The IRS has posted the new 2008 “Data Book” covering the returns filed from Oct. 1, 2007, through Sept. 30, 2008, the government’s most recent fiscal year. The Data Book provides valuable insights into tax returns filed, tax collections, investigations and related matters. You may find the information helpful in analyzing your personal tax situation.
We all know the “basics” when it comes to computers, right? Not necessarily. One person’s everyday shortcut may be another person’s “Cool! I didn’t know you could do that!” Try these nine keyboard and mouse tricks right now.
President Obama's proposed tax overhaul includes more information reporting to help ferret out tax evaders. The administration has proposed that 1099 forms would be required for payments to corporations of more than $600 a year.
Q. My small business went under earlier this year. Can I deduct the cost of finding a regular job?
All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past. Strategy: Add an “age-weighted” feature to a profit-sharing plan.
Treasury has formally released its explanations of President Obama’s tax proposals for the 2010 fiscal year. The long-awaited “Green Book” provides vital in-depth information for both individual and business taxpayers. The proposed tax changes hit hard: Revenue-raisers aimed at individuals total more than $736 billion over 10 years while business tax cuts amount to $71 billion over the same period.
A little-noticed change in the new economic recovery law could have a major impact on high-income investors. Previously, most munis provided tax-free income, but certain types of bonds, known as “private activity” bonds, could trigger alternative minimum tax (AMT) complications. The new law temporarily eliminates the AMT problem.
Q. I plan to lease a car for business travel this year. Is there a limit on the amount I can deduct?
The 2008 housing law put new restrictions on a popular tax technique for homesellers who convert a second home into a principal residence. Beginning in 2009, you may be taxed on the gain attributable to the “nonqualified use” of the home. But you still may escape unscathed through a little-noticed loophole.
No one knows if and when a disaster will strike. But the IRS wants you to be prepared for the possibility. The IRS is warning taxpayers to safeguard their records. It points out six simple steps to help protect individuals and businesses concerning disaster preparation.
If you operate a business that is open to the general public, you’re legally obligated to make the premises accessible to disabled people. Similarly, you might update the facilities for disabled employees in your office. At least you can salvage some tax benefits when you modify the building: Build your renovation plans around the “disabled access credit.”
Q. My church offers group health insurance where employees pay 50% of the premiums. Is the church contribution a taxable benefit?
If you're getting married soon to someone who owns a home, here's a tax proposal for you: If you’ve been renting and intend to buy a new home to share with your spouse, it could pay to do it before the wedding. Here's why.
Q. In your article on the new stimulus law, you say you can get the homebuyer credit for purchases in 2009. Can I claim the credit if I already own a home?
Instead of waiting until next spring to launch random audits of employment tax returns, the IRS recently announced it would begin the first 1,500 examinations this November. In particular, IRS agents are being instructed to examine worker classifications, employee benefits and executive compensation.
Some business owners that have downsized have plenty of open office or warehouse space. But they still have to pay the rent or maintenance if they own the building. Strategy: Turn unused space into an athletic facility. This can be a prized tax-free benefit for the “keepers” still with the company.
The IRS has yet to issue formal guidance on whether multiple vehicles can qualify for the new vehicle sales tax deduction. But taxpayers can expect some good news on the way. Alert: There’s no limit per taxpayer, an IRS spokesperson recently told tax publisher CCH. Therefore, if you qualify, you can write off sales and excise taxes for two or more vehicles purchased this year.
A 2008 tax law temporarily suspended the rule for required minimum distributions (RMDs) from qualified plans and IRAs for the 2009 tax year, but confusion still exists. To provide assistance to taxpayers, the IRS recently updated the FAQs on its web site.
The IRS may hold an individual personally liable for a “willful” failure to pay employment taxes on time. Even a hands-off business owner could be socked with a seven-figure tax bill, as the following case shows.
A comprehensive document management system can help your business boost productivity, improve the bottom line and stay out of legal trouble. Here are three ways to organize files for easy retrieval, establish a record retention schedule and tame your wild email inbox.
Q. My son graduated college in 2007 and was our dependent. He worked full time in 2008, but he didn’t get a stimulus rebate. Wasn’t he entitled to one?
Q. Regarding your recent article, Any tax impact if I don't take IRA distributions in '09, I question why you would pay income tax quarterly when the RMD is taken in the last quarter. Is your answer accurate?
If an elderly parent or in-law is having trouble making ends meet, you might help him or her pay the rent or other expenses. In return, Grandma or Grandpa may gladly volunteer to watch your children while you and your spouse work. Unfortunately, you probably can’t claim a dependency exemption for this trade-off, but you still can reap a big tax benefit from the arrangement.
Under the new economic stimulus law—the American Recovery and Reinvestment Act of 2009—you can deduct state and local taxes paid to purchase a new vehicle. The rules seem straightforward enough, but watch out for a few interesting twists and turns. Strategy: Do the tax homework before you buy a new set of wheels.
Q. I haven’t received my economic stimulus check yet. Will this be mailed out soon?

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