Burzenski & Co. :: Newsletters

Is a tax-deferred exchange still a smart strategy?

Filed Under: Taxes on August 06, 2004

Recent laws have created the need to reevaluate some of the tried-and-true tax planning of the past. One common planning strategy involved tax-deferred exchanges, also known as like-kind exchanges or a 1031 exchange.

Here’s good news if you have college expenses this year

Filed Under: Taxes on August 05, 2004

If you have higher education expenses in 2004, you should be aware of a change in the tax deduction you may be allowed to take.

Are your estate documents up to date?

Filed Under: Taxes, Your Finances on September 05, 2004

When is the last time you reviewed your will, medical directives, and other estate planning documents? If it’s been a while, chances are something needs updating.

You can deduct many expenses even if you don’t itemize

Filed Under: Taxes on September 20, 2004

Just because you don’t itemize your tax deductions doesn’t mean you can’t deduct anything on your tax return. Actually, there are a number of deductions and credits that you can use to reduce your taxes. Some are subject to income limits or other restrictions, so do the planning necessary before year-end to secure your eligibility for these tax-cutters.

Some Year-End Retirement Plan Reminders

Filed Under: Taxes, Your Finances on October 05, 2004

Retirement plans are one of the best ways to cut your current tax bill while you put money away for your retirement years. Here are some year-end reminders.

Another tax bill is passed

Filed Under: Taxes on October 27, 2004

In October Congress passed a second piece of tax legislation, this one called the American Jobs Creation Act of 2004. The law’s primary purpose is the repeal of the foreign sales corporation/extraterritorial income (FSC/ETI) tax regime. Congress used the bill as a vehicle for a number of other unrelated tax provisions, among them the following:

Time is running out for the 2004 gift tax exclusion

Filed Under: Taxes on November 20, 2004

An effective way to reduce your taxable estate is to make regular use of the annual gift tax exclusion. You may give up to $11,000 each year to as many individuals as you want without any gift tax liability. If you’re married and your spouse joins in the gift, you may, as a couple, give $22,000 to each person annually without any gift tax liability.

President Bush signs major business tax bill

Filed Under: Taxes on November 05, 2004

On October 22, 2004, President Bush signed the American Jobs Creation Act of 2004. The law repeals the system of export tax breaks that brought retaliatory tariffs on U.S. goods by the World Trade Organization.

Very Last Minute Tax Moves

Filed Under: Taxes on December 20, 2004

Before you settle in to enjoy the holidays, make sure
you’ve done everything you can to minimize your 2004 tax liability. Here are a few very last-minute moves you might make, but you have to act before December 31.

New law changes deduction rules for donating vehicles to charity

Filed Under: Taxes on December 05, 2004

If you donate a used vehicle to charity, you are allowed to take a tax deduction for your generosity, but only if you itemize deductions on your tax return. It’s estimated that over 700,000 taxpayers took a deduction for donating a used vehicle to charity in 2000. The tax law at that time allowed a deduction equal to the estimated fair market value of the vehicle.

Nine steps to consider to reduce your 2004 taxes

Filed Under: Taxes on December 05, 2004

Drain your flexible spending account (FSA). FSAs allow you to set aside pretax dollars for medical expenses and child care. After year-end, you lose any unspent dollars in the account. So squeeze in expenses to drain your account. Tip: You can now use account dollars to pay for over-the-counter drugs.
If you think you might be hit with a penalty for underpaying 2004 taxes, have your employer withhold extra taxes from your last few paychecks. The IRS treats wage withholding as being spread evenly over the year.
To increase 2004 deductions, pay 2004 state and local income taxes or property taxes before December 31. Also consider making planned 2005 charitable contributions this year so you can claim the deduction for 2004.
Make gifts of appreciated stock to children age 14 or older. At that age, the children won’t be hit with the kiddie tax, and they can sell the stock and be taxed at their lower rate. (Or they can hold the stock until they sell it to fund college expenses.)
If you've made a loan that you’re now unable to collect, you may be entitled to a bad debt deduction. It’s important to be able to show that you tried to collect, so take the necessary steps before year-end.
Get your investment records in order so you can make wise year-end sell decisions, either to rebalance your portfolio at the lowest tax cost or to offset gains and losses.
Make gifts before year-end to utilize your tax-free $11,000 gifting allowance for 2004. You can give this amount to as many individuals as you like.
Track down those reinvested dividends for any stock you sell in 2004. They'll add to your stock basis and reduce taxable gain.
Update your estate plan for any 2004 changes in your life. Letting your estate documents become outdated could expose you to higher taxes.

Mileage rates change for 2005

Filed Under: Business, Taxes, IRS Regulations on December 05, 2004

The standard mileage rate for business driving will increase starting January 1, 2005. The rate goes to 40.5¢ a mile, a 3¢ increase over the 2004 rate of 37.5¢ a mile. When the 40.5¢ mileage rate is used for a business car, the amount that will be considered as depreciation (for determining remaining tax basis in the car) is 17¢ a mile.

Tax Filing Deadlines

Filed Under: Taxes on January 05, 2005

There are several important tax deadlines coming up
this month. Here are some of the major ones.

* For businesses:
January 31 – Employers must provide 2004 W-2
statements to employees.

January 31 – 1099 forms must be given to payees for
such payments as interest, dividends, royalties, and
commissions.

Save receipts for the new sales tax deduction

Filed Under: Taxes on February 07, 2005

One of the tax laws passed last October brought back
the itemized deduction for state and local sales taxes -
but only for 2004 and 2005.

Major Tax Deadlines

Filed Under: Taxes on March 01, 2005

For March 2005

Review your children’s tax filing requirements

Filed Under: Taxes on March 01, 2005

Children who have income may have to file income tax returns. Here are the filing requirements for 2004.

Want to cut both your gas bill and your tax bill?

Filed Under: Taxes on June 07, 2005

If you’re planning to buy a new car and wouldn’t mind cutting both what you pay at the gas pump and at tax time, consider purchasing a hybrid gas/electric car.

Roth or traditional IRA? What’s best for you?

Filed Under: Taxes on March 21, 2005

Making IRA contributions early each year is a smart
financial strategy. You give your money a longer time
to grow either tax-deferred or tax-free. Now might
also be a good time to review Roth IRAs so you can
decide whether your 2005 contribution should go to a
Roth or a traditional IRA.

Major Tax Deadlines for April 2005

Filed Under: Taxes on April 04, 2005

April 1 - Deadline for taking your first required IRA distribution if you turned 70½ in 2004. Unless you’re still working, this deadline also applies to your other retirement accounts (except for Roth IRAs).

How to benefit from the 2004 tax laws with early 2005 planning

Filed Under: Taxes on April 04, 2005

Two laws were passed late in 2004. Some provisions are permanent, but many are temporary. Here are some steps you can take to maximize the tax breaks contained in these two tax laws.

What if you can’t meet the April 15 tax deadline?

Filed Under: Taxes on April 05, 2005

April 15 is fast approaching. If it looks like you
won’t be able to file your tax return by the deadline,
it’s time to start thinking about filing an extension.

Make 2005 less taxing with good recordkeeping

Filed Under: Taxes on April 22, 2005

Did the April 15 tax filing deadline fill you with
dread? Was the prospect of a tax refund check
overshadowed by the misery of pulling together your tax
records? Here are a few basic steps you can take to
simplify your recordkeeping and make 2005 less taxing.

Major Tax Deadlines for May 2005

Filed Under: Taxes on May 25, 2005

May 16 - Deadline for calendar-year exempt organizations to file 2004 information returns.

IRS raises its interest rates

Filed Under: Taxes on May 25, 2005

The IRS will charge 6% interest on individual and corporate tax underpayments for the second quarter of 2005 (April 1 through June 30). Large corporate underpayments will be assessed interest at 8%.

Find tax savings in your summer activities

Filed Under: Taxes on June 20, 2005

Summertime can be a great time for cutting taxes. Some
possibilities:

Major Tax Deadlines for July and August

Filed Under: Taxes on July 06, 2005

For July 2005

What’s New in Taxes

Filed Under: Taxes on July 06, 2005

Tax reform deadline extended

Read more of “What’s New in Taxes”

IRS clarifies rules for donating vehicles to charity

Filed Under: Taxes on July 27, 2005

Last year’s tax law changed the rules for determining the amount of a tax deduction for giving a car, boat, or airplane to a charitable organization. No longer can individuals deduct the fair market value of the vehicle. The deduction is limited to the amount for which the charity actually sells the vehicle.

An exchange can save taxes

Filed Under: Taxes on July 27, 2005

Sitting on a piece of investment property that you would like to sell? By structuring the transaction as a tax-deferred exchange, you can delay paying taxes on the full amount of the gain realized.

Don’t sell your property; exchange it.

Filed Under: Taxes on August 22, 2005

If you’re thinking of selling a piece of business or
investment property, you should know about one tax
provision that could let you postpone taxes on the
transaction, either temporarily or permanently,
depending on the circumstances.

