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 ‘Individual 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…)
Late Breaking IRA News: Roth Conversions, RMDs, Charity.
Tuesday, February 15th, 2011Roth Conversions
During 2010 a person had the option of converting a traditional IRA and spreading the tax bite due to conversion over 2 years. That means 1/2 of the income would be reported on 2010 tax form in 2011 and the other 1/2 of the income would be reported on the 2011 tax form in 2012. Alternatively a person could report the entire 2010 Roth conversion on the 2010 tax form. Remember traditional IRAs are generally funded with pretax dollars; tax is owed on the IRA and its gains whenever the money is distributed as no tax has been paid on it before. (more…)
