Tax news

Tax

Tax Refunds Delayed Due to Problem with Form 8863 Issued Sooner than Expected

On March 27, the IRS announced the expedited processing of some 600,000 tax returns filing Form 8863, Education Credits, that were delayed due to "a problem with a limited number of software company products."
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US Supreme Court to Hear Case on IRS Penalties on Tax Shelters

The US Supreme Court announced it will review a suit involving the IRS' practice of imposing 40 percent penalties on allegedly abusive tax shelters.
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Tax

IRS Announces "Dirty Dozen" Tax Scams – Identity Theft Is Top Threat

The IRS has issued its annual "Dirty Dozen" list of tax scams for 2013 to remind taxpayers to use caution during tax season to protect themselves against a wide range of schemes, ranging from identity theft to impersonation of charitable organizations.
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Tax

IRS 2011 Audit Rates Show Estate Tax Returns under the Microscope

The IRS scrutinized estate tax returns more than any category of individual tax returns in tax year 2011, at close to a 30 percent rate of examination, while individual income tax returns with $1 million or more in income saw a slight decline in audit coverage.
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Tax

IRS Spoof on Star Trek: The Sequel

Responding to criticism by a high-ranking member of the House's tax-writing committee, the IRS now admits it should have scuttled a quirky video based on the iconic "Star Trek" TV show. But the agency continues to maintain that another video parody, this one based on "Gilligan's Island," should not be cast away.
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Tax

IRS Releases 2012 Data Book; Examined 1 Percent of Individual Returns

On March 25, the IRS announced the release of its "2012 Internal Revenue Service Data Book," which provides a snapshot of agency activities.The report includes information about returns filed, taxes collected, enforcement actions, taxpayer assistance, and the IRS budget and workforce, along with other data.
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Ex-Chicago Bear Zorich Up Tax Creek without an Excuse

No excuses for former Chicago Bear Christopher Zorich. He simply told the judge in March that he didn't file his taxes for 2006 to 2009 "in a timely fashion." He pled guilty on four misdemeanor counts of not filing federal income tax on more than $1 million.
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Xero Survey Reveals Biggest Tax-Time Mistakes Small Business Owners Make

Tax season has a way of highlighting small business owners' financial management lapses. According to a recent survey, the two most frequently cited are (1) failing to keep financial records up to date and (2) not preparing a budget for the year ahead.
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Football Player Terrell Owens Faces IRS Lien

Ex-NFL wide receiver Terrell Owens joins a long line of top-earning sports figures who blew through their wealth quickly and ended up broke. According to "Sports Illustrated," this is part of a "financial pandemic" that plagues a lot of top-earning athletes, especially in the NFL.
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Tax

IRS Star Trek Video: Going Where No Agency Has Gone Before

A high-ranking member of the tax-writing committee in Congress is demanding the IRS release copies of two video parodies produced with taxpayer money. The videos, which spoof "Star Trek" and "Gilligan's Island," were shot at the IRS' television studio in Maryland.
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Tax

Relief Available to Many Extension Requesters Claiming Tax Benefits

On March 20, 2013, the IRS provided late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they're attaching to their returns any of the forms that couldn’t be filed until after January.
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Mike Tyson Has Heavyweight Tax Problems

When Mike Tyson was named heavyweight champion back in 1986, he was the youngest man ever to win that title. They called him "the baddest man on the planet." Over the course of his career, he made more than $300 million. But in 2003, he declared bankruptcy.
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Tax

GAO Takes IRS to Task on Information Security Control Lapses

Although the IRS has continued to make progress in addressing information security control weaknesses, the Government Accountability Office (GAO) said in a March 2013 report that "serious weaknesses remain."
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IRS Warns Tax Preparers to Review Their Safeguards for Client Data

In a March 18 e-mail, the IRS warned tax preparation professionals that the security of taxpayer accounts and personal information should be a top priority, as referenced in Revenue Procedure 2007-40, which outlines the obligations of IRS e-file providers.
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IRS Employees Need More Training in Dealing with Troubled Taxpayers

Many IRS workers don't have sufficient training in dealing with potentially dangerous taxpayers, despite several programs developed to address such situations, according to a report issued March 12 by the Treasury Inspector General for Tax Administration (TIGTA).
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Stephen Baldwin Takes Plea Deal for Tax

A few months ago actor Stephen Baldwin was arrested – and released – on charges of failure to pay his New York State income tax for three years. Based on those charges, he could have faced four years in prison. In early March he returned to court and entered a plea agreement to resolve the issue.
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Crime Watch: March 15, 2013

A federal court has permanently barred Crystal Ireland of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers' tax returns in order to claim the maximum credit for them.
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Strip Club Tips Rain Tax Deductions for Rapper

Canadian Rapper Drake may have found an interesting loophole he believes will allow him a hefty deduction for tips at a strip club. That includes $50,000 in what he called "making it rain" money he spent at a club in North Carolina.
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Tax

H&R Block Gaffe Affects 600,000 Tax Returns

So you think you've got headaches this tax return season? They're probably nothing compared to the migraines the folks at H&R Block are experiencing after the nation's largest tax preparation firm admitted to botching more than 600,000 returns.
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EcoTaxFile.com Combines Tax Return Preparation with Energy Audit

Helping save the planet while filing your taxes sounds like a bit of a stretch, but EcoTaxFile.com says it has a good way to start. The company combines tax preparation services with an energy audit to identify a taxpayer's carbon footprint and then suggests ways to cut costs and greenhouse gases.
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Voice of the Editor

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Gail Perry, CPA
Publisher/Editor-in-Chief, AccountingWEB
editor@accountingweb.com
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