Major Tax Deadlines For September 2005

Filed Under: Taxes on August 30, 2005

September 15 - Due date for individuals to pay third quarter installment of 2005 estimated tax.

What’s New: Check out the tax credits in the new energy bill

Filed Under: Taxes on August 30, 2005

On August 8, President Bush signed the Energy Policy Act of 2005, a bill that makes numerous changes to the tax code. Among the provisions that could save you tax dollars are the following:

Seven steps to cut your 2005 tax bill

Filed Under: Taxes on August 30, 2005

Here are some things you can do between now and year-end to cut your 2005 tax bill.

Factor new tax credits into your planning

Filed Under: Taxes on September 06, 2005

Last month President Bush signed an energy bill that
contains tax incentives you need to be aware of as you
do your 2005-2006 tax planning. The provisions of
interest to most taxpayers and businesses include the
following:

Back to school? Don’t overlook the tax breaks.

Filed Under: Taxes on September 20, 2005

If you have back-to-schoolers in your family, review
your education planning to optimize the available tax
breaks for those school expenses.

Major Tax Deadlines for October 2005*

Filed Under: Taxes on September 29, 2005

October 17 - Deadline for filing 2004 individual tax returns on second extensions.

What’s New: Congress passes tax relief for hurricane victims

Filed Under: Taxes on September 29, 2005

On September 21, Congress passed the Katrina Emergency Tax Relief Act of 2005 to provide immediate assistance to individuals and businesses hit by Hurricane Katrina.

Major Tax Deadlines for November 2005

Filed Under: Taxes on November 01, 2005

During November: It’s wise to estimate your 2005 income tax liability and review your options for minimizing your 2005 taxes. Call us if you would like to schedule a tax-planning session.

Tips for reducing taxes on investment sales

Filed Under: Taxes on November 23, 2005

Year-end is an opportune time to review and rebalance
your investment portfolio. Only you can decide whether
you want to hold or sell a particular investment, but
if you decide to sell, here are some year-end tips for
keeping the tax consequences to a minimum.

Major Tax Deadlines For December 2005

Filed Under: Taxes on November 28, 2005

December 31 - Last day to set up a Keogh retirement plan for 2005. Deductible contributions for 2005 can be made any time up to the filing deadline for your 2005 return.

Seven year-end moves to cut your taxes

Filed Under: Taxes on November 28, 2005

Time is running out on tax decisions and actions you can take to reduce your 2005 tax bill. Here are some year-end tax-cutting moves to consider.

Your 2005 gift tax exclusion expires December 31

Filed Under: Taxes on January 03, 2006

This year you can give gifts of up to $11,000 to as
many individuals as you want without being liable for
gift tax. The 2005 annual gift tax exclusion expires
December 31, so if you want to take advantage of this
tax break, you’ll have to act fast.

Major Tax Deadlines for January 2006

Filed Under: Taxes on January 03, 2006

January 17 - Final 2005 individual estimated tax payment is due, unless 2005 tax return is filed and taxes are paid in full by January 31, 2006.

What’s New: Use new tax numbers for your 2006 tax planning

Filed Under: Taxes on January 03, 2006

The IRS adjusts many tax numbers for inflation each year. Other numbers change as a result of tax law revision. As you begin your tax planning for 2006, here are some of the changes you’ll need to take into account.

Want to save energy and cut taxes, too?

Filed Under: Taxes on January 20, 2006

Planning some home improvement work this year? Two new
tax breaks can bring you savings of $1 in tax for every
qualifying $1 of expense. For instance, when you
insulate your principal residence or add energy-efficient
exterior doors or windows, you may be eligible for a
reduction in your tax bill of up to $500. Installing
solar hot water heaters or electricity-generating
solar or fuel cell equipment can generate a credit of
as much as $2,000.

What’s New: The early bird may get the new energy credit

Filed Under: Taxes on January 27, 2006

If you’re thinking of buying a hybrid or alternative fuel vehicle this year, you may want to take action earlier rather than later. The 2005 Energy Tax Incentives Act provided tax credits of up to $3,400 for the purchase of a hybrid car or truck.

How long should you keep tax records?

Filed Under: Taxes on January 27, 2006

How long should you keep your tax records? Unless fraud, evasion, or a substantial understatement of income is involved, the IRS generally has only three years in which to question your return. If the IRS asks, you must be able to prove the validity of your tax return, which includes providing the underlying supporting data. How long you keep your paperwork depends directly on the statute of limitations, but here are some guidelines.

Watch out for the nanny tax

Filed Under: Taxes on February 06, 2006

It seems that the “nanny tax” hits the news every so
often when some high-profile political figure reveals
that he or she hasn’t paid required nanny taxes. While
you may not plan on running for political office,
failing to pay the nanny tax on the household workers
you employ could result in IRS penalty and interest
charges. And that’s in addition to the tax itself.

Major Tax Deadlines for March 2006

Filed Under: Taxes on February 24, 2006

March 1 - Farmers and fishermen who did not make 2005 estimated tax payments must file 2005 tax returns and pay taxes in full.

More Important Tax Deadlines for April 2006

Filed Under: Taxes on February 24, 2006

For April 2006

Should you pay taxes with a credit card?

Filed Under: Taxes on February 24, 2006

More and more taxpayers are using their credit cards to pay the taxes they owe at tax filing time. This year, credit card companies are trying to lure even more people to use credit cards to pay the IRS. Some card issuers offer double award miles for every dollar of taxes paid with their credit cards.

Some tax trivia…

Filed Under: Taxes on February 24, 2006

* President Lincoln introduced the income tax in 1862 to finance the Civil War.

Tax alert: Two IRA deadlines coming up

Filed Under: Taxes on March 06, 2006

Do either of these IRA deadlines apply to you or your
family?

Do you need more time to file your 2005 tax return?

Filed Under: Taxes on March 21, 2006

Monday, April 17 is the deadline for filing your 2005
income tax return. If it looks as though you can’t file
on time, don’t forget that a Form 4868 must be filed
with the IRS to give you additional time to file.

Major Tax Deadlines for April 2006

Filed Under: Taxes on March 29, 2006

April 3 - Deadline for taking your first required IRA distribution if you turned 70½ in 2005. Unless you’re still working, this deadline also applies to your other retirement accounts (except for Roth IRAs).

What’s New in Taxes: Good News from the IRS

Filed Under: Taxes on March 29, 2006

What’s New in Taxes:
Good news from the IRS

Parents: Your children can be the source of tax breaks

Filed Under: Taxes on March 29, 2006

Let’s talk about your kids—specifically, about the opportunities and issues involving your children and taxes. You’ve probably heard of the “kiddie tax,” which kicks in when a child under age 14 has unearned income over a specified amount ($1,700 in 2006). Income such as interest and dividends in excess of this amount will be taxed not at your child’s tax rate, but at your highest rate.

Don’t give Uncle Sam an interest-free loan

Filed Under: Taxes on April 07, 2006

Are you one of the millions of Americans who will
receive a tax refund this year? While most Americans
happily accept their tax refund checks, smart taxpayers
understand that refunds actually cost them money.
Here’s why:

Major Tax Deadlines for May 2006

Filed Under: Taxes on April 26, 2006

May 15 - Deadline for calendar-year exempt organizations to file 2005 information returns.

IRS publishes credit amounts for hybrid vehicles

Filed Under: Taxes on April 26, 2006

The Energy Policy Act of 2005 provided for tax credits of up to $3,400 to encourage taxpayers to buy fuel-efficient vehicles. The IRS has calculated the following amounts of credit taxpayers can take this year for the purchase of a new hybrid vehicle.

IRS provides credit information on hybrid cars

Filed Under: Taxes on May 08, 2006

Last year’s energy law included a tax provision
offering consumers a tax credit for buying a new
energy-efficient vehicle. The IRS recently issued 2006
credit amounts for the following vehicles:

Major Tax Deadlines for June 2006

Filed Under: Taxes on May 30, 2006

June 15 - Second quarter 2006 individual estimated tax is due.

June 15 - Due date for calendar-year corporations to pay second installment of 2006 estimated tax.

June 15 - Due date for calendar-year trusts and estates to pay second installment of 2006 estimated tax.

“Buyer beware” warnings are issued by the IRS

Filed Under: Taxes on May 30, 2006

A 2005 law requires anyone filing for bankruptcy to first seek counseling from a credit counseling agency.

$70 billion tax cut signed by Bush

Filed Under: Taxes on May 30, 2006

Congress finally passed a bill that provides for $70 billion in tax relief for American taxpayers. President Bush signed the Tax Increase Prevention and Reconciliation Act of 2005 on May 17, 2006.

Summer’s here! Are tax-savings on your mind?

Filed Under: Taxes on July 10, 2006

Summer is the time for fun - vacations, backyard
barbecues, and tax savings. Yes, tax savings. Put tax
planning on your summer agenda, and you’ll end up with
more of your hard-earned dollars in your own pocket
come 2006 tax filing time.

Major Tax Deadlines for July 2006

Filed Under: Taxes on July 10, 2006

July 31 - Due date for filing retirement or employee benefit plan returns (5500 series) for plans on a calendar year.

Combat pay counts for IRA contribution

Filed Under: Taxes on July 10, 2006

On May 29, 2006, President Bush signed the Heroes Earned Retirement Opportunities Act, a new law that will permit combat pay, which is usually nontaxable, to count as taxable income for purposes of calculating IRA contributions. The new law is expected to give military personnel an estimated $167 million in tax benefits over a ten-year period.

The AMT gets a temporary fix

Filed Under: Taxes on July 21, 2006

The alternative minimum tax (AMT) was set up in the
1960s to make sure that high-income earners did not
avoid paying federal income tax.

Major Tax Deadlines for August 2006

Filed Under: Taxes on July 27, 2006

*Prior to this year, getting an automatic extension for filing your tax return gave you four extra months to file. That meant August 15 was the due date for filing extended tax returns (or for requesting an additional two months by explaining your need for more time to the IRS). This year, automatic extensions allow six extra months to file—or until October 16, 2006, for extended 2005 returns.

IRS concedes defeat on telephone tax

Filed Under: Taxes on July 27, 2006

After numerous losses in court, the IRS is admitting defeat on the issue of telephone excise taxes. The Service will no longer collect the 3% excise tax on long-distance telephone services. In addition, the IRS will issue credits or refunds of all excise taxes paid on long-distance service billed after February 28, 2003, along with interest.

Consider the tax benefits of annual gifts

Filed Under: Taxes on July 27, 2006

Did you know that this year you can give gifts of up to $12,000 to as many individuals as you want without being liable for gift tax? Normally, the gifts you make count towards your lifetime exemption from gift and estate taxes. That’s so you don’t just give away your estate shortly before death to avoid estate taxes.

The "kiddie tax" now applies until age 18

Filed Under: Taxes on August 18, 2006

The tax law President Bush signed last May changed the
age limit for the “kiddie tax.” The rule that taxes
your children’s investment income over $1,700 at your
highest tax rate now applies to children up to age 18
rather than the previous age 14. And though the rule
changed in May, it applies for all of 2006.

Major Tax Deadlines for September 2006

Filed Under: Taxes on August 31, 2006

September 15 - Due date for individuals to pay third quarter installment of 2006 estimated tax.

What’s New in Taxes: New Pension law changes some tax rules

Filed Under: Taxes on August 31, 2006

In early August, Congress passed a major new law on pension plans. But buried in the fine print were some unexpected tax provisions. Some could affect your ability to claim deductions for charitable contributions. And others change the tax rules for retirement savings.

New pension law includes tax changes

Filed Under: Taxes on September 06, 2006

On August 17, 2006, President Bush signed the Pension
Protection Act of 2006. This 900-plus page pension law
also includes some tax savers and a few tax increases.

IRS Alert: Watch out for scams

Filed Under: Taxes on September 21, 2006

A 2004 tax law authorized the Internal Revenue Service
to use private collection agencies to assist with the
collection of taxes due the government. Private
agencies will not have the authority to file liens,
make levies, or do property seizures. By the end of
this year the IRS will have turned over about 40,000
taxpayer files for such collection.

Major Tax Deadlines for October 2006

Filed Under: Taxes on September 28, 2006

October 16 - Deadline for filing 2005 individual tax returns on automatic extension of the April 17 filing deadline.

What’s New in Taxes: IRS begins using private collection agencies

Filed Under: Taxes on September 28, 2006

A 2004 tax law authorized the Internal Revenue Service to use private collection agencies to assist with the collection of taxes due the government. By the end of this year the IRS will have turned over about 40,000 taxpayer files for such collection.

Know the rules for claiming dependents

Filed Under: Taxes on September 28, 2006

You are allowed a tax deduction of $3,300 for each dependent this year. Therefore, knowing who qualifies as your dependent could cut your tax bill.

Major Tax Deadlines for November 2006

Filed Under: Taxes on October 26, 2006

During November: It’s wise to estimate your 2006 income tax liability and review your options for minimizing your 2006 taxes. Call us if you would like to schedule a tax-planning session.

What’s New in Taxes: Telephone tax to be refunded with your 2006 tax filing

Filed Under: Taxes on October 26, 2006

Did you know you may qualify for an extra refund when you file your 2006 taxes? And if you qualify, you can claim the refund by filling out just one extra line on your 2006 tax return.

Let the tax man help with child care costs

Filed Under: Taxes on October 26, 2006

Are you a working parent looking for ways to ease the burden of child care expenses? There are several tax-saving strategies available to you.

Have you done your year-end tax planning?

Filed Under: Taxes on November 03, 2006

Year-end is fast approaching, and that means time is
running out for taking actions that will reduce your
2006 tax bill. Here’s a brief checklist of actions you
might want to consider.

Major Tax Deadlines For December 2006

Filed Under: Taxes on November 29, 2006

December 15 - Fourth estimated tax payment is due for calendar-year corporations.

What’s New in Taxes: More wages subject to social security tax in 2007

Filed Under: Taxes on November 29, 2006

The Social Security Administration has published the maximum amount of earnings that will be subject to social security taxes next year. The amount increases to $97,500, up from $94,200 for 2006.

Two 2006 laws may offer new tax planning opportunities

Filed Under: Taxes on November 29, 2006

If you can name the two new tax bills passed by Congress this year, you might be a master of trivia. But there is nothing trivial about the Tax Increase Prevention and Reconciliation Act and the Pension Protection Act. These laws could have an impact on your taxes.

Will your tax refund be "undeliverable"?

Filed Under: Taxes on December 06, 2006

Every year millions of dollars of tax refunds are
returned to the IRS as undeliverable. The IRS just
recently announced that it has 95,746 undeliverable
refunds totaling $92.2 million.

Major Tax Deadlines for January 2007

Filed Under: Taxes on January 02, 2007

January 16 - Final 2006 individual estimated tax payment is due, unless 2006 tax return is filed and taxes are paid in full by January 31, 2007.

What’s New in Taxes: IRS has 95,746 undeliverable refunds

Filed Under: Taxes on January 02, 2007

Are you still waiting for your tax refund? If so, you may be one of the 95,746 taxpayers to whom the IRS has been unable to deliver a refund check. The refunds total $92.2 million.

Your 2007 tax checklist

Filed Under: Taxes on January 02, 2007

Gather the tax documents needed for filing your 2006 tax return—the W-2s, 1099s, and other information forms you receive from your employer, broker, bank, etc. If you detect errors, notify the sender and ask for a corrected copy.

Read more of “Your 2007 tax checklist”

Last minute 2006 tax law is signed

Filed Under: Taxes on January 08, 2007

In one of its final acts before adjourning for 2006,
Congress passed the Tax Relief and Health Care Act of
2006. President Bush signed the bill into law on
December 20, 2006. The law retroactively reinstates a
number of tax breaks that had expired at the end of 2005,
making them effective for 2006 and 2007. Here’s a brief
overview of what was extended.

Check these January tax filing deadlines

Filed Under: Taxes on January 08, 2007

There are several important tax deadlines coming up
this month. Here are some of the major ones.

Major Tax Deadlines for February and March

Filed Under: Taxes on January 27, 2007

For February 2007

What’s New in Taxes: Last-minute law extends tax breaks

Filed Under: Taxes on January 27, 2007

Just before adjourning for 2006, Congress passed the Tax Relief and Health Care Act of 2006. President Bush signed the bill into law on December 20, 2006. The law retroactively reinstates a number of tax breaks that had expired at the end of 2005, making them effective for 2006 and 2007. Here’s a brief overview of what was extended.

Take these deductions even when you don’t itemize

Filed Under: Taxes on January 27, 2007

If you’ve given up itemizing deductions, you’re not alone. These days over half of all taxpayers find they’re better off using the standard deduction. But even if you take the standard deduction, you can also deduct some individual expenses. Consider the following.

Are you getting a tax refund this year?

Filed Under: Taxes on February 07, 2007

Every year thousands of people get a big tax refund. If
you’re one of those taxpayers, consider investing your
refund or using it to increase your financial security.
Everyone’s needs are different, but here are some
suggestions.

Tax Deadlines for March & April

Filed Under: Taxes on February 27, 2007

For March 2007

IRS gets tough on abusive telephone tax refund claims

Filed Under: Taxes on February 27, 2007

Special IRS agents served search warrants to tax preparers in several cities, seeking evidence of fraudulent claims for refunds of excise taxes paid on long-distance telephone service. This tax is being refunded to taxpayers for the period of March 2003 through July 2006. However, unscrupulous promoters and tax preparers are filing refund claims for taxpayers requesting thousands of dollars of refunds where the individuals are entitled to only a tiny fraction of the claimed amount.

