Tax news

Technology

Busy Season in Internet Age Equals Business as Usual

The results of a new survey produced by Jupiter Media Metrix, the global leader in market intelligence for the new economy, show that, in spite of increased access to the Internet by U.S.
Tax

Some Taxpayers Make Their Own Tax Cuts

book in which the tax-dodging secrets of the rich and famous are revealed. According to Mr.
Tax

IRS Appoints New E-Mail Czar

The Internal Revenue Service has announced the selection of Kevin Belden as the new Chair for the Electronic Tax Administration Advisory Committee (ETAAC). The ETAAC serves as a public forum for discussion of Electronic Tax Administration issues whereby taxpayers are encouraged to transact and communicate electronically with the IRS.Kevin Belden replaces Peter Hosokawa, who recently resigned from the committee. Mr.
Tax

Tax Tip: Where To File Your Tax Return

Once you complete your 2000 federal tax return, you can either file it electronically or mail it to the IRS. If you choose to mail your return, 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 its filing locations for individual taxpayers in 12 states - Alaska, Colorado, Delaware, Idaho, Indiana, Kansas, Kentucky, Montana, Nebraska, Oregon, West Virginia, and Wyoming. This is part of a redistribution of work among the 10 IRS centers that will be completed in 2002.
Tax

The Streamlined Sales Tax System Project

The Streamlined Sales Tax Project is an effort created by state governments, with input from local governments and the private sector, to simplify and modernize sales and use tax collection and administration. The Project’s proposals will incorporate uniform definitions within tax bases, simplified audit and administrative procedures, and emerging technologies to substantially reduce the burdens of tax collection.
Tax

Meet the 21st Century Taxpayer

A new report, The 21st Century Taxpayer: Tax Compliance Enters the Information Age, has been issued by the business and technology consulting firm, American Management Systems.The report, which analyses trends obtained through interviews with CPAs, CFOs, CEOs, entrepreneurs, taxpayers, and technology experts, reveals the following expectations of the taxpayer of the future: Continued desire for access to information
Tax

Tax Tip: Obtain a Copy of a Prior Year Tax Return

There are times when you may 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 at 1-800-829-1040 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 Finds New Way to Track Tax Miscreants

Call it clever, or just plain dumb luck, but IRS agents in Alabama have stumbled upon a new way to track taxpayers who are not reporting certain income.
Tax

Tax Tip: 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 your 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, copy centers and office supply stores. If you know what form or publication you need, call the IRS toll-free forms number at 1-800-TAX-FORM (1-800-829-3676).
Tax

IRS Announces Extensions May Be Filed By Telephone

The following article is provided courtesy of CCH, Inc.The IRS has announced that taxpayers seeking extensions for filing their returns can automatically extend their filing deadline four months by phone, computer or by filing a Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by the April 16 filing deadline.
Tax

Ways and Means to Advance Marriage Penalty Relief Bill

The following article is provided courtesy of CCH, Inc.The House Ways and Means Committee plans to mark up marriage penalty relief legislation on March 22. Committee member Jerry Weller, R-Ill., said at a March 21 committee hearing that relief from the marriage penalty in the tax code should be a main priority of this Congress.
Tax

Tax Tip: Education IRAs Make College Costs Less Taxing

The Education IRA is an incentive to help parents and students save for higher education. Up to $500 may be contributed to a child's Education IRA each year, according to the IRS. Earnings on contributions will be distributed tax free provided that they are used to pay the beneficiary's post-secondary education expenses. Any individual who meets adjusted gross income (AGI) requirements can make a non-deductible contribution on behalf of a child under the age of 18. The AGI requirements are $95,000 for single taxpayers and $150,000 for married taxpayers.
Tax

Tax Time and You're Short of Cash - What to Do?

Wondering how you're going to afford your tax bill this April? The financial writers at cnnfn.com have put together a nice summary of tax payment alternatives.Pay as Much as You Can in AprilAll taxes not paid by April 16 are subject to a penalty and interest.
Tax

Tax Tip: Roth IRAs

Confused about whether you can contribute to a Roth IRA? The IRS suggests checking these simple rules:Income To contribute to a Roth IRA, you must have compensation (i.e. wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:$160,000 - Married filing jointly. $10,000 - Married filing separately (and you lived with your spouse at any time during the year).
Tax

IRS Auditing More Returns Than it Admits

A recent report about the reduction in number of tax returns being audited by the IRS incited the Senate to respond that there are actually considerably more returns that undergo examination.
Tax

NYSSCPA Grapples With H&R Block Over Ad Campaign

The New York State Society of CPAs (NYSSCPA) is not satisfied with H&R Block's current advertising campaign regarding the filing of complex tax returns. P. Gerard Sokolski, NYSSCPA president, believes that the ads are misleading and detrimental to consumers.According to Mr. Sokolski, H&R Block claims that it prepares more complex tax returns than any CPA firm in America. When challenged, Steven A. Christianson, H&R Block Assistant Vice President, said that they define "complex" as individual returns with schedules.
Tax

IRS Data Files May Not Be Secure

The General Accounting Office, Congress's watchdog agency, has published a report citing security lapses in the Internal Revenue Service computer system.
Tax

Tax Tip: IRA Contributions Can Be Made Until April 16

If you haven't put any money into an Individual Retirement Arrangement (IRA) for tax year 2000, or if you've put in less than the maximum allowed, you still have time, according to the IRS. You can contribute to either a traditional or Roth IRA until the April due date of your tax return.If you make a contribution for the previous tax year, tell the IRA trustee which year the contribution is for. Otherwise, the trustee may report the contribution as being for the year in which it was received.You may contribute up to $2,000 of your earnings each year to an IRA.
Tax

Common Mistakes to Avoid When Filing Your Return

Here's hoping you didn't make any of these mistakes and that you get through tax season with your bank account and good humor still intact!Making math errors. Not including Social Security numbers. Not signing and dating your return.Not using the pre-printed label and envelope from the tax package. Forgetting about interest and dividends. Forgetting to donate unwanted items to charity. Not including all your forms. Not properly tracking your investment basis. Using the EZ form when a longer form could cut your taxes.
Tax

Tax Tip: Amended Returns

Oops! You've discovered an error after your tax return has been filed. What should you do? You may need to amend your return. The IRS usually corrects math errors or requests forms (such as W-2s) or schedules left out. In these instances, do not amend your return. However, do file an amended return if any of the following were reported incorrectly: your filing status your total income your deductions or credits Use

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