tag:blogger.com,1999:blog-22898257682393528052012-01-03T15:07:27.262-08:00TaxResources, Inc. Tax AlertsTaxResources, Inc. is your tax expert ready to defend you in a tax audit and help you with all your tax related questions. Our professional staff is here to serve you and provide you with the most up to date tax information available. Besides our free tax alerts, we offer services such as our TaxHotline and TaxBulletin that will help you with tax planning personally and for your business. Check these and many more services we offer at <a href="http://www.taxaudit.com">http://www.taxaudit.com</a>TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.comBlogger501100tag:blogger.com,1999:blog-2289825768239352805.post-55279643073885603172012-01-03T15:07:00.000-08:002012-01-03T15:07:27.273-08:00Independent Contractor or Employee?Written by: Karen Reed, EA
If you hire or contract with individuals to provide services to your business, it is important to correctly determine whether each person is an employee or independent contractor. This determination will be the basis for how you treat the payments you make to them for their services. The consequences of misclassifying workers can be costly and may include back paymentsTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-17084447634402367352011-12-01T04:38:00.000-08:002011-12-01T04:38:00.827-08:00President Signs Three Percent Withholding Repeal and Job Creation Act and VOW to Hire Heroes ActWritten by: Karen Reed, EA
On Monday, November 21st, President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act, and the VOW to Hire Heroes Act. The new legislation permanently repeals the three percent withholding requirement on government payments to contractors and adds new tax credits for hiring military veterans. The IRS’s levy authority over payments to TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-11245614309530042182011-11-01T10:01:00.000-07:002011-11-01T10:01:47.000-07:00Withholding for Employees: End of Year PlanningWritten by: Karen Reed, EA
If you are an employee and usually receive a large tax refund each year, it’s likely that you haven’t claimed enough withholding allowances on the Form W-4 you filled out at work. Having too much money withheld from your paychecks means that you are effectively giving the government an interest-free loan while missing out on a larger paycheck and the interest income TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-16125083097942734632011-10-05T17:10:00.000-07:002011-11-01T10:03:36.064-07:00First Due Dates in October for Electing Portability of Estate Tax ExclusionWritten by: Karen Reed, EA
An important deadline this month applies to the estates of taxpayers who died in January of this year. The 2010 Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, signed into law last December, includes a new provision for “portability” of the estate tax exclusion amount between spouses. Beginning January 1st of this year, when one spouse TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-8493085812855709442011-09-02T18:44:00.000-07:002011-09-02T18:44:59.333-07:00Improvements Needed at IRS, According to TIGTAWritten by: Karen Reed, EA
The IRS has the authority adjust our tax returns to correct math errors without performing an audit. And while we have the right to dispute adjustments the IRS makes to our returns, a recent review by the US Treasury Inspector General for Tax Administration (TIGTA) found that the Agency’s process for responding to disputes is in need of improvement.
According to TIGTATaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-70121941969775640772011-08-01T08:44:00.000-07:002011-08-01T08:44:00.202-07:00The New Form 1099-K for Merchants and Third Party PaymentsWritten by: Karen Reed, EA
If you accept credit cards or use an electronic payments service such as PayPal to process your sales transactions, you may be receiving the new IRS Form 1099-K in early 2012 for tax year 2011. Beginning with tax year 2011, banks and other payment processing services will be required to file Form 1099-K to report gross receipts, both to you and to the IRS.
