The Tax Preparation Blog

Archive for December, 2007

Question: When the tax table shows how much each income amt owes in taxes, is that Fed, SS, and Medi combined?

or is it just referring to the Federal amount, or the SS amount?

Answer: The tax tables in the 1040 instructions are for federal income tax only.

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The Non-Working Class

How to build a work-friendly welfare state.

Senator Obama’s Social Security Tax Plan

The deadline to apply to the IRS Voluntary Disclosure Program has passed, however U.S. taxpayers can still file a voluntary disclosure under the IRS regular procedures.

In 2009, the IRS and U.S. Department of Justice started its highly publicized investigation into Swiss bank UBS AG and U.S. accountholders who failed to disclose these assets to them. However, the investigation did not end with UBS. It is abundantly clear that offshore tax evasion remains a top IRS enforcement priority. The DOJ has gone after taxpayers regardless of their assets even those taxpayers with assets of $20,000 or less in offshore accounts.

U.S. taxpayers with offshore assets and accounts are duty bound to disclose these interests to the U.S. government on their Form 1040, U.S. Individual Tax Returns, and file a corresponding Form TD F 90.22.1, Report of Foreign Bank and Financial Accounts (FBAR). If IRS agents can prove that a taxpayer has hidden an interest in an offshore account or income accruing on such accounts during the course of an audit, the IRS may impose considerable penalties,including the greater of $100,000 or 50% of the offshore account balance for willful failure to file an FBAR for each account. These penalties , compounded with interest and fraud penalties , can essentially wipe out the taxpayer foreign assets. On top of that, taxpayers could be open to criminal prosecution and jail time for tax evasion.

In March 2009, the creation of the IRS Voluntary Disclosure Program was announced to entice taxpayers to come forward and disclose previously undisclosed offshore accounts in exchange for lesser penalties and the promise not to refer the case for criminal prosecution. As a result of pressure on UBS and other offshore financial centers, thousands of U.S. taxpayers with undisclosed offshore accounts took advantage of the Voluntary Disclosure Program and filed before the deadline of October 15, 2009.

Even though it may be too late to take part in the IRS Voluntary Disclosure Program, you still have the opportunity to file a voluntary disclosure under the RSAfAE’A�AcAfAcAca��A�A�A�AfAcAca��A�A�Acs normal procedures. There are a multiple advantages to filing a voluntary disclosure as it is far better to disclose to the IRS than to have the IRS discover you. Similar to the Voluntary Disclosure Program, a traditional voluntary disclosure also offers taxpayers with previously undisclosed foreign accounts with a way out, potentially getting around the most significant of civil penalties and criminal prosecution.

Furthermore, those U.S. taxpayers with undisclosed offshore accounts should be aware the voluntary disclosure process is complex and sensitive. U.S. taxpayers are best advised to contact an experienced tax attorney, as soon as possible, who is skilled at resolving disputes with the IRS.

For example, if a U.S. taxpayer has been investigated and contacted by the IRS already, it could be too late to put in a disclosure. Therefore, time is a significant factor as the IRS continues its pursuit of undisclosed offshore account holders. The door is closing on the ability to receive reduced penalties and possible jail time for those who do not file in time. Seeking the advice of proper counsel is truly in their best interest.

A Look at 2010 and Beyond

It would be an interesting, albeit purely academic exercise to imagine how the advertising industry would look right now if we hadn’t been hit with the biggest economic downturn since the 1930s.

ONC Panel: Insite Into Emerging Policy

Question: Are you going to prepare taxes next year?

I’m just wondering. I just finished my second year, with roughly 300 federal returns completed. I’m not a great preaprer, I am honest, I do think I’m a good tax preparer. Most customers were friendly. One pet peeve, a client who would come in without even opening their W-2′s, or any tax info. I opened A LOT of important tax info. Or would not have a SS number that was needed…or lied on the interview.

And people who bring their young kids. I have nothing against kids, just please find a babysitter for an hour.

I signed a 2 year no compete contract at the beginning of the just completed season…no matter, I’m done. I like doing taxes, and I’ll keep up with what is going on, just no more doing other peoples returns. I’m finished.

Who will be preparing returns next year?

Answer: I’ve been doing this for 16 years and I don’t want to stop.

I work for a large (largest) tax preparation firm. Could I make more money on my own? Yes. But then I would have to pay for my own continuing education (I’m an Enrolled Agent and need to take 24 hours per year of tax courses), and pay for my own liability insurance.

Maybe in a few years I will go out on my own.

Sheriff’s Department employees won’t take raises this year

Sheriff’s Department employees won’t get pay raises this year.

Preparation Of Firearms & Ammunition