Tax news

Tax

Tax Tip: IRS Has Plenty of Free Publications

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?
Tax

Tax Tip: Form W-4 - The Key to Tax Withholding

When you start a new job, you must complete Form W-4, "Employee's Withholding Allowance Certificate," so your employer can withhold the correct federal income tax from your pay. Detailed instructions on the form and its worksheet can help you figure your correct withholding amount, according to the IRS.
Tax

House Passes President's Tax Cut

One down one to go - the House votes "Yea," and the tax bill is on to its appointed rounds in the Senate, where legislators promise it won't have quite such an easy ride.The House voted 230-198 on Thursday and passed a $958 billion tax cut which will lower tax rates for nearly all Americans retroactive to January 1, 2001. Ten Democrats and one Independent joined 219 Republicans to pass the bill by its narrow margin.If the bill passes in the Senate, the tax rate reduction will be completely phased in by 2006.
Tax

Tax Tip: 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." It includes a listing of tax changes for 2000 returns, plus explanations of the changes. It also includes some of the changes for 2001.
Tax

IRS Announces Drop in Interest Rates

The following article is provided courtesy of CCH, Inc.The IRS has announced that interest rates for the calendar quarter beginning April 1, 2001, will drop one percentage point to 8% for overpayments (7% in the case of a corporation), 8% for underpayments and 10% for large corporate underpayments. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 will be 5.5%.
Tax

Back Taxes Owed by Members of Congress

It seems that those who make the laws aren't always known for setting the best example. A recent report by the IRS on tax compliance by government employees showed that 5.03 percent of House members their employees and 4.44 percent of Senators and their aides owed back taxes or have one or more delinquent tax returns.The total amount owed by government employees in all agencies totals $2.53 billion. This amount does not include any amounts owed for which an installment agreement has been entered into."Our system of taxation relies on voluntary compliance," Charles O.
Tax

Tax Tip: 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

Kinder, Gentler IRS Losing Billions

Staff reductions and other cutbacks at the IRS have resulted in fewer audits, which in turn have resulted in fewer taxpayers paying their full share, according to former IRS Commissioner, Donald Alexander. "The more the IRS fails to enforce the law the more people take advantage of that failure," Mr.
Tax

IRS Gets Clean Bill of Health

The General Accounting Office couldn't find any problems with the IRS's financial statements for 2000 - a first for the tax service, which in the past has always received qualified opinions on its year-end statements."This is a significant accomplishment and an important milestone in the progress of the IRS," according to Charles O.
Tax

Tax Tip: IRS Notices - What To Do

It's a moment any taxpayer dreads. A letter arrives from the IRS - and it's not a refund check. But don't panic. Many of these letters can be dealt with simply and painlessly.Each year, the IRS sends millions of letters and notices to taxpayers to request payment for taxes, notify them of a change to their account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
Tax

Tax Tip: What's New for 2000 Taxes?

Do you want to learn about the principal tax law changes that could affect your 2000 tax return? IRS Publication 553 highlights the tax changes in these areas: Interest on student loans. Individual Retirement Arrangements (IRAs) - including traditional IRA income limits, and returned contributions and recharacterizations. Capital gain distributions. Foreign earned income exclusion. Standard mileage rate.
Tax

IRS Conducting Raids on Alleged Tax Evasion Experts

One might think the IRS has more than enough to keep itself busy this time of year, what with it being tax season and all, but the Service found time last week to go on a raid rampage, performing more than three dozen searches and arresting four suspected tax evasion specialists.Among those targeted in the raids were: The Institute for Global Prosperity, an Internet company that promotes what the IRS claims are fraudulent tax and inve
Tax

A User Friendly Citizen's Guide to the Federal Budget

Next year, the Federal Government will spend over $1.8 trillion. Needless to say, that's a lot of money. And the Government spends it on lots of things--on programs as large as Social Security, and on activities as small and unknown as repairs to the Washington D.C. National Zoo. How much do you know about the budget? If your answer is "not much," you're not alone.
Tax

The Proposed Tax Cut Really Works - Here's How

The New York Times has published a comprehensive story showing exactly how President Bush's tax cut meets all the criteria described in the President's message to Congress last week. This analysis, which was prepared by Deloitte & Touche, shows exactly which taxpayers will be affected and how.Assuming the entire tax plan is enacted, and of course the plan has yet to even be presented to Congress, here's how the plan will work:The richest 1 percent of taxpayers, those with annual incomes over $370,000, now pay 31.5 percent of all income taxes.
Tax

Tax Tip: Do You Have a Deductible Home Office?

Whether you are self-employed or an employee, if you use a portion of your home for business purposes, you may be able to take a home office deduction. You can deduct certain expenses if your home is the principal place where your trade or business is conducted. You can also take a deduction for business use of the home if that is where you meet and deal with clients or patients in the course of your business.
Tax

Tax Fugitive Rich's Pardon Backfires

New York state officials say they are suing pardoned billionaire financier Marc Rich for income tax evasion and are seeking $137 million owed on money he made in the 1980s while in control of two companies that were involved in illegal oil trading. The New York State Department of Taxation and Finance has filed a tax warrant against Rich, who fled the United States to Switzerland 17 years ago under indictment on a string of fraud and racketeering charges, but was c
Tax

Tax Cut Bill is Raced to the House Floor

Not wasting any time, the House Ways and Means Committee, Thursday, approved a version of President Bush's tax cut plan, and the House will be able to vote on the bill next week. The Economic Growth and Tax Relief Act of 2001, if made into law, will include tax reductions retroactive to January 1, 2001.The bill calls for a reduction of the current 15% tax rate to 12%, and this rate would apply to the first $12,000 earned by married couples and the first $6,000 earned by singles.
Tax

Tax Tip: Selling Your Home

If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing a joint return), according to the IRS. This exclusion is allowed each time that you sell your main home, but generally no more frequently than once every two years. To be eligible for this exclusion, your home must have been owned by you and used as your main home for a period of at least two years out of the five years prior to its sale. If you and your spouse file a joint return for the year of the sale, you can exclude the gain if either of you qualify for the exclusion.
Tax

Preparing an Exit Strategy for Your Business

Preparing for your retirement is part of every businessperson's long-term goal. But what if you are the owner/operator of the business? You have invested money, time, hard work into growing your business and now it is time to step down. What should you do?When the time comes, you may want your business to continue and prosper, but you don’t want the IRS to take possession of your hard-earned gains with estate taxes. Maybe your business has taken a hard fall, and you need to know your liquidation options.
Tax

H&R Block Penalized $500,000 for Deceptive Advertising

A federal judge assessed a penalty of $507,477 against H&R Block for misleading advertising.

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