Smart strategies for your tax refund

Filed Under: Taxes on February 27, 2007

Are you eagerly awaiting a 2006 tax refund? Hopefully you’ve given some thought to how you can put the money to good use. While “good use” may be in the eye of the beholder, you should really consider the following:

You get a few extra days to file this year

Filed Under: Taxes on March 05, 2007

The IRS recently announced that all taxpayers will have
until April 17, 2007, to file their 2006 tax returns and
pay any balance due.

Major Tax Deadlines For April 2007

Filed Under: Taxes on March 29, 2007

April 2 - Deadline for taking your first required IRA distribution if you turned 70½ in 2006. Unless you’re still working, this deadline also applies to your other retirement accounts (except for Roth IRAs).

What’s New in Taxes: New $5,000 penalty for making "frivolous" tax claims

Filed Under: Taxes on March 29, 2007

In a March 2007 notice, the IRS specified forty tax positions that will be treated as frivolous. Taxpayers who make these arguments in order to keep from paying taxes will be subject to a new $5,000 penalty. Four IRS Revenue Rulings were issued to accompany this IRS warning. The rulings targeted the major frivolous positions taxpayers (and often unscrupulous tax preparers) take, including the following claims:

How to correct a mistake on your tax return

Filed Under: Taxes on April 05, 2007

What should you do if you find that you made a mistake
on your 2006 tax return after it’s been filed? Perhaps
you find that you missed a big deduction. Perhaps you
receive a late notice of income you earned. Or perhaps
you receive a corrected Form 1099 from your broker.
The answer is not to panic. You can correct the mistake
with an amended return.

What tax records should you save?

Filed Under: Taxes on April 05, 2007

Once you’ve filed your 2006 tax return, you may wonder
what records you can toss and what you should keep.
Here are some suggestions.

Major Tax Deadlines For May 2007

Filed Under: Taxes on April 27, 2007

May 15 - Deadline for calendar-year exempt organizations to file 2006 information returns.

What’s New in Taxes: IRS warns taxpayers about phony e-mails

Filed Under: Taxes on April 27, 2007

The IRS is warning taxpayers about Internet scams and fraudulent e-mails that appear to be from the IRS. The e-mails direct the taxpayer to a Web link that looks like the genuine IRS site and requests information such as the individual’ s social security number and bank account or credit card numbers. This information is then used by the scammers to steal from the victim’ s bank account and run up charges on his or her credit card.

Don’t respond to phony IRS e-mails

Filed Under: Taxes on May 08, 2007

The IRS is trying to get the word out about one of the
latest Internet tax scams. In this scheme, taxpayers
receive an e-mail telling them they are entitled to a
tax refund. The e-mail, which claims to be from the IRS,
directs the individual to a Web site that resembles the
IRS’s Web site. The individual is then asked for
personal and financial information, such as social
security number, bank account PINs, and credit card
numbers.

What’s New in Taxes: Five new tax scams included in 2007 "dirty dozen"

Filed Under: Taxes on May 31, 2007

Each year, the IRS publishes its list of top tax scams known as the “dirty dozen.” The 2007 list includes five new scams uncovered by IRS auditors and criminal investigators.

Taxes and your child’s summer job

Filed Under: Taxes on May 31, 2007

Your son, Jake, a junior in high school, announces that he’s found himself a job for the summer. How will that affect his tax situation and yours?

New tax law signed in May. Will it affect you?

Filed Under: Taxes on June 06, 2007

President Bush signed the Small Business and Work
Opportunity Tax Act on May 25, 2007. This law is part
of a larger bill that provides funds for the troops and
increases the federal minimum wage over a two-year
period to $7.25.

Summertime... and the tax savings are worth checking

Filed Under: Taxes on June 06, 2007

When the warm summer days arrive, you may be tempted to
forget about serious things like taxes. But that could
lead to a higher 2007 tax bill. Here are just a few
summertime tax-saving ideas to consider.

Major Tax Deadlines For July 2007

Filed Under: Taxes on June 28, 2007

July 31 - Due date for filing retirement or employee benefit plan returns (5500 series) for plans on a calendar year.

Do a midyear review of your business tax planning

Filed Under: Taxes on June 28, 2007

1. Establish a retirement plan if you don’t already have one. Examining the choices now gives you time to select the best plan for your business and to get the paperwork completed. Then you’ll be set to make contributions as your cash flow allows—and to take the deduction on your 2007 tax return.

What’s New in Taxes: Charities and churches warned to stay out of politics

Filed Under: Taxes on July 27, 2007

Though national elections are not until next year, the IRS is reminding charities, churches, and other nonprofit organizations to stay out of politics. A 2006 report on political activities showed a steep increase in the number of complaints about improper activities by these organizations. The tax-exempt status of nonprofit organizations is dependent on their refraining from engaging in partisan political activities.

Age limit for "kiddie tax" to go up again

Filed Under: Taxes on August 03, 2007

Do your children have savings accounts or other
investments held in their own name? If so, the tax on
those investments could change. That’s because recent
tax legislation will expand the “kiddie ta.” to cover
children up to age 19 starting in 2008. For full-time
students, the age limit will be even higher – up to age
24. Prior to 2006, the kiddie tax applied up to age 14.
That limit increased to age 18 for 2006 and 2007.

Major Tax Deadlines For September 2007

Filed Under: Taxes on August 30, 2007

September 17 - Due date for individuals to pay third quarter installment of 2007 estimated tax.

September 17 - Due date for filing 2006 tax returns for calendar-year corporations that had an extension of the March 15 filing deadline.

October 1 - Deadline for businesses to adopt a SIMPLE retirement plan for 2007.

What’s New in Taxes: IRS launches audit program

Filed Under: Taxes on August 30, 2007

Beginning next month, the IRS plans to audit about 13,000 individuals for tax year 2006 as part of a research project to update the Service’s audit selection process. Audits will focus on those parts of the individual’s tax return that cannot be verified through third-party information reports sent to the IRS.

Taxes are on the agenda in Washington

Filed Under: Taxes on September 06, 2007

Congress is back in session following its August recess, and taxes are on the fall agenda. House and Senate tax committees say they hope to pass several pieces of legislation that could include the following:

Back to school this fall? Use tax breaks to help pay

Filed Under: Taxes on September 06, 2007

The tax law includes a number of deductions, credits, and other tax breaks to help families with the cost of education. Unfortunately, these tax provisions can be challenging to sort through, and as a result, many taxpayers fail to take advantage of them.

Major Tax Deadlines For October 2007

Filed Under: Taxes on September 26, 2007

October 15 - Deadline for filing 2006 individual tax returns on automatic extension of the April 17 filing deadline.

October 15 - If you converted a regular IRA to a Roth IRA in 2006 and now want to switch back to a regular IRA, you have until October 15, 2007, to do so without penalty.

October 15 - Deadline for filing 2006 partnership and limited liability company returns on extension of the April 17 filing deadline.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

Don’t fall for the latest IRS e-mail scam

Filed Under: Taxes on September 26, 2007

The Internal Revenue Service is warning taxpayers about yet another e-mail scam. In this latest scam, the taxpayer receives an e-mail that appears to come from the IRS. The e-mail contains a link to an online “Member Satisfaction Survey.” and the taxpayer is told he or she has been selected to participate in this survey. In return for completing the survey, the taxpayer will receive an $80 credit to his account. On the survey, the taxpayer is asked for information that the scam artists will later use to steal the victim’s bank account, incur charges on his or her credit card, etc.

If you can, plan for coming payroll tax increases

Filed Under: Taxes on September 26, 2007

Many Americans pay more payroll taxes than federal income tax. That’s the FICA tax you see on your W-2 wage statement - a combination of 6.2% social security tax and 1.45% Medicare tax. The social security tax is assessed on up to $97,500 of earnings in 2007, and the Medicare tax has no earnings limit. Your employer matches the FICA tax you pay.

Major Tax Deadlines for November

Filed Under: Taxes on October 30, 2007

During November: It’s wise to estimate your 2007 income tax liability and review your options for minimizing your 2007 taxes. Call us if you would like to schedule a tax-planning session.

What’s New in Taxes: AMT relief is still a work in progress

Filed Under: Taxes on October 30, 2007

Both Republicans and Democrats agree that the alternative minimum tax (AMT) is affecting taxpayers who were never the intended target of this alternate tax system.

Tax-cutting time for 2007 is running out

Filed Under: Taxes on October 30, 2007

Time is running out on moves you can make to reduce your 2007 tax bill. Some actions to consider right now:

Major Tax Deadlines for December 2007

Filed Under: Taxes on November 29, 2007

* December 17 - Fourth estimated tax payment is due for calendar-year corporations.

* December 31 - Last day to set up a Keogh retirement plan for 2007. Deductible contributions for 2007 can be made any time up to the filing deadline for your 2007 return.

* December 31 - Deadline for taking required minimum distributions from IRAs and other retirement accounts.

* December 31 - Deadline to complete 2007 tax-free gifts of up to $12,000 per recipient.

