Tax news

Tax

H&R Block Offers No-Interest Loans to Cash-Strapped Customers

In a continuing effort to find ways to secure the loyalty of its customer base, H&R Block has announced that it is offering 90 day no-interest loans on amounts ranging from $300 to $5,000 to help its customers who owe money to the IRS.Block's Easy Pay balance-due loan is interest free if paid off by July 13, 2002. All outstanding loans will be assessed a finance charge retroactive to April 15, 2002."We wanted to provide the millions of taxpayers who will end up owing taxes with three months of interest-free breathing room," said Mark A.
Tax

Common Errors to Avoid

The IRS recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems with your tax return, which might lead to delays in processing your return and receiving your refund.Want to avoid frequent trouble spots? Check these areas, which can reduce problems:Use the peel-off label. You may line through and make necessary corrections right on the label. Be sure to fill in your Social Security number in the box provided on the return.
Tax

What to do if You Can't Pay Your Taxes

If this year’s tax filing deadline will be a “pay” day for you and you cannot pay the full amount that you owe, you should still file your return by the due date and pay as much as you can. The IRS may allow you to pay any remaining balance over time in monthly installments through an Installment Agreement or possibly even settle for less than the full amount owed through its Offer in Compromise program.If you find that you cannot pay the full amount by the filing deadline, you should file your return and pay as much as you can by the due date.
Tax

Deloitte to Absorb a 'Significant Number' of Andersen Tax Professionals

Andersen announced on Thursday that a significant number of its U.S. tax partners and other professionals will join Deloitte and Touche. A memorandum of understanding outlining the plan was signed by Andersen. The deal is expected to be finalized by April 30."This transaction is fully consistent with our commitment to move quickly on the Andersen reforms initiated by Mr.
Tax

Ensuring Proper Credit of Payments

When the bottom line of your tax return says, "Amount You Owe," the IRS reminds you to be sure to make your check or money order payable to the "United States Treasury." Do not mail cash with your tax return.Whether you are filing your current year’s return, a prior year’s return or an amended return, always provide your correct name, address, Social Security number, daytime telephone number, tax year, and form number on the front of your check or money order.
Tax

Options For Paying Your Taxes

If you do not pay your taxes when due, you may have to pay a failure-to-pay penalty. To avoid this penalty, the IRS suggests several ways to pay your taxes.
Technology

IRS Explores Feasibility of E-Filing for Exempts

Determined to involve its stakeholders in the planning and development stages of its new systems, the Internal Revenue Service (IRS) has announced that it is seeking comments by April 18, 2002 from exempt organizations, state regulators, research and oversight organizations, practitioners, software vendors, and others on the proposed development of an electronic filing system for tax-exempt organizations. Pros and consAlthough e-filing for tax returns of exempt organizations has lagged behind other types of returns, it seems to make economic sense for the government.
Tax

'Shed Those Pounds, Shed Your Tax Bill' Says the IRS

In a ruling announced yesterday, the IRS has indicated that it now recognizes obesity as a disease, and will therefore allow medical deductions for weight loss expenses prescribed by a doctor.Prior to Tuesday's ruling, medical deductions were allowed only if a doctor prescribed weight loss measures to treat specific diseases. Tuesday's ruling brings obesity into the definition of "disease" and now allows for these deductions.To take the deduction, a taxpayer will have to participate in a weight-loss program for medically valid reasons.
Tax

Extensions of Time to File Your Tax Return

If you can't meet the April 15 deadline to file your tax return, you can get a four-month extension of time from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.You must make an accurate estimate of any tax due when you request an extension.
Tax

IRS Catches Up On EINs, Learns Valuable Lessons

In a recent letter to Larry R. Levitan, chairman of the Internal Revenue Service (IRS) Oversight Board, IRS Commissioner Charles O. Rossotti said the Service is well on the road to recovery, following some fairly significant delays in the processing of employer identification numbers (EINs) earlier this year. He also said the IRS learned some valuable lessons along the way. Altogether, the IRS issues over 4 million EINs a year to sole proprietors, corporations, partnerships, estates, trusts and other entities for tax filing and reporting purposes.
Tax

