* Russ Fox of TAXABLE TIMES reminds us
that, when it comes to claiming deductions, “Same as Last Year Doesn’t Work”,
quoting from my post on what to give your tax pro.
* Joe Kristan has some good information in
his lead item commentary in “Tax Roundup, 1/19/16: Thieves Holiday! Filing Season Underway Today” at the ROTH AND COMPANY TAX UPDATE BLOG.
* Hey fellow tax pros – have you seen the
January 15 TAXPRO BUZZ, or THE TAX PROFESSIONAL yet? Or signed my petition on tax reform yet?
Why not?
* William Perez explains that the answer to
the question “Is Head of Household Status Possible for Two People at the Same Address” isn’t as easy as you would think at ABOUT.COM.
* William’s ABOUT.COM colleague Jean Murray
deals with the question “How Do I Register to Collect Sales Tax in My State?”
for those starting a business.
Sales tax law is truly complicated and
varies from state to state. To be
honest, if I were accepting new business clients I would not accept one that
was subject to sales tax collection. A
particular item may be subject to sales tax in one specific situation but not
in another. It is important that if you
are starting a business that will sell a product or service that may be subject
to state and local sales tax that you consult a tax professional who is
knowledgeable and experienced in local sales tax law.
* You will find links to all the
installment in Jason Dinesen’s excellent blog series in “Choosing a Business Entity: Wrap-up Post” at DINESEN TAX TIMES.
* The “The Forbes 2016 Tax Guide” provides
links to tons of helpful tax posts from the FORBES.COM “stable” of bloggers.
* Speaking of FORBES.COM - Don’t be too
concerned with Robert W Wood’s post “Beware: IRS Now Has Six Years To Audit Your Taxes, Up From Three”.
The title is misleading – it is actually
incorrect. The “3-Year Rule” has not changed. The
IRS, and most state tax authorities, still has three years from the due date
(or filing date if you had an extension) of a filed tax return to audit and
revise that return. If you filed
your 2014 Form 1040 by the initial April 2015 due date, “Uncle Sam” has until
April 15, 2018 to audit it and ask for additional taxes. However if the Service can prove intentional
tax fraud they can go back forever and audit every tax return you have ever
filed.
And, as RWW points out –
“The
three years is doubled to six if you omitted more than 25% of your income.”
The basis of RWW’s post –
“In
U.S. v. Home Concrete & Supply, LLC, the Supreme Court slapped down the
IRS, holding that overstating your basis is not the same as omitting income.
The Court said 3 years was plenty for the IRS to audit. But Congress recently
overruled the Supreme Court and gave the IRS six years in such a case.”
But if you file an honest tax return, with
the correct basis for any investments sold, report all of your taxable income,
and you have proper documentation for what you claim on your return, you have
nothing to worry about.
* Before I leave FORBES.COM, TaxGirl Kelly
Phillips Erb reports “Yet Another State Announces A Delay In Tax Refunds, Citing Fraud Concerns”.
I think most state, and federal, tax
refunds will take a few days to a week later to get to you this year than in
the past, even with direct deposit. It
is a small price to pay to avoid tax fraud.
However, direct deposit, if available, is still a better option, and
cheaper for the government, than waiting to receive a paper check in the mail.
* Did you know “This year’s Tax Identity Theft Awareness Week is January 25-29”?
You do now.
* Let me end with a plug for my website
FIND A TAX PROFESSIONAL – the place to start your search for a qualified and
competent tax preparer. It has lots of
informative articles and advice on choosing a tax pro.
TTFN
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