Tax News

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...

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...

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...

For the second time, the IRS is giving taxpayers an opportunity to fess up about offshore accounts in exchange for reduced penalties. Under the new Offshore Voluntary Disclosure Initiative, there is a...

A taxpayer does not qualify for the first-time homebuyer credit of up to $8,000 if the home is purchased from an ancestor or other related party, including a parent. In one case, a taxpayer who bought...

A taxpayer who was indicted for willful failure to pay over trust fund taxes (withholding of income taxes and the employee share of FICA taxes) then paid the outstanding taxes and asked the court to d...

The IRS has announced an app for the iPhone and Android called IRS2Go. It allows taxpayers to find out the status of their refunds and other tax information. Information on tax refunds will be availab...

Taxpayers who file Form 1040EZ...

The National Taxpayer Advocate’s annual report to Congress, which was released recently, said the number one priority should be tax reform. The current system is too burdensome (as if taxpayers ...

Now is a great time to make resolutions that can reduce your taxes for the coming year. Of course, like other New Year's resolutions, they are only as good as your ability to keep them. Here are some ...

A number of taxpayers have contacted the IRS about being identity theft victims and have straightened out their tax accounts. For these taxpayers, the IRS will issue a 6-digit identity protection pers...

A taxpayer who fails to file a tax return on time can avoid penalties by showing reasonable cause for the failure. The Tax Court determined, however, that reasonable cause did not exist under the foll...

A federal district court in Virginia has decided that the individual health coverage requirement in the Patient Protection and Affordable Care Act, which was to become effective in 2014, is unconstitu...

The IRS released audit statistics of its activities in the government's fiscal year ending September 30, 2010. It shows that the number of returns that were examined increased by 11%; 8% of all such r...

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act will help you in 2010, 2011, and 2012. Here are some highlights of note. Payroll Tax Cut in 2011 For one year, the Social S...

Usually, in order to deduct home office expenses for conducting a business at home, the space for the office must be used regularly and exclusively for business. However, special rules apply for figur...

As the end of the year approaches, there is still time to make last-minute payments, including prepayments for items that might otherwise be due in 2011. How do repayments affect your taxes this year...

Generally, gains from the sale of real estate are taxed as capital gains. However, taxpayers who buy and sell property in their trade or business have their gains taxed as ordinary income. In a recent...

As the end of the year approaches, many taxpayers engage in year-end tax planning to minimize their tax bill for 2011. This year, with widespread tax uncertainty on a number of fronts, year-end plann...

The IRS announced the standard mileage rates for use a vehicle for certain purposes in 2011. For business driving, the rate is 51¢ per mile, up slightly from 50¢ per mile in 2010....