Taxpayers who are struggling to pay their taxes may get some relief from the IRS’s expansion of its Fresh Start initiative, a program started back in 2008. New provisions provide penalty relief to the unemployed, while making installment agreements on taxes owed available to more people. Normally, a ‘failure-to-pay’ penalty of one-half of one percent […]
Deadline Looms to File 2008 Return & Collect Refund
The IRS is reminding people that they have until April 17, 2012, to file a return for 2008 and collect any refund due. According to the IRS, refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008. However, to collect the […]
IRS expands innocent spouse relief
If you file a joint income tax return with your spouse, you are considered “jointly and severally” liable for the payment of all taxes owed. The IRS can come after either you or your spouse for the entire amount of tax due, plus any penalties and interest due. The law has “innocent spouse” rules that […]
Get your tax and financial house in order this year
The only way to achieve financial security is to monitor your tax and financial affairs throughout the year. And what better way to kick off the new year than to tidy up your financial and tax house. Here are some tips to get you started: • Take control of your credit cards. Over-reliance on credit […]
Is your small business overlooking this tax credit?
Health care legislation passed in 2010 included a tax credit for small businesses that provide health care coverage for their employees. Recent surveys have shown that the majority of small companies that might qualify for the credit have failed to take it. The reasons given for ignoring the credit ranged from being unaware of it […]
IRS reopens disclosure program
To encourage taxpayers with offshore accounts to get current with their tax obligations, the IRS has reopened its “offshore voluntary disclosure program (OVDP).” Similar programs in 2009 and 2011 resulted in the collection of more than $4.4 billion of taxes owed. The 2012 program will be similar to the 2011 program; however, one difference is […]
New foreign investment reporting requirement
If you own foreign investments, you may have an additional federal tax filing requirement this year. Form 8938, Statement of Specified Foreign Financial Assets, is due April 17, 2012, and is filed as part of your individual tax return. You’ll use Form 8938 to disclose interests in certain foreign financial accounts when your ownership exceeds […]
Payroll tax cut extended through 2012
Congress passed an extension of the 2% payroll tax cut that was originally scheduled to expire at the end of February 2012. What does this mean for taxpayers? The extension means 160 million working Americans will continue to pay Social Security tax on their wages at a low 4.2% rate for the rest of 2012, […]
Charitable Contributions: More than just cash might be deductible
Many taxpayers give much more than just cash to their favorite charity. Many also provide their time, travel, meals, and other “out of pocket” expenses in order to assist the charity in doing good work. And while you can’t take a charitable deduction for your time, you are allowed to deduct other expenses incurred in […]
Look into the benefits of a solo 401(k)
Have you heard about solo 401(k) plans? The traditional type of 401(k) retirement plan is now available for self-employed individuals. And it lets you save more than other types of plans. In the past, 401(k) plans were typically offered by larger corporations. Employees could make pre-tax contributions by payroll deduction. The company would then usually […]
