Accounting, Tax & IRS News

RS Helps Small Employers Claim New Health Care Tax Credit; Forms and Additional Guidance Now Available on Small Business Health Care Tax Credit
Date: 2010-12-02
The Internal Revenue Service today released final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year. Today's release includes a one-page form and instructions small employers will use to claim the credit for the 2010 tax year.
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Beware of IRS' 2010 “Dirty Dozen" Tax Scams
Date: 2010-11-17
“Taxpayers should be wary of anyone peddling scams that seem too good to be true," IRS Commissioner Doug Shulman said. “The IRS fights fraud by pursuing taxpayers who hide income abroad and by ensuring taxpayers get competent, ethical service from qualified professionals at home in the U.S."
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Seven Facts about the Nonbusiness Energy Property Credit
Date: 2010-11-01
Taxpayers who take energy saving steps this year may get bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes has been increased as part of the American Recovery and Reinvestment Act of 2009.
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Beware of e-Mail Scams about the Electronic Federal Tax Payment System
Date: 2010-10-15
Consumers should be aware of a scam in which recipients receive an e-mail that claims to come from the Electronic Federal Tax Payment System. The e-mail states that tax payments made by the e-mail recipient through EFTPS have been rejected. The e-mail then directs recipients to a bogus website containing malicious software (malware) that infects the intended victim's computer. To avoid the bogus website and malware, do not click on any links, open any attachments or reply to the sender for any e-mail you may receive that claims to come from EFTPS.
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Gulf Oil Spill Tax Impact: Questions and Answers
Date: 2010-08-30
Q1. Is a taxpayer required to include in gross income payments the taxpayer receives for lost business income, lost wages or lost profits? A1. Yes. The law requires that a taxpayer include in gross income payments the taxpayer receives for lost business income, lost wages or lost profits. For information on whether estimated tax payments may be required, see Publication 505, Tax Withholding and Estimated Tax.
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IRS Opens Dedicated Phone Line for Gulf Oil Spill Victims
Date: 2010-07-13
The Internal Revenue Service today announced the opening of a special telephone line for taxpayers affected by the Gulf oil spill.
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National Society of Accountants Supports Amendment to Eliminate Section 413 from American Jobs and Closing Tax Loophole Act of 2010
Date: 2010-07-06
The National Society of Accountants (NSA) has sent a letter to U.S. Senators supporting an amendment to the American Jobs and Closing Tax Loophole Act of 2010 proposed by Senators Mike Enzi (R-Wyo.) and Olympia Snowe (R-Maine).
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Small Business to be Hit Hard by New SECA Rules
Date: 2010-06-16
To avoid paying the 15.3% tax, S Corporations have for years taken advantage of paying cash to shareholders as distributions instead of wages—not exactly what the IRS had in mind. Don't forget that S Corps also avoid corporate level income taxation too because that income is only taxed at the personal income tax level.
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Energy Incentives for Individuals in the American Recovery and Reinvestment Act
Date: 2010-05-25
The American Recovery and Reinvestment Act provides tax incentives for individuals to invest in energy-efficient products.
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First-Time Homebuyer Credit
Date: 2010-05-17
Legislative changes in November 2009 expanded and extended the credit and also added documentation requirements for claiming the credit. Due to increased compliance checks by the IRS, failure to submit documentation will slow down the issuance of any applicable refund.
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Affordable Care Act Tax Provisions
Date: 2010-05-03
Millions of small businesses will receive postcards from the IRS beginning the week of April 19 that alert them to the new Small Business Health Care Tax Credit and encourage them to check their eligibility. Even if you don't receive a postcard, your business still may be eligible. Read more about this effort.
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If You Didn't File or Request an Extension on Time
Date: 2010-04-19
If you owe taxes and didn't file your tax return or request an extension by the April 15 deadline, you may face interest on any unpaid federal taxes you owe and a failure-to-file penalty. The IRS will deny a request for an extension that is filed after midnight on April 15. However, you should still file your tax return, even if it's late.
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Ten Facts about Amended Returns
Date: 2010-04-19
You can make a change or an adjustment to a tax return you've already filed by filing an amended return. Here are the top 10 things the IRS wants you to know about amending your federal tax return.
