Archive

By now you have probably heard about the bill that will require businesses and sole proprietors to file 1099-Misc forms every time they spend $600 or more, even if it means sending a 1099-Misc form to Office Depot. The good news here is that IRS is requesting that businesses and sole proprietors affected by this [...]

Recently I finished a tax audit assignment where I had to compile data that was to be used during an audit. My job was to create a paper trail and substantiate the taxpayers claims with receipts, invoices and canceled checks. IRS asked that we document all deposits and show what was taxable and non-taxable. My [...]

Violence and taxes don’t go hand in hand but in Ohio, that changed on May 10, 2010. Apparently a man’s family was being audited by the IRS and he decided to take it out on the tax preparer by firing shots at her. Police said a man opened fire on a woman after she apparently [...]

The last thing anyone wants to see in the mail is a notice from the IRS. Unfortunately, taxpayers have been seeing IRS mail quite often now since IRS has increased its audits and compliance efforts. Please keep in mind that IRS will never email you anything, if you receive an email that looks like it [...]

Starting in 2010, small business employers that provide health insurance coverage to their employees may qualify for a special tax credit. Michelle from IRS explains this Health Care Credit for Small Businesses in this short YouTube video:

If you filed your tax return after the due date and never filed an extension or failed to pay when filing an extension, your explanation will have to be good enough to convince the IRS to abate the resulting penalties. IRS is in the business of only considering “reasonable cause” in most cases. What qualifies [...]

Tax season has come and so have the cyber crooks. IRS ploys are circulating, the latest one involving a legitimate looking email from the IRS that states that you can get your tax refund on a Visa or a Mastercard. It asks for your credit card number, your social security number, credit card expiration dates, card verification value numbers, amount shown on your tax return, filing status and other personal data.

People think that they know taxes but honestly speaking, they don’t. Because if they did then we won’t have unclaimed refunds totaling more than $1.3 billion awaiting nearly 1.4 million people who did not file a federal income tax return for 2006. Just think about it, all these people who either paid taxes or didn’t [...]

This is Franchise Tax Board News Release for 03.08.2010. When Paying for a Tax Preparer, Choose Wisely Sacramento – Franchise Tax Board (FTB) today offered guidance to taxpayers who plan to hire a tax preparer for the 2009 filing season. Taxpayers are cautioned to avoid tax preparers who: – Claim they can get bigger refunds [...]

It is amazing how regular people pretend to know the tax code and provide misinformation on critical money saving credits. There are currently more myths about Residential Energy Tax Credit than Salem witch hunt. People who are spreading misinformation are either related to the construction industry or happen to be real estate agents. Personally I [...]