“More than 2 million homebuyers thought theywere getting a great deal when they were offered up to $8,000 in tax credits in2009.
But did the first-time homebuyer tax credit really helphomebuyers? Not really, economist Dean Baker says in a recent study publishedby the Center for Economic Policy Research.
The credit mostly helped sellers and banks, as it luredbuyers who ended up overpaying, he says.”
* An automaticfederal extension, requested on Form 4868, is an extension of time to file your return, but not an extensionof time to pay any tax due. The IRS will charge a minor penalty (.5% permonth, or part thereof) and interest on any tax due with the eventual filing ofthe return.
However, in “IRS Waives Failure to Pay Penalty for Unemployed” FINANCE DIVA tells us that “for tax year 2011 taxpayers who file anextension can also have an extension to pay and avoid the failure-to-paypenalty. if they meet certain requirements. According to IRS tax tip 2012-48,the penalty relief is available to two categories of taxpayers.
■ Wage earners whohave been unemployed at least 30 consecutive days during 2011 or in 2012 up tothis year’s April 17th taxdeadline.
■ Self-employedindividuals who experience a 25 percent or greater reduction in business incomein 2011 due to the economy.
In addition to the 2 categories above you must alsomeet the following adjusted gross income test and your 2011 balance due cannotexceed $50,000.
■ Adjusted grossincome must be below $200,000 if Married Filing Jointly or
■ Adjusted growincome must be below $1000,00 if filing status is single, married filingseparately, head of household, or qualifying widower.
The most important part of this initiative is while thefailure-to-pay penalty is waived, interest will still accrue on any outstandingbalance until paid in full and the amount owed, including interest, must be paid by October 15th, 2012 or all ofthe original penalties will be added onto the amount due; including anyfailure-to-pay penalty.”
* From a recentBUZZ-like “Tax Roundup” post from Joe Kristan at THE ROTH AND COMPANY TAXUPDATE BLOG –
“Payroll taxes are deadly serious. If you are tempted to“borrow” employee withholding, you should read Jack Townsend’s discussion of how that went very badly forone employer.”
* Will this idiot ever go away?
TAX GIRL Kelly Phillips Erb tells us thatreality tv fool (as everyone who willingly appears on a reality tv show can beso described) and ex-con Richard Hatch is back in her post “Richard Hatch Wants You To Know That IRS Sends People To Prison”.
* Over at CAFÉ TAXJoe Arsenault explains “Types of Retirement Rollovers”.
* Good news fromCNNMONEY – “H&R Block Stock Tumbles on Warning”.
“Shares of H&R Block tumbled 16% inpremarket trading Thursday after the tax prep company announced significantstaff cuts and office closings, and projected weaker-than-expected earnings.”
* The NATP’s weeklyemail newsletter reported on two recent developments -
“Supreme Court Case on IRS Audits:
Generally, the IRS has a three-year statute to audit areturn; however, this changes to six years if there is a substantialunderstatement of income, when 25% of more of gross income is omitted. Thedefinition of what it means to omit gross income is often up for debate asshown by numerous tax court cases.
In a recent court case, United States v. Home Concrete& Supply, the Supreme Court decided that despite overstated basis, the IRScan only audit the last three years. More details of this case will be featuredin an upcoming edition of TAXPRO Monthly.
Local Lodging Expenses:
The IRS has issued proposed regulations that provide asafe harbor for taxpayers to deduct expenses for lodging when not travelingaway from home (local lodging). These expenses include local lodging expenseswhen considered ordinary and necessary business expenses in appropriatecircumstances. Some of these circumstances include:
• The lodging is necessary for the individual toparticipate fully in or be available for a bona fide business meeting,conference, training activity or other business function.
• The lodging isfor a period that does not exceed five calendar days and does not recur morefrequently than once per calendar quarter.
• If theindividual is an employee, the employee’s employer requires the employee toremain at the activity or function overnight.
• The lodging isnot lavish or extravagant under the circumstances and does not provide anysignificant element of personal pleasure, recreation or benefit.
Review REG-137589-07 for additional examples anddetails.”
* Bruce, theMISSOURI TAX GUY, brings us a guest post by Georgia attorney Jeff Fouts on “The Definitive Guide to Getting Your Offer in Compromise Approved by the IRS”
* Peter C Reillystill remembers F Lee Bailey, and asks “Did F. Lee Bailey Have A Fool For A Client?” over at FORBES.COM.
TTFN
Hiç yorum yok:
Yorum Gönder