Six Tips for Students with a Summer Job

School’s out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income. Here are the six things the IRS wants everyone to know about income earned while working a summer job. All employees fill out a W-4, Employee’s Withholding Allowance Certificate, when starting…

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Summertime Child Care Expenses May Qualify for a Tax Credit

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next year’s tax return. Here…

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Inadequate Controls on IRS Contractors Place Taxpayer Data At Risk for Unauthorized Access or Disclosure

According to a Treasury Inspector General for Tax Administration (TIGTA) Report Issued on May 18th 2010 the Internal Revenue Service (IRS) procedures do not identify all contractors who process, store or house confidential taxpayer information at their facilities, thereby placing such data at risk for unauthorized access or disclosure, according to a report released today…

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10 Tips on the 10 Percent Tax on Tanning Services

Starting July 1, 2010, many businesses offering tanning services must collect a 10 percent excise tax on the tanning services they provide. This excise tax requirement is part of the Affordable Care Act that was enacted in March 2010. Here are nine tips on the tanning excise tax that providers must collect. Businesses providing ultraviolet…

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Trust Fund Penalty – Tax Court Case McCloskey v. US. 104 AFTR 2d 2009-6378

Shareholder Timothy McCloskey was assessed a trust fund penalty due to an unfortunate problem he had with his trusted bookkeeper and chief financial officer, Kathleen Lawson. On September 1, 2004, Kathleen left Timothy an apologetic letter of resignation. Upon reading it, Timothy knew that she had embezzled funds, but did not know how much. He…

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Filing IRS Form 1099-C as a ‘non-applicable entity’ for someone else is not necessarily fraud

During 2002 and 2003, Mary allowed her daughter Susan and son-in-law Robert to charge $30,238 on her American Express account. Dumb Ass! As predicted and on queue, the couple divorced and could no longer make payments for their charges to the account. At Mary’s request, an understanding was arrived at whereby she would make payments…

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Golf Carts and Qualified Electric Vehicle Tax Credit

Does a Club Car Carryall Villager LSV Crown CR-225, which looks like a fancy golf cart, qualify for the electric vehicle tax credit if it has a windshield and roof? The tax payers use the cart to drive around in their retirement community as well as on the golf course. Yes. The vehicle is a…

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Tax Advice for Writers

If you’re like most writers, you’re probably beside yourself wondering what you can deduct against your writing income when it comes to taxes. What does the Internal Revenue Service allow? What deductions send up a red flag? Will you be audited? And the big one: How much will you have to pay in taxes? Any…

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Affordable Care Act Provides Expanded Tax Benefit to Health Professionals Who Received Student Loan Relief for Working in Underserved Areas

As part of a larger Administration announcement on efforts to strengthen the health care workforce, the Internal Revenue Service today announced that under the Affordable Care Act health care professionals who received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income…

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