There has been a plague of phone calls by fraud artists posing as IRS employees and demanding money. Between 9,000 and 12,000 complaints about these phone scams are filed each week. The scammer often threatens to arrest the victim if he or she doesn’t pay immediately using a prepaid debit card or occasionally by cash…
Americans are the most charitable people in the world, as evidenced by records of our annual donations of giving. Congress has been very generous in passing laws regulating deductions for charitable giving. You should consult IRS Publication 526 for the regulations governing the many aspects of charitable giving and the required documentation. In order to…
The IRS is coming to grips with a $346 million budget reduction including enforcement cuts of $160 million. I wonder if it is due to its targeting certain political organizations. If so, it wouldn’t be the first time. After creating an unflattering print of President Nixon with the caption “Vote for McGovern,” Andy Warhol was…
As our tax law becomes ever more complex, misconceptions regarding the law and its interpretation increase. Many people think that by filing an extension they can postpone paying the tax owed. An extension only extends the time to file, not to pay. You should pay the estimated amount owed with your extension to lessen penalties…
The Obamacare mandates become effective on our 2014 tax returns. The Affordable Care Act (Obamacare) requires that you have health coverage that meets the law’s requirements by 2014 or pay a penalty. Your spouse and dependents must also be covered or you may be subject to a penalty. However, there are 33 exemptions from the…
About this time of year, we begin to collect all the information we will need to properly file our income tax returns. Since it’s been a year, I have listed below some of the items you will want to look for. Your employer is required to send you your W2 forms by Jan. 31. You…
When taxpayers receive a tax audit notice, they often feel as if they are stranded on a hostile island and danger awaits. If their record keeping is shoddy or if they or their tax preparer engaged in dubious tax strategies, they are certainly correct. Abraham Lincoln once said, “He who represents himself in court has…
Americans are the most charitable people in the world, as evidenced by records of our annual charitable giving. Congress has been very generous in the passage of laws regulating deductions for charitable giving. Consult IRS Publication 526 for regulations governing the many aspects of charitable giving and the required documentation. In order to be deductible,…
Saving for retirement has never been more important. The Social Security system is being placed under increasing strain as people live longer and the baby boomer generation retires. Federal deficits should increase as the costs of Social Security and Medicare skyrocket and now the Affordable Care Act is added to the federal budget. This is…
Several filing requirements can apply when you own or are a beneficiary of foreign financial assets. These forms report on the specific assets themselves and are information returns versus income tax returns. However, the penalties for failing to file them are truly draconian, many starting at $10,000. The rules are complex, in some cases overlapping,…