The new TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-15517159063075216892011-07-01T17:46:00.000-07:002011-07-05T10:20:19.176-07:00Tax Court Rules in Favor of “Cat Lady”Written by: Karen Reed, EA
Last month the United States Tax Court decided that a California woman, described by many as a “cat lady,” would be allowed to deduct certain unreimbursed expenses relating to work she did with feral cats on behalf of a charitable organization in 2004. The court’s decision reinforces tax regulations which provide that expenses are deductible as qualified charitable TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-2949925685705021122011-06-09T14:08:00.000-07:002011-06-09T14:08:56.635-07:00A Warning about Tax-Related Identity TheftTax related identity theft involves the practice of using stolen social security numbers to obtain employment or tax refunds. In 2010, there were 248,357 cases of this type of fraud reported by the Government Accountability Office, almost a five-fold increase over the number of cases reported in 2008. In response to the unexpected growth, the IRS is upgrading safeguards for e-filers as well as TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-34538910164357819752011-05-05T14:30:00.000-07:002011-05-05T14:30:25.370-07:00New Law Repeals Expanded Information Reporting RequirementsLast year’s Health Care Bill included a controversial revenue raiser that required businesses, beginning in tax year 2012, to file an information reporting document with the IRS any time $600 or more in total payments were made to an individual or business during a tax year. The expansion of the reporting requirements to include all payments for goods and property as well as services would have TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-50603207821846339362011-04-08T15:12:00.000-07:002011-04-08T15:17:58.719-07:00Beware of Tax Time Phishing ScamsThe IRS never initiates contact with taxpayers by email. If you receive an email purporting to be from the IRS, do not be fooled. Responding to a phony IRS email could lead to theft of your personal information, and clicking links or opening attachments could expose your computer to harmful viruses.
IRS impersonation schemes are not limited to email. Telephone, fax, internet and social networkingTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-35759177231658496412011-04-01T07:42:00.000-07:002011-04-08T15:22:14.300-07:00If You Are Not Able to Pay Your Tax BillIf you know you have a large tax bill coming that you are not able to pay, the most important thing to know is that you should still file your tax return before the filing deadline. Even if you are not able to make the full payment, filing your return on time and making as large a payment as possible could save you a substantial amount in penalties and interest. If you file for an extension, keepTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-7296822555439708322011-03-03T13:57:00.000-08:002011-04-08T15:22:31.793-07:00IRS Announces a Second Voluntary Disclosure Program for Taxpayers with Hidden Offshore Bank Accounts
@font-face {
font-family: "Arial";
}@font-face {
font-family: "Calibri";
}p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 10pt; line-height: 115%; font-size: 11pt; font-family: "Times New Roman"; }div.Section1 { page: Section1; }
Taxpayers with undisclosed income in hidden offshore bank accounts have a second chance to come forward, the IRS announced last month. The new TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com1tag:blogger.com,1999:blog-2289825768239352805.post-35201192468171424312011-02-03T18:29:00.000-08:002011-04-08T15:22:50.777-07:00Now Trending: IRS AuditsAccording to IRS statistics released in December, 1,581,394 audits of individual tax returns were conducted during the fiscal year ending on September 30, 2010, an increase of nearly 11 percent over the previous year. Collections actions, including levies, liens and seizures, also increased, and so did the number of criminal investigations and prosecutions. Revenue collected as a result of TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-12031906543760891022011-01-04T15:50:00.000-08:002011-04-08T15:23:06.304-07:00Late Legislation Leads to IRS Delays in Tax Return ProcessingThe good news is that the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was finally passed in December. We have two more years of lower income tax rates and AMT relief, as well as extensions of several popular tax breaks and incentives.
A result of the legislation passing so late in the year is that an estimated nine million taxpayers will be affected by TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-5602487960605877852010-12-03T17:42:00.000-08:002011-04-08T15:23:30.565-07:00Last Chance to Cash in on Home Energy CreditIf you’ve been putting off making your home more energy efficient, it’s time to hurry up and make that trip to your local home improvement store. The reason is that the Nonbusiness Energy Property Credit is expiring at the end of this month, based on current law.
The Nonbusiness Energy Property Credit can reduce your taxes by thirty percent of the amount you spend on energy–saving TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-27486561699581582802010-11-05T08:53:00.000-07:002011-01-21T14:21:02.964-08:00Expanded Information Reporting RequirementsOne of the most controversial revenue raisers of the Patient Protection and Affordable Care Act of 2010 is the expansion of information reporting requirements for businesses. Under the new law, any time a business pays $600 or more in aggregated payments to an individual or business during a tax year, an information reporting document must be filed with the IRS.
