Choosing the right tax form

To file your 2009 individual tax return, you’ll have to decide which form to use…unless you e-file. If you file electronically, the software automatically selects the simplest and best form for you. Whether you use e-file or prepare on paper, using the simplest form will help avoid costly errors or processing delays. And remember, if…

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Dependents and Exemptions

When you prepare to file your tax return, there are two things that will factor into your tax situation: dependents and exemptions. Here are five important facts the IRS wants you to know about dependents and exemptions before you file your 2009 tax return. If someone else claims you as a dependent, you may still…

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Tax Exempt Organization Governance – Audit materials

The IRS has developed a check sheet to be used by IRS Exempt Organizations agents to capture data about the governance practices and the related internal controls of organizations under examination. The data collected will be included in a long-term study to gain a better understanding of the intersection between governance practices and tax compliance.…

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Filing Status Facts

Everyone who files a federal tax return must determine which filing status applies to them. It’s important you choose your correct filing status as it determines your standard deduction, the amount of tax you owe and ultimately, any refund owed to you. Here are eight facts about the five filing status options the IRS wants…

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Recently Married or Divorced?

If you were married or divorced recently, there are a couple of things you’ll want to do to ensure the name on your tax return matches the name registered with the Social Security Administration. Here are five facts from the IRS for recently married or divorced taxpayers. Following these steps will help avoid problems when…

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Use of Taxpayer Info

IRS Issues Proposed Regulations Adjusting Use of Some Taxpayer Information WASHINGTON — The Internal Revenue Service today announced the issuance of proposed and temporary regulations and related revenue rulings addressing the use or disclosure of tax return information by tax return preparers. The regulations and related revenue rulings under section 7216 enable tax return preparers…

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Are Taxes the Root of Unhappiness?

Wall Street Journal op-ed, Are Taxes the Root of Unhappiness? States with the Highest Taxes Also Rank as the Unhappiest, by Allysia Finley (Assistant Editor, opinionjournal.com): Does living in a blue state make people blue? It seems so, according to a new study in Science magazine that ranks states according to their happiness. [Andrew J.…

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Tax Strategy Patents

Christopher C. Anderson (J.D. 2010, Illinois) has published Note, Patents on Tax Strategies: Just Another Harmless Subject, 2009 U. Ill. L. Rev. 1591. Here is the abstract: This Note analyzes the subject matter eligibility of patents on tax strategies. In 2003, the United States Patent and Trademark Office issued the first patent explicitly covering a…

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Retirement and Death

Should you convert your taxable retirement account to a tax-free Roth individual retirement account and how should you deal with the uncertainty over the estate tax? ROTH CONVERSION Starting in 2010, there will no longer be an income limit for Roth I.R.A.’s, which allow people to contribute post-tax money that can appreciate tax-free. The income…

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Plug in electric vehicle tax credit

The new qualified plug-in electric drive motor vehicle credit of $5,836.00 [IRC §30D, as added by the 2008 Energy Act] is not phased out for high income taxpayers. For 2009, it is allowed to offset the taxpayer’s regular tax reduced by the foreign tax credit plus AMT [IRC §26(a)(2), as amended by the 2009 Recovery…

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