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Showing posts from 2011

DO YOU KNOW WHAT THE NEW AND EXTENDED ENERGY EFFICIENCY PROVISIONS ARE?

These credits are a great way to make improvements on residential homes while reducing your income tax. These credits include, the Nonbusiness energy property credit and the Residential Energy Efficient Property Credit. The actual credit is set to expire however there is talk of extending it. The IRS suggest that taxpayers should act fast and take advantage of this credit.  Insulation materials, exterior windows and doors, central air conditioners, natural gas, non solar heaters are just a few energy efficient items that will allow you to use 10% credit of cost. However, new construction and rentals do not qualify. This dollar for dollar tax credit is a long term benefit of reduced energy consumption.  A credit that will expire December 31, 2016 is a part of the Residential Energy Efficient credit. This has to do with Solar energy systems. Which includes Solar heaters, solar water heaters, solar heat pumps, etc. This credit is used for new and existing homes, however it will not qua

DO YOU KNOW WHAT TAX PROVISIONS ARE EXPIRING?

As 2011 is almost at an end there are several income tax provisions that are schedule to expire with the close of the year. Some of the more significant ones affect the tax treatment of fixed assets. Here are just a few: - Depreciation deduction for qualifying property placed in service after September 8, 2010 and through 2011 which was increased to 100% will revert to 50% bonus depreciation deduction. - Fifteen year straight-line cost recovery for qualified leasehold improvements, qualified restaurants buildings and improvements, and qualified improvements will expire also. - Special expensing rules certain film and television productions allowing a deduction for qualified costs, rather then capitalizing and amortizing the costs under the income forecast method will also expire. There will also be changes impacting Businesses which may include: - The tax credit for research  and experimentation expenses only applies to amount paid before January 1, 2012. - The credit for constr

SELF-EMPLOYMENT DEDUCTIONS

 This self-employment deduction can't be taken by everyone, the taxpayers who do qualify are: - A self-employed individual with a net profit for the tax year (code Secs. 162(I)(1), 40(C)  - A partner with the net earning from self-employment (Code Secs. 162(I)(1), 401(C)).  - An S corporation shareholder who owns more then 2 percent of the outstanding stock of the   S corporation and has wages from the S corporation (Code Secs. 162(I)(5) , 1372 (a)).  This deduction was developed to place self-employed individuals on a level playing field with the employees, who are allowed to exclude the cost of employer-provided health care cost from gross income on your 1040 tax return. How do you know if you qualify? To qualify for the deduction, a shareholder must have wages reported to him by the corporation on Form W-2, Wage and Tax Statement. However, sometimes the deduction will not be available during which such a taxpayer was eligible participate in any employer-subsidized health p

WHAT TO DO IF YOU DON'T RECEIVE YOUR REFUND

Do you know what to do if you don't receive your IRS refund?.... The IRS has 153.3 million dollars in undelivered tax refund checks. Which averages out to 1,547 for the taxpayers that didn't receive their refund. All of these errors occurred because of a mailing address error.  If you are a taxpayer who believes their refund check may have been returned to the IRS, then you should use the "Where's My Refund" tool located on the IRS website. The tool will give you the status of your refund and, in some cases, instructions on how to resolve delivery problems. Although only a small percentage of checks mailed out come back undelivered, taxpayers can simply avoid that issue by switching to direct deposit when they file paper or electronic returns. However, the IRS suggest that filing your return electronically will reduce the amount of lost paper returns, reduces errors on tax returns and it will speed up refunds.  Please go to our website at  www.sykesaccounting.

Changes in 2012

For tax year 2012, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation. By law, the dollar amounts for a variety of tax provisions, will affect every taxpayer, must be revised each year to keep pace with inflation. A new dollar amount will effect returns in 2012, filed by most taxpayers in early 2013, include the following: -The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011. -Standard deductions for married couples filing joint returns will go up $300 from the 11,900 it is. It will also go up $150 for those who file single or married filing separately and nearly $200 for those who file head of Household. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. - The tax-bracket thresholds will increase in each filing status. Credit, deductions and other disc

