Category Archives: Taxes

First Time Abate Waiver

It is common for the IRS to waive Failure to File (FTF) and Failure to Pay (FTP) penalties for taxpayers who have demonstrated full compliance over the prior three years. This waiver, called a First-Time Abate (FTA) is to reward … Continue reading

Posted in 1040, Taxes | Tagged , , | Comments Off on First Time Abate Waiver

IRS Has $153.3 Million in Undelivered Tax Refunds

This Wednesday the IRS said it has $153.3 million in undelivered tax refund checks waiting to be sent to over 99,000 taxpayers across the country.  The IRS stated that mailing address errors were the main problem with the undelivered refunds. … Continue reading

Posted in 1040, Refund, Taxes | Tagged , , , | Leave a comment

IRS Issues New Voluntary Compliance Initiative for Worker Reclassification

The IRS recently launched a new voluntary compliance program that allows employers to prospectively reclassify—as employees—those workers they have treated as independent contractors incorrectly. The program contains generous settlement terms and provides audit relief for previous years.  The IRS determined … Continue reading

Posted in Independent Contractor, Taxes, Worker Reclassification | Tagged , , , , , , | Leave a comment

Delayed Tax Returns May Now Be Filed For 2010

The IRS has announced that it started processing on February 14 the 2010 tax returns of certain taxpayers who had previously been advised to delay filing, namely those filing Schedule A or claiming above-the-line deductions for state and local sales … Continue reading

Posted in 1040 Filing Delay, Taxes | Tagged , , , , | Comments Off on Delayed Tax Returns May Now Be Filed For 2010

Deadline To Implement New Payroll Changes Is Close

Under the 2010 Tax Relief Act employees will pay only 4.2% Social Security tax on wages up to $106,800 (which is the limit on taxable wages for Social Security tax purposes).  The employer tax rate for Social Security remains unchanged … Continue reading

Posted in Payroll Taxes | Tagged , , , , , , , | Leave a comment

IRS Will Begin Processing Returns Impacted by 2010 Tax Changes on February 14, 2011

The delay in filing the 2010 Form 1040 for many individuals previously mentioned by the IRS will be over on February 14, 2011. The delay impacts filers who will itemize on Schedule A or claim above-the-line deductions for higher education … Continue reading

Posted in 1040 Filing Delay, News, Taxes | Tagged , , , , | Leave a comment

New 990-N Postcard Threshold Filing Requirements

Most tax-exempt entities who were just above the threshold of being able to file the 990-N postcard in prior years will now have that luxury. For tax years beginning on or after January 1, 2010, most tax-exempt entities with less … Continue reading

Posted in Tax Exempt Organizations | Tagged , , | Leave a comment

Making the Switch to EFTPS

Beginning in 2011, taxpayers will no longer be able to make tax deposits (e.g. employment tax, excise tax, corporate income tax) using Form 8109, the Federal Tax deposit Coupon. These deposits must be made using the EFTPS (Electronic Federal Tax … Continue reading

Posted in EFTPS, Idea of the Week, Payroll Taxes, Self Employment Tax | Tagged , , , , , , | Leave a comment

2010 Proposed Bush Era Tax Cut Extensions Update

The senate has overwhelmingly passed the bill to extend the Bush era tax cuts. The house HAS NOT but it continues to appear they are likely to pass it—-but not without significant added earmarks. A vote is still expected this … Continue reading

Posted in Asset Protection, Estate & Gift Planning, Estate & Gift Taxes, Future Planning, News, Taxes | Tagged , , , , , , | Leave a comment

2010 Taxpayers Get An Extra Three Days To File

The deadline for 2010 tax returns is April 18, 2011 due to a government holiday.  Emancipation Day is a legal holiday in the District of Columbia and falls on April 15, 2011, therefore taxpayers have until April 18, 2011 to … Continue reading

Posted in News, Taxes | Tagged , , | Leave a comment

CIRCULAR 230 DISCLAIMER: ADVICE, ARTICLES AND COMMENTARY INCLUDED HEREIN DO NOT CONSTITUTE AN OPINION AND ARE NOT INTENDED OR WRITTEN TO BE USED, AND THEY CANNOT BE USED, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER.