Tax news

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.
Tax

How Does the Bush Tax Cut Plan Affect You?

Tuesday night, President Bush officially unveiled his hopes, plans, and promises for a new budget and a new direction in the nation's economy. The centerpiece of his speech before Congress and to the nation was his tax cut plan.Under the Bush plan:All federal income tax rates will be cut from the five current levels (15%, 28%, 31%, 36%, and 39.6%) to four, lower levels (10%, 15%, 25%, and 33%).
Tax

Tax Tip: Faster Refunds Through Direct Deposit

Want a faster refund? More taxpayers are choosing direct deposit as the way to get their 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 30 million people had their tax refunds deposited directly into their bank accounts during the 2000 filing season, a 25 percent increase from the year before.
Technology

IRS Unveils Small Business Community Website

The following article is provided courtesy of CCH, Inc.At a February 26 press conference, IRS officials announced the launch of the Small Business and Self-Employed Community page on the IRS website. The Small Business page is the first segment of the IRS website to be revamped.IRS Commissioner Charles O.
Tax

Tax Tip: 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:No taxes being withheld from your wages. Illegal schemes are being promoted that instruct employers not to withhold federal income tax or employment taxes from wages paid to their employees.
Tax

Tax Tip: 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, 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

Tax Tip: 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 2000, it applies if the child's total investment income for the year was more than $1,400.
Tax

Tax Talk Today: Filing Those Returns-200 Million Submissions

As the first wave of 200 million tax returns begin to stream into IRS centers, the February 27, 2001 broadcast of Tax Talk Today takes a timely look at the current filing season. The broadcast, from 2:00 - 3:00 p.m. EST, will engage tax professionals and IRS guests in wide-ranging discussion of tax preparation topics - service center processing, the new checkbox option, and tips and trends in electronic filing. There will be a special segment on how the IRS is thwarting tax evasion schemes.
Tax

IRS Initiates Steps to Protect Victims of Domestic Violence

The following article is provided courtesy of CCH, Inc.The IRS has announced that it has initiated a series of steps to protect victims of domestic violence who apply for innocent spouse relief. Taxpayers who are victims of domestic violence and fear that filing a claim for innocent spouse relief would result in retaliation should write the term "Potential Domestic Abuse Case" on the top of their Form 8857, Request for Innocent Spouse Relief.
Tax

Tax Tip: Child and Dependent Care Credit

If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your tax by claiming the credit for child and dependent care expenses on your tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13.
Tax

Tax Tip: Deductible Taxes

Did you know that you may be able to deduct certain taxes on your federal income tax return? You can if you file IRS 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.
Technology

New Study Shows Number of E-Filers Up 300%

A revealing study by Forrester Research shows that an estimated 6 million households will file tax returns online this spring. The number represents a 4 million or 300 percent increase over last year.The increase in online filers is attributed to the increase in readily available online tax filing services, the ease of tax software programs, and a growing comfort level toward electronic filing.
Tax

2001 Tax Hints Available On-Line

For many years, several of the IRS Service Centers produced guides for tax professionals in their area. This year, 2001 Tax Hints: Practitioner's Guide To The Filing Season has been expanded into a National Filing Season reference guide for the tax professional community.
Tax

Tax Tip: 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

Take a Peek at New IRS Web Site

The new IRS Web site is not yet up and running, but the prototype is available for observation and comment.The Digital Daily will be replaced with a new, more austere design.

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