Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.
Did I calculate my return correctly? Did I take all the deductions I’m entitled to? Do I qualify for a credit and should I take it? These are all samples of the many questions that cross many a taxpayer’s mind before they submit their returns to the Government. However, one thought–or rather plea–that’s almost always on the mind is: Please, just don’t Audit me.
Although most income you receive is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable.
If you have a tax liability with the Internal Revenue Service (IRS), you should be aware of what a tax lien is. A tax lien is a tool used by the IRS to enforce collection of an unpaid tax liability. It allows the IRS to take your assets—your checking account balance, your cars, even your wages—in order to satisfy the money you owe to them.
The State of Arizona is taking the first crack at trying to collect sales tax from amazon.com–the biggest online discount retailer. According to a filing with the SEC, Arizona calculated that Amazon owes the state & various cities $53 Million in uncollected taxes from March 1st, 2006 through December 31st 2010.
The IRS recently released a list of 5 tax tips for taxpayers who have recently married or divorced, and are planning on filing their taxes with a different last name than in years past. If you fall into this category, it is important to ensure that the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your...
Fellow tax professional Dave Ramsey recently preformed a survey of 2000 taxpayers; about half of who prepared their own returns, and the other half who had them prepared professionally. This is what he found:
Citibank recently sent out 1099 forms to thousands of it’s clients indicating that their redeemed airline miles are taxable to the tune of 2.5 cents per mile and listed as miscellaneous income. This of course caused an immediate uproar not only because Airline miles could cost additional money in taxes, but also because if they’re not reported on your income tax return, the chances that the taxpayer will get hit by an Audit increases (not to mention additional penalties...
The State of Connecticut has indicated that it will stop issuing paper refund checks and instead will use Chase Bank debit cards. These cards will need to be activated before they can be used. CT taxpayers can opt-out and receive their refund by direct deposit, however they will not have the option to receive a check unless a taxpayer’s refund in exceeds $10,000, one is collecting refunds on behalf of the deceased or has an offshore bank account.
