The BUZZ has
returned!
* During my bloging
hiatus I hope you were following my filing season Tax Tips at Mainstreet.com.
I recently
provided some “post-tax season” tips in the MainStreet Tax Center – “How Long Should I Keep My Tax Records” and “Dude, Where’s My Refund?”. Another one should appear tomorrow (Thursday).
* Russ Fox has an
interesting post on the old fear of depositing $10,000 or more in cash in one
transaction over at TAXABLE TALK titled “Bozo Tax Tip #1: Don’t Be Suspicious!”.
“ . . . a Currency Transaction Report isn’t
anything to worry about it. The IRS gets so many of them that as long as you’re
paying your taxes they’re not a big deal. Just smile as the bank teller fills
out the extra paperwork.”
It is the final
entry in a series of 10 Bozo Tax Tips.
* For those of you
who are interested here are the Obama’s and the Biden’s 2012 tax returns (click
on the names).
Both families were
victims of the dreaded Alternative Minimum Tax.
* The Tax
Foundation has a chart that shows “The Proliferation of Tax Credits is the Major Factor in the Growth in Nonpayers – Especially Refundable Credits”.
The Foundation
points out –
“In the 25 years since then {the Tax
Reform Act of 1986 – rdf}, the percentage
of nonpayers has doubled thanks to the expansion of the Earned Income Tax
Credit and the enactment of a plethora of new credits, such as the child credit
and the more recent Making Work Pay Credit.
In 2010, tax credits had a combined budgetary cost of $224 billion. Half of these costs were refundable cash
payments to nonpayers.”
Refundable credits
are bad tax and fiscal policy, and are magnets for tax fraud.
* NERD’S EYE VIEW
provides a detailed review of the “Proposed $3 Million IRA Cap, Estate Planning Crackdowns, And Other Proposals Of President's Budget”.
I have not had a chance to read through it yet - and may comment on it in a later post.
* The Washington
Post’s FEDERAL EYE give us the word that the “House Votes to Crack Down on Tax-Delinquent Contractors but Not Individuals”
“The House on Monday unanimously backed
legislation to bar federal funding for contractors that fall behind on taxes
but rejected a proposal to prohibit tax-delinquent individuals from working for
the federal government.”
* FYI –
“The IRS will provide penalty relief to
anyone unable to file on time due to severe storms in parts of the South and
Midwest just prior to the filing deadline. In some cases, power outages and
transportation problems have made it very difficult or impossible for some
taxpayers and tax professionals to meet the regular April 15 deadline.
Taxpayers will qualify for penalty relief if, as a result of being directly
impacted by these storms, they are unable to file their returns or pay tax due
until after April 15.
This relief, which applies to both the late-filing
penalty and the late-payment penalty, is available provided that taxpayers file
the return or pay the tax within a reasonable time after the power outages and
transportation problems have been resolved. Affected taxpayers may receive
penalty notices from the IRS. The IRS will abate these penalties if they
request reasonable cause relief based on the April storms. However, the IRS is
not authorized to abate interest.”
* More FYI –
“The Internal Revenue Service today {April
16 – rdf} announced a three-month tax
filing and payment extension to Boston area taxpayers and others affected by
Monday’s explosions.
This relief applies to all individual taxpayers who
live in Suffolk County, Mass., including the city of Boston. It also includes
victims, their families, first responders, others impacted by this tragedy who
live outside Suffolk County and taxpayers whose tax preparers were adversely
affected.
Under the relief announced today, the IRS will issue a
notice giving eligible taxpayers until July 15, 2013, to file their 2012
returns and pay any taxes normally due April 15. No filing and payment
penalties will be due as long as returns are filed and payments are made by
July 15, 2013. By law, interest, currently at the annual rate of 3 percent
compounded daily, will still apply to any payments made after the April
deadline.
The IRS will automatically provide this extension to
anyone living in Suffolk County. If you live in Suffolk County, no further action
is necessary by taxpayers to obtain this relief. However, eligible taxpayers
living outside Suffolk County can claim this relief by calling 1-866-562-5227
starting Tuesday, April 23, and identifying themselves to the IRS before filing
a return or making a payment. Eligible taxpayers who receive penalty notices
from the IRS can also call this number to have these penalties abated.”
TTFN
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