Federal Tax Deposit Penalties – Form 940, Form 941, or Form 944

Tweet Failure to Deposit Penalty Percentage Rates:   At a Glance Failure to Deposit Penalty Rates for Unpaid Tax:   1-5 days late: 2% 6-15 days late: 5% 16 or more days late: 10% More than 10 days after the first IRS bill: 15%   In addition to the above deposit penalties, you will also [...]

Regulations provide guidance on proper place to file refund claims

Tweet The IRS issued final regulations on the correct place for taxpayers to file claims for refund or credit (T.D. 9727). The new rules generally require taxpayers filing claims for refund or credit to file their claim with the IRS service center at which the taxpayers currently would be required to file a tax return [...]

IRS Tax Lien Notices Didn’t Reach Taxpayers or Their Representatives

Tweet An estimated 24,237 taxpayers may have been adversely affected because the Internal Revenue Service did not follow requirements to notify the taxpayers’ representatives of the taxpayers’ rights related to notices of federal tax liens, according to a new report. The report, from the Treasury Inspector General for Tax Administration, was generally positive and found [...]

Tax season by the numbers

Tweet The IRS processed more than 126 million tax returns this year from individual filers. A look at the numbers: ___ — Refunds: 92 million. — Average refund: $2,711. — Total amount of refunds: $249 billion. — Calls to IRS help lines: 50 million. — Calls handled by automated phone system: 30 million. — Callers [...]

5 questions to ask clients with international ties

Tweet With the tremendous amount of wealth transferring into and out of the United States, more and more CPAs are encountering clients with international ties. Whether it is a U.S. citizen with international ties to family, business, or real property, or a U.S. nonresident seeking to immigrate to the United States or acquire U.S. property, [...]

7 Tax Tips On Vacation Home Rentals

Tweet This summer, you may be sticking close to home or traveling out and about. Either way, if you have a vacation home, it pays to think about taxes now, long before tax time next year. I’ll bet you are used to the admonition that everything is income to the IRS. Everything has to be [...]

IRS Watchdog Cites Failures, Concerns over 2015 Tax Filing Season

Tweet On July 15, National Taxpayer Advocate (NTA) Nina E. Olson released a midyear report on the state of affairs at the IRS, as mandated by federal law. The NTA serves at the IRS as a sort of internal watchdog on behalf of the public. There was plenty to complain about during the first half [...]

New Tax Penalty on Small Business Health Insurance

Tweet Small business groups are sounding a warning about an obscure Internal Revenue Service rule that takes effect imposing heavy fines on small businesses for helping defray the cost of their workers’ insurance or medical expenses. The National Federation of Independent Business said small businesses that get caught helping their workers buy insurance or pay [...]

10 States Where Your Taxes Are Going Up

Tweet Some states, still facing tight budgets after years of recession and slow recovery, are turning to tax increases to make up for the shortfalls. In some states, you’ll soon pay more for Gucci bags and other luxury goods. In others, soft drinks, cigarettes, gasoline and live entertainment will cost more. Pay attention even if [...]

Congress makes changes to tax code in trade preferences act

Tweet The Trade Preferences Extension Act of 2015 (H.R. 1295), which passed the House of Representatives on Thursday and now goes to President Barack Obama for his signature, contains a few tax provisions in addition to the trade measures that were the focus of the bill. The bill modifies the Sec. 35 health coverage tax [...]

Amazingly, IRS Collects 30 Year Old Tax Debt Despite 3 Year Statute Of Limitations

Tweet The IRS statute of limitations is usually 3 years to audit or make an assessment. There are many exceptions from this rule that give the IRS 6 years or longer. And once an assessment is made, the IRS collection statute is normally 10 years. Incredibly, in some cases the IRS can go back 30. [...]

IRS Sees Increase in Whistleblower Tips

Tweet The Internal Revenue Service’s Whistleblower Office received more claims last fiscal year than in any prior year as the program has begun paying out larger awards to tipsters with information on tax evaders. The Tax Relief and Health Care Act of 2006 allows whistleblowers to collect up to 30 percent of the proceeds that [...]

IRS Combats Identity Theft and Refund Fraud on Many Fronts

Tweet FS-2015-1, January 2015 Stopping identity theft and refund fraud is a top priority for the Internal Revenue Service. For the 2015 filing season, the IRS continues to expand these efforts to better protect taxpayers and help victims. IRS employees are working to prevent refund fraud, investigate identity theft-related crimes and help taxpayers who have [...]

India likely to sign US tax compliance law FATCA on Thursday

Tweet India is likely to sign the inter- governmental pact for the US tax compliance law FATCA on Thursday, a move that will help it fight tax evasion. Foreign Account Tax Compliance Act (FATCA) is aimed at combating possible tax evasion by Americans through financial entities of other countries. The pact is likely to be [...]

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