The current rules, in effect TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-29702229476576927702010-10-05T16:50:00.000-07:002011-01-17T15:05:30.939-08:00Highlights of the Small Business Jobs Act of 2010On September 27th the Small Business Jobs Act of 2010 was signed into law. The bill’s title is somewhat of a misnomer, as the law contains a number of provisions that may affect W-2 wage earners as well as enhancements and extensions of certain tax breaks for all businesses, not just small business owners. In addition, the new law increases failure-to-file penalties on information returns, TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-11333091241410837292010-09-07T12:01:00.000-07:002011-01-17T15:09:09.004-08:00A New Standard for Medical ExpensesA provision in the Affordable Care Act is bringing a change to medical expenses that may be reimbursed with tax-free distributions from flexible spending arrangements (Health FSA’s) and health reimbursement arrangements (HRA’s). Beginning January 1, 2011, amounts paid for over-the-counter medicines and drugs will be allowed to be reimbursed by FSAs and HSAs only if they are purchased with a TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-90392584393711595232010-08-02T14:54:00.000-07:002011-01-17T15:10:02.457-08:00A Health Care Heads–Up for IndividualsWith the March passage of the Patient Protection and Affordable Care and Health Care and Education Reconciliation Acts, several new penalties, credits, exemptions and other changes have been added to the tax code. This places a great deal of the responsibility for overseeing health care reform into the hands of the IRS. Here are some of the new provisions that apply to individuals:
TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-68410390938521022892010-07-02T12:49:00.000-07:002011-01-17T15:11:18.653-08:00Homebuyer Credit Closing Date Deadline Extended until September 30, 2010The Homebuyer Assistance and Improvement Act of 2010, signed by President Obama on July 2, 2010, extended the closing date deadline that homebuyers are required to meet in order to qualify for the Homebuyer Tax Credit. Eligible taxpayers now will have an additional three months, until September 30, 2010, to close title on qualifying residences. This extension applies only to taxpayers TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-1930137410496567132010-06-06T14:32:00.000-07:002011-01-17T15:12:16.284-08:00New Excise Tax on Indoor Tanning ServicesAt the time of year when the sun’s rays are strongest, a new tax on indoor tanning services is going into effect. Beginning July 1, 2010, a 10–percent excise tax, added by the Patient Protection and Affordable Care Act, will be imposed on individuals who pay for indoor tanning services.
Tanning service providers will be required to collect the tax and pay the government on a quarterly TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-71936308555098007942010-05-04T15:29:00.000-07:002011-01-17T15:17:04.004-08:00The Small Business Health Care Tax CreditThe Small Business Health Care Tax Credit is one of the new provisions of the Patient Protection and Affordable Care Act, signed by President Obama on March 23, 2010. Small businesses and tax exempt organizations that qualify will be able to claim the credit on 2010 income tax returns filed in 2011. For–profit businesses will claim the credit as part of the General Business Credit. FilingTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-55243555578939554992010-04-07T14:58:00.000-07:002011-01-17T15:18:21.916-08:00New Tax Incentives for Hiring Unemployed WorkersThe Hiring Incentives to Restore Employment (HIRE) Act was signed into law by President Obama on March 17th, 2010. The act includes the “Hire Now Tax Cut,” which combines payroll tax forgiveness with a tax credit for retaining employees in a two-pronged approach to boosting U.S. payrolls.
Businesses that hire previously unemployed individuals will enjoy relief from paying the 6.2 percent TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-23235888481764049512010-03-04T14:01:00.000-08:002011-01-17T15:19:30.460-08:00Reporting Cancellation of DebtIf you had a debt forgiven and you were personally liable for the debt*, you will likely receive a Form 1099–C, Cancellation of Debt, from the financial institution reporting the amount discharged. The amount of the forgiven debt is taxable income to you unless you qualify under one of the provisions that allows you to exclude the canceled debt from income.
If the debt was related to your TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-35238954745448462010-02-03T12:44:00.000-08:002011-01-17T15:20:41.438-08:00Haiti Relief Donations Deductible on your 2009 Tax ReturnIf you itemize deductions, cash contributions you make to qualified charities providing earthquake relief in Haiti after January 11, 2010, and before March 1, 2010, are deductible on your 2009 tax return. The new law applies only to cash (as opposed to property) contributions. The contributions must be made specifically for the relief of victims in areas affected by the January 12th TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-67053752900966217892010-01-01T13:29:00.000-08:002011-01-17T15:22:38.419-08:00New Documentation Requirements for the Homebuyer CreditIf you are claiming a homebuyer credit on your 2009 tax return, the IRS requires that you mail your return along with certain documents proving that you are eligible to receive the credit. The IRS’s electronic filing system will not accept your return if this credit is claimed.
