IRS Soft notice

The IRS is testing a pilot program in which it will mail a new notice to about 31,000 taxpayers who may be under reporting income on tax returns. The IRS designed the so-called soft notice to encourage taxpayers to self-correct tax returns and to increase voluntary compliance among an estimated 15 million potential cases of…

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Moving Expenses Related to a New Job May Be Tax Deductible

How far you moved and the amount of time you spend on the job will have a major impact on whether you qualify for the tax break. Moves that are only short hops and jobs that are short-term or part-time generally do not qualify. However, if you can satisfy the distance and time tests then…

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Debit Cards for Social Security Benefits

The debit cards are targeted to the 4 million Social Security recipients who have no bank accounts. Social Security recipients electing to sign up for the debit program will receive a Master-Card debit card, which will be reloaded each month with benefit payments and secured with a personal identification number. The cards can be used…

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Filing extensions changing for some business tax payers

Internal Revenue Service officials announced a change in the extended due date on certain business returns to help individuals better meet their filing obligations. The change, which reduces the extension period from six to five months, eases the burden on taxpayers who must report information from Schedules K-1 and similar documents on their individual tax…

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Advanced Earned Income Tax Credit

To receive part of the credit now with your pay, you must expect to have at least one qualifying child for the current year, expect to fall within certain income limits, and expect to meet certain other conditions. You cannot get the Advance EIC if you do not expect to have a qualifying child, even…

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Gambling winnings and losses

Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 and include all of your winnings. Gambling income includes, among other things, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips.…

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Online Payment Agreement with IRS

The Internal Revenue Service introduced several new features to the interactive Online Payment Agreement application which will make it easier for taxpayers and their authorized representatives to make changes to existing installment agreements. The system will now permit: Individuals to revise their payment due dates and/or amounts on existing agreements. Individuals to revise existing extensions…

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How to determine Business Income

Business Income, Gross Receipts or Sales If there is a connection between any income received and a business, the income is business income. A connection exists if it is clear that the payment of income would not have been made if the business did not exist and operate. Small business owners and self-employed taxpayers must…

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Need help cutting through IRS red tape

In many cases, one of the best places to go is a little-known unit within the Internal Revenue Service known as the Taxpayer Advocate Service, or TAS, which has about 75 offices around the country. Its mission: to help taxpayers resolve problems with the IRS — and to identify problems affecting groups of taxpayers and…

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IRS Payment Options Available

The Internal Revenue Service reminds taxpayers who owe but can’t pay in full that several options are available to help them meet their tax obligations. Taxpayers should file their return on time, pay as much as they can with their return and use www.IRS.gov if they need to request a payment agreement. Interest and penalties…

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