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Deadline for trustees to file with the IRS Form 5498, annual statements for IRAs, SEPs, SIMPLEs, Roth IRAs, and education savings accounts. Copies must be sent to plan participants.
READ MORE »Posts in category IRS Issues
Upcoming Major Tax Deadlines – April 1, 2013
Deadline for payers who file electronically to file 2012 information returns (such as 1099s) with the IRS. Deadline for employers who file electronically to send copies of 2012 W-2s to the Social Security Administration.
READ MORE »That’s Deductible?!
It’s that time of year. And if you’re filing your tax return on your own, we know your process: Step 1. Enter all income. Step 2. Enter all known expenses and deductions. Step 3. Wait hours (maybe even days) before filing to brainstorm: What else can I possibly deduct?? As tax professionals, we’ve heard some [...]
READ MORE »There’s No Doubt Tax Season is Here
We’ve posted this graphic before but thought it was fitting as tax season hits us full force. Thank you to all our loyal blog readers for your comments and feedback. We always do our best to keep our site current during tax season, but posts may be a little less frequent as the work continues [...]
READ MORE »IRS Announcement: Simplified Home Office Deduction Option
On January 15, 2013, the Internal Revenue Service announced a simplified option for claiming the Home Office Deduction, making the lives of home-based business operators a little easier. In our November 2011 blog article, “Work From Home? There May Be a Deduction for That!,” we outlined the eligibility requirements required to take the deduction (which [...]
READ MORE »Ready for Filing Delays this Tax Season?
From the November 12, 2012 Kiplinger Tax Letter: “Congress’ delay in finalizing the 2012 tax rules will affect the filing season. Many taxpayers will not be able to file early next year. Because taxwriters aren’t expected to act until mid-December to reinstate a set of tax provisions that expired after 2011, IRS expects it will [...]
READ MORE »Tax Glossary: Innocent-spouse Rules
Innocent-spouse Rules: Tax rules designed to protect married taxpayers who file joint returns from being held responsible for taxes due to erroneous actions by their spouses — such as failing to report income or claiming unsubstantiated deductions. Basically, if you can show that you didn’t know and didn’t have reason to know about an error [...]
READ MORE »Penalties on the Uninsured
The Congressional Budget Office report issued September19, 2012 estimates that approximately 6 million uninsured individuals will be subject to the penalty tax associated with the new Health Care Law. The penalty is the larger of $95 or 1% of income above the filing threshold in 2014, and the penalty for families will be capped at [...]
READ MORE »Bogus Taxpayer IDs
The Treasury Inspector General for Tax Administration (TIGTA) released a report that does not bode well for the Internal Revenue Service. According to the report, “the IRS has recently issued thousands of tax identification numbers to ineligible people and, in some cases, IRS managers condoned the practice.” In response, the IRS released a statement vowing [...]
READ MORE »IRS Small Business Audits: Big Push – Little Results
We have recently devoted a lot of our attention to the rising number of audits our clients are facing (see “High $ Mortgage Holders, Be Ready for Mail-In Audits” and “IRS Shifting Focus“). Yesterday, an article posted on American Express’ Openforum.com caught our attention. According to the article entitled, “Majority of IRS Audits of Small [...]
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