First–time homebuyers should attach a copy of the settlement statement showing all parties names and signatures, TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-88645360432642153142009-12-12T15:30:00.000-08:002011-01-17T15:23:45.764-08:00Loophole Closed for Claiming “Qualifying Children” on 2009 ReturnsThe refinements that were made to the Uniform Definition of a Qualifying Child as a result of the Emergency Economic Stabilization Act of 2008 take effect beginning with tax returns filed for 2009. Changes could impact the ability of many taxpayers to qualify to claim a child’s dependency exemption, the Head of Household filing status, the Child Tax Credit, the Dependent Care Credit, and TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-68616246841058626912009-11-23T15:55:00.000-08:002011-01-17T15:25:09.711-08:00New Law Extends and Enhances Home Buyer CreditWith the passage of The Worker, Homeownership, and Business Assistance Act of 2009, millions more taxpayers may be eligible to receive a home buyer tax credit. The first–time home buyer credit has been expanded, and a new credit has been added for long–time homeowners who purchase a replacement principal residence during the extended time period. Both credits are refundable, which means the TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-53349807390408945282009-10-09T15:51:00.000-07:002011-01-17T15:26:38.049-08:00What to Do If You Missed the October 15th Tax Filing DeadlineIf you missed the October 15th filing deadline, it is still possible to file your tax return. You will not be able to electronically file and will need to mail your return to the IRS. This is true whether you prepare the return yourself or have it prepared by a tax professional. It is a good idea to obtain proof of delivery when mailing in your return with certified mail and a return receipt. TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-62679752934271443852009-09-12T15:46:00.000-07:002011-01-17T15:35:10.682-08:00Offshore Bank Account Amnesty ProgramThe final deadline for special voluntary disclosures of unreported income from hidden offshore bank accounts is October 15, 2009. Taxpayers who come forward will escape harsher penalties and the possibility of criminal prosecution. In August, Swiss Bank UBS agreed to hand over the names of more than four thousand wealthy Americans under suspicion of tax evasion by the U.S. government. Even thoughTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-41646111016119583642009-08-18T15:36:00.000-07:002011-01-17T15:36:34.666-08:00Should You Move Your Money to a Roth IRA?Is it a good idea to move your retirement money to a Roth? Of course, that depends on your financial situation and goals. Through the end of 2009, converting from a pension or traditional IRA to a Roth IRA is not an option if your income is over $100,000, but beginning in 2010, this income limitation will no longer exist. And for 2010 conversions only, the IRS allows you to delay the income tax TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-64628383948616723142009-07-23T15:25:00.000-07:002011-01-17T15:39:19.229-08:00Avoid Surprises at Tax Time: Review Your Withholding and Estimated Taxes NowThe American Recovery and Reinvestment Act of 2009 and other recent legislation could have a dramatic impact on the amount you need to pay throughout the year in withholding and estimated taxes. With the 2009 tax year more than half over, it’s important to find out where you stand and make any needed adjustments now. The list of new credits, deductions and rule changes is long, but here are a fewTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-75303583553988794032009-06-20T11:53:00.000-07:002011-01-17T15:41:08.815-08:00Beware of 1099–OID Tax SchemePromoters of a new tax scheme are holding seminars and selling kits that promise to teach people how to obtain large refunds by claiming false withholding credits using IRS Form 1099–OID. Proponents of the scheme often refer to it as the “1099–OID Redemption Process” and market it as a way for individuals to “regain sovereignty” and “reclaim” their “right to be free from rule.” It is also being TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-51297859975362101912009-05-05T09:41:00.000-07:002011-01-17T15:42:48.550-08:00ARRA Boosts Popular Education CreditThe Hope Credit was given a boost under the American Recovery and Reinvestment Act of 2009. The changes are so good that the credit has been renamed. For 2009 and 2010 the popular education credit will be known as The American Opportunity Credit.
