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…
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.…
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…
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…
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…
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…
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…
As reported by the Wall Street Journal in this morning's paper below is a brief synopsis of the proposed tax cuts in the tax bill currently being decided on by Congress: All taxpayers (1) Two-year extension of current tax rates…
Individuals who are self-employed may deduct their health insurance premiums in the calculation of self employment income on 2010 tax returns. Self-employment income is taxed at 15.3% so this will be a major benefit to self-employed individuals. -EAE
Substantiation of certain business expenses is a requirement in order to have proof if ever requested by the IRS. Many independent contractors lose valuable expenses (travel for example) because they do not have the proper documentation to support the expense…