INFLATION ADJUSTMENTS INCREASED TAX BENEFITS IN 2012

The IRS announced that there are 738,000 tax return preparers who must renew their Preparer Tax Identification Numbers (PTINs) before January 1, 2012.  They must do it before the year begins. Preparers who used paper applications to receive their PTINs will receive an activation code in the mail from the IRS which they can use to create an online account to convert to an electronic renewal for 2012. Individuals can also renew by using a paper Form W-12  PTIN application. Yet  renewing electronically avoids a four to six week wait  for processing the renewal request. There have been changes made for the upcoming 2012 tax season that will include: - Return preparers must self-identify that they are supervised preparers or Non-1040 preparers. - Supervised preparers will need to provide a supervisor PTIN when applying or renewing their PTINs. - Credentialed preparers (certified public Accountants, attorneys, unrolled agents) must provide the expiration date for their license when they appl

YOUR RIGHTS AS A TAXPAYER

The IRS employees will explain and protect your rights as a taxpayer throughout your contact with them. They will not disclose to anyone the information you give them, except as authorized by law. You have the right to know why the IRS is asking you for information, how they will use it, and what happens if you do not provide requested information.  If you believe an IRS employee has not treated you in a professional manner, you should ask for a supervisor or write the IRS director.  Should you ever get audited, you have the right to represent yourself or with proper written authorization, have someone else represent you. Your representative must be a person such as an attorney, enrolled agent or certified public accountant, or someone allowed to practice before the IRS. IRS expects you to be responsible for and to pay only the correct amount tax that owe.  If you can not pay the amount in full you may qualify for monthly installment  payments.   If you disagree with IRS about you ta

IRS WORKING WITH BUSINESSES

 The IRS has created a new outreach that will remind employers about upcoming extensions and deadlines. They will also provide details on other important information about credits, including:  - Businesses who have already filed and later determine they are eligible for the credit, they can always file an amended return such as form 1120X or 1040X  - Businesses without tax liability can still benefit. The small business job act of 2010 provided that for 2010 and after eligible small businesses may carry back unused general business credits (including the employer health care tax credit) from about 5 years. Small businesses who did not have tax liability should evaluate their eligibility for the small business tax credit.  -Businesses that couldn't use the credit in 2010 can claim it in the future years.  “Many Businesses”  Businesses that are locked into a health insurance plan for 2010 may not have the opportunity to make any needed adjustments to qualify for the credit for 2010.

US TAXPAYERS HOLDING FOREIGN FINANCIAL ASSETS

The Foreign Account Tax Compliance Act has required that certain U.S. taxpayers that have foreign financial assets with an aggregate value exceeding 50,000 is to report information about those assets. A new form has been created (Form 8938) and it must be attached to the taxpayers tax return. You must report the assets for the taxable year starting March 18, 2010 and after. The failure to report foreign financial assets can result in a penalty of $10,000 or more.  As well as underpayment of tax attributable to non-disclosed foreign financial assets will be subject to an additional 40% penalty.  

HAVING A BUSINESS PLAN

Many people every year consider opening up a business, yet have no business plan or don't know where to start. When considering opening up a business you must realize the effort and strategy that goes into it. There are questions that one needs to ask himself. 1. What does success look like?    People naturally think that success in business is measured by growth and profit. But in contrast it's also measured by consistency and having some money in the bank. Also, keeping up to date on taxes is a big ordeal when owning a business.  The IRS is not hesitant to put a levy on your business bank account until your taxes are paid and depending on how you maintain your corporation it may also affect your personal bank account. Success is keeping up with the tax laws and being consistent in your profits. 2.  What approach do you want to use in managing your business?  Do you want to use the team approach in which your team has input in your decisions or a star approach you make all i

CLAIMING INCOME

Whether you file your taxes yourself or have a preparer file them it is necessary that the proper information be given before e-filing your return. If not it can come with alarming consequences in form of penalties and interest. In order to e-file an accurate tax return, preparers are relying on the client to give them every detail of income, expenses, interest, stocks...etc. Giving the proper information can help you avoid an audit and any other complications with the IRS. This upcoming tax season the IRS will be looking for unclaimed income. IRS is slowly closing in on those who sell and produce income from Ebay, Craigslist, Etsy and other sites that can help an individual generate revenue. It is necessary to keep all receipts for  income or expenses made, it will be to your benefit if there is ever an audit.  Once again, anything that will generate revenue is considered income so keep track of it.

