Early Distributions From Retirement Plans
An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a “taxing” experience. Fortunately, there are exceptions to early distributions. Any payment that you receive from your IRA or qualified retirement plan before you... More...
Automobile Expenses - Tax Write-Offs
If you use a vehicle for conducting business, you can deduct certain automobile costs from your tax bill. This is true even if you use the vehicle for personal and business needs. Automobile Deductions The powers that be have historically written sections into the tax code... More...
Alternative Minimum Tax - Online Tool
Hell hath no fury like a person who just found out the alternative minimum tax applies to them. The IRS has set up an online tool to figure out if you do. Alternative Minimum Tax The alternative minimum tax is a procedure that was set up to keep the richest of Americans... More...
Accounting Methods - Cash and Accrual
When starting a business, you have to determine the method you are going to use for accounting and paying taxes. The two choices are the cash method and the accrual method. Cash Method If you are looking for simplicity, the cash method is probably your best accounting... More...
Doh! IRS Loses Taxes In San Francisco Bay
On September 23, 2005, the Internal Revenue Service began sending notices to tax payers in thirteen states that there may be a problem with their tax payments. Here is the scoop. Traffic School? It seems one of the trucks carrying the payments was involved in a traffic... More...
Deducting Points On Home Refinances
The real estate market was hot in 2005. Many people refinanced once or even twice. So, what are the tax implications? Deduction of Refinance Points Any points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The... More...
Correspondence From The IRS - Yikes
It’s a moment every person dreads. You pick up the mail and there is an envelope from the IRS. It’s not a refund check. What do you do? Don’t Panic Each year, the IRS sends out millions of “correspondence audits” to taxpayers to request payment of taxes, notify them of a... More...
Help Me Prepare My Taxes
Nothing leads to more gnashing of teeth than the thought of preparing your own taxes. Fortunately, there are people out there that do it for a living. Here Are My Receipts If the thought of preparing your own taxes makes you queasy, don’t worry. Preparing your taxes is a... More...
Employment Taxes - What Are They?
If you have employees, you are responsible for paying a variety of taxes at the federal, state, and local levels. You must also withhold certain taxes from the paychecks of your employees. So, what are employment taxes? Employment taxes include the following. 1. Federal... More...
Employment Taxes - Depositing With The IRS
If your business has employees, you must pay employment taxes. The payment system can be a bit confusing, so this article discusses how to go about depositing employment taxes with the IRS. Depositing Employment Taxes To pay employment taxes, you must deposit the money... More...
Donating Cars To Charity - New Tax Rules
On June 3, 2005, the IRS released guidance on charitable deductions for donated vehicles. The American Jobs Creation Act (AJCA) radically changed the amount of the deduction taxpayers can claim for their donated car. Fair Market Value v. Actual Sales Price When donating a... More...
Tax Returns for the Deceased
Two things in life are certain – death and taxes. Here’s what to do if the two are combined as far as filing a tax return. Tax Returns for the Deceased If a person dies, their finances are immediately converted into something called an estate. The estate is then... More...
Marriage and Taxes
Getting married is the greatest day for 50 percent of couples. The other 50 percent get divorced. Perhaps the marriage tax penalty has something to do with it. Family Values – Hardly For all the chatter from politicians about family values, it is ironic that the tax code... More...
Should You Itemize?
When you finally decide it is time to prepare your taxes, the first question is whether you should itemize your deductions or take the standard deduction provided by the IRS. Choices, Choices… Tax deductions are a very simple part of a theoretically simple tax reporting... More...
Fraudulent Tax Shelters - KMPG Goes Down Hard
In the largest criminal tax case ever filed, KMPG has copped a plea to using fraudulent tax shelters to bilk the government out of 2.5 billion dollars. KMPG has agreed to pay a fine of $456 million dollars, but nine of its executives still are under indictment. Son of Boss Tax... More...