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New for 2010: Tax Credit Helps Small Employers Provide Health Insurance Coverage
Date: 2010-04-16
Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service.
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Avoid Common Mistakes When Filing Your Tax Return
Date: 2010-04-13
The Internal Revenue Service today reminded taxpayers to review their tax returns for common errors that could result in delayed refunds. Here are some ways to avoid common tax return errors.
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IRS Payment Options Include E-pay, Credit Card, Installment
Date: 2010-04-08
he Internal Revenue Service today reminded taxpayers to pay all taxes due by the April 15 deadline to avoid interest and failure-to-pay penalties.
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IRS Continues to Increase Oversight of Tax Return Preparers to Improve Compliance, Taxpayer Service
Date: 2010-04-07
As the April 15 tax deadline approaches, the Internal Revenue Service today announced initial results from its stepped-up effort involving enforcement and education to combat unscrupulous tax return preparers and protect the nation’s taxpayers.
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Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers
Date: 2010-03-18
Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law today.
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IRS Announces Qualified Disaster Treatment for Chile IR-2010-28, March 9, 2010 Washington The Internal Revenue Service today issued guidance designating the earthquake that occurred in Chile in February 2010 as a qualified disaster for federal tax pur
Date: 2010-03-09
The Internal Revenue Service today issued guidance designating the earthquake that occurred in Chile in February 2010 as a qualified disaster for federal tax purposes. The guidance allows individuals who receive qualified disaster relief payments from any person to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist employee-victims in areas affected by this earthquake without affecting their tax-exempt status.
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New Homebuyer Credit Form Released; Taxpayers Reminded to Attach Settlement Statement and Other Key Documents
Date: 2010-03-03
The Internal Revenue Service today released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the first-time homebuyer credit.
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EITC Eligibility Rules for 2009 Tax Year Outlined
Date: 2010-02-15
The Earned Income Tax Credit (EITC) is a tax credit for people who work but do not earn high incomes. The EITC is a valuable tool helping eligible taxpayers to lower their taxes or to claim a refund. The IRS wants all eligible taxpayers to claim this credit.
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IRS Debunks Frivolous Tax Arguments
Date: 2010-02-08
The Internal Revenue Service today released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws.
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Is this Income Taxable?
Date: 2010-02-08
While most income you receive is generally considered taxable, there are some situations when certain types of income are partially taxed or not taxed at all.
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Most Workers Need to File New Schedule M; Making Work Pay Credit Offers Tax Savings Up to $800
Date: 2010-02-07
Two special tax credits offer taxpayers an opportunity to lower their tax bill or increase their refunds this filing season. Both credits are claimed on new Schedule M, Making Work Pay and Government Retiree Credits. The making work pay credit helps millions of workers and self-employed individuals, while the government retiree credit especially targets former government workers who aren't receiving Social Security benefits. Income limits apply to the making work pay credit but not to the government retiree credit. Both credits are refundable -- meaning that those eligible can get them even if they owe no tax. Here are further details on each of these credits.
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10 Important Facts about the Extended First-Time Homebuyer Credit
Date: 2010-02-01
If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies. Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.
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IRS Standard Mileage Rate 2009
Date: 2010-01-26
For 2009, the standard mileage rate for the cost of operating your car for business use is 55 cents per mile. Car expenses and use of the standard mileage rate are explained in chapter 4 of Publication 463, Travel, Entertainment, Gift, and Car Expenses.
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Haiti Relief Donations Qualify for Immediate Tax Relief
Date: 2010-01-25
People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season, according to the Internal Revenue Service. Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
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IRS Proposes New Registration, Testing and Continuing Education Requirements for Tax Return Preparers Not Already Subject to Oversight
Date: 2010-01-11
WASHINGTON -- The Internal Revenue Service kicked off the 2010 tax filing season today by issuing the results of a landmark six-month study that proposes new registration, testing and continuing education of tax return preparers. With more than 80 percent of American households using a tax preparer or tax software to help them prepare and file their taxes, higher standards for the tax preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term.
