** According to Kiplinger the IRS will me conducting more audits in an attempt to narrow the “tax gap” which is estimated to exceed $300 Billion per year. The audits will be “smarter” – as the IRS will target specific areas where it is felt noncompliance is high.
Audit targets will include-
· Sole proprietors, who often underreport income and inflate write-offs.
· S corporations and partnerships, especially S company owners who take dividends instead of salaries.
· Gamblers who may underreport their winnings or who subtract losses from winnings instead of reporting them as miscellaneous itemized deductions.
· Taxpayers who itemize medical costs, charitable contributions and job-related expenses on Schedule A.
· Earned income tax credits taken by individuals who don't qualify.
· Investors who don't report capital gains properly.
** The lead headline in the ENTERTAINMENT NEWS section of my homepage portal yesterday read “Hilton Says She'll No Longer `Act Dumb' ”. Who ever said she was “acting”? Those who saw the remake of HOUSE OF WAX tell me she can’t!
** Tax law requires a taxpayer to notify the IRS of a change of address. To do so you use Form 8822. There are many tax issues that make it in your best interest to make sure the IRS has your current address.
** I am not by any means a prude, but I was very disappointed that a musical where teen-agers hop around the stage screaming obscene lyrics about abortion, homosexuality, autoerotism, sadomasochism and incest (please do not bring up HAIR – from what I have seen there is absolutely no comparison) was the big winner Sunday night, practically shutting out a smart and witty traditional feel-good musical. I must admit that I did not see "Rude Awakening" - and the number presented on the Tony show certainly did nothing to make me want to. I was, however, pleased at David Hyde-Pierce’s much-deserved win.
** Now that school is out and your kids will soon be starting summer jobs I would like to remind you of my post on “Dependents and Income Tax Withholding”.