Scum Bags Millionaires Collecting Unemployment

Its a rare occasion that I pontificate in my tax blog but this just took me over the top this morning……. Recently released IRS data indicates that 2,840 households making at least $1 million collected $18.6 million in unemployment insurance in 2008. Of those, 806 had incomes of more than $2 million, and 17 had…

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2010 Adoption Tax Credit – New IRS Guidance

IRS on Wednesday issued guidance on the expanded adoption credit included in the health care reform legislation passed earlier this year. The Affordable Care Act raises the maximum adoption credit to $13,170 per child (from $12,150 in 2009) and makes the credit refundable. The credit is generally based on the reasonable and necessary costs related…

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New Law Allows In-Plan Rollovers to Designated Roth Accounts

The Small Business Jobs Act of 2010 permits employers to amend their §401(k) or §403(b) plans to allow participants to transfer an eligible rollover distribution (ERD) into their designated Roth account in the plan if the transfer is of an ERD: 1. made after September 27, 2010; 2. from a non-designated Roth account in the same plan; 3. because…

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IRS Provides Relief for Homeowners with Corrosive Drywall

The Internal Revenue Service today issued guidance providing relief to homeowners who have suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009. Revenue Procedure 2010-36 enables affected taxpayers to treat damages from corrosive drywall as a casualty loss and provides a ”safe harbor” formula for determining…

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Guidelines for “Political Activities” by Churches and Pastors

Lobbying activities may expose churches in some states to election law register and reporting requirements as a political committee. Many of these statutes are unconstitutional because they expose churches to intrusive regulations for a very small amount of lobbying.  The most important message I think is that Pastors need to make sure that they differentiate…

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IRS Form W-12, IRS Paid Preparer Tax Identification Number (PTIN)

All people making money preparing taxes must be registered with the IRS. If your paid tax return preparer is not registered with the IRS he/she is perpetrating fraud which will cause you future headaches. Don’t mess around with this. The IRS has released a new Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application…

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Education Expenses – Are They Tax Deductible?

According to IRS Publication 970, Tax Benefits for Education, questions exist to help determine if education expenses are tax deductible. These questions include: Is the expense associated with the education ‘work related’? It must be to be deductible. Is the education in question required by your employer or the law to keep your present salary,…

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How to Request a Copy of Your Colorado Tax Return

The Colorado Department of Revenue understands some taxpayers who have been directly affected by the recent fires in our state will need to request photocopies of tax returns that have been lost or destroyed or will not be able to meet Colorado filing and payment deadlines. Taxpayers who need to get copies of Colorado tax…

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IRS Grants Tax-Exempt Status to Paranormal Group

The IRS sometimes grants tax-exempt status to questionable-sounding groups, but paranormal research? What is this world coming to? All I have to say is your bogeyman still needs a valid social security number to be considered a deductible dependent. On Saturday, a group known as the ParaNexus Anomalous Research Association Inc. announced that the IRS…

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Kiddie Tax Example Question

Question: Sam, age 15, came into your office to have his taxes prepared. He has wages of $6,500, interest income of $1,500, and dividend income of $5,500. He is claimed as a dependent by his parents, however his parents have not filed their return yet and Sam wants to complete his return now. Can you…

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