* December 31 - Deadline for paying expenses you want to be able to deduct on your 2007 income tax return.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: Big tax changes ahead

Filed Under: Taxes on November 29, 2007

Beginning in January 2008, the tax rate on certain dividend income and long-term capital gains goes from 5% to 0% for taxpayers in the bottom two regular tax brackets (10% and 15%). If you’re a single filer with income less than about $32,000 or married with income less than about $64,000, the new zero long-term capital gain rate could apply to you. In that case, you may want to postpone planned sales until 2008.

Do a year-end tax review of your investments

Filed Under: Taxes on November 29, 2007

This is a good time of year to review your investments. If you’re not meeting your financial goals for the year, there’s still time to make changes. Make sure your portfolio is appropriately balanced among stocks, bonds, and other investments. Keep it well diversified, without too much at risk in any one sector. And you’ll want to weed out investments with poor future prospects.

Act fast to cut your 2007 taxes

Filed Under: Taxes on December 06, 2007

Time is running out on moves you can make to reduce
your 2007 tax bill. Some actions to consider right now:

Major Tax Deadlines for January 2008

Filed Under: Taxes on December 27, 2007

* January 15 - Final 2007 individual estimated tax payment is due, unless 2007 tax return is filed and taxes are paid in full by January 31, 2008.

* January 31 - Employers must provide 2007 W-2 statements to employees.

* January 31 - Payers must provide 2007 Form 1099s to payees.

* January 31 - Employers must generally file Form 941 for the fourth quarter of 2007 and pay any tax due.

* January 31 - Employers must generally file 2007 federal unemployment tax returns and pay any tax due.

What’s New in Taxes: IRS has $110 million in undeliverable refunds

Filed Under: Taxes on December 27, 2007

Are you still waiting for your tax refund? If so, you may be one of the 115,478 taxpayers to whom the IRS has been unable to deliver a refund check. The refunds total about $110 million.

Include taxes in your New Year’s resolutions

Filed Under: Taxes on December 27, 2007

Expand your list of New Year resolutions to include the following:

Major Tax Deadlines for February 2008

Filed Under: Taxes on January 30, 2008

* February 28 - Payers must file 2007 information returns (such as 1099s) with the IRS. (Electronic filers have until March 31 to file.)

* February 29 - Employers must send 2007 W-2 copies to the Social Security Administration. (Electronic filers have until March 31 to file.)

For March 2008

What’s New In Taxes: Last-minute laws provide relief for taxpayers

Filed Under: Taxes on January 30, 2008

Congress passed two new tax laws in a flurry of year-end 2007 activity. The laws, which include an alternative minimum tax (AMT) “patc.” and mortgage relief for homeowners, will affect a wide range of taxpayers. But other proposed tax legislation was put on the shelf, at least temporarily. Here’s a brief summary of the key changes in the two new laws.

Reminders for filing your 2007 tax return

Filed Under: Taxes on January 30, 2008

* Gather the tax documents needed for filing your 2007 tax return - the W-2s, 1099s, and other information forms you receive from your employer, broker, bank, etc. If you detect errors, notify the sender and ask for a corrected copy.

Stimulus package agreement? Not quite. Not yet.

Filed Under: Taxes on February 09, 2008

On January 24 President Bush and bipartisan leadership
in the House of Representatives struck an agreement on
a $150 billion tax cut plan to stimulate the slowing U.S.
economy. The House passed the measure on January 29 by a
vote of 385 to 35.

Homeowners get mortgage debt relief

Filed Under: Taxes on February 09, 2008

Congress often rushes to pass legislation just before
adjourning for a holiday or recessing for the year, and
2007 was no exception. One of these last-minute bills
was the “Mortgage Forgiveness Debt Relief Act of 2007.”
which President Bush signed into law on December 20.

It’s official - President Bush signs Economic Stimulus

Filed Under: Taxes on February 25, 2008

The stimulus package that had been working its way
through Congress has now been signed into law. The new
law, signed by President Bush on February 13, provides
$152 billion of tax rebates and business investment
incentives intended to give the slowing U.S. economy a
boost.

Major Tax Deadlines March and April 2008

Filed Under: Taxes on March 06, 2008

For March 2008

What’s New in Taxes: New economic stimulus law passes

Filed Under: Taxes on March 06, 2008

In an attempt to boost the economy, Congress hammered out a new economic stimulus package in mid-February. The centerpiece of the new legislation, of course, is the highly publicized tax rebate program. However, other tax incentives targeted at the business sector were also included in the law.

Tax recordkeeping: Some tips to make it easier

Filed Under: Taxes on March 06, 2008

Are you sometimes overwhelmed and intimidated by the prospect of keeping records for federal tax purposes? Well, you are not alone. Here are some suggestions that should help you determine what to keep and for how long.

Major Tax Deadlines For April 2008

Filed Under: Taxes on March 28, 2008

April 1 - Deadline for taking your first required IRA distribution if you turned 70-1/2 in 2007. Unless you’re still working, this deadline also applies to your other retirement accounts (except for Roth IRAs).

April 15 - Individual income tax returns for 2007 are due.

April 15 - 2007 calendar-year partnership returns are due.

What’s New in Taxes: Filing a 2007 tax return is required to get rebate check

Filed Under: Taxes on March 28, 2008

Next month, the IRS will begin sending out the tax rebate checks authorized by the Economic Stimulus Act of 2008. The only way to receive a stimulus payment in 2008 is to file a 2007 tax return. The IRS says the majority of taxpayers do not have to take any additional steps to receive their checks besides the routine filing of their 2007 tax return. No other action, extra form, or call is necessary.

Act fast or you’ll lose your refund

Filed Under: Taxes on March 28, 2008

If you didn’t file a tax return for the year 2004, you’re not necessarily in trouble. In fact, you could be about to lose out on a nice refund check. The IRS reports that it is holding an astonishing $1.2 billion in refunds from the year 2004. Here’s how the situation arose.

No rebate check until 2007 tax return is filed

Filed Under: Taxes on April 07, 2008

Next month, the IRS will begin sending out the tax
rebate checks authorized by the “Economic Stimulus Act
of 2008.” Single taxpayers with income under $75,000
may qualify for rebates of up to $600 ($1,200 for
married couples with income under $150,000). An
additional $300 rebate will be sent for each dependent
child under age 17.

Simplify your life: Organize your tax records

Filed Under: Taxes on April 07, 2008

Did you spend hours pulling together your tax records
in preparation for filing your 2007 tax return? It
doesn’t have to be that way. Avoid the problem next
year by taking a few simple steps now.

Major Tax Deadlines for May 2008

Filed Under: Taxes on April 28, 2008

* May 15 - Deadline for calendar-year exempt organizations to file 2007 information returns.

* May 31 - Deadline for IRA, SEP, SIMPLE, Roth IRA, MSA, and education savings account trustees to file annual statements (Form 5498) with the IRS, with copies to participants.

What’s New in Taxes: Tax scam warnings

Filed Under: Taxes on April 28, 2008

The Justice Department’s Tax Division recently announced the creation of a national “tax defie.” initiative to “investigate, pursue, and, where appropriate, prosecute those who take concrete action to defy and deny the fundamental validity of the tax laws.” The IRS reminds taxpayers to be wary of scams and promises to avoid paying taxes that seem too good to be true, saying “There is no secret formula that can eliminate a person’s tax obligations.”

You may be able to find tax-saving options in new 2008 rules

Filed Under: Taxes on April 28, 2008

The tax law seems to change year-to-year. This year is certainly no exception. With careful planning, you can take advantage of new tax-saving opportunities in 2008 while avoiding potential pitfalls. Here’s a summary of several key provisions.

Schedule released for tax rebates

Filed Under: Taxes on May 06, 2008

If you or one of your family members qualifies for a
stimulus payment from the IRS, here is the schedule on
which the money will be delivered.

Major Tax Deadlines For June 2008

Filed Under: Taxes on June 06, 2008

* June 16 - Second quarter 2008 individual estimated tax is due.

* June 16 - Due date for calendar-year corporations to pay second installment of 2008 estimated tax.

* June 16 - Due date for calendar-year trust and estates to pay second installment of 2008 estimated tax.

IRS issues political activity reminder to tax-exempts

Filed Under: Taxes on June 06, 2008

Every presidential election year, the IRS issues a reminder to tax-exempt organizations, such as churches and charities, not to engage in prohibited political activities.

Vacation home planning can save your tax deduction

Filed Under: Taxes on June 06, 2008

You can enjoy a vacation home and cut your taxes - with some careful planning and a little discipline.

If wedding bells ring this summer, don’t forget taxes

Filed Under: Taxes on June 06, 2008

Will wedding bells be ringing for you or a family
member this summer? If so, add tax updating to the long
list of things to do.

Major Tax Deadlines For July 2008

Filed Under: Taxes on June 26, 2008

* July 31 - Due date for filing retirement or employee benefit plan returns (5500 series) for plans on a calendar year.