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Online Scams that Impersonate the IRS
Date: 2010-01-09
Consumers should protect themselves against online identity theft and other scams that increase during and linger after the filing season. Such scams may appropriate the name, logo or other appurtenances of the IRS or U.S. Department of the Treasury to mislead taxpayers into believing that the scam is legitimate.
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Taxpayers Can Now Use Refunds to Buy Savings Bonds; New Direct Deposit Option
Date: 2010-01-05
In an effort to help individuals build their savings and retirement funds, a new direct deposit option in 2010 allows taxpayers to use their tax refunds to purchase U.S. Series I Savings Bonds.
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2009 Tax Law Changes Provide Saving Opportunities for Nearly Everyone
Date: 2010-01-04
In 2009, numerous new and expanded deductions and credits came into being for a broad cross-section of taxpayers: College tax benefits for parents and students; energy credits for homeowners who are going green; and even tax breaks for home buyers and car buyers. Following is a summary of these and other key changes taxpayers will find when they start preparing their 2009 federal income tax returns.
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First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify
Date: 2010-01-04
A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers. The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.
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First-Time Homebuyer Credit: Members of the Military and Certain Other Federal Employees
Date: 2010-01-04
The Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase.
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The American Recovery and Reinvestment Act of 2009 Business Provisions Explained
Date: 2009-12-21
The American Recovery and Reinvestment Act of 2009 contains several tax provisions that affect businesses, including: COBRA Changes, Energy Efficient Incentives, Net Operating Loss Carryback, Section 179 Deduction, Reduction of Estimated Tax Payments, Extension of Bonus Depreciation Deductions Through 2009 & Capital Gains Tax Break for Investment in Small Business
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Scam E-mail Sends Malicious Software to Recipients' Computers
Date: 2009-12-07
In recent weeks, a phony e-mail claiming to come from the IRS has been circulating in large numbers. The subject line of the e-mail often states that the e-mail is a notice of underreported income. The e-mail may contain an attachment or a link to a bogus Web page directing taxpayers to their "tax statement." In either case, when the recipient opens the attachment or clicks on the link, they download a Trojan horse-type of virus to their computers.
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Special Sales Tax Deduction for Car Purchases Available through End of 2009
Date: 2009-10-19
2009 automobile tax credit . With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.
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For Many Small Businesses, Fall Filing Deadline Looms for Special Refund Claims
Date: 2009-08-13
Time is running out for many small businesses wishing to take advantage of the expanded business loss carryback option included in this year´s recovery law, the Internal Revenue Service said today. Eligible individuals have until Oct. 15 to choose this expanded carryback option. Eligible calendar-year corporations have until Sept. 15.
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Does the IRS Owe You Money?
Date: 2009-08-03
Who couldn´t use a little extra cash this summer! The IRS may have some money for you. If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address
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Five Facts about the Home Office Deduction
Date: 2009-07-27
With technology making it easier than ever for people to operate a business out of their house, many taxpayers may be able to take a home office deduction when filing their 2009 federal tax return next year. Here are five important things the IRS wants you to know about claiming the home office deduction.
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Five Tax Facts about Summertime Child Care Expenses
Date: 2009-07-21
Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Here are five facts the IRS wants you to know about a tax credit available for child care expenses.
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Prepare for Hurricanes by Safeguarding Tax Records
Date: 2009-06-24
With the 2009 hurricane season now underway, the Internal Revenue Service encourages individuals and businesses to safeguard themselves by taking a few simple steps.
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Special Tax Break on New Car Purchases Available in States With No Sales Tax
Date: 2009-06-24

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Business Provisions of the American Recovery and Reinvestment Act of 2009 (ARRA)
Date: 2009-05-11
The American Recovery and Reinvestment Act of 2009 (ARRA) provides a number of tax incentives for businesses. Most of the tax incentives for businesses are found in Subtitle C of Division B, Title I of ARRA. In addition, some of the energy incentives, contained in Subtitle B, [and a subsidy for premiums for COBRA health continuation coverage in Title III of Division B,] provide tax relief for businesses.
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Possible Tax Credit for New Car Purchase in 2009
Date: 2009-05-11
2009 automobile tax credit. The IRS just released a notice correction:Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year.
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