Tax news

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.
Tax

Find Deductibility Limits on Contributions to Charitable Organizations

The IRS publishes an online version of Publication 78, Cumulative List of Organizations, which is intended to assist you in learning if an organization is exempt from federal taxation and, if so, determining how much of your contributions to that organization are tax deductible.
Tax

New Depreciation Tax Forms Available

The IRS has posted revised tax forms on its Web site to accommodate retroactive changes to the tax law as a result of the Job Creation and Worker Assistance Act.Changes that affect 2001 income tax returns include a new 30% bonus depreciation on new depreciable propert
Tax

Taxable or NonTaxable Income?

Generally, most income you receive is taxable, according to the IRS. But there are some areas where certain types of income are partially taxed or not taxed at all.
Tax

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Account (IRA) or a qualified retirement plan need not be a "taxing" experience, according to the IRS.Any payment that you receive from your IRA or qualified retirement plan before you reach age 59½ is normally called an "early" or "premature" distribution. As such, these funds are subject to an additional 10 percent tax. But there are a number of exceptions to the age 59½ rule that you should investigate if you make such a withdrawal. Some of these exceptions apply only to IRAs, some only to qualified retirement plans, and some to both.
Tax

Treasury Department Will Remove Abusive Tax Shelter

The Treasury Department has announced that Internal Revenue Service officials will begin challenging transactions that generate losses with the use of certain loan assumption agreements.The agreements at issue typically involve an offshore partner who borrows money to purchase assets, then sells a portion of the assets of a value just enough
Tax

Gambling Income and Expenses

Hit a big one lately? With more and more gambling establishments, the IRS reminds people that they must report all gambling winnings as income on their tax return.Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.Generally, if you receive $600 or more in gambling winnings, the payer is required to issue you a Form W-2G.
Tax

Tax on Child's Investment Income

Part or all of a child's investment income may be taxed at the parent's rate rather than the child's rate, according to the IRS. Because a parent's taxable income is usually higher than a child's income, the parent's top tax rate will often be higher as well. This special method of figuring the federal income tax only applies to children who are under the age of 14. For 2001, it applies if the child's total investment income for the year was more than $1,500.
Tax

Deductible Taxes

Did you know that you may be able to deduct certain taxes on your federal income tax return? The IRS says you can if you file Form 1040 and itemize deductions on Schedule A. There are three types of deductible non-business taxes:State, local and foreign income taxes; Real estate taxes; and Personal property taxes. You can deduct any estimated taxes paid to state or local governments and any prior year's state or local income tax as long as they were paid during the tax year.
Tax

2001 Tax Forms Change as Deadline Approaches

In the wake of the new Job Creation and Worker Assistance Act of 2002, the IRS has announced plans to change two 2001 tax forms and related instructions to allow for retroactive changes to the tax law.Form 4562, Depreciation and Amortization, will change to reflect the new 30% bonus depreciation. Taxpayers are entitled to additional depreciation of 30% of the adjusted basis of certain property acquired on or after September 11, 2001.
Tax

Businesses Need to Act Fast to Take Advantage of Tax Breaks for 2001

The following article is provided courtesy of CCH, Inc.Small Businesses Stand to Gain From Job Creation ActAfter months of political battling and partisan gridlock, Congress finally got their act together and, in a flash, passed an economic stimulus tax package.
Tax

Charitable Contributions

The Internal Revenue Services advises that when preparing to file your 2001 federal tax return, don't forget your contributions to charitable organizations. Your donations can add up to a nice tax deduction if you itemize on IRS Form 1040, Schedule A.Here are a few tips to help make sure your contributions pay off on your tax return. To be deductible, contributions must be made to qualified organizations. Organizations can tell you if they are qualified and if donations to them are deductible.
Tax

Gift Giving

If you give any one person gifts valued at more than $10,000 in 2001, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift. For 2002, the amount rises to $11,000.The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. You make a gift when you give property, including money, or the use or income from property, without expecting to receive something of equal value in return.
Tax

Don't be Taken in by Tax Scams

The IRS reminds taxpayers not to fall victim to a variety of tax scams. These schemes take several shapes, ranging from promises of special tax refunds to illegal ways of "untaxing" yourself. If people think something may be unscrupulous, they can report suspected tax fraud to the IRS at 1-800-829-0433.The IRS urges people to avoid these common schemes: AFRICAN-AMERICANS GET A SPECIAL TAX REFUND. Thousands of African-Americans have been misled by people offering to file for tax credits or refunds related to reparations for slavery. There is no such provision in the tax law.

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