What’s New in Taxes: IRS audits more returns

Filed Under: Taxes on June 26, 2008

The IRS recently released data showing an increase in taxpayer audits during fiscal year 2007 (which ended September 30, 2007).

Summer tax moves

Filed Under: Taxes on June 26, 2008

* Your vacation home. If you have vacation/rental property, you might increase your tax deductions by adjusting the number of days you use your vacation home.

Major Tax Deadlines For August 2008

Filed Under: Taxes on July 29, 2008

Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: Tax changes in three new laws

Filed Under: Taxes on July 29, 2008

Congress has passed three laws that contain some tax provisions. Here’s a quick overview.

New tax laws passed

Filed Under: Taxes on August 11, 2008

Congress recently passed three laws that contain some
tax provisions. Here’s a quick overview.

Major Tax Deadlines For September 2008

Filed Under: Taxes on September 04, 2008

* September 15 - Due date for individuals to pay third quarter installment of 2008 estimated tax.

* September 15 - Due date for filing 2007 tax returns for calendar-year corporations that had an extension of the March 17 filing deadline.

* October 1 - Deadline for businesses to adopt a SIMPLE retirement plan for 2008.

What’s New in Taxes: Stimulus payment deadline approaching

Filed Under: Taxes on September 04, 2008

The IRS has issued billions of dollars in tax rebate checks as authorized by the Economic Stimulus Act passed in February of this year.

Could you be hit by this tax surprise?

Filed Under: Taxes on September 08, 2008

Unless Congress acts to change current tax law,
millions of middle-income taxpayers could be in for a
nasty tax surprise for 2008. That surprise: the
alternative minimum tax, also known as the AMT.

Time’s running out to reduce your 2008 tax bill

Filed Under: Taxes on September 08, 2008

Early fall is the perfect time to take stock of your
tax situation for the year. You have enough information
to produce a reasonably close estimate of your 2008
income and deductions, and there’s still enough time
left before year-end to make some tax-saving moves.
Here are a few possible tax-savers to consider.

Major Tax Deadlines for October 2008

Filed Under: Taxes on September 29, 2008

* October 15 - Deadline for filing 2007 individual tax returns on automatic extension of the April 15 filing deadline.

* October 15 - If you converted a regular IRA to a Roth IRA in 2007 and now want to switch back to a regular IRA, you have until October 15, 2008, to do so without penalty.

What’s New in Taxes: Year-end tax planning is essential this year

Filed Under: Taxes on September 29, 2008

As Congress works to settle the financial markets, its attention is diverted from tax issues. However, you need to keep your eye on how any tax changes Congress makes before year-end could affect your tax situation for 2008.

Reminder: Two home tax breaks available this year

Filed Under: Taxes on October 07, 2008

Don’t forget these two tax breaks that you and your
family members could benefit from this year.

Bailout law contains tax provisions

Filed Under: Taxes on October 07, 2008

On October 3, 2008, President Bush signed the
”Emergency Economic Stabilization Act of 2008.”
(H.R. 1424).

Major Tax Deadlines For October 2008

Filed Under: Taxes on October 13, 2008

* October 15 - Deadline for filing 2007 individual tax returns on automatic extension of the April 15 filing deadline.

* October 15 - If you converted a regular IRA to a Roth IRA in 2007 and now want to switch back to a regular IRA, you have until October 15, 2008, to do so without penalty.

Year-end tax planning is essential this year

Filed Under: Taxes on October 13, 2008

As Congress works to settle the financial markets, its attention is diverted from tax issues. However, you need to keep your eye on how any tax changes Congress makes before year-end could affect your tax situation for 2008.

You may qualify for a tax break when you sell vacant land

Filed Under: Taxes on October 13, 2008

You probably know that you can exclude up to $250,000 of gain ($500,000 for most joint filers) when you sell your principal residence. IRS regulations may now allow you to apply this gain exclusion when you sell vacant land that is adjacent to your home.

Major Tax Deadlines for November 2008

Filed Under: Taxes on November 06, 2008

During November: It’s wise to estimate your 2008 income tax liability and review your options for minimizing your 2008 taxes. Call us if you would like to schedule a tax-planning session.

What’s New in Taxes: New rescue plan extends expired tax breaks

Filed Under: Taxes on November 06, 2008

President Bush signed the Emergency Economic Stabilization Act of 2008 into law on October 3, hoping this plan would bring stability to the financial markets. The new legislation includes a wide range of provisions affecting financial institutions and individuals. For instance, it authorizes the government to spend $700 billion for troubled financial assets, curbs excessive compensation arrangements for executives of financial firms, raises the FDIC insurance limit to $250,000 per account through December 31, 2009, and provides relief for certain homeowners.

Act fast to identify ways to reduce your 2008 tax bill

Filed Under: Taxes on November 06, 2008

Year-end is fast approaching, but it’s not too late to reduce your 2008 taxes. Consider the following possibilities for actions you can take to cut your 2008 tax liability.

Major Tax Deadlines For December 2008

Filed Under: Taxes on November 26, 2008

* December 15 - Fourth estimated tax payment is due for calendar-year corporations.

* December 31 - Last day to set up a Keogh retirement plan for 2008. Deductible contributions for 2008 can be made any time up to the filing deadline for your 2008 return.

* December 31 - Deadline for taking required minimum distributions from IRAs and other retirement accounts.

* December 31 - Deadline to complete 2008 tax-free gifts of up to $12,000 per recipient.

* December 31 - Deadline for paying expenses you want to be able to deduct on your 2008 income tax return.

What’s New in Taxes: Lean-burn vehicle credit

Filed Under: Taxes on November 26, 2008

The IRS recently announced that certain advanced lean-burn technology vehicles will qualify for the alternative motor vehicle tax credit. Previously, only hybrid, fuel cell, and alternative fuel vehicles qualified.

Will your gifts bring a tax surprise?

Filed Under: Taxes on November 26, 2008

When it comes to gift giving, surprises are part of the pleasure. When it comes to gift taxes, surprises are the last thing you want. To help protect you from the unexpected, here are answers to common questions about federal gift tax law.

Major Tax Deadlines For January 2009

Filed Under: Taxes on January 12, 2009

* January 15 - Final 2008 individual estimated tax payment is due, unless 2008 tax return is filed and taxes are paid in full by February 2, 2009.

The following deadlines would normally fall on January 31. Because January 31, 2009, is a Saturday, the deadline moves to the next business day, which is February 2.

Tax Deadlines for February/March 2009

Filed Under: Taxes on January 30, 2009

* February 2 - Employers must provide 2008 W-2 statements to employees.

What’s New in Taxes: 2008 tax rebates still available for some

Filed Under: Taxes on January 30, 2009

The Stimulus Act of 2008 provided qualifying taxpayers with rebate checks last year. People who did not receive the maximum allowed or whose circumstances have changed since last year may be eligible for the 2009 version of the rebate - a “recovery rebate credit.”

Basis reporting will be required soon

Filed Under: Taxes on January 30, 2009

In just a few short years, brokers will be required to report basis information to the IRS for stocks, bonds, and other financial instruments.

"American Recovery and Reinvestment Act of 2009" is signed into law

Filed Under: Taxes on February 17, 2009

On February 17, President Obama signed the “American Recovery and Reinvestment Act of 2009.” a $789 billion package of tax breaks and spending programs designed to stimulate the economy. The tax portion of the law makes over 300 changes to the tax code. Here is an overview of the major tax provisions.

Major Tax Deadlines For March 2009

Filed Under: Taxes on February 25, 2009

* March 2 - Farmers and fishermen who did not make 2008 estimated tax payments must file 2008 tax returns and pay taxes in full.

* March 2 - Payors must file information returns (such as 1099s) with the IRS. (Electronic filers have until March 31 to file.)

* March 2 - Employers must send W-2 copies to the Social Security Administration. (Electronic filers have until March 31 to file.)

* March 8 - Daylight Saving Time begins.

* March 16 - 2008 calendar-year corporation income tax returns are due.

* March 16 - Deadline for calendar-year corporations to elect S corporation status for 2009.

* March 31 - Deadline for payors who file electronically to file 2008 information returns (such as 1099s) with the IRS.

* March 31 - Deadline for employers who file electronically to send copies of 2008 W-2s to the Social Security Administration.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: Tax breaks are included in the new Recovery Act

Filed Under: Taxes on February 25, 2009

The American Recovery and Reinvestment Act of 2009 includes a bevy of new tax breaks. The key provisions summarized below are generally retroactive to January 1, 2009.

Itemizing deductions: Three facts you should know

Filed Under: Taxes on February 25, 2009

You know the general rule about itemized deductions: Compare your total allowable expenses against your standard deduction, and use the amount that provides the greatest tax benefit.

Are there tax breaks for you in the new law?

Filed Under: Taxes on March 09, 2009

You’re probably aware that President Obama signed the
”American Recovery and Reinvestment Act of 2009” on
February 17. But have you checked to see what the new
law contains that could benefit you? Here’s a quick
look at the law’s tax changes and who’s likely to
benefit.

