Tax news

Tax

Charitable Donations to Victims of Terrorist Attacks

If you made a charitable donation to a qualified organization providing disaster relief to victims of the September 11, 2001 terrorist attacks, include the amount with your other contributions listed on Schedule A of Form 1040.According to the IRS, for each contribution of $250 or more, you must obtain a written statement from the charity acknowledging the contribution amount and stating whether or not the charity provided you with goods or services in return for your contribution.For contributions of less than $250, cancelled checks or credit card receipts are the best evidence.Your
Tax

IRS Auditor Arrested in $200,000 Bribery Case

On Thursday, authorities arrested Herbert Wein, 67, of New York, a veteran auditor for the Internal Revenue Service, after he accepted a $200,000 bribe from an attorney from the Wego Chemical and Mineral Corporation, a company that he was auditing.According to the New York Times report, Mr. Wein allegedly solicited the bribe initially back in November when he suggested to Stephen Gilbert, Wego Chemical's lawyer, that the company's tax liability could be reduced from $1.2 million to $15,000, in exchange for a $200,000 payment to Wein.Mr.
Tax

President Bush Signs Victims of Terrorism Bill

On Thursday, President Bush signed the Victims of Terrorism Tax Relief Act of 2001 (H.R.2884), which provides tax relief to families of people killed in the terrorist attacks of September 11, the anthrax mailings that occurred after September 11, and the Oklahoma City bombing.The bill provides relief on several levels:Income and payroll tax for victims is waived for the year of death and the preceding year. If the total waived income tax is not at least $10,000, a minimum benefit of $10,000 for the two years will apply.
Tax

EFTPS-Online: Pay Your Taxes Over The Internet

If you’re going to owe taxes when you file your federal tax return, consider paying over the Internet through the Electronic Federal Tax Payment System (EFTPS). EFTPS-OnLine is fast, easy, convenient, and secure. The government does not charge for this service. You can enroll in EFTPS-OnLine via an official government site on the Internet, using a user-friendly Web interface. After enrollment, you will receive a confirmation kit by mail with instructions for obtaining an Internet password. For added security, a unique Personal Identification Number (PIN) will be mailed to you.
Tax

IRS To Simplify Accounting For Intangibles

Tax practitioners are cheering the IRS plans to simplify the tax rules that apply to intangibles. In an advance notice of proposed rulemaking (REG-125638-01) released on January 17, 2002, the IRS announced its intent to propose new rules that would provide descriptions of the specific types of expenditures that must be capitalized, along with broad-based rules for exceptions.
Tax

Faster Refunds Through Direct Deposit

Want a faster refund? The IRS says that more taxpayers are choosing direct deposit as the way to get their federal tax refunds. The payment is more secure - there is no check to get lost. And, it's more convenient - no special trip to the bank to deposit a check! To request direct deposit, follow the instructions for "Refund" on your tax return.Nearly 34 million people had their tax refunds deposited directly into their bank accounts during the 2001 filing season, a 15 percent increase from the year before.
Tax

Where's My W-2? New Worry for Employees of Bankrupt Companies

With the IRS' January 31, 2002 W-2 mailing deadline fast approaching, W-2 forms will be arriving soon at the homes of millions of employees across the nation. For most, this form is the bedrock on which the 1040, 1040A or 1040EZ income tax form is completed.
Tax

Forms and Publications: How To Order

The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. These forms and publications are available on the Internet, on CD-ROM, through fax on demand, over the telephone, through the mail, at local IRS offices, at some banks, post offices and libraries, and even at some grocery stores, copycenters and office supply stores.If you know what form or publication you need, call the IRS toll-free order number at 1-800-TAX-FORM (1-800-829-3676).
Tax

The Top 10 Essentials of the 2001 Tax Relief Reconciliation Act

AccountingWEB has compiled this top ten list of the 2001 Tax Relief Reconciliation Act for your convenience. You may also order a summary for your Web Site or Client Handouts from AccountingWEB.
Tax

Toll-Free Telephone Service

Free tax help from the IRS is just a phone call away. The IRS provides various services through its toll-free telephone numbers. You can order forms and publications, listen to prerecorded tax information, check on the status of your refund, ask questions about your tax return or inquire about a letter or notice you may have received.
Tax

