Archive for the ‘Individuals’ Category

IRS Reiterates Warning of Pervasive Telephone Scam

Monday, September 15th, 2014

As the 2014 filing season nears an end, the Internal Revenue Service today issued another strong warning for consumers to guard against sophisticated and aggressive phone scams targeting taxpayers, including recent immigrants, as reported incidents of this crime continue to rise nationwide. These scams won’t likely end with the filing season so the IRS urges everyone to remain on guard.
The IRS will always send taxpayers a written notification of any tax due via the U.S. mail. The IRS never asks for credit card, debit card or prepaid card information over the telephone

Read More » [IRS]

IRS Increases Mileage Rates for 2013

Friday, November 30th, 2012

The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Read More » [IRS]

New Income Tax Surcharge to hit in 2013

Thursday, November 15th, 2012

A new tax 3.8% income tax surcharge will become effective on taxable years beginning on and after January 1, 2013. These new surcharges have been put into place to help finance the recent healthcare reform.

This surtax will apply an annual 3.8 percent tax to the net investment income of individual taxpayers, including distributions of net investment income from trusts and estates. The surtax will generally be paid by taxpayers on net investment income when the taxpayer’s modified adjusted gross income exceeds the established thresholds, which are $125,000 for married person filing separate, $200,000 for an individual or $250,000 for a married couple filing jointly.

Read More» Downloadable Version ( PDF )

14 tax issues to watch after the election

Friday, November 9th, 2012

These personal tax matters could see changes in 2013, depending on who wins the White House.
Whatever happens in the election on Nov. 6, the next Congress and president will face a heaping helping of unfinished tax business. Here’s the second part of our two-part story on the most important unresolved personal tax issues — along with some fearless predictions.

Read More » [marketwatch.com]

How to Get a Transcript or Copy of a Prior Year’s Tax Return from the IRS

Friday, August 24th, 2012

Taxpayers should keep copies of their tax returns, but if they cannot be located or have been destroyed during natural disasters or by fire, the IRS can help. Whether you need your prior year’s tax return to apply for a loan or for legal reasons, you can obtain copies or transcripts from the IRS.
Here are 10 things to know if you need federal tax return information from a previously filed tax return.

Read More» Downloadable Version ( PDF )

Taxation of Frequent Flyer Miles

Friday, August 24th, 2012

A benefit has only lately received attention after flying under the radar for many years: tax-free receipt of frequent flyer miles.
Earlier this year, several news outlets reported that Citibank surprised many of its customers by issuing Forms 1099-MISC, Miscellaneous Income, to report the value of frequent flyer miles the customers had received in exchange for opening new accounts as part of an ongoing promotion. Understandably, the customers were upset because, the value of the miles notwithstanding, many of them ended up paying dearly (through potentially as much as several hundred dollars in taxes) merely for opening an account.

Read More » [aicpa]

Offshore disclosure program makes a third go-round

Friday, August 24th, 2012

After two successful offshore voluntary disclosure programs, the IRS on Jan. 9 announced a new 2012 Offshore Voluntary Disclosure Program (2012 OVDP). Under the previous two programs, the 2009 Offshore Voluntary Disclosure Program (2009 OVDP) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), which closed on Sept. 9, 2011, the IRS received over 33,000 disclosures and collected more than $4.4 billion in taxes and penalties (IR-2012-5).

Read More » [cpa2biz]

E-mails spread concern about a new “real estate transaction tax”

Thursday, August 9th, 2012

The impending 3.8% Medicare surtax has fueled a spate of chain e-mails regarding a federal “real estate transaction tax” on home sales, and practitioners are hearing from worried clients. This article separates fact from fiction to help practitioners educate clients about how the Medicare surtax works and how it won’t apply to most home sales.

Read More » {Journal of Accountancy}

IRA minimum distributions in the year of the owner’s death

Wednesday, July 25th, 2012

When an IRA owner dies after required distributions have begun, there is often a required minimum distribution for that year that hasn’t been paid yet. Any required minimum distribution that wasn’t paid to the owner must be paid to the beneficiary. Seymour Goldberg, CPA, discusses how beneficiaries are often unaware of this requirement and are unaware that the distribution cannot be rolled over. He cautions that practitioners need to help clients take timely corrective action to minimize the tax impact.

Read More » {cpa2biz.com}

What you’ll get in Social Security

Wednesday, July 25th, 2012

Despite what you’ve heard, Social Security isn’t going to disappear.
Many younger people, and even some older ones, are convinced the retirement system’s coffers will run dry before they get a chance to claim benefits. The reality is quite different. Even if Congress does nothing to fix the troubled system, and its trust fund is exhausted in about two decades, Social Security will still collect enough in payroll taxes to pay out 75% of promised benefits at that point.

Read More »{money.msn.com}