New law has tax breaks for businesses

Filed Under: Taxes on March 09, 2009

The “American Recovery and Reinvestment Act.” signed by
President Obama on February 17, 2009, contains a number
of provisions that will affect businesses. Here’s a
brief overview.

Major Tax Deadlines For April 2009

Filed Under: Taxes on March 30, 2009

* April 1 - Deadline for taking your first required IRA distribution if you turned 70-1/2 in 2008. Unless you’re still working, this deadline also applies to your other retirement accounts (except for Roth IRAs).

What’s New in Taxes: IRS expands 2009 homebuyer credit

Filed Under: Taxes on March 30, 2009

The IRS announced recently that taxpayers who qualify for the first-time homebuyer tax credit on a home purchased from January 1, 2009, through November 30, 2009, may claim the credit on either their 2008 income tax return due April 15, 2009, or on their 2009 tax returns due April 15, 2010.

Use the "saver’s credit" to cut your tax bill

Filed Under: Taxes on March 30, 2009

Would you like to shave $1,000 off your income tax bill? Would your spouse like to join in the tax savings of up to $2,000 on a joint return? This potential savings comes in the form of a tax credit called the “retirement savings contributions credi.” or “saver’s credit.” Unlike a tax deduction, a tax credit is a dollar for dollar reduction of the taxes you owe.

Claim the 2009 homebuyer credit now or later

Filed Under: Taxes on April 03, 2009

The IRS announced recently that taxpayers who qualify
for the first-time homebuyer tax credit on a home
purchased from January 1, 2009, through November 30,
2009, may claim the credit on either their 2008 income
tax return due April 15, 2009, or on their 2009 tax
return due April 15, 2010.

Major Tax Deadlines For May 2009

Filed Under: Taxes on April 27, 2009

* May 15 - Deadline for calendar-year exempt organizations to file 2008 information returns.

* June 1 - Deadline for IRA, SEP, SIMPLE, Roth IRA, MSA, and education savings account trustees to file annual statements (Form 5498) with the IRS, with copies to participants.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: IRS gives up on private debt collection

Filed Under: Taxes on April 27, 2009

The use of private debt collection agencies to collect overdue taxes was started in 2006. Some in Congress have agitated for an end to the program from its very beginning. Now, after an extensive review of the cost-effectiveness of the program, the IRS announced that it will not renew contracts with the private agencies.

How long should you keep tax records?

Filed Under: Taxes on April 27, 2009

After filing your 2008 tax return, you may be wondering how long to keep your tax records. Unless fraud, evasion, or a substantial understatement of income is involved, the IRS generally has only three years in which to question your return. If the IRS asks, you must be able to prove the validity of your tax return, which includes providing the underlying supporting data. How long you keep your paperwork depends directly on the statute of limitations, but here are some guidelines.

After you file your tax return...

Filed Under: Taxes on May 05, 2009

Once you have filed your 2008 tax return, you may still
have a few tax questions. The IRS provides these
answers to commonly asked questions.

A new vehicle could bring tax savings

Filed Under: Taxes on May 05, 2009

If you’re thinking of buying a new car, truck,
motorcycle, or motor home this year, you might benefit
from a tax break included in the “Recovery Act of 2009.”
Here are the details.

Major Tax Deadlines For June 2009

Filed Under: Taxes on June 01, 2009

* June 15 - Second quarter 2009 individual estimated tax is due.

School’s out! That means moving time for millions

Filed Under: Taxes on June 01, 2009

Millions of people move each year, often during the summer months when children are out of school. If you’re considering a move this summer, be aware that moving can have some important tax consequences.

Energy-saving home improvements could cut your 2009 taxes

Filed Under: Taxes on June 01, 2009

President Obama signed the “American Recovery and Reinvestment Act of 200.” into law on February 17, 2009. Among the various provisions in the law are new energy tax credits that can really add up to savings for the homeowner. Making energy-saving improvements to your home will help to save on utility bills, enhance your efforts to go “green.” add value to the home, and perhaps reduce your tax bill for 2009. These residential energy tax credits fall into two main categories: energy efficiency improvements and renewable energy systems. In many cases, the “Recovery Ac.” adjusts or extends similar energy credits previously available.

Summertime can be tax-cutting time

Filed Under: Taxes on June 05, 2009

As warm summer days arrive, you may be tempted to
forget about serious things like taxes. But that could
lead to a higher 2009 tax bill. Here are just a few
summertime tax-saving ideas to consider.

Making energy-saving home improvements could cut your

Filed Under: Taxes on June 05, 2009

Planning some home improvement work this summer? Make
energy efficiency changes and you might be able to cut
your 2009 tax bill at the same time.

Have you reviewed your estate plan lately?

Filed Under: Taxes on July 09, 2009

As the rules currently stand, up to $3.5 million of an
estate’s value is exempt from federal estate tax for
deaths occurring in 2009. In 2010, the estate tax is
scheduled to disappear completely, but just for one year.
In 2011, the tax will return with a lower $1,000,000
exemption.

Major Tax DeadlinesFor July 2009

Filed Under: Taxes on July 09, 2009

* July 31 - Due date for filing retirement or employee benefit plan returns (5500 series) for plans on a calendar year.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

Follow the road to savings with tax credits

Filed Under: Taxes on July 09, 2009

A tax deduction should never be overlooked, but it’s a tax credit that can make a big difference in your tax bill. While a deduction will reduce your tax liability, it will only reduce it by your marginal tax rate. For example, if you’re in the 25% bracket, a $1,000 deduction will save you $250 in taxes. But a credit is a dollar for dollar reduction of your tax liability. Regardless of your tax bracket, a $1,000 credit will reduce your tax liability by the full $1,000. In some cases, a credit will reduce your liability even below zero (called a refundable credit), giving you a refund of more taxes than you actually paid. Here are some of the more valuable credits.

Major Tax Deadlines For August 2009

Filed Under: Taxes on July 30, 2009

Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: An update on tax collections

Filed Under: Taxes on July 30, 2009

The economy hasn’t been doing well, and when the economy slumps, so do tax collections. The American Institute for Economic Research reported a 34% drop in federal taxes collected in April 2009 compared with April 2008. For the 12 months ended in April 2009, tax revenue dropped 44% compared to a year earlier.

Put midyear tax planning on your summer agenda

Filed Under: Taxes on July 30, 2009

Summer’s here, and probably the last thing on your mind is tax planning. The problem is that if you wait until December, there’s little time for changes to take effect. But if you take the time to plan now, you still have six months for your actions to make a difference on your 2009 tax return. With the recent tax changes, planning for the reduction of your 2009 taxes is more important than ever. Here are some suggestions to get you started.

Summer wedding? Don’t forget taxes.

Filed Under: Taxes on August 05, 2009

Summertime is often wedding time. If you or someone in
your family got married this summer (or is planning a
wedding soon), remember to take care of a few taxing
details.

Major Tax Deadlines for September, 2009

Filed Under: Taxes on August 28, 2009

* September 15 - Due date for individuals to pay third quarter installment of 2009 estimated tax.

* September 15 - Due date for filing 2008 tax returns for calendar-year corporations that had an extension of the March 16 filing deadline.

* September 15 - Due date for filing 2008 partnership tax returns that had an extension of the April 15 filing deadline.

* October 1 - Deadline for businesses to adopt a SIMPLE retirement plan for 2009.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

The IRS reminds taxpayers to use new tax breaks

Filed Under: Taxes on August 28, 2009

What’s New in Taxes: The IRS has issued a news release reminding taxpayers to take advantage of the tax breaks provided in the “American Recovery and Reinvestment Act of 2009.” the recovery law passed earlier this year.

New car tax break still available

Filed Under: Taxes on September 04, 2009

The “cash for clunker.” program ended abruptly on
Monday, August 24. The program, which provided up to
$4,500 to those who traded in their old cars for more
energy-efficient new ones, was so successful that the
$3 billion in government funding was depleted long
before the original November 1 deadline.

Use tax breaks to offset college expenses

Filed Under: Taxes on September 04, 2009

The IRS has published facts about the tax deduction for
tuition and fees that is available to help parents and
students pay for post-secondary education. If you’re
facing college expenses this fall, here’s what the IRS
wants you to know.

Major Tax Deadlines For October 2009

Filed Under: Taxes on September 29, 2009

* October 1 - Generally, the deadline for self-employeds and small businesses to establish a SIMPLE retirement plan for 2009.

What’s New in Taxes: A new vehicle could bring tax savings

Filed Under: Taxes on September 29, 2009

If you’re thinking of buying a new car, truck, motorcycle, or motor home this year, you might benefit from a tax break included in the “Recovery Act of 2009.” Here are the details.

The IRS launches major drive to inform taxpayers

Filed Under: Taxes on October 05, 2009

The IRS is going all out to promote taxpayer awareness
of the tax benefits in the “Recovery Ac.” passed
earlier this year. The Service is using YouTube videos,
iTunes podcasts, radio public service announcements,
and informational flyers to remind both individual and
business taxpayers about these tax breaks, many of
which will expire soon.