INCOME CHANGES FOR 2012

      The IRS has announced many new changes for the upcoming tax season. A lot of changes have been made due to inflation and will have an impact on every taxpayer. Changes Include: 1. Personal and dependent exemptions will increase from $100 to 3,800. 2. Standard deductions have increased in all categories including a $300 increase for married couples filing jointly. 3. There will be an increase in Tax-Bracket thresholds. 4. The maximum earned income tax credit will increase to 5,891 from 5,751. 5. An increase in the income phase out level for married couples that pay student loan interest.     The IRS will also increase the contribution limit for certain retirement accounts. In 2012, the new limit applies to 401(K)s, 403(b)s, the government's Thrift Savings Plan and some 457 plans. There will also be changes to Roth IRAs and pension plans, such as increasing the amount contributed.

TIPS FOR EMPLOYERS WHO OUTSOURCE PAYROLL

   Although outsourcing to third parties can streamline business opportunities, the IRS reminds employers that they are liable for paying tax liabilities. Recent accusations have inquired individuals & companies who-act under the guise of a payroll service provider, have stolen funds intended for payment of employment taxes make it important that employers who outsource payroll understand the following information. A. It is the responsibility of the employer for the deposits and payment of federal and tax liabilities. If the third party fails to make the federal tax payments the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. However, the IRS can also hold the individual liable for certain unpaid federal taxes. B. If the employer has an issue with an account, the IRS will send a correspondence letter to the address they have on record. And they strongly suggest you do not change the address of the payroll service provider

HEALTH BENEFIT MANDATES

   At the beginning of next year insured group health plans will have to provide coverage for behavioral health treatments such as pervasive developmental disorders or Autism. And California included that health plans must provide coverage to same sex spouses or domestic partners regardless of where employers principal place is located. Also, employers who have group plans cannot discriminate against participants on the basis of gender identity or gender expression. California is adding new changes to health care, taxes etc. Again, at the beginning of 2012 the are going to start a New-Hire Procedure, which in details ask employers to provide each employee at the time of hiring written notices that detail certain information related to wages, the employer's contact information and employer's workers' compensation insurance carrier.

TAXPAYER ADVOCATE SERVICE

 The IRS Taxpayer Advocate Service is temporarily changing the criteria used for accepting cases and said it would no longer deal with cases that involves the IRS delay of processing certain tax documents. TAS said they will focus on taxpayers who need the most assistance and will temporarily limit the acceptance of cases involving delayed processed tax documents.      The TAS will determine who will meet the criteria and who they consider is experiencing an economic burden.

HELP IS ON THE WAY

    IRS has announced that there will be help from the IRS for individuals and small businesses struggling to meet their tax obligations. To help people get a fresh start they plan to change adjustments to IRS Lien policies in a few ways. 1. By increasing the dollar threshold when liens are issued, resulting in fewer tax liens. 2. They want to make it easier for taxpayers to obtain lien withdrawals after paying a tax bill. 3. Withdrawing liens in most cases where taxpayers agree to a Debit Installment Agreement. As for small businesses, IRS would create easier access to Installment Agreements for struggling businesses. Last, the IRS wants to expand the streamlined Offer in Compromise to cover more taxpayers.

PREPARERS REQUIRED TO USE FORM 8867

   This week the IRS has announced that it would be required for paid tax return preparers to file a due diligence checklist Form 8867 with any federal returns claiming the Earned Income Tax Credit. In essence it was designed to reduce errors on returns claiming the EITC. This checklist will help preparers be accountable for what they enter in when filing the EITC for their clients.The EITC benefits low-and moderate-income workers and working families. However, the credit varies by income, size and filing status. Taxpayers can get it even if they owe no tax but they must be eligible.

7 Tax Saving Tips Part3

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This is Part 3 of my series on the topic 7 Tax Saving Tips. We've been filming many segments that are aired on Literary Speak a Pasadena cable show.

GOOD RECORD KEEPING CAN REDUCE TAX TIME STRESS

     Getting organized in the summer is a great way to get ready for next years tax season. Here are a few tips that may help you prepare.            1. Keep documents and receipts that you think are going to have an impact on your tax return.      2.  Bills, mileage logs, invoices, and other receipts are some things you should keep track of. Most importantly keep track of money spent on home improvements, stock and other investments, rental properties etc...     3.  If you're a small business owner you should keep track of Gross Receipts, Invoices, Bank Deposit Slips, Proof of purchases, Expense Documents, Documents to Verify your assets, etc.   All this information here will help you keep track of your tax information. Not only will it make it easier on yourself  but it will also make it easier on your tax preparer. The best part about keeping track of everything is it will help you if you ever get audited.

