Taxpayer Advocate’s Annual Report to Congress highlights compliance problems & suggests improvements
The National Taxpayer Advocate has released its 2007 Annual Report to Congress. It’s a voluminous study of the most serious problems facing taxpayers and IRS, along with suggested improvements. These problems include late-year Code changes by Congress, nonreporting of income in the cash economy, [...]

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Payroll Taxes forms 940, 941, and 944 update
Don’t get into an IRS payroll tax problem…
IRS has revised its instructions for Forms 940, 941, and 944 and will be sending out notices in February to employers that are eligible to file Form 944 for the 2008 tax year.
Form 940. The 2007 Form 940, Employer’s Annual Federal [...]

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IRS tax audit and IRS tax problems facing transportation or construction businesses, and other similar industries
IRS SBSE-04-0108-003, 1/14/08

The IRS has reissued interim guidance that provides audit guidelines to its examiners reviewing excess per diem payments. The original guidance expired in November 2007.
The original guidance (IRS SBSE-04-1106-049) affected taxpayers who paid reimbursement allowances to employees for [...]

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IRS Tax Penalties, type of IRS tax penalties, options to address your IRS tax penalty and more…

The IRS has over 148 different types of penalties. And boy do they love to hand them out. The worst part is that the IRS also charges interest and additional penalties on the original penalty.

So you must try [...]

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IRS tax audit, IRS tax examination, IRS audit reconsideration, IRS appeal
Are you asking yourself … If I have tax problems who should I contact?
Fiscal Year 2007 Enforcement and Service ResultsAs reported in a statement issued by IRS, it has continued to make strong progress in a number of key enforcement areas. IRS enforcement efforts increased [...]

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What’s New: IRS has $110 million in undeliverable refunds

Are you still waiting for your tax refund? If so, you may be one of the 115,478 taxpayers to whom the IRS has been unable to deliver a refund check. The refunds total about $110 million.
Every year there are taxpayers who don’t update the IRS or [...]

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Mortgage Tax Debt Relief, AMT Relief - why you need professional tax advice

AMT relief. In general terms, to find out if you owe alternative minimum tax (AMT), you start with regular taxable income, modify it with various adjustments and preferences (such as add-backs for property and income tax deductions and dependency exemptions), and then subtract [...]

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I thought you might find this list of tax provisionsexpiring 12/31/07 helpful as you do year-end taxplanning.
TAX PROVISIONS EXPIRING 12/31/07
* Deduction of up to $2,000 or $4,000 (depending on income) for college tuition.
* Option to deduct state and local sales tax instead of state income tax.
* Election to include combat pay as earned income for [...]

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As you prepare for the upcoming tax year, I thought youmight find this brief rundown of 2008 tax changes useful.
* ADOPTION TAX CREDIT increases to $11,650 for adoption of an eligible child.
* SECTION 179 maximum deduction increases to $128,000. Phase-out threshold increases to $510,000.
* STANDARD MILEAGE RATE for business driving increases to 50.5¢ a mile. [...]

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On December 26, 2007, President Bush signed the “TaxIncrease Prevention Act of 2007,” providing a one-year“patch” to the alternative minimum tax (AMT).
Without this legislation, an estimated 25 milliontaxpayers would have had to pay an average of $2,000in additional taxes for 2007.
The new law increases the 2007 AMT exemption amount to$66,250 for joint filers, to $33,125 [...]

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