Posts Tagged ‘Tax Prep’

President Signs Repeal of Expanded 1099 Requirements

Friday, April 22nd, 2011

On Thursday, President Barack Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act (PL 111-240). The Senate approved the bill on April 5, and the House voted in favor of it on March 3.

Read More » [Journal of Accountancy]

Breastfeeding Pumps Now Deductible, IRS Rules

Wednesday, February 16th, 2011

Breast pumps and other lactation supplies are now tax deductible as medical expenses, the Internal Revenue Service said Thursday, reversing a long-held position.
The new ruling means that families can use pre-tax funds from their flexible spending accounts and health savings accounts for these supplies. Breast pumps typically cost more than $200 and, along with supplies, can run as high as $1,000 in the first year of a baby’s life.
Read More » [MSNBC]

Wrap Fees

Wednesday, February 16th, 2011

“Wrap Fees” charged to IRA holders qualify for tax favored treatment are not counted as payins to the IRA if paid separately by the owner, IRS privately rules. The fee covers investment planning and broker commissions. Although the payment of broker commissions is usually treated as a IRA payin, that rule doesn’t apply to wrap fees because the charge doesn’t vary with the number of trades made. Instead it is based on a percentage of total assets under management. These wrap fees can be deducted as a miscellaneous itemized deduction on Schedule to the extent the total exceeds 2% of the filer’s adjusted gross income.

IRS Gives a Road Map for Audits of Repair and Maintenance Expenses

Wednesday, February 9th, 2011

The issue of whether maintenance costs are deductible as incidental repairs or must be capitalized under IRC §263A continues to trip up taxpayers, despite guidance and proposed regulations from the Internal Revenue Service. Recently, the IRS issued an audit-technique guide that gives insight into how it will examine taxpayers’ treatment of repair and maintenance costs.

Read more » [Journal of Accountancy]

New Smartphone App Lets You Check Tax Refund Status

Tuesday, January 25th, 2011

The IRS unveiled a new smartphone app Monday that will allow taxpayers to check the status of their tax refunds and get other information about their tax returns.

The app, IRS2Go, can be downloaded for free on iPhones and Androids, the IRS said. Taxpayers will need to provide some basic information to check the status of their refund on the app. They’ll need to enter their Social Security number, which will be masked and encrypted for security purposes, the IRS said.

Read Full Article » [USA Today]

View App Website » [IRS]

Where To Keep Your Important Financial Records

Monday, January 24th, 2011

We all have financial records, whether they’re pay stubs, tax returns, or receipts that we’re using for tax write-offs. Although many of us are now using personal finance software, there still isn’t a one-stop solution to track all your finances. So, should you use online storage, or just keep hard copies?

There are no easy answers, but here are a few options to keep in mind.

Read Full Article » [Yahoo News]

How Long to Keep Tax Records

Wednesday, January 19th, 2011

You can toss some supporting documents, but you’ll need to hang onto others for years. This is a great time of the year to get rid of outdated files and to organize your records in preparation for filing your tax return in the spring.

Read more» [Kiplinger]

Taxpayers who itemize have to wait until February to file

Wednesday, January 5th, 2011

IRS Kicks off 2011 Tax Season with certain Taypayers unable to start filing until mid-to-late February summary- Taxpayers who itemize on their federal tax returns will have to wait until at least mid-February to file, the IRS said Thursday. The delay is necessary because the IRS needs time to program its systems to accommodate tax breaks included in a compromise tax bill President Obama signed last week.

Read original article » [USA Today]