Sykes Accounting: TEN TIPS FOR TAXPAYERS WHO OWE MONEY TO THE IRS

Sykes Accounting: TEN TIPS FOR TAXPAYERS WHO OWE MONEY TO THE IRS : "No one likes to pay taxes and it seems to be more painful when you cannot pay the amount you owe to IRS in one payment. The IRS has announ..."

TEN TIPS FOR TAXPAYERS WHO OWE MONEY TO THE IRS

No one likes to pay taxes and it seems to be more painful when you cannot pay the amount you owe to IRS in one payment. The IRS has announced an effort to help struggling individuals and businesses meet their tax obligations without adding unnecessary burdens.     1. Get a loan if possible to pay your tax bill, it is cheaper than paying installments.         2.  Ask for additional time to pay. If you can pay the amount in one payment but do not have the money           readily available you can call 800-829-1040 or go to www.irs.gov .         3. You can pay by credit card if you get reward credits this may take some of the pain away knowing you  can use those reward credits for something you want. However, there are fees involved and the interest may not be deductable.     4.  You can pay by Electronic Funds Transfer. The amount would be deducted from your bank account using the Electronic Federal Tax Payments System. You can access this by calling 800-555-4477 or online at

EQUITABLE RELIEF

 The Internal Revenue Service announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests. What this means is that a married couple who filed a joint tax return both are liable for 50% of the tax due unless one does not pay then the other is liable for 100%. This usually happens in a year involving a divorce. Equitable Relief Under Section 6015(f ) allows for equitable relief of taxes owed when a spouse files a joint tax return and relief is not available under Section 6015(b) or (c). However there was a two year deadline to request equitable relief of taxes under subsection (f). Even though the courts have upheld the validity of the two-year deadline to request equitable tax relief the IRS launched a thorough review of the equitable relief provisions and issued Notice 2011-70 which eliminates the two-year deadline. "In recent months, it's became clear to me that we need to make significan

Start A Business Part 2

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In Part 2 of "Start A Business" we talk about such topics as Strategy, who's targeting small businesses, What sets my company apart from H&R Block and Turbo Tax, How long do you have to Finance your company, and much more. With the right information given to you, you may be able to start a business. I'm here to answer your questions and help you get started. Go to our website www.sykesaccounting.com or you can reach me directly at 562-864-2341

FEDERAL/STATE BASIC PAYROLL TAX SEMINAR

 You are invited to attend, at no charge, a Federal/State Basic Payroll Tax Seminar  Wednesday, August 3, 2011 from 9:00a.m to 3:00p.m.             At: WorkSource/Career Partners                   3505 N. Hart Ave.                   Rosemead, Ca 91770 You will learn:       . California payroll reporting requirements: forms, employer obligations, reporting,           and payment requirements        .  Independent Contractor reporting requirments        . Electronic filing and payment requirements and options        .   Federal payroll reporting requirements: Forms 940, 941, 1099, W-2, W-4, W-9, and            alternative filing There is no charge for this seminar. Reservations are recommended. Use the Internet: www.edd.ca.gov/payroll_tax_seminars/ , or telephone (888) 873-6086 For additional seminar dates, times, locations and subjects, please check EDD's Internet site as shown above

Starting A Business Part 1

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I have a reoccuring spot on Literary Speaks and we discuss issues such as Starting Businesses, Taxes, Audit and much more. If you're interested in starting a business or have a tax question feel free to go to my website at www.sykesaccounting.com or email me. There are also many other Videos on Youtube, please check them out.

FUTA SURTAX IS NO LONGER IN EFFECT

Beginning July 1,  2011 the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. Thus, the FUTA tax rate, before consideration of state unemployment tax credits,is now 6.0% Under code Sec. 3301(1), the .02% FUTA surtax expired on June 30, 2011.  The surtax was part of the 6.2% gross unemployment tax rate that employers paid on the first $7,000 of wages paid annually to each employee (6% permanent tax rate, 0.2% temporary surtax).  The surtax has been in effect in every year since 1976, when it was enacted by Congress on a temporary basis.  Since legislation hasn't been enacted to extend the surtax, the FUTA tax rate, before consideration of state unemployment tax credits, now drops to 6.0%, effective July1, 2011.

