Category Archives: IRS News

Special Tax Break Available for New Car Purchases This Year

IR-2009-30, March 30, 2009 WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year. “For those thinking about buying a new car this year, […]

First $2,400 of Unemployment Benefits Tax Free for 2009

IR-2009-29, March 26, 2009 WASHINGTON — All or part of unemployment benefits received in 2009 will be tax free for many unemployed workers, according to the Internal Revenue Service. “This morning we learned that a record 5.6 million people were receiving unemployment benefits in the middle of March. This underscores the need for the relief […]

Is it Too Good To Be True? Home-Based Business Tax Avoidance Schemes

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. The home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile […]

First-Time Homebuyers Have Several Options to Maximize New Tax Credit

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently […]

New IRS Collection Financial Standards

The Internal Revenue Service just released the 2009 update to the Allowable Living Expense Standards on March 1. The ALE standards are used to reduce subjectivity in determining what a taxpayer may claim as basic living expenses necessary to avoid undue hardship when the taxpayer must delay full payment of a delinquent tax. The standard […]

Cigarette Tax Hike of 62 cents per PACK

OK, it’s true, I really, really hate to be around people who smoke. Whether they are smoking or not. For me, the smell itself makes it really hard to breathe. (I was blessed with a mother, a seamstress, who used my room as her workroom. She smoked incessantly – and my bed, clothes, books, everything […]

IRS Seeks New Issues for the Industry Issue Resolution Program

IR-2009-18, March 5, 2009 WASHINGTON — The Internal Revenue Service is encouraging business taxpayers, associations and other interested parties to submit to the Industry Issue Resolution (IIR) Program tax issues for resolution involving a controversy, a dispute or an unnecessary burden on business taxpayers. Though submissions can be made at anytime for consideration in the […]

IRS Conducts Extensive Review, Decides Not to Renew Private Debt Collection Contracts

IRS Employees More Flexible, More Cost Effective IR-2009-19, March 5, 2009 WASHINGTON — After conducting an extensive review of the private debt collection program, including the cost effectiveness of the effort, the Internal Revenue Service will not renew its contracts with two private debt collection agencies, the agency announced today. The IRS determined that the […]

IRS Has $1.3 Billion for People Who Have Not Filed a 2005 Tax Return

IR-2009-16, March 3, 2009 WASHINGTON — Unclaimed refunds totaling approximately $1.3 billion are awaiting over a million people who did not file a federal income tax return for 2005, the Internal Revenue Service announced today. However, to collect the money, a return for 2005 must be filed with the IRS no later than Wednesday, April […]

COBRA Health Insurance Continuation Premium Subsidy

The American Recovery and Reinvestment Act of 2009 establishes an employer-provided subsidy for employees who involuntarily lose their jobs. The IRS issued a news release Feb. 26 outlining information for employers. Individuals who qualify for the COBRA subsidy premium should see below for more information. Information for Employers Do you have questions on how to […]

Sales Tax Deduction for Vehicle Purchases

The American Recovery and Reinvestment Act of 2009 provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A. Purchases before Feb. 17, 2009, are not […]