Archive for the ‘Tax Tips’ Category

The IRS has announced the release of the revised Form 5405,First Time Homebuyers Credit and Repayment of the Credit, that taxpayers need to use to claim the first time homebuyer credit (FTHTC) in 2009.  Processing of these returns will

It’s Not What You Earn, But What You Keep, After Taxes.™

IRS Commissioner Douglas Shulman recently commented that he is optimistic that Congress will enact legislation this year to make it clear that personal use of employer-provided cell phones will not be subject to taxation.

It’s Not What You Earn, But What You Keep, After Taxes.™

In a Chief Counsel Memorandum (CCM), IRS has recommended that its Collection employee not access any IRS database to determine whether a taxpayer’s authorized representatives are in compliance with their own filing and payment obligations.

It’s Not What You Earn, But What You Keep, After Taxes.™

A new Govenment Accountability Office (GAO) report addresses S corporation noncompliance and makes specific suggestions for correcting the problem.  Noncompliance issues include misreporting of income and or expenses, mistakes in calculating shareholder basis, and failure to pay shareholder employees adequate wage compensation.

It’s Not What You Earn, But What You Keep, After Taxes.™

As of November 2009, the IRS was looking for over 107,000 taxpayers who have not received their refund checks for 2008 because the checks were returned as undeliverable.  If the taxpayer has moved without notifying the IRS or Post Office, the check will be returned to the IRS.  The IRS will mail out the refund check as soon as it receives an updated address.

If you did not receive an expected refund, you can check on its status by going to the “Where’s My Refund?” page at www.irs.gov or by calling 1-800-829-1954.  You can also go to my website at www.sboyarcpa.com and get the “Where’s My Refund” link on the Tax Resources page.

It’s Not What You Earn, But What You Keep, After Taxes.™

Many Important tax changes go into effect in 2010 apart from the numerous changes that apply due to inflation indexing.  These non-indexing changes result from various laws that were enacted and regs and othe guidance issued over the past few years.  See you tax advisor to find out how these changes affect your business tax situation.

It’s Not What You Earn, But What You Keep, After Taxes.™

For Charges that you make with a Retail Store credit card, you are allowed to claim the deduction for the item only in the tax year in which you pay the bill.  For transactions made with a Bank credit card, you take the deduction in the tax year that you charged the goods, even though you pay the bill next year (2010)

It’s Not What You Earn, But What You Keep, After Taxes.™

According to an 11/4/09 report by the Treasury Inspector General for Tax Administration, more than 15.4 million taxpayers could unexpectedly owe taxes for 2009 due to the Making Work Pay Credit.  The fact that the credit is advanced to taxpayers by a decrease in their federal income tax withholding “creates the vulnerability that some taxpayers may have their taxes under-withheld.”  Furthermore, more than 1.2 million taxpayers in this group may have to pay back some or all of the credit, and/or owe an estimated tax penalty or an increased estimated tax penalty.

It’s Not What You Earn, But What You Keep, After Taxes.™

Homeowners making   improvements this fall can cut their winter heating bills and lower their tax bill by claiming one or both of the following income tax credits: (1) the non-business energy property credit, which equals 30% of the cost of eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years; and (2) the residential energy efficient property credit, which equals 30% of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbins, and fuel cell property.  Homeowners with tax-saving aspirations should check the manufacturer’s tax credit certification before purchasing or installing an improvement.

It’s Not What You Earn, But What You Keep, After Taxes.™

Buy a new car after February 16, 2009?  If so, the sales tax is deductible even if you can’t itemize your deductions.  Only for 2009.  And, only for cars under $49,500.  Even two cars, if the total cost is under $49,500.

It’s Not What You Earn, But What You Keep, After Taxes.™