, check back often. They’ll be adding more on a regular basis.
One of the ways the IRS classifies their notices is by the type of tax form they're about. They call notices they send about Form 1040, 1040A, 1040EZ, or any related schedules, forms, or other attachments individual filer notices. Notices they send about business-related tax forms such as Forms 941, 1065, and 1120, are called business filer notices and are listed elsewhere. If the individual filer notice you have isn't listed below, check back often. They’ll be adding more on a regular basis.
Listed below are the "Top 50" overlooked deductions for individuals. While not all may be applicable to everyone, many will be.
Affected taxpayers in a Presidential Disaster Area have the option of claiming disaster related casualty losses on their Federal income tax return for either this year or last year.
Higher income taxpayers often find out that phase-outs prevent them from taking advantage of the college education tax credits.
Most cars will be subject to this luxury auto limitation rule, but there is a significant, and widely-publicized exception.
In recent years, many charities have solicited donations of automobiles as a great way to make a significant charitable contribution, avoid the hassle of selling or trading the old car, and receive a tax deduction.
Many employers offer flexible spending accounts as a benefit to their employees. These accounts allow you to set aside a portion of your compensation -- before taxes -- to fund future medical or dependent care expenses.
The 30 percent “bonus depreciation” incentive, enacted in 2002, continued this year for purchases of certain property made on or before May 5, 2003.
If your employer provides a 401(k) plan, you can reduce your taxable income by increasing your contributions to it.
The Internal Revenue Service recently released the optional standard mileage rates to use for 2004 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.
You may be able to reduce your 2003 taxable income by setting up or contributing to an existing Individual Retirement Account (IRA).
To stimulate the economy, a large tax-cut package was signed into law during 2003. Many taxpayers will get to keep a little more of what they’ve earned in 2003.
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