Taxation & Estate Planning

More Tax Audits for the Rich

Posted on March 30, 2011
Here are some interesting statistics.  The number of audits for those considered super rich (earning at least $10 million per year) has increased by 73% last year and involved more than 18% of taxpayers in the highest income bracket. This is a reversal of the popular notion that the rich get away with just about anything while the poor average guy foots the bill...

Tax Rules for Domestic Partners

Posted on March 29, 2011
If you are a registered domestic partner or a legally married same-sex partner, you need to read this.  The new IRS regulations concerning you require that you file community property tax returns for 2010.  Doing this might mean a substantial refund in taxes compared to the way you have been doing it in the past depending on your earnings...

Pay Taxes on Canceled Debt

Posted on March 28, 2011
If you have been forgiven a credit card debt, don?t be too quick to celebrate.  Did you know you have to pay taxes on your canceled debts?  Any canceled or forgiven debt is deemed as income by the IRS, so you have to declare it as such...

Former City Councilor issued Second Tax Lien

Posted on March 27, 2011
Patrick Blanchette, Lawrence City Economic Development Director has been slapped with a second tax lien for failing to pay almost $7,000 in personal income tax.  The first lien filed against him was for almost $9,000 previously. The first lien, filed in January 2009, was for $8,888 and arose due to Blanchette?s failure to pay $1,451 in taxes for 2005, $388 for 2006 and $7,048 for 2007...

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7 Tax Tips on Charitable Donations

Posted on March 26, 2011
Making a charitable donation can be tax-deductible.  But there are some provisos and guidelines you should bear in mind.  Here are 8 tax tips from the IRS to get you the most deductions from your taxes when you make your donations to charity...

Couple Charged of Possession of Firearms in Tax Case

Posted on March 25, 2011
A couple from Alaska was charged with possession of firearms gathered with the intent to murder a federal judge, his family and an IRA employee over $165,000 in unpaid taxes.  Lonnie and Karen Vernon amassed a cache of weapons that included a machine gun, a silenced firearm and grenades...

6 Tax Tips for the Self-employed

Posted on March 24, 2011
People who run their own businesses, are a sole proprietors of a trade or business or operate as independent contractors are considered self-employed.  If you are self-employed you would typically file Form 1040 and in addition also IRS Schedule C, Profit or Loss From Business or Schedule C-EZ, Net Profit From Business...

Florida Highest in Prisoner Tax Frauds

Posted on March 23, 2011
Florida is the state with the highest number of cases involving prisoner tax fraud.  This is especially so in north Florida where 2,407 cases in which fraudulent tax returns were filed by prisoners were reported in northeast Florida alone in 2009...

10 Tips to Avoid a Tax Audit (part 2)

Posted on March 22, 2011
Let?s continue with the remaining tips on avoiding a tax audit.  Remember these tips are to help you avoid an unnecessary audit, not to evade paying your rightful dues in taxes. Tip #5 ? Do not miss out any Forms 1099s Forms 1099s are sent to you and the IRS by those who pay you money...

6 Facts You Must Know about the Alternative Minimum Tax

Posted on March 21, 2011
6 Facts You Must Know about the Alternative Minimum Tax If you haven?t heard of the Alternative Minimum Tax (AMT) you should know about it, especially if it applies to you.  Our tax laws give you the opportunity to claim relevant tax benefits for certain kinds of income and tax credits for certain expenses...

10 Tips to Avoid a Tax Audit (part 1)

Posted on March 21, 2011
Nobody likes to fight with the IRS and usually those who do don?t win.  For this reason, nobody likes facing an audit as it usually means having to argue with the IRS over how much taxes you owe.  So if you want to learn how to avoid a tax audit, read on...

IRS Audits of the Rich Increases

Posted on March 19, 2011
The number of audits done on the rich has been increasing.  18.4% of taxpayers earning more than $10 million last year were audited compared to only 10.6% in 2009.  But in general, for the fiscal year ended September 30 the proportion of those audited rose for all income groups except for those who has no adjusted gross income, according to figures released in Washington lately...

Martin Scorsese's Tussle with IRS

Posted on March 18, 2011
In what might as well be a page from one of his award-winning scripts, movie director Martin Scorsese is involved in a tussle of his own with the IRS.  Scorsese, director of famed movies like ?Goodfellas? and ?Casino? that often tell the tales of mobsters who cheat on taxes and run afoul of the law, has been slapped with a $2...

Top Five Answers to Earned Income Tax Credit Questions

Posted on March 17, 2011
One of the most beneficial tax credits you can obtain is the Earned Income Tax Credit.  This is why the IRS has taken steps to educate the taxpaying public about this important benefit that can put up to $5,666 into your pocket.  If you have questions about the Earned Income Tax Credit, you will most likely find the answers here...

Worcester Pays up $356,000 in Taxes

Posted on March 16, 2011
Worcester Pays Up $356,000 in Taxes The city of Worcester owed the IRS $356,570 because it failed to classify certain job-related allowances paid to employees as part of their reported incomes, made errors in Medicare withholdings for some of its employees and did not report vendor payments in its 1099 Form...

