Love Letter from the IRS?

What happens if you receive correspondence from the Internal Revenue Service?  In my experience, most taxpayers either panic or they ignore it.  The very worst thing you can do is ignore the letter! Trust me, the IRS won’t magically go away. The folks who ignore the letter are the ones that wind up with a Read more about Love Letter from the IRS?[…]

Taxpayer Bill of Rights

Earlier this month, the IRS published the Taxpayer Bill of Rights and included the provisions in IRS Publication 1. Publication 1 is a document that is routinely included in IRS correspondence with taxpayers. These rights have always been available to taxpayers; however, they are scattered among the 75,000- page tax code and are not readily Read more about Taxpayer Bill of Rights[…]

October 15th Deadline Looms Near

The Internal Revenue Service issued a reminder this week that the October 15 deadline is still in effect for individuals who requested a six-month extension to file their 2012 tax return.  The current lapse in Federal appropriations does not affect the Federal tax law.  In the announcement, the IRS reported that more than 12 million Read more about October 15th Deadline Looms Near[…]

Same Sex Marriage

The headlines this week have been filled with news that the Supreme Court struck down the Defense of Marriage Act (DOMA).   The Act was signed into law by President Bill Clinton in 1996. DOMA prevented same-sex couples whose marriages were recognized in their home states from receiving the benefits available to other married couples under Read more about Same Sex Marriage[…]

Late Filing Penalties

The Internal Revenue Service assesses penalties to taxpayers for filing their returns late and/or for paying their taxes late.  The failure to file penalty is 5% of the unpaid tax, up to a maximum of 25%.  The penalty for failure to pay taxes when due is ½ of 1% of the tax not paid for Read more about Late Filing Penalties[…]

IRS Office to Close This Summer

The IRS’s Acting Commissioner released a memo on April 19, announcing the five IRS furlough days for this summer.  If you are planning on working on your tax return or answering IRS correspondence this summer, make note of the following dates:                                            May 24 June 14 July 5 July 22 August 30  These are the Read more about IRS Office to Close This Summer[…]

How Do I Request Additional Time?

Helping others with their tax compliance basically precludes me from working on my own 1040 until later in the year.  Are you in the same boat? Do you find yourself needing extra time to file your taxes?  If so, you will need to send a Form 4868, Application for Automatic Extension of Time to File Read more about How Do I Request Additional Time?[…]

E-Filing: Pros & Cons

The Internal Revenue Service encourages taxpayers to electronically file their tax returns.  Why?  Electronically filed tax returns are less expensive for the IRS to process E-filed tax returns require more detailed information in order to be accepted by the IRS.  For example, the taxpayer’s date of birth, social security number and name must all match Read more about E-Filing: Pros & Cons[…]