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In this day and age, many people wonder if the IRS is really as forgiving as they are portrayed in the late night advertising you see.  The short answer is yes, but you MUST have qualified representatives on your side, who know what your rights are, and how the programs within the IRS work.  Not all individuals will qualify for certain programs, so it is crucial that an indepth analysis of your specific situation is examined, typically free of charge with most companies.  It is also just as imperative that you work with a credible company with a track record of success and a stellar Better

Sacramento County in CA, owed the Federal Government upwards of $18 million dollars in back taxes regarding payroll liabilities.  This debt was incurred by a New Jersey payroll processor, Ingentra, whose services were utilized through the outsourcing of payroll processing for dozens of CA special districts in an effort to save money.  Two executives at Ingentra have admitted to fraudulently taking payroll deductions from Sacramento County and a few other private companies, and using these funds for expenses of Ingentra.

The 2012 tax year is the final year of the Mortgage Debt Relief Forgiveness Act on the foreclosures and short sales of homes and the exclusion of the debt forgiven from being treated as income to the taxpayer.  If your lender cancelled or had forgiven your mortgage debt, you generally would be required to pay tax on that amount being treated as income.  2012 is the final year in which you can exclude the tax consequence of this event, unless the act is extended by congress or the President, which is doubtful.  If you meet the qualifications for this exclusion, ensure your tax preparer know

The Internal Revenue Service has announced that many members of the military are able to get their tax returns prepared for free on or off most military bases, including overseas locations.  The program is provided through the Volunteer Income Tax Assistance program which is sponsored by the IRS.  VITA provides free tax advice, return preparation, return filing, and other tax help to military members and their families.

For more information, visit the IRS website at IRS.gov and search for IRS Publication 3 - Armed Forces Tax Guide.

Across the board federal spending cuts, known as sequestration, are about to take effect on March 1st if congress fails to reach a new deal, and the impact on the IRS and various taxpayer services will certainly be felt at a very sensitive time during this tax filing season.  The Treasury Department would have no choice but to drastically cut back on its workforce and financial assistance programs for taxpayers.  It would more than likely result in many employee furloughs, impede the access of millions of taxpayers to assistance at call centers, delay IRS responses to taxpayer inquiries an

The US Senate Finance Committee released a bill called the "Veteran Employment Transition Act of 2013", that was introduced on January 24th, 2013.

The IRS created regulations that required all tax return preparers to pass a qualifying exam, pay an annual application fee, and take 15 hours of continuing education courses each year, in order to become a "Registered Tax Return Preparer" (RTRP).  The US district court ruled this week in a summary judgment that the IRS lacked the authority provided by congress to enforce these regulations.  In response, the IRS has advised tax return preparers that they are no longer required to register with the IRS and complete education testing.  The IRS has also stated that they are confident in the s

The IRS has released findings from the Treasury Inspector General for Tax Administration (TIGTA), that states approximately 60 percent of taxpayers who claim large noncash contributions may be reporting them erroneously.  Typically, a taxpayer can claim a noncash contribution to a charity or qualifying organization, but there are reporting requirements for donations related to Motor Vehicles, Boats and Airplanes.  These requirements include the attachment of Form 1098-C, which TIGTA says the IRS is not effectively identifying that these forms are included with the return, and finding that

The IRS has announced a simplified method to claim the home office deduction as an alternative option beginning this year.  In 2010, nearly 3.4M taxpayers claimed deductions for the business use of their home or residence.  This new options provides taxpayers an easier path to calculating and claiming this deduction.  The new option will be capped at $1,500 per year based on $5 per square foot of office space used in the home, up to a 300 square foot maximum.  Taxpayers electing this option will complete a significantly more simplified form.  Homeowners using the new option cannot deprecia

Washington based online retailer Amazon Inc has decided to fight a $234M tax liability in US Tax Court, regarding the alledged IRS over-valuation of Amazon's "intangible property" that moves across international borders, referred to as a "transfer tax".  The IRS lost a court battle regarding a similar issue with the software company Veritas in 2009, a stinging loss for the IRS, prompting corporations to be more eager to challenge the IRS valuation methods.