For the next two years the American Opportunity Credit will be available to certain taxpayers who would not usually qualify for the Hope Credit. The TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-30598082515348459172009-04-06T16:02:00.000-07:002011-01-17T15:43:41.740-08:00Tax Breaks for New Vehicle Purchases in 2009If you’re in the market for a new car, consider the tax breaks that are available as you weigh your options regarding what and when to buy. Tax incentives are in place for just about any type of vehicle you might decide to purchase this year, as long as you buy during the specified time periods.SPECIAL TAX DEDUCTION FOR QUALIFIED MOTOR VEHICLES
Purchase a new (not used) car, light truck, TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-42860009085133726732009-03-20T14:45:00.000-07:002011-01-17T15:51:58.603-08:00Coming Soon: The Making Work Pay CreditThe majority of American workers will be receiving more money in their paychecks beginning in April. This is part of our government’s latest effort to stimulate the economy, and it is known as the “Making Work Pay Credit.” Instead of receiving the credit in a lump sum, most eligible taxpayers will receive it gradually, by way of slightly lower federal withholding.
The credit gives back 6.2 TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-50968644643663496042009-02-20T14:57:00.000-08:002011-01-17T15:57:16.956-08:00The First–Time Homebuyer Tax Credit Just Got A Lot BetterUnder the American Recovery and Reinvestment Act, signed by President Barack Obama on February 17, 2009, a tax credit of up to $8,000 is available for qualified first–time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit available for homes purchased in 2008, the new credit does not have to be paid back unless you do not TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-46799567668063399502009-01-21T21:12:00.000-08:002011-01-17T16:00:20.488-08:00Tax Savings for Solar Energy InstallationIf you are thinking about installing solar energy on your home, now would be a great time because of the tax credit available through the federal government. The Energy Improvement and Extension Act of 2008 which was Division B of the Bailout Act provides extended and new benefits for those who install solar power after December 31, 2008.
The Energy Tax Incentives Act of 2005 provided a TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com2tag:blogger.com,1999:blog-2289825768239352805.post-21534953330524244472009-01-15T15:01:00.000-08:002011-01-17T16:01:37.561-08:00Make Your Home Energy Efficient While Reducing Your Taxes in 2009The reinstatement of the Residential Energy Property Credit for tax year 2009 means it’s a great time to make energy–efficient improvements to your home. The credit is thirty percent of the amounts you pay for qualified energy improvements installed in your home during the tax year and the amount you spend on residential energy property for your home, up to $1,500.
Qualifying energy efficiency TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-42172012167142447602008-12-15T15:12:00.000-08:002011-01-17T16:02:52.648-08:00Required Minimum Distributions Waived for 2009If you are 70½ or older, you will not be required to take your normal required minimum distribution (RMD) from your tax–deferred retirement accounts in 2009. Signed into law by President George Bush on December 23rd, 2008, the Worker, Retiree, and Employer Recovery Act of 2008 provides for the suspension of RMDs in 2009 for IRAs, 401(k)s (traditional and Roth), 403(b)s, and other defined TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-48682961116302712562008-11-10T15:18:00.000-08:002011-01-17T16:04:06.370-08:00Make Cash Donations for Midwest Disaster Relief before December 31st, 2008Qualifying cash contributions that you make in 2008 for disaster relief efforts in the Midwest could qualify for special tax treatment under the Heartland Disaster Tax Relief Act. Under the new law, the percentage–of–income limits that would normally apply for charitable contributions have been suspended.
