Category Archives: IRS

A Penny Saved Leads to Tax Court

Posted on October 11, 2005 by Russ

Well, 48 pennies. Most tax software rounds off numbers to whole dollars. Indeed, the IRS suggests taxpayers do this in their instructions to Form 1040: “You may round off cents to whole dollars on your return and schedules. If you … Continue reading →

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New IRS Form 944 for Very Small Businesses to Replace Form 941

Posted on October 5, 2005 by Russ

For the very small business owner, the IRS will introduce in 2006 a new form, Form 944. You can view a draft version of the form here. The new form is for businesses who pay $1,000 or less in employment … Continue reading →

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Did Your Estimated Payment End Up in the Bay?

Posted on September 19, 2005 by Russ

There are traffic accidents and then there are traffic accidents. A courier transporting approximately 30,000 1040-ES payments lost his load on the San Mateo Bridge…and the payments fell into the San Francisco Bay. The accident occurred on September 11th and … Continue reading →

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IRS Mileage Rate Increases

Posted on September 11, 2005 by Russ

IRS Commissioner Mark Everson announced on Friday that the standard mileage rate would increase to 48.5 cents/mile from 40.5 cents/mile, effective September 1st. Other mileage rates: Moving expenses: $0.22/mile, up from $0.15/mile Charitable work: $0.14/mile (set by statute). Hat tip: … Continue reading →

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IRS Issues Priority Guidance Plan; Targets Include Poker Tournaments

Posted on August 17, 2005 by Russ

The IRS and the US Department of the Treasury issued their “Priority Guidance Plan”. A total of 254 projects are mentioned. The ones that the IRS has highlighted are: —Additional legal requirements for tax shelters; —Guidance on how to report … Continue reading →

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Deadline Day 2

Posted on August 15, 2005 by Russ

Today, August 15th, is the deadline for individuals who filed extensions to actually file their 2004 Federal tax returns. A second extension is available (until October 17th), but you need to have a reason (and have the IRS accept the … Continue reading →

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IRS Help Centers: How Valuable?

Posted on July 27, 2005 by Russ

The Orange County Register reports today (one time subscriprtion required) that the IRS cannot tell whether its 400 help centers help taxpayers. The report, from independent auditor J. Russell George, the Treasury Department’s Inspector General for Tax Administration, was disputed … Continue reading →

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New Rules on Tax Shelters for Accounting Firms

Posted on July 27, 2005 by Russ

The Public Company Accounting Oversight Board announced new standards for tax shelters yesterday. The Wall Street Journal reported on this in today’s editions. The rules, which must be approved by the SEC, state that firms will be prohibited from auditing … Continue reading →

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Uh Oh….

Posted on July 26, 2005 by Russ

I noticed a headline in today’s Orange County Register that grabbed my attention: “IRS Will Audit 5,000 Firms to Gauge Unpaid Taxes Nationwide” (one-time registration required). Then I read the article. If I hadn’t had heartburn before, now I did. … Continue reading →

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The Incredible Shrinking Deficit

Posted on July 14, 2005 by Russ

As reported in Tax Analysts, the projected Federal deficit for 2005 has shrunk by nearly 25% from $424 billion to $333 billion. The reason? Tax collections (revenues) are up, across the board, by about 14%.

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