IRS gives Leeway to those Owing Back Taxes

Posted on March 15, 2011
In a move to help financially strapped taxpayers make a fresh start, the IRS will implement a few new regulations.  The agency plans to file fewer tax liens and make it easier to get tax liens withdrawn, which in turn clears taxpayers? credit records of the bad mark...

IRS Imposters Abound at Tax Time

Posted on March 14, 2011
Tax season is always the time when tax scammers increase their activities.  Although the warning has been given many times before, it is does no harm to repeat it.  Do not respond to emails that come in the name of the IRS.  The IRS will never send you an email for any reason the least of which is to ask for personal details such as your bank account, credit card or Social Security numbers...

Delaware County repays Back Taxes

Posted on March 13, 2011
Delaware County was billed about $27,000 in back taxes after a review by the IRS revealed the county had not fully paid its 2007 taxes.  The review, which took about a year to complete, showed that Delaware underpaid its 2007 federal taxes...

7 Little-known Tax Tips (part 2)

Posted on March 12, 2011
In my previous article, I wrote about 3 out of 7 little-known tax tips that you may miss out on in your tax returns.  Let me briefly recap on what those 3 tips are: 1. Claim your Making Work Pay Credit 2. Claim a tax break for supporting a struggling relative 3...

7 Little-known Tax Tips (part 1)

Posted on March 11, 2011
When you file your tax returns this year, you should make sure you get as much of a tax credit as possible or cut down the taxes you owe as much as possible.  In order to do that, you need to make sure you take into account all the tax credits you are eligible for...

4 Keys to Making Entertainment Expenses Tax Deductibles

Posted on March 10, 2011
4 Keys to Making Entertainment Expenses Tax Deductibles In business, it is common for you to entertain your clients or potential clients.  This may include taking them out for meals or other social activities.  But if you think you can claim deductions on all your business entertainment expenses, you?re wrong...

6 Things you Should Know about Savers Credit

Posted on March 09, 2011
Did you know that if you contribute towards your employer?s retirement plan or to an individual retirement arrangement, you can receive a tax credit?  The tax credit is called the Retirement Savings Contributions Credit or popularly known as Savers Credit for short...

What the New IRS Tax Lien Rules mean for You

Posted on March 08, 2011
Recently, the IRS has put in place new regulations pertaining to tax liens.  These regulations are meant to make it easier for taxpayers to stay current with their tax obligations and reflect the IRS? efforts to decrease the number of liens...

Ex-UBS banker Granted Bail in Tax Fraud Case

Posted on March 07, 2011
A former UBS banker now working in Credit Suisse charged with helping American account holders hide as much as $500 million in offshore assets to avoid taxes has been granted bail by a federal court judge.  Christos Bagios who worked for UBS Bank of Switzerland was held in custody since January 26 but has now been granted bail of $500,000 corporate surety bond and $150,000 cash bond by US Magistrate judge Robin Rosenbaum...

5 Unusual Tax Deductions

Posted on March 06, 2011
We are smack dab in the middle of tax season now, so it pays to determine your tax deductions.  Here are 5 unusual tax deductions that you may not know about.  Who knows, some of these might apply to you. Gambling losses Did you know you can write off your gambling losses from last year up to the amount of your winnings?  Suppose you lost at Bingo in your social club...

IRS Produces Own Smartphone App

Posted on March 05, 2011
In the world of smartphones and mobile devices, the IRS has entered the fray by producing its own tax app (that?s ?application? for you non-geeks).  The IRS tax app is called IRS2Go and allows smartphone app users to get updates on their income tax refunds ? and enter their e-mail address so that they can receive daily advice...

IRS to Help You Pay Back Taxes

Posted on March 04, 2011
Are you having trouble paying your taxes?  Do you owe any back taxes?  The IRS has initiated some new regulations that are designed to help you pay your tax obligations.  This is especially aimed to benefit individuals and small business owners without adding any more burdens to taxpayers...

10 Top Facts about the Earned Income Tax Credit EITC

Posted on March 03, 2011
10 Top Facts about the Earned Income Tax Credit EITC If you earn below $48,362 a year, you should look at whether you are eligible for the Earned Income Tax Credit or EITC.  And claiming for the EITC is not difficult, given that four out of five eligible people who filed for this credit received their claims last year...

IRS Now Processing All 1040s

Posted on February 28, 2011
Since February 14, the IRS has begun accepting and processing all e-file and paper tax submissions with itemized deductions on Form 1040, Schedule A and deductions for state and local sales tax, higher education tuition and fees and educator expenses...

Offshore Tax Penalties may be Lowered

Posted on February 27, 2011
The latest IRS amnesty program that gives you the chance to declare your previously undeclared offshore assets to the IRS is on now through August 31.  But this latest IRS program is less tolerant of the fact that it would take time to get records from offshore financial institutions, so don?t delay participating in the program if it applies to you...

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