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....
by Leif Jensen | Oct 16, 2011 | General |
The IRS is going after firms that classify employees as independent contractors. The tax agency and the Labor Dept. are sharing information and both will shortly be sharing information with state agencies to identify companies that violate the tax law or are...
by Leif Jensen | Oct 16, 2011 | General |
It is becoming even harder for people to land a new job. Even if they are lucky enough to do so people are not as mobile as they once were. The sluggishness in the housing market makes it hard to sell and move to an area with stronger job prospects or after the job...
by Leif Jensen | Oct 16, 2011 | General |
FY2009 data is finally in! FY2010 can’t be final since the due date is tomorrow for personal extensions. Starting with the bottom 50% of federal tax filers! They paid in 2.25% of the total federal income tax bill. This is the group that gets the EIC. Their average...
by Leif Jensen | Oct 16, 2011 | General |
Last year there were some problems with this issue, and I would expect more this year as well. Unenrolled preparers can’t yet say they are “registered tax return preparers,” the designation IRS adopted for preparers who aren’t lawyers, CPAs or enrolled agents. The...
by Leif Jensen | Oct 16, 2011 | General |
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay...
by Leif Jensen | Oct 11, 2011 | General |
This holiday season there will be a new mouse on the market, the Penclic Mouse. This is a Swedish design and is now in use in Europe. It is a cross between a pen and a joystick. It moves like a pen, which makers say is more natural than rolling a regular mouse. Now...
by Leif Jensen | Oct 11, 2011 | General |
Thinks are looking up??? Private sector hiring is picking up. Things are projected to have slightly better growth ahead. It is expected businesses to add 100,000-150,000 jobs a month during 2012, then subtract 20,000 or so a month as government agencies continue to...
by Leif Jensen | Oct 10, 2011 | General |
A funny thing happened in WASHINGTON —The Internal Revenue Service announced that it is issuing proposed regulations that would require paid tax return preparers, beginning in 2012, to file a due diligence checklist, Form 8867, with any federal return claiming the...
by Leif Jensen | Oct 10, 2011 | General |
Does your business have a corporate book? Does it have updated information? Do you have at least an annual meeting? What should be in your corporate books and records? It should include the following: • Article of Incorporation • Bylaws • Minutes of first...
by Leif Jensen | Oct 3, 2011 | General |
A win for the states is in the works. A bill limiting states’ power to chase tax revenue from out-of-state firms is not likely to pass. The legislation has been approved by a House committee, but is not expected to get much farther. The planned measure would bar...
by Leif Jensen | Oct 3, 2011 | General |
IRS has never been comfortable with how some firms classify some workers and independent contractor. To assist with turning this issue towards the direction they wish they have issued a carrot and a stick for firms that misclassify workers as contractors. Firms not...
