by Leif Jensen | Feb 18, 2012 | General |
Partnerships can furnish K-1s to their partners electronically, according to the IRS. But there are some prerequisites that need to be met. The partners must approve the e-delivery first and the partnership are required to inform its owners that a paper form will be...
by Leif Jensen | Feb 18, 2012 | General |
The IRS has created a new form to assist taxpayers in filing a complaint against tax preparers. It’s an interesting form. It is unfortunate that we need to have such a form.
by Leif Jensen | Feb 18, 2012 | General |
Here are the projected levels for the Social Security wage base for 2013 $114,000, up $3,900 from this year’s ceiling. This is President Obama’s official budget forecast, based on data from the Social Security Admin. The long range estimates are: $119,100 for 2014...
by Leif Jensen | Feb 13, 2012 | General |
This joke has been floating around on the internet for quite a while. They sent my Tax Return back! AGAIN!!! In response to the question: “List all dependents?” I replied – “12 million illegal immigrants; “3 million crack heads; “42 million unemployable people...
by Leif Jensen | Feb 12, 2012 | General |
I have just read that the stats for individual audit tax return done during 2011 were the same as in 2010, 1.11% Now when you look more closely those numbers do change a bit. But, it is my understanding that these numbers do not include the hash audits that are...
by Leif Jensen | Feb 12, 2012 | General |
I took on a new client a couple of weeks ago. What was interesting is that he had conversations with an accounting firm. One question that he had asked was if there was a problem would they be able to address it with the IRS or IDOR. At least they answered...
by Leif Jensen | Feb 11, 2012 | General |
Starting in 2013 a second surtax boosts the top rate on capital gains and dividends to 18.8% from the current15% nominal maximum rate that we expect will be in effect for 2013, plus an additional 3.8%. An ugly example of this surtax is if you sell your primary...
by Leif Jensen | Feb 11, 2012 | General |
Springfield seems unable to solve its long-running financial problems. Who would have thought increasing taxes and spending simultaneously would cause a bad situation to get worse. Last month we were given the lowest credit rating of any state in the country by...
by Leif Jensen | Feb 11, 2012 | General |
Starting in 2013 there is a special 3.8% Medicare surtax on unearned income of single filers with modified adjusted gross income over $200,000 and joint filers above $250,000. Modified AGI is defined as AGI plus any excluded foreign earned income. The new surtax will...
by Leif Jensen | Feb 11, 2012 | General |
Did you know that individuals can e-file their federal returns at no cost, no matter their income. If your adjusted gross income was $57,000 or less in 2011, you can prepare and e-file without charge by going to http://www.irs.gov/freefile and selecting a tax...
by Leif Jensen | Feb 11, 2012 | General |
The IRS has added an additional hoop for tax preparer to jump through this year. They insist in wanting to know if self-employeds, farmers, landlords, partnerships, regular corporations and S firms who made payments that must be reported on 1099s are reported. If so,...
by Leif Jensen | Feb 11, 2012 | General |
There has been a lot of discussion recently about the potential threats to the designation “Certified Public Accountant” (CPA). The IRS, in an attempt to identify all who are preparing any and all tax returns for a fee, has implemented a program that requires everyone...
by Leif Jensen | Jan 24, 2012 | General |
2011 ended up with a U6 unemployment rate of 15.2% The U6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts “marginally attached workers and those working part-time for economic reasons.”...
by Leif Jensen | Jan 24, 2012 | General |
The audit rate for individuals held steady in 2011 at 1.11%. That is one out of every 90 returns. The number of exams actually fell slightly. The audit rate remained the same because the number of returns filed also dropped (non-filers? Is there any follow-up?)....
by Leif Jensen | Jan 24, 2012 | General |
The most recent statistics available from the IRS is FY2009. This show that the bottom 50% of all taxpayers, half of the country paid only 2.25% of all of the taxes collected. This consisted of those whose Adjusted Gross Income (AGI) was less than $32,396. So that...
by Leif Jensen | Jan 12, 2012 | General |
I just saw an ad for a national tax return preparation company. They were offering a free review of your past returns for an accuracy check. Now I personally find this hysterical, because of the fact that every, and I mean every return from this company that I have...
by Leif Jensen | Jan 8, 2012 | General |
Our wonderful lawmakers in Washington failed to extend many popular tax breaks beyond 2011! Gone for the moment are write-offs for state sales taxes, college tuition and up to $250 of teachers’ classroom supplies. We have in place the higher AMT exemptions and the...
by Leif Jensen | Jan 8, 2012 | General |
Since late December and early January I have been meeting with clients to line up everything for the preparation of 2011’s 1099’s. It is looking like there are more for each client then ever before. I also expect this trend to continue. With the costs of everything...
by Leif Jensen | Jan 8, 2012 | General |
The Social Security wage base increases to $110,100 for 2012. This is a $3,300 increase above the 2011 level and the first increase since 2009. Obviously Congress thinks the is fixed now. For the average employee the Social Security tax rate is currently at 4.2%...
by Leif Jensen | Jan 8, 2012 | General |
MARRIEDS: If taxable income is The tax is Not more than $17,400 10% of taxable income Over $17,400 but not more than $70,700 $1,740.00 + 15% of excess over $17,400 Over $70,700 but not more than $142,700 ...
