Tax News

June 9, 2011 12:00 am

Cash donations of $250 or more to a qualified charitable are not deductible without meeting substantiation requirements. This means obtaining a contemporaneous written acknowledgment from the charity....

June 3, 2011 12:00 am

Usually, the IRS has only 3 years from the due date of a return to commence an audit. However, if there is an omission of gross income of more than 25%, than the IRS has 6 years to act. A question tha...

June 1, 2011 12:00 am

In general, rental real estate activities are automatically treated as passive activities, limiting annual losses to the extent of income from such activities. However, individuals who are "real estat...

Sale of State Tax Credits Produces Capital Gains
May 25, 2011 12:00 am

Colorado allows its residents to claim a tax credit for conservation easement donations up to certain limits. Credits above the limit can be carried forward or sold to others. Does the sale of these c...

May 23, 2011 12:00 am

When a creditor forgives some or all of an outstanding debt, that forgiveness usually results in cancellation of debt (COD) income. It's no different when the debt is a student loan. Take the followin...

May 5, 2011 12:00 am

The IRS has updated its Publication 4535, Identity Theft Prevention and Victim Assistance, to provide information in both English and Spanish. The publication has: Tips for avoiding identity theft, ...

April 29, 2011 12:00 am

Through the tax filing deadline of April 18, 2011, the IRS has reported that there were almost 101 million e-filed returns, representing an 8.8% increase from last year. This makes nearly one billion ...

April 18, 2011 12:00 am

Ever wonder how the federal government spends what you pay in income taxes? Now you can get a general idea by using a calculator (www.whitehouse.gov/issues/taxes/tax-receipt) from the White House call...

April 13, 2011 12:00 am

Tax scams can cost taxpayers penalties, criminal prosecution, and other serious consequences. Tax scams abound, and the IRS commissioner warns taxpayers to avoid them. In an effort to help, the IRS ha...

April 8, 2011 12:00 am

Payments can be treated as deductible alimony only if they meet certain requirements. One key requirement is that the payments are made pursuant to a decree of divorce or a written instrument incident...

April 6, 2011 12:00 am

Last year's Patient Protection and Affordable Care Act ("Obamacare") expanded the 1099 reporting rule for businesses. Starting in 2012, all businesses, including sole proprietors, were to have begun r...

News Anchor Can’t Deduct Onscreen Clothing
April 6, 2011 12:00 am

An employee can deduct as a miscellaneous itemized expense the cost of unreimbursed job-related expenses. One type of expense is work clothes. However, it has been a long-established rule that only cl...

April 4, 2011 12:00 am

When a loan that you've made goes sour and cannot be repaid, you may be able to claim a tax deduction for this bad debt. If the loan was a personal one, the deduction for a nonbusiness bad debt is cla...

March 25, 2011 12:00 am

If you've given money to the American Red Cross, Americare, or other charitable organization providing assistance in the wake of the Japanese earthquake and tsunami, you won't be able to deduct your c...

March 21, 2011 12:00 am

According to the latest IRS Data Book covering the government's fiscal year ending September 30, 2010, the overall audit rate on individuals increased slightly to 1.1%; it had been 1% in the 2009 fisc...

March 14, 2011 12:00 am

A report (www.treasury.gov/tigta/auditreports/2011reports/201130005fr.pdf) by the Treasury Inspector General for Tax Administration cued the IRS in on the need to better audit owners of rental real es...

February 25, 2011 12:00 am

In February 2010, the Treasury Department established the HFA Hardest Hit Fund to provide funds to the state programs to assist homeowners in preventing avoidable foreclosures and to stabilize housing...

February 23, 2011 12:00 am

The interest rate that individuals will pay on underpayments rises to 4% starting on April 1, 2011; it was just 3% in the first quarter of 2011. A 4% interest rate had been effective from April 1, 200...

President’s Budget Proposals Would Impact High-Income Taxpayers
February 22, 2011 12:00 am

As part of a deficit reduction plan, the proposals contain some tax increases. If the proposals are adopted, itemized deductions would be capped at the 28% tax bracket. Individuals with income over $2...

February 14, 2011 12:00 am

Reversing its prior position, the IRS has now concluded that the cost of breast pumps and supplies that assist lactation are medical care. Like obstetric care, the lactation equipment affects the stru...

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Tax Glossary

Archer Medical Savings Account (MSA)

A type of medical plan combining high deductible medical insurance protection with an IRA-type savings account fund to pay unreimbursed medical expenses.

More terms