Wednesday, April 17, 2013


The BUZZ has returned!

* During my bloging hiatus I hope you were following my filing season Tax Tips at

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 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.

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.”


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