Just days before Facebook launched its IPO, Eduardo Saverin, one of the company’s co-founders, announced that he had renounced his dual U.S. citizenship and would be moving to Singapore permanently. Since the news broke, Saverin, who has been living in Singapore since 2009, has been battling claims that the move is part of a scheme which would help him avoid paying hefty post-IPO taxes.

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With the United States unemployment rate hovering between 8 and 9% for the last two years, many people have been on the hunt for a new job. If you keep track of your job hunting expenses, you may be able to take the job hunting tax deduction at tax time. Here’s what you need to know about the job hunting costs tax deduction:

Basic Requirements for Job Hunting Expenses

The first requirement for taking a tax deduction for job hunting expenses is that you’re seeking a job in the same line of work that you had previously; or that you are working in currently. If you are currently working but seeking a new job in the same line of work, you can deduct eligible job hunting expenses that exceed 2% of your income. Read more »

Tobacco taxes have a long history in the United States, dating all the way back to the early years of the formation of the country. Since that time, cigarette and tobacco taxes have continued to provide a significant amount of revenue for local, state and federal government. The taxes are also typically supported by public health officials who also believe the additional cost incents many to kick the smoking habit.

Early Years of Tobacco Tax

In 1794, Secretary of Treasury Andrew Hamilton proposed a tax on all tobacco products. Read more »

The 2011 tax season is long gone, and the majority of Americans have already filed their information to the IRS. Although this is out of the way, you should start preparing yourself for the 2012 tax season. Knowing which bracket you fall under determines your 2012 tax rates. The rates are the same for both single and married taxpayers, but the incomes of taxation within the brackets are different. There are also differences in deductions that account for recent inflation. As you prepare for 2012 taxes, you should bear in mind that there could also be significant changes around the corner for 2013.

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Taxes are a necessity to pay for government programs in different nations, but the rates of taxation are historically a hot-button issue. In 1966, the Beatles released a song that exuded frustrations with taxation on the middle class entitled “Taxman”. The song itself was based off of member George Harrison’s personal frustrations with the British government, although the lyrics are relevant today for anyone in any country who shudders at the thought of paying taxes. Today, the song is played on radio stations and television commercials during the approach of the American tax season.

Beginnings

During the mid-1960s, the Beatles were at the height of popularity, thanks in part to the lyrical geniuses of members John Lennon and Paul McCartney. At this point, the band had made it big from more pop-like songs, such as “I Want to Hold Your Hand” and “Help!”. As social controversies began to become more main-stream in both the United States and the United Kingdom, musicians followed suit with songs that related directly to the times and to the heart and minds of listeners who connected with them.

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For the year of 2011, we all worked to earn our wages, and we all worked just as hard to get our tax return filed for the April 17th deadline, so what should you do now?

Since the IRS has the right to audit your tax return several years after it is filed, you should keep your W-2, 1090s and all of your financial documents for a minimum of four years. This allows you to have proof of your income for the IRS statute of limitations for audits; three years from the filing deadline for your return. If you have a deduction from losses experienced due to worthless stocks, or have record for items that can depreciate, you should retain those documents for seven years. If you own property, you should keep all of your paperwork and documentation related to the property for as long as you are the owner of that property.

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Did you miss the April 17, 2012 tax filing deadline for 2011 taxes? There are consequences for not filing your taxes by the IRS deadline which vary depending upon your situation. In most situations the consequences can be minimized if you take action immediately rather than trying to hide from the situation. The longer you wait to file, the larger your penalties and problems become (if you owe taxes).

Penalties and Consequences of Missing Tax Deadlines

Your personal situation contributes to the extent of consequences and penalties you face for missing the tax filing deadline. Read more »

Nothing can induce fear more quickly than finding a letter from the Internal Revenue Service in your mailbox. Just the phrase “tax audit” can trigger anxiety and panic, often resulting in unnecessary stress and confusion. Statistically speaking, the average person has only a relatively small chance of being audited, with the majority of audits being conducted by mail. IRS audit fears can largely be attributed to misconceptions about how the process works. Breaking down some of the most common tax audit myths can help you breathe easier when it’s time to file your return.

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The history of income tax in the United States is an interesting one; with many changes along the way to how income is taxed and even changes to what is considered income. Benjamin Franklin said it best in a letter to Jean-Baptiste Leroy in 1789: “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”

Here are 10 interesting tax facts you may not know:

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Did you file your tax return only to realize later that you made a mistake? Are you panicking now not knowing what to do and wondering what kind of consequences you could be facing? Relax, and take a deep breath. This happens more often than you might think and in most cases you can correct your return by filing an IRS correction 1040X form. Here is what you need to know.

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