The Tax Preparation Blog

Archive for May, 2010

Summary of Facts

USCO was the sole shareholder of CAHL, which was incorporated in Canada in 1929. CAHL was in the business of manufacturing auto parts until 1961, when this business was transferred to a wholly owned subsidiary (“CanOpco”) and CAHL ceased to be resident in Canada.

Davos Annual Meeting 2010 – Rethinking Values in the Post-Crisis World

Question: What law requires that the labor of americans be taxed?

The Supreme Court, in a decision written by Chief Justice White, first noted that the Sixteenth Amendment did not authorize any new type of tax, nor did it repeal or revoke the tax clauses of Article I of the Constitution… Direct taxes were, notwithstanding the advent of the Sixteenth Amendment, still subject to the rule of apportionment and indirect taxes were still subject to the rule of uniformity.
According to the Congressional Research Service, the federal income tax is not a tax on income. It is a privilege tax measured by income. In other words, Congress is taxing some government-defined privilege and income is merely the measuring stick to determine the value of the privilege. Nowhere in this report does CRS identify the so-called privilege that is the basis for the tax.

Answer: Preach it brother. Down with the IRS! Support the FairTAX! http://www.fairtax.org/

Former Ill. governor faces fight of his life

M. Spencer Green FILE – In this April 21, 2010 file photo, former Illinois Gov. Rod Blagojevich arrives at the Federal Court building in Chicago.

Thaksin’s Wife, Brother Convicted Of Tax Evasion; North Korea Faces Food Shortages; Toxic Cargo On Sunken Philippine Ferry; US: Chinese Government Has Nothing To Fear About Internet; China Promised Media Freedom; China Announces Emergency Rules

Question: Extending an IRS extension…..?

On personal federal income taxes, if you file for an extension to the April 15 deadline and it is extended to October 15 – can you get a second extension? If anyone knows, please tell me what form to use or what procedure to follow. I am trying to help a friend. THANKS!

Answer: http://turbotax.intuit.com/tax-tools/filing_after_april_15_turbotax/article

http://www.efile.com/services/irs-extension.asp

The New Real Estate Boom Is in Short Sales

Real estate agents who have embraced the often-slow transactions are suddenly awash in business. by Michele Ellson When Jose Diaz started handling short sales in 2007, just two of the thirteen sales he tried to close went through. The following year, the Hayward-based real estate broker closed 25 short sales. But getting lender approval on those took seven to eight months. “I had to go through …

File Tax Extension Online Efile IRS Tax Extension Tax File Extension

Question: How do I add previous estimated quarterly payments (1040ez) while filing taxes via Turbo Tax Home & Business?

While I am doing my taxes using Turbo Tax (Home & Business online) how do I get it to factor in my previous estimated quarterly payments? It looks like the Federal Tax Due and MA Tax Due reflect the amount due before taking into account that I paid for previous quarters. Does it do it automatically? If not, where exactly do I input that info? Thanks!

Answer: Just follow the interview and it will ask you.

Senate Democrats plan on using recess to win back seniors

Leaders want members to hold town hall forums at senior centers to promote Wall Street reform and healthcare reform. Read more…

Self Employed Federal Tax Deduction Tips for 2009, 2010.mov

Question: Medical Expenses and Tax return?

When I was 18 I fell through a glass table and required stitches at the ER. My mom took me and I was in too much pain to fill out any forms so she filled out everything and put down that it was going on her insurance. When I turned 18 they took me off my mom’s insurance. Well some time afterwards I got a bill for $400 from the hospital. It’s in collections now because I don’t have the money to pay at the moment. Can I file for that on my taxes, or would it have to be payed for me to claim it?

Answer: Okay.

I like this one as you have to pay attention to your explanation to catch the twist.

For those who missed it, you mother filled out the hospital forms and thus the deduction if there were one would go to your mother.

Having been through many hospital experiences she was the one who accepted liability ofr the debt and not you.

Had you filled out the paperwork we might be talking about itemizing your medical expenses to capture this expense. You only asked if it could be done and not how to do it. It can not be done until you pay for it but once you pay for it, it can be deducted, but once again, only your mother can deduct it. The debt is not yours.

I know you are missing this fact but the hospital is seking money from the wrong person and they know that. they should be after your mother.

I hope this made sense.

Good Luck.

IRS Details Plans for Tax Preparer Registration

A top Internal Revenue Service official outlined the agency s plans for Tax Preparer Registration and testing at the National Society of Accountants board of directors meeting.

i paint a bit to fast!!