Beginning in 2011, the Internal Revenue Service will be changing the rules for tax preparers who are paid to complete and file an individual or a business tax return. The IRS will require all paid tax preparers to register with the agency and take tests of competency and pass successfully. The only caveat is that two competency ... Read More
Tax News
Chris Tucker Owes the IRS…Again
Just about a year ago, we reported on funny guy Chris Tucker owing over $3 million in back taxes. You’d think that his reported $20 million ‘Rush Hour 2’ and $25 million Rush Hour 3 paychecks would have had him more than able to pay off the bill, but apparently his taxing situation has only gotten worse. Recent reports have ... Read More
Hold Up! 4 More Rappers Added to Our Back Tax List
After our last post on infamous rappers known for more than one thing (to us - rapping; to the IRS - owing back taxes), we’ve discovered four more artists with recent tax issues. If Method Man, Swizz Beatz and Fat Joe didn’t satisfy your oh-so-unfortunate-rappers-who-owe-money-to-the-IRS fix, then maybe these guys will. Lil ... Read More
Healthcare Bill Disaster: Send 1099s to Everyone
The IRS 1099-Misc form has always been used to track payments made from one company to either an individual or another company that are not salary-based. If you hire someone to design a website, it's a one time payment. If that payment is more than $600, then you issue that person a 1099-Misc form, and send one to the IRS, so ... Read More
3 Rap Artists Who Can’t Seem to Wrap Up Back Tax Issues
Private jets, luxury suites, and the finest bottles of champagne - ‘necessities’ popular among America’s most loved and admired rappers may soon have to take on a lower priority. Why? The rappers have got to focus on paying off something a little more important first - their back taxes. With Method Man’s latest tax evasion ... Read More
How the FTC Wants To Tax and Subsidize Journalism
Journalism is not what it used to be and the Federal Trade Commission is exploring ways to reinvent the craft. The FTC proposed that the US government should be the hub of a media overhaul but some are worried it is not the right course of action. Concern now is that the Internet has changed the way things are being done. The ... Read More
Teresa Not the Only Housewife with Real Money Issues
As headlines regarding New Jersey Housewife Teresa Giudice's $11 million liability and bankruptcy filing surface newspapers, magazines, and blogs alike, America is beginning to realize that financial hardship can face anyone- regardless of social status. And, while the focus seems to lie solely on Teresa's "breaking news," turns ... Read More
Macy Gray Owes Over $50K in Back Taxes
Macy Gray is the latest celebrity with tax problems. Macy owes the California Tax Franchise Board more than $50,000 in unpaid taxes, according to The Detroit News. Macy Gray is an American R&B soul singer who is known for her distinctively raspy voice. Some of her better-known hits are "I Try" and "Beauty in the ... Read More
Avoiding Penalties From Underpayment of Estimated Taxes
A common tax penalty for self employed individuals is the underpayment penalty for not paying enough estimated taxes. The IRS requires that self-employed individuals must estimate their annual income tax a full year prior to actually knowing what that amount will be. It is very common for individuals to not estimate enough ... Read More
Tax Penalties That Can Be Removed and How to Remove Them
There are a few penalties the IRS charges that can be removed, including the IRS failure-to-file penalty – which is the most common and harshest of IRS penalties - and the failure-to-pay penalty. Failure to File Penalty Many people think that if they can't pay for the taxes they owe, their only option is to hide from the IRS. ... Read More
IRS Could Take Refunds for Health Insurance Penalties
The IRS could potentially take personal tax refunds to collect fines from those who do not purchase health insurance in accordance with recent healthcare legislation. Under the new law, most people are required to buy health insurance. If they don’t, they will face harsh penalties. By 2016, those who do not purchase coverage ... Read More
How the New Healthcare Bill Expands IRS Authority
With the new Healthcare Bill, Congress expanded the responsibilities of the Internal Revenue Service and essentially changed the relationship between taxpayers and the IRS. With the new health care legislation, the IRS is the chief enforcer for the new government-operated health insurance system. The IRS will have the authority ... Read More
