Tax news

Tax

Tax Tip: 1040A Users May Report Mutual Funds Distributions

Some taxpayers with capital gains may now use the shorter Form 1040A. If your only capital gains or losses are capital gains distributions from mutual funds, and you are otherwise eligible to use Form 1040A, you may report these gains on line 10 of the 1040A. If you must use Form 1040 for some other reason, but have no other capital gains or losses, you can skip Schedule D and report your capital gains distributions on line 13 of the 1040, checking the box to indicate that Schedule D was not required.
Tax

H&R Block Launches 'Ask A Tax Advisor'

H & R Block debuted its "Ask a Tax Advisor" service, last week, which enables H & R Block customers instant access to H & R Block tax experts around the country. H&R Block's new "Ask a Tax Advisor" service allows customers quick, customized answers from H&R Block tax professionals for only $19.95 per solution. Using e-mail, live chat or phone, a Block professional will attempt to answer the taxpayer's specific tax questions.
Tax

Revised IRS Form W-9 Available

The IRS form W-9, Request for Taxpayer Identification and Certification, has been revised effective immediately. The new version of the form is available for downloading on the IRS Web site.The primary change to the W-9 form is a requirement that the person filling out the form identify himself or herself as "U.S. Person," as opposed to a "Foreign Person." The phrase, U.S. Person, includes resident aliens.
Tax

Intuit Offers Free On-line Tax Filing

Now in its fourth year, the Quicken Tax Freedom Project provided by Intuit, the maker of Quicken and TurboTax software, offers free on-line tax filing for all individuals and families with adjusted gross income of under $25,000, a $5,000 increase over previous years.Using the TuboTax for the Web software, Intuit is able to provide an interactive question-and-answer process in which taxpayers can enter information about their tax returns.
Tax

Tax Tip: What is Your Filing Status?

Your filing status on your tax return is a category that identifies you, based on your marital and family situation. It is an important factor in determining whether you must file a return, the amount of your standard deduction and your correct amount of tax. If more than one filing status applies to you, you may choose the one that will give you the lowest tax, according to the IRS.There are five possible filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child.
Tax

New Tax Resource for Mexican Business

If you have clients or subsidiaries who do business in Mexico, a new resource is now available to help navigate the waters of corporate tax planning. WorldTrade Executive, Inc., a leader in publications covering international finance, law, tax and cross-border trade, announced today the launch of its newest publication, "Practical Mexican Tax Strategies".
Tax

Have Tax Return, Need Mailing Address

Anyone mailing federal individual tax returns this year should double-check the mailing address before dropping that form in the mail.
Tax

IRS's Digital Daily Bids Farewell

To taxpayers and tax practitioners everywhere:On January 6, 1996, despite a blizzard and a government furlough, the IRS Digital Daily debuted -- on schedule and well within budget. This grass roots effort was the IRS' first Internet presence and developed by a staff of four. We worked hard with one goal in mind: making it easier for people to get the tax information they need.
Tax

Tax Tip: Who Must File A Tax Return?

There are some instances where you may not be required to file a tax return. But the IRS reminds you to keep a few things in mind. First, over 70 percent of all individual filers of federal income tax returns are due a tax refund, and it may be to your advantage to file, even if you are not required to. Next, the law requires you to file a tax return if your income is above a certain level.
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.

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