Major Tax Deadlines For November 2009

Filed Under: Taxes on October 29, 2009

During November: It’s wise to estimate your 2009 income tax liability and review your options for minimizing your 2009 taxes. Call us if you would like to schedule a tax-planning session.

What’s New in Taxes: Little change for 2010 tax numbers

Filed Under: Taxes on October 29, 2009

There was minimal inflation in 2009; therefore, tax numbers that are annually adjusted for inflation will see little or no change for 2010. The IRS has released the 2010 numbers for the more than three dozen tax breaks that are subject to annual inflation adjustments.

Year-end tax reminders

Filed Under: Taxes on October 29, 2009

The clock is ticking on tax moves you might benefit from if you act before December 31. Here are some year-end reminders.

Read more of “Year-end tax reminders”

Major Tax Deadlines For December 2009

Filed Under: Taxes on November 25, 2009

* December 15 - Fourth estimated tax payment is due for calendar-year corporations.

* December 31 - Last day to set up a Keogh retirement plan for 2009. Deductible contributions for 2009 can be made any time up to the filing deadline for your 2009 return.

* December 31 - Deadline to complete 2009 tax-free gifts of up to $13,000 per recipient.

* December 31 - Deadline for paying expenses you want to be able to deduct on your 2009 income tax return.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: Homebuyer’s credit extended

Filed Under: Taxes on November 25, 2009

Under prior law, an eligible first-time homebuyer could claim a maximum credit of $8,000 for a principal residence purchased before December 1, 2009. The credit began to phase out for single filers with a modified adjusted gross income (MAGI) above $75,000 and joint filers above $150,000.

Major Tax Deadlines For January 2010

Filed Under: Taxes on December 31, 2009

* January 15 - Final 2009 individual estimated tax payment is due, unless 2009 tax return is filed and taxes are paid in full by February 1, 2010.

The following deadlines would normally fall on January 31. Because January 31, 2010, is a Sunday, the deadline moves to the next business day, which is February 1.

What’s New in Taxes: IRS releases adjusted tax numbers for 2010

Filed Under: Taxes on December 31, 2009

Every year the IRS adjusts certain tax numbers as required by law. Here are three that might affect your 2010 tax planning.

Not everyone has to file a 2009 income tax return

Filed Under: Taxes on December 31, 2009

Strange as it may seem, the IRS doesn’t want everybody to file an income tax return. The reason is simple: Processing tax returns takes time and money. The IRS doesn’t want to use its resources handling returns that weren’t necessary in the first place.

Is the estate tax really dead?

Filed Under: Taxes on January 05, 2010

Officially, the estate tax has been repealed, but only
for 2010. That’s due to a provision in a 2001 law that
gradually reduced the estate tax rates and increased
the exemption amount, setting the tax to expire
completely in 2010. According to that law, the estate
tax is scheduled to be reinstated in 2011 at its
pre-2001 levels.

New law allows early deduction for Haiti relief donations

Filed Under: Taxes on January 27, 2010

A law signed by President Obama on January 22 lets you take an early tax deduction for contributions you make for earthquake relief to Haiti. And if you use your cell phone to donate via a text message, the new law gives you an easier method for substantiating your contribution.

Major Tax Deadlines For February 2010

Filed Under: Taxes on January 30, 2010

* February 1 - Employers must provide 2009 W-2 statements to employees.

* February 1 - Payers must provide 2009 Form 1099s to payees. (Brokers have until February 16 to provide Form 1099-B and consolidated statements to customers.)

* February 1 - Employers must generally file Form 941 for the fourth quarter of 2009 and pay any tax due.

New law provides early deduction for Haiti relief contributions

Filed Under: Taxes on January 30, 2010

On January 22, President Obama signed a law that could give you an early tax deduction for contributions you make for earthquake relief in Haiti.

Take a tax deduction for worthless stock

Filed Under: Taxes on January 30, 2010

Financial firms, car manufacturers, clothing retailers. As an investor, you know businesses in these industries went through bankruptcy proceedings in recent months—events that are painful to remember if you owned stock in a now defunct company. Once the investment is worthless, you might prefer to forget about it.

New law allows early deduction for Haiti relief

Filed Under: Taxes on February 05, 2010

A law signed by President Obama on January 22 lets you
take an early tax deduction for contributions you make
for earthquake relief to Haiti. And if you use your
cell phone to donate via a text message, the new law
gives you an easier method for substantiating your
contribution.

Major Tax Deadlines For March 2010

Filed Under: Taxes on March 02, 2010

* March 1 - Farmers and fishermen who did not make 2009 estimated tax payments must file 2009 tax returns and pay taxes in full.

What’s New in Taxes: Consider this new way to use your tax refund

Filed Under: Taxes on March 02, 2010

If you’re receiving a tax refund this year, you can use it to buy U.S. savings bonds from the IRS. Here are the details.

Prior year laws make changes to the tax rules for 2010

Filed Under: Taxes on March 02, 2010

There are many changes in the tax rules this year, with the promise of much more to come. Here are some of the 2010 changes that could affect you.

For April 2010

Filed Under: Taxes on April 02, 2010

* April 15 - Individual income tax returns for 2009 are due.

* April 15 - 2009 calendar-year partnership returns are due.

* April 15 - 2009 annual gift tax returns are due.

* April 15 - 2009 income tax returns for calendar-year trusts and estates are due.

* April 15 - Deadline for making 2009 IRA contributions.

* April 15 - Deadline for employers to make contributions to certain retirement plans.

* April 15 - First installment of 2010 individual estimated tax is due.

* April 15 - Deadline for amending 2006 individual tax returns (unless the 2006 return had a filing extension).

* April 15 - Deadline for original filing of 2006 individual income tax return to claim a refund of taxes. Each year some taxpayers have tax refunds due them for prior years, and unless a return is filed to claim the refund by the three-year statute of limitations, the refund is lost forever.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

What’s New in Taxes: Health care reform legislation passes

Filed Under: Taxes on April 02, 2010

Congress passed two bills that will reform the country’s health care system. The first bill, the “Patient Protection and Affordable Care Ac.” (H.R. 3590), was signed by President Obama on March 21, 2010. The companion bill, the “Health Care and Education Reconciliation Act of 201.” (H.R. 4872), makes several changes to the “Patient Protection Act.” It was signed into law on March 30. Taken together, these two pieces of legislation will have a major impact on the health care industry and on the taxes paid by businesses and individuals.

Should you be making quarterly tax payments?

Filed Under: Taxes on April 02, 2010

During the tax year you must prepay a substantial amount of the taxes you’ll owe for that year, or you risk being hit with an underpayment penalty. If you’re an employee, that’s usually not a problem. Your employer will withhold taxes from each paycheck. You can adjust the amount withheld so that it covers your total tax bill, even if you have extra income from moonlighting or investments. But if you’re self-employed or retired, you might need to make estimated tax payments.

Health care reform legislation passes

Filed Under: Taxes on April 06, 2010

The recently signed health care legislation has an
official name, but you probably think of it simply as
health care reform. And now that it’s law, you may be
wondering what tax changes are in store.

For May 2010

Filed Under: Taxes on May 04, 2010

* May 17 - Deadline for calendar-year exempt organizations to file 2009 information returns.

* June 1 - Deadline for IRA, SEP, SIMPLE, Roth IRA, MSA, and education savings account trustees to file annual statements (Form 5498) with the IRS, with copies to participants.

NOTE: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

IRS to focus audit activity in these areas

Filed Under: Taxes on May 04, 2010

The IRS has announced its audit plans, which includes audits in the following three areas:

Taxes and your child’s summer job

Filed Under: Taxes on May 04, 2010

Is your child looking for a job this summer? If so, you both may have questions about taxes. Here are three common concerns.

Major Tax Deadlines For June 2010

Filed Under: Taxes on June 02, 2010

* June 15 - Second quarter 2010 individual estimated tax is due.

* June 15 - Due date for calendar-year corporations to pay second installment of 2010 estimated tax.

* June 15 - Due date for calendar-year trust and estates to pay second installment of 2010 estimated tax.

Tax refunds may be delayed this year

Filed Under: Taxes on June 02, 2010

Your tax refund may be a little slow in coming this year. Problems relating to the Making Work Pay Credit, Economic Recovery Payments, and the Homebuyer’s Credit are creating delays in refunds.

Don’t overlook state taxes in your tax planning

Filed Under: Taxes on June 02, 2010

To keep more of what you make, tax planning at both the state and federal level is essential. Even if you live in an income tax-free state, you may not be able to escape state taxes entirely. Here are some common examples of when you need to pay attention to state tax planning.

Summer tax savers

Filed Under: Taxes on June 04, 2010

It’s summertime and lazy days beckon. However, there’s
one activity you should fit into your schedule:
reducing your 2010 income taxes.