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… Read more
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… Read more
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… Read more
I would be making an understatement if I said the economy has been unkind these past few years. Many Americans have experienced significant financial difficulties and with threats of a double-dip recession looming, I do not see the outlook brightening in the near future (take this as you may, I am not an economist by… Read more
If the majority of your income is reported to the IRS in Box 7 of Form 1099-MISC, then please heed the following message: Make Estimated Tax Payments. A number of my clients owe money to the IRS because they simply did not have enough money to pay their tax liability in full when the returns… Read more
First, let me apologize for pushing this blog to the side these past few months. Client work has kept me more than busy, but that is no excuse. I have decided to re-dedicate my efforts toward maintaining a blog with topics that on the surface may seem dry and boring, but are incredibly relevant to… Read more
I want to start by clarifying some misinformation which has been circulating amongst those who make their living on sites like Ebay. The repeal recently signed into law by President Obama does not effect, in any way, the reporting requirements mandated upon Paypal and other payment processing sites that began this year. For lack of… Read more
On April 6, 2011, IRS Commissioner Doug Shulman addressed the National Press Club and offered suggestions on improving tax return reporting. The goal of his proposal is to allow for more accurate reporting and a decrease in the number of audits due to mismatched information.
On March 24th, The Treasury Inspector General for Tax Administration (the “TIGTA”) released an audit report of the IRS’s Correspondence and Discretionary Examination (the “CDE”) Program. CDE is the formal name for IRS audits via the mail system. When a tax return is selected for audit under the CDE Program, a taxpayer is sent a… Read more
Last week, I received a frantic call from a woman who had utilized a free IRS service to file her 2010 taxes. While conversing with the IRS representative who helped her file her 2010 taxes, she found out that her 2009 return, which was filed electronically, was rejected and never re-filed. She immediately went to… Read more
