Author Archives: WendyLitten

Are Audit Rates Really Lower?

Funding for enforcement by the IRS is 5% less than last year and audit rates have definitely declined. Total examinations, both field and correspondence have dropped more than 20% since 2010. Taxpayers in the higher brackets still encounter more audits … Continue reading

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Online Gambling and Payment Accounts Tax Reporting Warning

In a recent court case (Hom, (DC CA 6/4/2014) 113 AFTR 2d ΒΆ 2014-893), a taxpayer’s online payment and poker accounts were found to be reportable under FBAR. All of the accounts were with companies located outside the United States. … Continue reading

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Beware the 3.8% Investment Surtax

Plan now to save yourself from this new tax on investment income. If you meet the income thresholds below and have net investment income, an additional 3.8% tax will be due. This tax went into effect on January 1, 2013. … Continue reading

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NJ Homestead Benefit Deadline Extended to 01/31/14

State Treasurer Andrew Sidamon-Eristoff has announced that the deadline for filing 2012 Homestead Benefit applications has been extended to January 31, 2014. The deadline had previously been extended from November 22 to December 31. More information and income requirements can … Continue reading

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Coping with the Government Shutdown – Tax Problems Edition

Solving tax problems for clients requires lots of interaction with the IRS. Generally, after meeting with a client, I file an authorization form so I can access their data online. Until last month, I filed those online, which presumably would … Continue reading

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2012 NJ Homestead Benefit Information

Here’s information directly from the NJ Division of Taxation: The Division of Taxation has begun mailing applications for the 2012 Homestead Benefit. Applications are being mailed to homeowners over the next three weeks according to the schedule below. The deadline … Continue reading

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NEW S-Corp Late Filing Election Procedure

Filing a late S-Corporation Election is now much easier and has a longer or no deadline for many filers. Previously, if a business intending to be taxed as a Sub-chapter S Corporation failed to to file a timely election, but … Continue reading

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Penalty Relief for 1099-K Filers Extended Again

Payment issuers will continue to receive penalty relief for mis-matched Taxpayer Identification Numbers and names on Form 1099-K issued in 2013 and 2014. Notice 2013-56 has the details. Note that the penalty relief is solely for the mis-match errors and … Continue reading

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Quicker and Better Levy Release News

Under the new IRS Fresh Start Initiative, we have better options for getting a levy released faster for more taxpayers. If your tax debt is less than $50,000, the updated Streamlined Installment Agreement will release the levy and will also … Continue reading

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Offer in Compromise IRS Tax Debt Program Updated

If you owe tax debt that you are struggling with, take a look at the Offer in Compromise program. The IRS just released new guidelines that greatly reduce the amount that needs to be offered to settle your tax debt. … Continue reading

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