The whole tax return landscape is changing. Big things are happening to protect the average taxpayer from shoddy tax return preparers.
Until 2011, there was no regulation of unlicensed tax return preparers. Anybody could wake up in the morning and decide to do
taxes for money. At the same time the government subjected Certified Public Accountants, Attorneys, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers were to strict regulation via Circular 230; licensed tax preparers could face severe penalties and lose their licenses for if convicted of certain kinds of crimes, if they did not file their taxes, if they gave marginal tax returns or gave bad advice. That has changed. Now the IRS will regulate all tax return preparers.
Archive for the ‘Business Taxes’ Category
Go for the real tax thing, use an EA.
Saturday, July 23rd, 2011Get The Receipt From The Charity In Writing Now
Sunday, July 10th, 2011Do you remember when you could estimate the amount of a certain amount of giving to a charity without having a lot of documentation? “I estimate I dropped $20 to the Salvation Army kettle, and another $5 per week to the church collection, plus donated some clothes and other items valued at around $50… call it $330.” Those days are long gone. (more…)
Woo Hoo, the IRS Increases Mileage Rate
Thursday, June 23rd, 2011Do you use your car for your business or for work? If you keep good written records, the business use of your car can be a very nice business deduction, unreimbursed employee expense, or your employer may even reimburse you.
On January 1, 2011 the optional mileage rate was 51 cents per mile-that’s more than a dollar for every 2 miles you drive for business. In recognition of the increase in gas prices, the IRS announced they would increase the optional mileage rate to 55.5 cents per mile on July 1, 2011; normally they only adjust this rate once per year. (more…)
Hogs Will Be Slaughtered
Monday, June 20th, 2011S-corporations, sometime when you were setting up your business, you chose, or someone advised you to choose S-corporation as your business form. One advantage is they avoid the “double taxation” of the C-corporation; the government does not usually tax S-corporations. The S-corporation passes income through to you, a shareholder, and you pay the taxes on your share. Another advantage is that only part of the income passes through to you as self-employment income, reducing the amount of self-employment tax you pay. It is that second advantage where the audit risk lies. Get greedy and the IRS will slaughter you. (more…)