Need Last -Minute Tax Help? Don't Panic

If you’re trying to beat the tax deadline, the IRS says there are several options for last-minute help. If you need a form or publication, the IRS Web site at www.irs.gov has copies available. If you discover you need more time to finish your return, get a four-month extension with Form 4868. And if you have trouble paying your tax bill, the IRS has several payment options available.To get the automatic extension, file Form 4868, “Application for Extension of Time to File U.S.
Tax

IRS Offers Stress Reducing Tips For Approaching Deadline

The Internal Revenue Service announced that it has already received half of the 132 million returns it expects this year and the agency offered some tips to reduce “tax time stress” for those who have yet to file.GET GOING. Don’t put off your 2001 taxes any longer. The filing deadline is less than three weeks away. Give yourself too little time and you’re more likely to overlook something. Gather the income reports you got from employers and financial organizations.
Tax

IRS Softens Requirement for Contribution Documentation

As part of its continuing effort to uncomplicate the income tax rules that apply to people even indirectly affected by the September 11 terrorist attacks, the Internal Revenue Service has announced a new rule that eases the requirement for obtaining substantiating documentation for charitable contributions.Taxpayers who make charitable contributions after September 11, 2001 and before January 1, 2002 have been given an extension of time until October 15, 2002 to obtain documentation supporting their donation.
Tax

Where to File Your Return

Once you complete your 2001 federal tax return, you can either file it electronically or mail it to the IRS. If you choose to mail your return, use the enclosed mailing label. If you didn't receive one, be sure to read your tax instruction booklet carefully to find the address of the IRS center for your area.For this year, the IRS has changed some of its filing locations. This is part of a redistribution of work among the 10 IRS centers that will be completed in 2002.
Tax

How to Prepare Your Tax Return For Mailing

Your tax return is complete and ready to be mailed. Now what? The IRS recommends that you take a few minutes to make certain that all information is complete and accurate before sealing that envelope. This simple precaution could help you avoid mistakes that may delay your refund or result in correspondence with the IRS.Here are just a few items to complete prior to mailing your tax return: Sign your return. Your federal tax return is not considered a valid return unless it is signed. If you are filing a joint return, your spouse must also sign.
Tax

Ten Ways to Avoid Problems at Tax Time

Looking for ways to avoid the last-minute rush for doing your taxes? The IRS offers these tips: ORGANIZE YOUR TAX RECORDS. Tax preparation time can be significantly reduced if you develop a system for organizing your records and receipts. Start with the income, deduction or tax credit items that were on last year's return.DON'T PROCRASTINATE. Resist the temptation to put off your taxes until the last minute.
Tax

Feds Order Credit Card Company Cooperation to Curb Tax Evasion

Offshore tax havens have always been a sanctuary for those wishing to take advantage of favorable banking secrecy laws.But now, the Internal Revenue Service is teaming up with the heavy hand of the judicial system to order Visa International, MasterCard and American Express to turn over private records on hundreds of thousands of offshore accounts, in hopes of finding possible tax evaders and bringing them to justice.A federal judge ordered Visa International to turn over records linked to offs
Tax

Foreign Income

With more and more U.S. citizens earning money from foreign sources, the IRS reminds people that they must report all such income on their tax return, unless it is exempt under federal law.This applies whether a person lives inside or outside the United States.
Tax

Tax Changes For Business Owners

At tax time, many business owners want to make sure they are aware of the latest changes that could affect their taxes. If you are one of these owners, a good source of information is IRS Publication 334, "Tax Guide for Small Business." Publication 334 includes a listing of some tax changes for 2001 returns, plus explanations of the changes. It also includes some of the changes for 2002. In addition, the recently-passed Job Creation and Worker Assistance Act contains many provisions that affect businesses.
Tax

Federal Workers Owe Billions in Back Taxes

The Internal Revenue Service will announce this week that Federal employees owe more than $2.5 billion in back taxes, but overall are far less likely to be delinquent than the average US taxpayer.The IRS has compiled statistics on Federal workers for nine years now. Of the 8.7 million federal workers and retirees, 381,500 were behind on their taxes, or 2.8% of the total.

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