* The Tax Brain, a twit I follow, reports that Credit and Debit Card Fees Related to Tax Payment are Deductible over at the TAX BRAIN ONLINE TAX PREPARATION NEWS blog.
TB tells us that, “In reassessing a previous position, the IRS decided that the convenience fees associated with the payment of federal tax, including payment of estimated tax, can be included as a miscellaneous itemized deduction. However, only those miscellaneous expenses that exceeded 2 percent of the taxpayer’s adjusted gross income can be deducted.”
* Twit follower/followee Cindy Morus of MEND YOUR MONEY gives us the word on the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CCARD) aka the Credit Cardholder’s Bill of Rights in her post “Are Credit Cardholders Finally Getting A Break”.
Here is some of the “good news” in the Act -
· Overlimit charges can only be charged when a purchase, rather than a fee or interest charge, causes the credit limit to be exceeded.
· Overlimit charges can only be applied once during a billing cycle.
· No interest can be charged on fees (such as late fees or overlimit fees)
· Your bills must be sent out 21 days before the payment due date (current requirement is 14 days)
· No one under 21 can get a credit card without a co-signer or proof that they are able to repay the credit (a job)
· You can pay your bill by mail, phone, electronic transfer or online without additional cost unless you need to pay at the last minute.
* The NATP TAXPRO Weekly email newsletter reports that “West Virginia Storm Victims May Qualify for Disaster Relief”.
“Following severe storms, flooding, mudslides, and landslides in West Virginia on May 3, 2009, the President declared Mingo and Wyoming counties federal disaster areas qualifying for individual assistance.
As a result, the IRS is postponing certain deadlines for taxpayers who reside or have a business in the disaster area until July 2, 2009. The postponement applies to return filing, tax payment, and certain other time-sensitive acts otherwise due between May 3, 2009, and July 2, 2009.
In addition, the IRS will waive the failure to deposit penalties for employment and excise deposits due on or after May 3, 2009, and on or before May 18, 2009, as long as the deposits were made by May 18, 2009.
Additional information is available on the IRS website.”
* Pete Pappas puts forth an excellent idea in his post “IRS Wastes $19.5 Million of Taxpayer Money” at THE TAX LAWYER’S BLOG.
After telling us that the IRS has scrapped plans to create a new website after investing $19.5 million dollars of taxpayer funds in it he suggests, “We should put a moratorium on tax increases until current levels of waste are substantially reduced.”