New IRS Tax Practitioner Hotline Available

The IRS has launched a new service especially for tax practitioners - a nationwide telephone hotline that will take the place of local practitioner hotline services that have been available in the past.IRS personnel who are specially trained to handle practitioners' account related questions will staff the new toll-free service. The telephone number for the nationwide hotline, called Practitioner Priority Service, is 1-866-860-4259. The hotline service is being phased in throughout the country this spring and won't be fully operational until April 1, 2002.
Tax

How to Get a Copy of Your Tax Return Information

There may be times when you need a copy of your prior year federal tax return, a transcript of a return or tax account information. A phone call to the IRS or a visit to the IRS Web site may easily solve your problem.There are several different options available depending on how quickly you need the information. If you need a photocopy of a previously processed tax return, complete Form 4506, "Request for Copy or Transcript of Tax Form," and mail it to the IRS address listed on the form for your area.
Tax

IRS Announces Plans for Random Audits in 2002

The IRS has developed a new program, the National Research Program, which is designed to gather current information on the nation's taxpayers for purposes of judging the level of taxpayer compliance.The program, which will begin in 2002, will include random audits of approximately 50,000 taxpayers. The audits will be broken down into groups with four degrees of invasiveness.
Tax

Tax Materials and Assistance in Spanish

If you need federal tax information in Spanish, you can find it in the form of recorded tax topics, free tax publications and toll-free telephone assistance from the Internal Revenue Service.TeleTax is a toll-free automated service, in English and Spanish, providing helpful tax topics and refund information. You can find a list of the 151 TeleTax topics in the instructions for Form 1040, 1040A or 1040EZ. TeleTax can also help you if it's been at least four weeks since you filed your return and you want to check on the status of your federal refund.
Tax

Taxpayer Rights and the IRS

The law requires the IRS to protect taxpayer rights, and in its day-to-day operations, the IRS and its employees aim to make taxpayer rights a top priority. This includes explaining those rights to taxpayers, keeping taxpayer information private and confidential and being professional and courteous.Besides what is expected of IRS employees, taxpayers have many other rights. They have the right to have someone represent them before the IRS and to accompany them to any meeting with IRS employees.
Tax

Change on Tax Form Lets Friends, Family Talk to IRS

Last year the IRS introduced a new option on the federal individual income tax return allowing taxpayers to authorize their tax preparers to speak to the IRS on their behalf. Thirty-seven million taxpayers took advantage of this program.
Tax

IRS Overwhelmed by Customer Calls

If you've been trying to call the IRS to get an Employer Identification Number over the past month, chances are you have been somewhat frustrated with the inability to reach anyone.Similar requests, such as responding to deadlines for Subschapter S elections, have met with a similar inability to get through, the Washington Post reported this week.According to IRS spokesperson Tim Harms, three factors have led to the backlog, which the IRS is hoping to get ahead of over the ne
Tax

E-File Helps Refunds, Payments

Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier.Every year, more taxpayers find out how safe and easy it is to have their tax refund deposited directly into their checking or savings account. This option is available for both e-filers and paper return filers.When you file electronically, your refund will be issued within three weeks, about half the time it would take if you filed a paper return.
Tax

Publication 17 - One Stop for Tax Help

Facing a lot of different tax questions this year? IRS experts have pulled together an overview of common tax issues in one convenient place - Publication 17, "Your Federal Income Tax." This updated publication contains a vast array of helpful information in one guide.From stock sales to student loans, this 280-page publication holds the answers to many of your questions, such as: Need help deciphering the mysteries of the Roth IRA? Try Chapter 18 for retirement accounts. Do you have a new child in the house?
Tax

Free Tax Publications Available

From aardvark to zyzzyva, the IRS has a publication that covers it - free for the asking. The IRS has numerous publications on a variety of tax-related topics available by phone, fax, or the Internet at www.irs.gov .Are you a student seeking knowledge on the lifetime learning credit? Check out Publication 970. Are you a first-time home buyer?

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