The Blog

We would like to take a moment and think about the people in Boston affected by the Marathon bombing on April 15, 2013.  The IRS made this announcement following the explosion:  “Our hearts go out to those affected by the terrible tragedy. Boston-area taxpayers need time to finish their tax returns without worry. The IRS will be providing individual tax filing and payment extensions.”  The IRS later on reported that it would give Boston taxpayers and others affected by the explosion a three month tax filing and payment extension.  The relief will include all individual taxpayers that live in Suffolk County, Massachusetts. It will also include the victims of the bombing, their families, the first responders, and any tax preparers affected.  The new relief will … Continue reading →

April 15, 2013 is here and upon us! If you have already filed your taxes you can breathe a deep breath and take advantage of the following offers. If you still are in the process of filing your taxes, you only have a few more hours to go. Or you can always file for an extension………Here are today’s Tax Day Freebies! Here are a few Tax Day Deals for today: 15% off of food at PF Changs Two free cupcake bites at Cinnabon Buy one drink and get one drink free at Jamba Juice Get a free taco at El Pollo Loco Kids eat free at participating IHOP. Arbys’s is having its 3rd annual free curly fry day! Panda Express-Get a free Samurai Surf & … Continue reading →

    The fiscal cliff was the big story in the news recently. One of the major debates was that the wealthy were to be taxed more. Prior to January 1, 2013 it had been proposed that if the wealthy were heavily taxed that this would stop the economy from moving forward. A recent poll shows that this may not be the case. A new poll is showing that most of the Americans that make $500,000 or more a year (this is the group that is paying the higher income tax rate) have said that the tax increase has not affected their spending. It seems this group is still spending the same amount on charitable contributions, investment plans, and overall spending. The poll was reported … Continue reading →

  The IRS started the 2013 tax year on high alert for fraud. The previous years have shown an increase in identify theft and taxpayer fraud.  To keep the public better protected, the IRS issued its list of the top fraud offenses for 2013. They have aptly named the list “The Dirty Dozen Tax Scams.” Tax fraud occurs year round but the IRS sees higher spikes of cases during tax season.  The types of tax fraud range from identify theft to tax preparer fraud.  Here are some of the scams that the IRS is warning the public about. Identity Theft: Identity theft has been an ongoing issue for the IRS with recent spikes over the last few years. As a result of increased cases, the … Continue reading →

  Currently in the United States there are about 9.8 million people employed with the federal government. A growing percentage of these employees are delinquent on their taxes.  It seems workers including Social Security Administration, Homeland Security Administration, U.S.Postal workers, Departments of the Navy, Army, and Defense, among others owe the government about $3.5 billion in unpaid taxes for the year of 2011. This number is up from previous years. On March 8th the Federal Employee/Retiree Delinquency Initiative (FERDI) released the information that about 312,000 workers owe the government a total of $3,519,410,517. The U.S Postal service owes the most at $215.2 million of unpaid taxes. Congressional staffers owe a $10.8 million dollar debt; meanwhile there are 40 employees of the Executive Office of the … Continue reading →

One thing is certain besides taxes….you probably will want to stay on IRS’s good side! Here are some common items you may come upon this tax season. These are a few terrible tax surprises and how to handle them!  Alimony Collected Now that you made it through the divorce you will also have to accept the fact that the IRS is going to take some of your alimony. It is important to know that alimony is completely taxable. Alimony and other similar payments of the type from your former spouse are taxable the year that you receive them. Child support money on the other hand is not taxable. It is important to make your IRS payments on alimony and other untaxed income via estimated filings … Continue reading →

    In 2012 the IRS uncovered a mounting problem involving the thefts of innocent taxpayers’ refunds. According to the IRS, investigators found 898 identification theft cases in 2012. This is a number that has tripled in comparison to the previous years. The IRS has issued numerous media alerts and has hired an additional 3,000 employees to be on high alert for such thefts. Here is how it works: Somehow the criminal gets access to a person’s social security number and then they file a fraudulent claim and receive the refund check. One couple found out when they went to file their tax return electronically and they were told by the IRS a claim had already been filed. Certified public accounts across the country are … Continue reading →

 This years’ election debate hot topic issue was one that plagued this country since income tax was born 100 years ago. Should the wealthy pay more in taxes? Just to give some background information from the recent election President Barack Obama believed that the rich need to pay more taxes to aid the budget deficit and to provide the government with the help it needs. Meanwhile, his opponent, Mitt Romney counterd that deficit can be lowered without raising taxes on the wealthy. He thought this to be unfair and unwise to this bracket of people. “Who is right Obama or Romney? Both.. Or neither,” says Joseph Thorndike, a tax historian. This is a debate that has gone on in our country for over a hundred years. … Continue reading →

It seems that some taxpayers that are looking for a “quick” refund make have to wait a bit longer than normal these days as the Internal Revenue Service tries to halt criminals that file fraudulent returns and who attempt to steal others identities. The IRS began accepting 2012 returns on January 30th. It has been making its automated system more receptive to signs of possible fraud. This means that certain returns will be looked at more closely. Just last year alone the IRS stopped $20 billion fraudulent refunds being issued, up from $14 billion the previous year.” “It’s a difficult responsibility for the IRS,” said Benson Goldstein, a senior technical manager at the American Institute of CPAs in Washington. “They’re there to get prompt refunds, … Continue reading →

Tax Time! It’s that time of the year again! People need to start thinking about their taxes. Wednesday, January 30th marks the beginning of tax season for 2013. The IRS had originally planned for tax season to begin on January 22nd, but the fiscal cliff debate pushed the start date back. Everyone needs to start organizing and preparing to file their taxes. Generally you can expect your refund three weeks after the IRS receives your return. Last year, over 110 million taxpaying citizens received an average refund of $2,803 each. However, there are certain taxpayers who will need to wait to file. Those taxpayers that are claiming either Lifetime Learning Credit or the American Opportunity Tax Credit,  two well liked education credits, will have to wait … Continue reading →