Changes in California's Sales Tax Collection

Governor Brown has signed a bill that expands the definition of "retailer engaged in business in the state" to include retailers having agreements with persons in California to refer potential purchasers to the retailer through an internet-based link or an internet website, or other means.  In addition, the legislation requires retailers to collect sales tax when they have an agreement with another member of the retailer's commonly controlled group to perform services in California in connection with tangible personal property to be sold by the retailer.  (L. 2011,A28(c.7) effective 6-28-11.) "Click-through nexus," The legislation requires retailers to collect sales tax when there exists what is commonly know as "click-through nexus." A retailer is considered to be engaging in business in California, and thus required to collect tax on sales to purchasers in the state, when the retailer enters into an agreement under which a person in California, for

IRS CHANGES TAX FILING EXTENSION FROM 6 TO 5 MONTHS FOR PARTNERSHIP, ESTATE AND TRUST RETURNS.

The Internal Revenue Service has issued final regulations shortening the automatic extension time period for partnership, trust, and estate tax returns from six to five months, meaning the returns are due Sept. 15. The final regulations in TD 9531 put in place a temporary change that was originally created in July 2008. Those temporary and proposed regulations reduced the automatic six month extension of time to file to five months for certain pass-through entities, including most partnerships, estates, and certain trust. As these pass-through entities were previously allowed to obtain an automatic six-month extension of time to file certain returns under 2005 regulations, the Treasury Department and the IRS requested comments on whether, and how, a five-month extension of time to file for these pass-through entities might increase or reduce overall taxpayer burden. Approximately 10 comments were received in response to the notice of proposed rule making. A public hearing was held

IF YOU FILE YOUR TAXES TOO LATE YOU MAY LOSE YOUR REFUND

The Court of Appeals for the Fifth Circuit has denied an employer's refund claim, even through the employer had overpayments in certain quarters that were not applied to its withholding tax liability [Nicholas Acoustics & Specialty Company, Inc. v., CAS, 107 AFTR 2d ||2011-950,6/15/11]. Between 1999 and 2003, Nicholas Acostics & Specialty Company, Inc. (Nicholas) remitted payroll taxes to the IRS, but failed to file any tax returns.  The funds remitted were not for the exact amount owed, but were instead an estimate of the amount due.  The company occasionally paid taxes in excess of its liability.  Nicholas erroneously assumed that the IRS could apply all of its overpayments to other quarters in which it had underpaid its tax liability. In 2003, the IRS audited Nicholas due to its failure to file its tax returns.  After the audit, Nicholas filed returns for the missing quarters, which allowed the IRS to refund overpayments or credit the overpayments to certain quarters

WORK OPPORTUNITY CREDIT

IRS has released a draft of form 5884, Work Opportunity credit taxpayer to claim this tax credit, which is scheduled to expire for employees who begin work after 2011.  For many taxpayers, information previously reported on the form would now be reported directy on Form 3800 General Business Credit. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation At of 2010 extended Code Sec. 51 work opportunity tax credit four months to include individuals who began work before Jan 1, 2012. Under pre-Act law, wages for purposes of the credit didn't include any amount paid or incurred for an individual who began work after Aug. 31, 2011. The credit allows employers who hire members of certain targeted groups to get a credit against income tax of a percentage of the first-year wages up to $6,000 per employee($12,000 for qualified veterans; and $3,000 for qualified summer youth employees).  Where the employee is a long-term family assistance (LTFA) recipient the credit is

IF YOU MAKE A PRODUCT IN THE U.S. YOU MAY BE ABLE TO SAVE ON YOUR TAXES.

Form 8903 Domestic Produciton Activities Deduction (DPAD) is for those businessess that make a product in the United States and Puerto Rico.  It is available to individuals, corporations, cooperatives, estates, and trusts.  For those businesses that are pass through entities such as partnerships and S corporations the partners or shareholders take the deduction on their personal tax returns. The DPAD is not just for oil and gas companies any individual or entity can qualify as long as it has Qualified Produciton Activities Income (QPAI). Domestic Produciton Gross Recipts (DPGR) is Construction of real property you build in the united States in your construction trade or business. Engineering or Architectural services trade or business for the construction of real property in the United States. Any lease, rental, license, sale, exchange, or other disposition of the following. a. Qualifying produciton property you manufacture, produce, grow or extract in whole or in significant pa

TAX RELIEF: FORM 982 MAY REDUCE YOUR TAXES.

