by Leif Jensen | Nov 7, 2011 | General |
In the current environment I am finding out that there are more and more people who are out and out dishonest tax preparers out there. Now, there are several levels of criminals preparing taxes out there. Some aspect are as follows: Buy a single copy of Turbo Tax and...
by Leif Jensen | Nov 6, 2011 | General |
It seems that our underground economy is growing. What is the underground economy? Remember all of those people yourself included that do business for cash. Cash that does not get reported to the government and no taxes are paid on. I have been aware of tax...
by Leif Jensen | Nov 3, 2011 | General |
Does your bookkeeper write your checks, sign your checks and reconcile your bank accounts? This office setup is the most effective for allowing employee embezzlement. Congratulations and good luck if this is the case for your business, because you need good luck to...
by Leif Jensen | Oct 31, 2011 | General |
I have just read a story that a CPA threatening to kill an IRS employee over the phone. Now I may have been angry on certain issues while on the phone, especially to a certain horrible utility shall we say. But I never lost it to the point of threatening mortality....
by Leif Jensen | Oct 30, 2011 | General |
Have an embezzlement case of a 42-year-old from Timonium, MD pleaded guilty earlier this month to filing false tax returns in 2007 and 2008 after she neglected to claim over $382,000 embezzled from her former employer, Towson, MD-based employer. All Chicagoans know...
by Leif Jensen | Oct 30, 2011 | General |
The Tax Court has ruled in favor of a landlords who due to a lack of tenants wanted a write-off of rental losses. The details: After buying a home, the owner moved away and rented the property out for years. After her last tenant moved out, she was unable to rent it...
by Leif Jensen | Oct 29, 2011 | General |
IRS will now need a warrant to get taxpayer e-mails from an Internet provider, the agency’s lawyers say in a memo to the field. Agents must now go to court and get a judge’s approval. Before this ruling the IRS just needed an administrative summons to do the trick. ...
by Leif Jensen | Oct 29, 2011 | General |
Apparently the U.S. isn’t the only country interested in tax avoidance by high-incomers. The United Kingdom is planning a crackdown, advertising for 1,000 agents to closely check the tax compliance of the country’s 350,000 wealthiest taxpayers. IRS already has a squad...
by Leif Jensen | Oct 29, 2011 | General |
The Social Security wage base level for 2012 will increase to $110,100. This is a $3,300 increase over this year’s figure and the first increase since 2009. The wage base did not go up in 2010 and 2011 because the law bars any increase in the cap in years when...
by Leif Jensen | Oct 29, 2011 | General |
Apparently Treasury inspectors are estimating that tax filers erroneously (criminally) filed returns claiming educational credits and received $3.2 billion (yes billion with a “B”) in credits for 2009 and 2010. It appears that in many of these cases, IRS didn’t have a...
by Leif Jensen | Oct 28, 2011 | General |
For those who are able to good news in on the horizon. The maximum 401(k) contribution rises to $17,000 in 2012, up $500 over this year. Individuals born before 1963 can put in as much as $22,500. Theses contribution limits also apply to 403(b) and 457 plans as...
by Leif Jensen | Oct 27, 2011 | General |
Apparently the U.S. isn’t the only country interested in tax avoidance by high-incomers. The United Kingdom is planning a crackdown, advertising for 1,000 agents to closely check the tax compliance of the country’s 350,000 wealthiest taxpayers. IRS already has a squad...
by Leif Jensen | Oct 26, 2011 | General |
Are you tired of hearing the phrase Apple has an app for that? Well if not you may be in for a treat. Especially if you are still sending greeting cards by snail mail? Which I am thinking the answer is no. But if you do, Apple has an app for that. The new iPhone 4S...
by Leif Jensen | Oct 25, 2011 | General |
President Obama’s refinancing plan will be a boon to least 1 million homeowners. But there is fear that it doesn’t get at the root of the housing crisis. Easing refinancing rules for one-tenth of the nation’s homeowners whose mortgages are underwater is beneficial and...
by Leif Jensen | Oct 23, 2011 | General |
It appears that more companies are looking to expand on U.S. soil rather than overseas in the coming months. Managers are starting to find that production costs in parts of the U.S. are cheaper than in some regions of China, once transportation expenses are taken into...
by Leif Jensen | Oct 18, 2011 | General |
In 1973, the median male worker earned just over $49,000 when adjusted for inflation, while in 2010 that worker made about $1,500 less. Yet, in the same period, the output of the economy has more than doubled, and the productivity of workers has risen steadily. [NPR]...
by Leif Jensen | Oct 16, 2011 | General |
We have a Tax Court case that actually seems to be beneficial for a taxpayer. Interest paid on a mortgage for a house that was never built is deductible. This couple took out a loan and bought a beachfront home. They tore it down and planned to build a new house on...
by Leif Jensen | Oct 16, 2011 | General |
The definition of a “Trader” continues to be defined. Frequent buying and selling does not a “trader” make, these are not the sole criterion to qualify per the IRS. The holding period of the securities is the key factor, according to the Tax Court. This case is a...
by Leif Jensen | Oct 16, 2011 | General |
According to the Tax Court, donating to a charity the right to use a timeshare unit is not a reportable donation. A trader and his wife donated a week’s stay in their Caribbean timeshare as a prize in a charity’s auction. They then claimed a charitable deduction for...
by Leif Jensen | Oct 16, 2011 | General |
Have you been launched and decided to retire. This decision can cost you, retiring too soon can make you eligible for the 10% penalty on early plan payouts. For the 72T calculation you must be 55 or older in the year you leave the job to escape the penalty....
