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Tax

Tax Tip: Which Form --1040, 1040A, or 1040EZ?

If you are filing a tax return on paper, you should use the simplest form for which you qualify. The simpler the form, the less chance for an error that may cost you money or delay the processing of your return. The simplest IRS form is the Form 1040EZ. The 1040A covers several additional items not addressed by the EZ. And finally, the IRS Form 1040 should be used when itemizing deductions and reporting more complex investments and other income. Here are a few general guidelines on which form to use.
Technology

H.D. Vest Launches Free Tax Return Program for 2001

H.D. Vest has launched the 2001 version of its free tax prep web site. For the second year in a row, H.D. Vest will be offering free preparation and e-filing of their tax returns for consumers. The site has added several features for 2001, including the opportunity to open and fund an Individual Retirement Account (IRA) online and a paperless option with the new self-select PIN from the Internal Revenue Service. Users can also set up a free personalized Web site, MyHDVEST.com.
Tax

Oops! IRS Letter to Taxpayers Contains Misinformation

The IRS has issued a news release indicating that 286,000 letters were sent to people who claimed the Earned Income Tax Credit on their 1999 tax returns raising questions about whether these people were entitled to claim the credit.The letter contained some misinformation about where taxpayers should call to resolve child custody issues. The letter mistakenly directed taxpayers to contact state revenue agencies.
Tax

Tax and Accounting Software Publishers

ACCPAC International - A division of Computer Associates InternationalAPPX Software, Inc.ASI Communications - Application software specializing in ATM and point-of-sale transactionsAQSoftware, Inc. - Contribution calculation productsAbacus Accounting SystemsAccounting S
Tax

Bush Tax Plan Promotes Charitable Giving

Citing a desire to make it easier for faith-based and community organizations to offer social welfare programs, President Bush is moving ahead with an initiative to allow non-itemizers a tax deduction for charitable donations. House Ways and Means Committee member Jennifer Dunn (R-Washington) has indicated her willingness to introduce the legislation. A similar bill introduced by Dunn in the 106th never reached fruition.
Tax

Tax Tip: What To Do If You Haven't Received a Form 1099

If you received certain types of income, you may receive a Form 1099 for use with your tax return. You should receive these forms from the payer by early February, according to the IRS. Payers have until Jan. 31 to mail these forms to you. If you have not received an expected 1099 by a few days after that, contact the payer. If you still do not get the form by February 15, call the IRS for help at 1-800-829-1040.In some cases, you may obtain the information that would be on the 1099 from other sources.
Tax

IRS to Cross-Reference K-1 Information

We all know the IRS cross-references information between W-2 forms and 1099 forms and the tax returns of the recipients. If there is a discrepancy between what the recipient reports on his tax return and the amount on the official form, a correspondence is initiated in which the IRS attempts to straighten out the matter.The IRS has not attempted any such cross reference with K-1 forms, those forms that show your share of ownership in a partnership, trust, or s corporation. Until now.
Tax

'Tax Talk Today' Provides Advice for Practitioners

The IRS is sponsoring a series of web events this spring designed to provide a live Q&A forum for tax practitioners. The first of these monthly events is scheduled for Tuesday, January 30, from 2:00 to 3:00 p.m., Eastern time.
Tax

Tax Tip: What To Do If You Haven't Received a W-2 Form

Employers must provide employees with a Form W-2 by January 31, 2001 for use in preparing tax returns, according to the IRS. You should receive a separate W-2 for each employer you worked for. Since employers can mail the W-2s as late as January 31, you should allow a few days into February for a mailed form to arrive.If do not receive your Form W-2, you should first contact your employer and find out if or when the W-2 was mailed. You may not have received your W-2 because of an incorrect or incomplete address, so be sure to verify your address.
Tax

New Retirement Distribution Rules Calculator Available On-line

Newkirk, a leading provider of financial communications, has introduced a new printed and online booklet summarizing the January 12, 2001, IRS changes to the required minimum distribution (RMD) rules for IRAs and qualified plans.The New Retirement Distribution Rules: What They Mean to You booklet is intended for use by financial service providers in communicating the RMD changes to their customers and in highlighting the related tax- and estate-planning opportunities. “The new RMD rules are a blessing to most IRA owners,” said Peter Newkirk, President of Newkirk.
Tax

Tax Tip: Dependents

So your daughter is off to college and you're wondering if you can still claim her as a dependent? Well, a person who would be claimed as your dependent must meet five tests:Member of Household/Relationship Test -- the person must be a relative or live in your household all year Joint Return Test -- the person can't file a joint tax return with someone else unless it is only to claim a refund of tax withheld Citizenship Test -- the person must be: a U.S.
Tax

Tax Tip: 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 non-cash prizes.Generally, if you receive $600 or more in gambling winnings, the payer is required to issue you a Form W-2G.
Tax

Small Biz Tax Relief: What's Cooking?

Self-employed individuals and small firms pay approximately $800 million in taxes that the federal government collects each year. Senator Christopher "Kit" Bond, Chairman of the Senate Committee on Small Business, wants to do something to relieve their tax burden.Bond today introduced the "Small Business Works Act of 2001," designed to complement the broad-based tax relief package proposed by President Bush."With an economy that appears to be slowing, small businesses are likely to be among the first affected.
Tax

Tax Tip: Record Keeping

You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. Good record keeping will help you remember the various transactions you made during the year, which may help you out on your taxes.Records help you document the deductions you've claimed on your return. You'll need this documentation should the IRS select your return for examination.
Practice Management

Outsourcing Your Payroll Systems, with Rob Basso

Outsourcing Your Payroll SystemsPresented by Rob Basso, President of Advantage Payroll ServicesContact Rob at Rob_basso@advantagepayroll.comJanuary 25, 2001Visit the AccountingWEB Workshop Calendar for upcoming sessions.SummaryThursday's workshop session was filled with useful information and answers to questions about outsourcing pay
Technology

RIA Introduces Corporate Tax Planning Tool

RIA introduces InSource® CS - Income Tax Planning, a full-featured federal tax planning tool for corporate tax professionals. "Today's corporate tax professionals are called upon to advise on the tax impact of ever more complex business transactions," said Brian Peccarelli, Vice President, InSource Income Tax at RIA.
Tax

IRS Doesn't Always Get its Cut of Super Bowl Winnings

The Ravens are favored as the next NFL Champions in the upcoming Super Bowl. But in an
Tax

State Revenue Agencies

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgia
Tax

Enrolled Agent Exam Results Available

The IRS has posted the results of the 2000 Enrolled Agent exam at their Web site. In addition to the exam results, you can learn about the 2001 exam (scheduled for October 17-18, 2001), including how to apply and how to study.A study kit will be available for downloading on June 1, 2001.
Tax

Tax Tip: Taxable or Nontaxable?

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

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