If you received a form 1099-C (Cancellation of Debt) for a loan modification, foreclosure, or short sale of your primary residence, you maybe able to reduce the amount of income to be included in your income tax return from form 1099-C.  Form 982 is used to show reduction of the amount of debt included as income from several sources but I am only going to discuss the part that pertains to a primary residence.  In order to use form 982 for your primary residence you must have Qualified Principal Residence Indebtedness.  This is a mortage that you took out ot buy, build, or substantially improve your main home.  Also the debt is secured by your main home.  If the amount of the orginal mortgage is more than the cost of your main home plus improvements, only the debt that is not more the cost of your main home plus improvements is qualified principal residence indebtedness.  The amount of exclusion applies only to debt discharged after 2006 and before 2013.  The maximum amount you can

Mortgage Loan Modification Tax Relief

If you have had a mortgage loan modification and you receive a form 1099-C (cancellation of debt) there may be some tax relief. Publication 4681 Canceled Debts, Foreclosures, Repossessions and Abandonments goes into detail about cancelled debt and defines exclusions and deductions. I am only going to discuss how this affects your primary residence. A mortgage loan modification occurs when you and the bank agree to a reduction of the principle balance. You may receive a form 1099-C showing cancelled debt; this amount is to be included in income. However if it qualified debt (the mortgage was used to buy, build, or to substantially improve your main home) then the amount on the 1099-C line 2 or a portion of it may be entered on form 982 to be excluded from income. If you have refinanced your primary home and received money then your qualified debt may be limited to your original mortgage depending on what the money was spent on. Also the amount of debt that was not used to improve the

If You Owe Taxes There Is Some Relief

In February of this year IRS made major changes to its practice of filing tax liens. These changes include: Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens. Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill. Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. Creating easier access to Installment Agreements for more struggling small businesses. Expanding a streamlined Offer in Compromise to cover more taxpayers. When IRS files a tax lien it notifies the public that the taxpayer's property can be used to satisfy a tax debt. This adversely affects a person's credit making it harder to get a loan to pay off the debt. To help taxpayers IRS has raised the lien threshold to 25,000. Also, IRS will allow Installment Agreements on amounts owed under 25,000 without submitting a financial statement but a lien may be filed. In order to not have

Tax Form 1099K

The 1099K Merchant Card and Third Party Network Payments form is now available.  This form was created to account for monies that merchants who accept credit and debit cards received.  Some businesses have a separate bank account for their merchant services or may be using a foreign merchant service company and may not report all the income  received when preparing  their taxes.  On the form 1099K each month is shown separately so that the total on line 1 equals the total of the all the months. This form should be mailed by January 31 just as all other 1099s. It will be mailed from the merchant service company to all its customers.  If the total number of transactions are less than 200 or the total amount of transaction dollars is less than $20,000 for the year a 1099K may not need to be issued.

California-Taxes: New Home Credit

The Franchise Tax Board (FTB) has issued an update on the estimated application and reservation requests received for the New Home Credit.  As of May 24, 2011 the FTB has received 21,390 ( up from 21,250 as of May 17) resevation requests and 31,280 (up from 31,110) applications.  This is different from the federal because there was no seperate application.  The FTB will stop accepting applications when it has received sufficient applications to allocate the full $100 million.  This is different from the federal because there was no limit.  New homes closing escrow in 2011 are only eligible for the New Home Credit if the is purchased pursuant to an enforceable contract executed on or before December 31, 2010.  This is different from the federal which ended April of 2010.  Claimants should continue using the 2010 forms for homes purchased pursuant to an enforceable contract in 2010, but closing in 2011.  Taxpayers who applied or the New Home Credit for a purchase that closed escrow in 20

Tax Preparer Exams

IRS is asking for public comment on Tax Preparer Exams.  This means that you can make suggestions on what topics tax preparers should be tested on or if you feel they should have to take a test at all.  In developing the exam IRS would like to know if you think the examination should concentrate in a certain area of tax law or cover all areas in general.  Do you feel the exam should be multiple choice, true or false, writtern problems or short answers or a combination of all.  Also how often should the exam be given once a year or several times a year and when can a person apply and how often they can apply if they need to retake the test.  To make suggestions and comments about the Tax Preparer Exams email IRS at Notice.Comments@irs.counsel.treas.gov  before July 7, 2011.

Are You Ready For The Audit Part 2

http://www.youtube.com/watch?v=h239HhRVVSA

Asykes Audits Part 1

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My series on Audits and Taxes