File your Taxes on a postcard? What a joke!
The previous 2 page Form 1040 is now 8 postcards plus worksheets and has over 100 pages of instructions. That is not really a postcard is it?
Not mentioned is that none of the additional forms you have been filing went away with your 1040, they still exist. Examples: Schedules B, C, D E, etc.
Continue reading “2018 Income Taxes are gonna be taxing”
Even though the Federal Standard Deduction doubled and most people will not be taking Itemized Deductions on their Federal Tax return this year, some states did not follow the Federal lead. States such as California and New York did not conform.
That means that if you used to itemize, you better continue to track those same expenses because you can still use them to save state taxes
The latest scam that might be used to separate you from your money goes something like this:
Step One – You find out that the IRS
sent you a refund you were not expecting. You might get it by check or
maybe direct deposit. You go – Hey, I wasn’t expecting this. Hmm . . .
Continue reading “A New Scam involving Tax Refunds is particularly dastardly”
Somebody accidentally entered an old bank account number for a direct deposit of a tax refund.
The IRS offered no assistance in retrieving the refund! They took
the position that they had no accountability. They said they had done
exactly as the taxpayer had requested. Taxpayer problem.
Continue reading “Maybe getting your Tax Refund by direct deposit is not such a good idea”
Below is a letter that Donald
Rumsfeld sends to the IRS with his tax return every year. Bravo to him
for saying what needs to be said about our ridiculous tax code. It is a
system that has run amok. I definitely agree with those who have
called for starting over from a clean slate.
Continue reading “Our tax code is a mess!”
Businesses are now required to report to the IRS whenever there are changes to contact info – responsible party, address etc.
This from the Form 8822-B instructions:
Beginning January 1, 2014, any entity
with an EIN must file Form 8822-B to report the latest change to its
responsible party. Form 8822-B must be filed within 60 days of the
change. If the change in the identity of your responsible party occurred
before 2014, and you have not previously notified the IRS of the
change, file Form 8822-B before March 1, 2014, reporting only the most
recent change. Complete Form 8822-B as appropriate; use applicable boxes
8a through 9b to report any changes to the identity of your responsible
For more check out the form and instructions here.
The IRS recently released a helpful video on their YouTube channel.
This video explains how to use their Withholding calculator to get your withholding just right.
If you are a wage earner this video and the calculator will help you understand how it all works.
The IRS removed this video. It is pretty old after all.
Filing 2012 Tax Returns
Because of the need for more extensive form and processing systems
changes people claiming residential energy credits, depreciation of
property or general business credits won’t be able to start filing until late February or into March.
If you are self employed these delays will probably affect you!
Continue reading “Some won’t be able to file till Late Feb”
The Taxpayer Advocate Service is cutting down on its caseload.
The IRS said, “The Taxpayer Advocate Service (TAS) is designed to be a
“safety net” for taxpayers who are experiencing problems with the IRS.
However, ime, it must focus on cases where it can add the most value.”
Continue reading “The IRS Taxpayer Advocate Service Is Now Accepting Fewer Cases”
What kind of Bookkeping system do you need?
Do you need to use a Double Entry system?
Is a set of books enough to satisfy the IRS or do you need more?
The answers might surprise you:
You don’t need any specific type of system. But you do need to be sure to keep supporting documentation.
Have you always wanted to know what kind of record keeping system the IRS requires? If so Take a look at this guide and for more detailed info this IRS guide to the subject