Blog

March 22, 2012

The following article is verbatim copy of IRS news release IR-2012-31, released on March 7, 2012:“IR-2012-31, March 7, 2012 WASHINGTON — The Internal Revenue Service today announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.

February 17, 2012

The following article is verbatim copy of IRS news release IR-2012-23, released on February 16th, 2012: “IR-2012-23, Feb. 16, 2012 WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.

February 3, 2012

On January 20, 2012, the IRS made two significant changes to its streamlined installment agreement program. First, the dollar threshold increased from $25,000 to $50,000. Second, the timeframe to pay changed from 60 months to 72 months. Basically, any taxpayer with a liability (after principal, penalties, and interest) below $50,000 is eligible for a streamlined payment plan that will allow them the ability to pay off the liability evenly over 72 months.

IRS Releases New Tax Gap Estimates

January 13, 2012

The following article is verbatim copy of IRS news release IR-2012-4, released on January 6, 2012: “IR-2012-4, Jan. 6, 2012 WASHINGTON — The Internal Revenue Service today released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time.

December 20, 2011

On December 23rd, 2011, Congress passed H.R. 3765, otherwise known as the Temporary Payroll Tax Cut Continuation Act of 2011, (The “TTCA”). The TTCA provides for a two-month extension of a payroll tax cut in place for 2011 and an extension of a lower tax rate on self-employment income.

Securities Broker Basis Reporting

November 25, 2011

The IRS recently issued notice of proposed regulations to explain how securities brokers must report stock transactions. The regulations are guidance for brokers subject to the Energy Improvement and Extension Act of 2008, codified as I.R.C. §6045(g)(1), which requires brokers to include a client’s adjusted basis as well as classification of gains and losses as short-term or long-term when reporting the stock sales to the IRS. I.R.C. §6045(g)(1) applies to other types of investments such as mutual funds and other debt instruments, but that is beyond the scope of this blog post.

Taxing Mental Illness

November 11, 2011

Honest to God’s truth, not a single one of my clients intended to create the tax liabilities they now face. Tax debt is not a cause; it is a consequence of something else. It could be a liability produced by insufficient withholding, lack of adequate planning, or even ignorance of the law. The liability is often preventable, but not always.

The New Spirit

October 20, 2011

It seems that tax reform is always an election issue. Next year’s presidential election will be no different as the 2010 Congress extended the Bush-era tax cuts to year-end 2012 in a deliberate effort to make tax reform a wedge issue.I am a firm believer that history can provide great direction to our future. Tax reform is nothing new, so I decided to learn more about the United States’ history of taxation. I had many preconceptions and prejudices going in, and I appreciate what I have learned. Given the history, it is hard for the average person to know the foundational tenets of our current tax system. Apparently, it is hard for tax experts as well.

The IRS Data Book

October 15, 2011

I am asked random tax questions all the time. How many returns are audited each year? How many taxpayers received refunds last year?I give the best answer that I can and move on. Most people do not question my answer, but I am sure they either believe I am a walking encyclopedia of tax knowledge or making it up. Fortunately, I am neither. My federal source is the Internal Revenue Service (IRS) Data Book.¹

Department of Revenue Inefficiency

September 30, 2011

The Missouri Department of Revenue (“MDOR”) is not what I would call a well-oiled machine. As the collection arm for Missouri’s tax revenue I would expect more of a focus on efficient collection processes than what I have seen.

Schedule a Consultation