Actual Vehicle Expense Method May Help Offset Higher Gas Prices
As gasoline prices have climbed in 2011, many taxpayers who use a vehicle for business purposes are looking for the IRS to make a mid-year adjustment to the standard mileage rate. In the meantime, taxpayers should review the benefits of using the actual expense method to calculate their deduction. more

IRS Streamlined Offer-in-Compromise Program Aims to Cut Red Tape
The IRS's streamlined offer-in-compromise (OIC) program is intended to speed up the processing of OICs for qualified taxpayers. Having started in 2010, the streamlined OIC program is relatively new. The IRS recently issued instructions to its examiners, urging them to process streamlined OICs as expeditiously as possible. One recent survey estimate that one in 15 taxpayers is now in arrears on tax payments to the IRS to at least some degree. more

New Broker-reporting Rules - Burden to Brokers Boon to Taxpayers
As a result of recent changes in the law, many brokerage customers will begin seeing something new when they gaze upon their 1099-B forms early next year.  In the past, of course, brokers were required to report to their clients, and the IRS, those amounts reflecting the gross proceeds of any securities sales taking place during the preceding calendar year. more

How Do I - Compute the Tax Due Each Year on an Annuity
Many more retirees and others wanting guarantee income are looking into annuities, especially given the recent experience of the economic downturn. While the basic concept of an annuity is fairly simple, complex rules usually apply to the taxation of amounts received under certain annuity and life insurance contracts. more

FAQ: What is Backup Withholding
Most people are familiar with tax withholding, which most commonly takes place when an employer deducts and withholds income and other taxes from an employee's wages. However, many taxpayers are unaware that the IRS also requires payors to withhold income tax from certain reportable payments, such as interest and dividends, when a payee's taxpayer identification number (TIN) is missing or incorrect. This is known as "backup withholding." more

June 2011 Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of June 2011. more

Court Allows Individual and His Corporation to Share Profit Motives
In a significant taxpayer win, the Court of Federal Claims has held that a taxpayer who conducted his business as an individual and through several S corporations (S corps) created a "unified business enterprise" engaged in a business for profit. As a result, one or more of the S corps could deduct expenses and take depreciation deductions because the taxpayer could impute his business activities and the business activities of one entity to his other entities. more

FBAR Deadline Approaches for Disclosure of Foreign Accounts
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), is due June 30, 2011, from all those with accounts containing a certain level of financial assets held in foreign jurisdictions during 2010. While not a new form or filing deadline, this year's FBAR form has been expanded to account for an expansion of the rules by the Treasury Department last February. more

IRS Undertakes Review of Equitable Innocent Spouse Rules
The IRS is reviewing the two-year limitations period on claims for equitable innocent spouse relief, Commissioner Douglas Shulman recently told members of Congress. The lawmakers had asked the IRS to withdraw the two-year limitations period, indicating it was contrary to Congress' intent. more

IRS Will Not Waive 60-day Period for Quick-loan from IRA Funds
The IRS recently refused to waive the 60-day rollover period for redepositing IRA funds. The taxpayer used the funds to make a short-term loan and, according to the IRS, assumed the risk that the funds might not be repaid in time for him to redeposit the funds into his IRA. It did not matter that he was doing a good turn by helping out his elderly mother. more

Inflation Adjusted Amounts Released for 2012 Health Savings Accounts
The IRS has provided the inflation-adjusted amounts that will govern health savings accounts (HSAs) for 2012. Amounts are increased for changes in the cost-of-living adjustment. The amounts generally have increased from 2011. more

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