If you itemize deductions, you may choose to deduct qualifying cash contributions up to 100TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-33935338028020557692008-10-15T15:22:00.000-07:002011-01-17T16:05:12.723-08:00Bailout Bill Includes Extends Many Popular Tax Breaks for IndividualsOn October 3rd, 2008, President George Bush signed the Emergency Economic Stabilization Act of 2008. In addition to providing $700 billion to the Treasury Department to bail out troubled financial institutions, the bill makes approximately three hundred changes to the Internal Revenue Code. While many of these changes are directly related to the bailout, the bill also includes an AMT patch, TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-62595470607351895382008-10-09T10:43:00.000-07:002011-01-17T16:06:30.555-08:00Tax Credit to Aid First-Time HomebuyersThe Housing and Economic Recovery Act of 2008 allows some first time homebuyers to receive a tax credit. This credit only applies to homes purchased between April 8, 2008 and July 1, 2009 and basically operates much like an interest-free loan.How the tax credit works:
If you are eligible, you may claim a maximum credit of $7,500 on you income tax return. In other words, you are paying $7,500, or TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-17857283831803192552008-09-10T15:30:00.000-07:002011-01-17T16:07:39.115-08:00IRS Grants Extensions and Other Relief to Taxpayers Hit by Ike and GustavThe IRS has postponed until January 5, 2009, filing and payment deadlines for Louisiana and Texas taxpayers affected by Hurricanes Ike and Gustav. In addition, certain failure to deposit penalties will be waived or abated. The relief applies taxpayers who reside or have a business in the presidential disaster areas, which are listed below. Affected taxpayers in a presidentially declared disaster TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-23965349204241541212008-08-28T14:46:00.000-07:002011-01-17T16:08:42.944-08:00Tax Relief for Struggling HomeownersHomeowners who had or will have mortgage debt partly or entirely forgiven in 2007, 2008, or 2009, might not have to pay tax on the forgiven debt. Under the Mortgage Forgiveness Debt Relief Act of 2007, all people in that circumstance have to do is fill out Form 982 and attach it to their Federal tax return for that year.Up to $2 million of debt forgiveness on your main residence can be excludedTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-2870090308781396902008-08-15T13:44:00.000-07:002011-01-17T16:10:32.462-08:00Highlights of the Housing Assistance Tax ActThe Housing Assistance Tax Act includes tax breaks for homeowners and new home buyers. There are also new restrictions on existing breaks and new rules for reporting the credit card transactions of merchants, which were added as “offsets” to help pay for the new credits and deductions. Here are some of the highlights:
First–time Homebuyer Tax Credit
The “first-time” homebuyer tax credit allowsTaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-58852837803953475752008-08-10T09:10:00.000-07:002011-01-17T16:14:52.741-08:00Car Donations Have Slowed Due To New Tax LawWe wanted to share this article from the Business Wire via NewsEdge about the slowing of car donations due to a change in the tax law. TaxResources, Inc. wrote about the new car donation law in its TaxBulletin before the new law came into effect.
Business Wire via NewsEdge: New Tax Laws Dry up Car DonationsBusiness EditorsCHICAGO--(BUSINESS WIRE)--July 14, 2008--Car donations have plummeted TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-62596463709132549292008-08-09T15:43:00.000-07:002011-01-17T16:15:48.177-08:00Highlights of the Housing Assistance Tax ActThe Housing Assistance Tax Act includes tax breaks for homeowners and new home buyers. There are also new restrictions on existing breaks and new rules for reporting the credit card transactions of merchants, which were added as “offsets” to help pay for the new credits and deductions. Here are some of the highlights:
FIRST–TIME HOMEBUYER TAX CREDIT
The “first-time” homebuyer tax credit allows TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-37861172322962511932008-07-14T15:40:00.000-07:002011-01-17T16:16:59.121-08:00You Can Still Claim Your Economic Stimulus PaymentAccording to the IRS website:
The last of the economic stimulus checks have been issued under the planned payment schedule, which was a timetable for tax returns that were filed and processed before April 15.
However, the Internal Revenue Service will continue processing tax returns and issuing economic stimulus payments for much of the year.
If you haven't turned in your tax return for 2007 TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0tag:blogger.com,1999:blog-2289825768239352805.post-56187666135324569752008-07-02T15:52:00.000-07:002011-01-17T16:18:10.323-08:00Do Not Respond to Phony “IRS” Emails and FaxesThe IRS has issued a warning about a new wave of “phishing” scams involving phony IRS emails and faxes. Beware of emails and faxes bearing the IRS name or logo. The IRS does not send unsolicited correspondence to taxpayers via email or fax, so if you receive one, do not respond, click any links, or download any files. If you do, the results could be disastrous.
The newest scam involves emails TaxResources, Inc.http://www.blogger.com/profile/02100812431954028135noreply@blogger.com0