Category Archives: IRS News

U.S. Supreme Court rules against taxpayers in municipal bond case

Courtesy of Spidell Publishing Inc. Spidell’s Flash E-mail #2008-11 The U.S. Supreme Court has issued a ruling permitting states to exempt interest on their own bonds from taxation, while taxing residents for interest on bonds issued by other states. (Dept. of Revenue of Kentucky v. Davis (May 19, 2008) _ US _, Case No. 06-666) […]

Hurricane Preparedness Week

Courtesy of IRS This year Hurricane Preparedness Week is May 25 – 31, 2008. Educational activities held throughout the week can be viewed at the Hurricane Preparedness Web site. The goal of Hurricane Preparedness Week is to provide the public with information about hurricane hazards, and to provide knowledge that can be used to take […]

Tax Challenges of Business Income

Courtesy of IRS – FS-2008-20, April 2008 WASHINGTON—Internal Revenue Service research indicates that understated business income contributes significantly to the tax gap, with the majority understated by small businesses. To assist small business and self-employed taxpayers better understand their reporting obligations, this fact sheet addresses the issue of income and how to determine gross income. […]

New York Taxes Internet Sales – Register Now or Else

Interestingly enough, this information came from an Internet information newsletter, not a tax newsletter. In brief: NY State hit Amazon.com for sales taxes even though Amazon does not have a physical location in the state. Amazon is suing, claiming the New York law is unconstitutional based on a 1992 U.S. Supreme Court ruling that claims […]

Stimulus Checks on the Way

Courtesy of IRS – IR-2008-70 WASHINGTON — As millions of Americans begin receiving their economic stimulus payments, the Internal Revenue Service released a list of the most-frequently-asked questions –– and answers –– that people now are asking. “Many people have questions about the stimulus payments, and the IRS has the answers available on the IRS.gov […]

Overview of Pending Tax Legislation

Courtesy of NAEA – www.naea.org Rep. Xavier Becerra (D-CA) last week introduced H.R. 5716, the Taxpayer Bill of Rights Act of 2008, in the House of Representatives. The bill includes NAEA’s key legislative initiative—regulation of paid return preparers. The House Ways and Means Committee last Wednesday approved 23–17 the Taxpayer Assistance and Simplification Act of […]

Deadline Extensions for Combatants and Disaster Areas

IRS spokesman Eric Smith reminds us that deadline extensions provided to disaster-area taxpayers and those serving in Iraq, Afghanistan and other combat-zone localities also give those affected more time to put money into an IRA. [note: You will find the links in the Resource Box below] Filing and payment extensions, granted by the IRS in […]

Payment Options Available for Those Who Can’t Pay in Full

Courtesy of IRS – IR-2008-56 WASHINGTON — The Internal Revenue Service reminds taxpayers who owe but can’t pay in full that several options are available to help them meet their tax obligations and save money by the April 15 filing deadline. Taxpayers should file their return on time, pay as much as they can with […]

Congress and their Foreclosure Fiasco – TaxMama’s Economic Idiot Award

TaxMama’s Economic Idiot Award goes the 58 Senators who voted for this plan. Speaking of wasting money. Did you follow the Congressional debates on the foreclosure crisis? [See links in Resource Box below.] What a total disappointment! Congress nixed the authority for bankruptcy judges to revise interest rates and principal on existing loans – so […]

IRS Offering Additional Part-Year Grants for Low Income Taxpayer Clinics in 12 States

Courtesy of IRS – IR-2008-049 WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the IRS will accept applications for a part-year Low Income Taxpayer Clinic (LITC) matching grant from qualified organizations that will provide services to qualified taxpayers in the following areas: Los Angeles, California; Central Oregon; Boise, Idaho; Minneapolis, Minnesota; Reno […]

Hurricane Victims

New Guidance for 2005 Gulf Hurricane Victims (See Resource Box for live links) Information has been added to IRS.gov for Hurricane Katrina, Rita and Wilma victims who claimed casualty and theft losses on their individual income tax returns and are now handling reimbursements received in tax years after the loss occurred. Town hall meetings are […]