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Archive for the ‘Tax Preparation Information’ Category

Question: At midnight on October 31, the federal ban on Internet taxes expires. Isn’t time to write our senators?

Unless Congress intervenes, this Halloween will be an especially scary one for U.S. Internet users. At midnight on October 31, the federal ban on Internet taxes expires, loosing state and local governments to tax Internet services received by Americans. The House of Representatives last week voted to extend the tax ban another four years, but it refused to make the ban permanent. The issue is now before the Senate. Since it was adopted nine years ago, the Internet tax ban has proven to be sensible and successful. Rather than let it expire, Congress should make the ban permanent.

http://www.heritage.org/Research/InternetandTechnology/wm1673.cfm

Here’s an easy way to write your senator or get their phone numbers to call.

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Thanks for finding that. When I tried to find it earlier it didn’t come up.

Answer: The Senate extended the ban.
“U.S. Sens. Tom Carper (D-DE) and Lamar Alexander (R-TN) praised the agreement reached by the Senate Thursday night that extends for seven years the moratorium on state and local taxes on Internet access. The tax ban � first passed in 1998 and last updated in 2004 � is set to expire on Nov. 1.”

Insider-Trading Charges, IRS Amnesty, Antitrust: Compliance

Former SAC Capital Advisors LP junior portfolio managers Noah Freeman and Donald Longueuil were charged with insider trading while working at the $12 billion hedge fund, the latest round of charges in a nationwide crackdown by federal prosecutors.

Tax Tips & Information : Are Hobby Expenses Deductible Under Federal Income Tax Laws?

Question: FInancial dept of the federal government scam?

I just received a phone call from a company claiming to be from the Financial Dept of the US Federal Government. The number on my cell phone just came up as 1120 on caller id. They were trying to tell me I was receiving a $500 tax credit that they wanted to deposit directly into my account along with a medical card. When I asked for a phone number to call them back to verify the information they gave me the number of 559-709-3564 which seems to be a cellular phone. How do I go about reporting this and finding out who actually called?

Answer: I’d start with the Federal Communications Commission, since it was done over the phone. It would probably fall under the heading of wire (excuse the term!) fraud.

And excuse me for stating the obvious: Keep that cell phone number as evidence. Given the apparent stupidity of the caller, It may well be where they called you from..

Editorial Roundup: Excerpts From Recent Editorials in Newspapers in the US and Abroad

If there’s an industry that can afford to pay a tax to clean up its mess, it’s the oil industry. Yet the screaming has begun over the proposed cleanup tax inspired by the recent disaster in the Gulf of Mexico.

Tax Tips & Information : About Self-Employed Federal Income Tax Deductions

Question: Do i need to declare Employee Benefits on my USA Tax Returns?

I get a portion of my public transportation costs paid by my employer each month. Do i need to declare this information on my federal and state tax returns?
Thanks.

Answer: Some of these benefits may be tax-free up to a certain dollar amount each year. Consult the IRS for exact details.

Check out this:
Established in 1993 as part of the federal tax code section 132(f)[3], commuter benefits were meant to provide tax incentives to employees to encourage their use of mass transportation in order to reduce congestion and improve air quality. The law provides for monthly maximum ‘caps’ on the amounts that can be excluded from gross income and are therefore not taxed as ordinary income. In 2008, transit and vanpool expenses up to $115 and commuter parking costs up to $220 are excludable each month. An employee can receive both the transit/vanpool benefit and the commuter parking benefit for a maximum of $335 a month.

Some reporting longer tax refund delays

DENVER — Some Colorado residents are reporting longer delays in getting tax refunds and it’s not clear why. The Department of Revenue can’t say much about what’s happening because it’s only allowed to discuss tax returns with the taxpayers who filed them or their attorneys.

Tax Information Help and advice on Filing Your taxes IRS

Question: do i need to file the reward money(cash) from Credit Card’s reward program as income tax?

is there any irs document talk about that? Also, does the credit card company need to submit the tax information about they give out the money to the reward member?
can’t find the details about “non-deductible expense” in irs.gov for these kinds of situation. I would like to see some more information for this.

thank you

Answer: It’s a reduction of a non-deductible expense so it isn’t classified as income on a personal return.

If the credit card is used by a business, any reward program funds must first be used to reduce the interest expense claimed so that effectively makes it taxable as if it was income.

KEO has help for low-income homes

LIHU‘E — Kaua‘i Economic Opportunity has emergency federal fundsavailable to assist households which have had or are in danger ofhaving their electricity turned off.

Surviving an IRS Tax Audit : IRS Audit: Items Not Needed

Question: Canadian Travelling overseas?

I am planning a trip to Australia and New Zealand, and other parts of the South Pacific. This is going to be a long trip perhaps a year. How does this affect my residence status as a Canadian? I am on a pension income which is low; therefore I am not paying income tax now. I am planning to rent a studio apartment or In-Law-Suite in Alberta. Do I have to return back to Alberta after 5 months, and for how long a period do I have to stay, before I can travel again? I appreciate any information provide, thank you.

Answer: This would affect your residency status within Canada.

Residency is determined by the province in which you reside. In Alberta, the restrictions for being considered an Alberta resident (and therefore able to retain your Alberta Health Care, etc) is that you reside in Alberta for at least six months in a year. This means not just owning property, but physically being present. Obviously you can raise questions about who would know if you are not in the province the whole time, but that is the official regulation.

The residency would not affect your CPP (presuming you are receiving this as part of your pension) as CPP is not limited to Canadian residents so long as you qualify to receive payments. Although you do not necessarily need a Canadian bank to receive CPP, just retain your Canadian bank account and there will be no problems with this.

Australia Beer Market Analysis

Volume growth in beer in 2009 was attributed by leading manufacturers to a follow-on beneficial impact from the collapse of RTDs following the introduction of higher taxes on these products.

ATO grilled over tax return bungle