Alimony payments, sometimes referred to as “spousal maintenance,” are tax-deductible for the alimony payer and taxable income for the alimony recipient. The IRS has requirements for reporting alimony and charges penalties against those who do not report it correctly. Here is what you should know about taxes and alimony: What ... Read More
Tax Blog
Capital Gains Rates For Long Term/Short Term 2010, 2011, 2012, 2013+
It's important for all taxpayers to understand what information must be reported to the IRS for tax purposes. This includes any gain or loss from the sale of capital assets. A capital asset is considered anything owned by an individual for investment or personal purposes. As a general rule, capital assets include property and ... Read More
IRS Interest Rates Q3 2011: Rates for Overpayments & Underpayments
The IRS has announced that interest rates for the third quarter of 2011 will remain unchanged from the second quarter’s rates. According to the IRS website, interest rates will be as follows: four (4) percent for overpayments [three (3) percent in the case of a corporation]; four (4) percent for underpayments; six (6) ... Read More
New Marijuana Tax Legislation Proposed by Congress
Businesses which dispense medical marijuana may soon have the same options as other small businesses in regards to business expense deductions. This is due to the recent introduction of bills which would protect access to medicinal marijuana through banking and tax laws. As reported by AccountingToday.com: “The bills were ... Read More
Unemployment Taxes: Tax Breaks & Considerations for the Unemployed
Being unemployed is challenging enough, taxes are probably the last thing on your mind when you're out of work. If you receive unemployment pay, you will have to pay taxes on the money you receive as income. In some situations, though, federal tax laws can help reduce some of the financial difficulties of unemployment with tax ... Read More
Casey Anthony Hit With Federal Tax Lien Days Before Her Murder Trial
The IRS has filed a $68,520 tax lien against alleged child murderer Casey Anthony for unpaid federal income taxes, interest and penalties from 2008. The 25-year-old is currently on trial in Orlando, FL for the murder of her two-year-old daughter, Caylee Anthony. The lien was filed just days prior to opening arguments in the ... Read More
IRS Charging Big Political Donors Back Taxes for Gift Taxes
It is possible that after nearly 30 years of lax enforcement, the IRS may begin taxing individuals who make donations to social welfare groups. These individuals who have not filed gift tax forms when filing tax returns may find themselves owing back taxes for donations made under Section 501(c)4 of the tax code. This ... Read More
Understanding the Child Tax Rate for Your Children’s Investment Income
Investment income is subject to federal taxes. This includes income earned for investments in a child's name. It is important for parents of children who have investment income to understand how this income should be reported when filing your annual tax return. There are several factors which must be considered which determine ... Read More
Roni Deutch "Tax Lady" Shut Down After Complaints
Months after being sued by California Attorney General for $34 million, Roni Deutch has closed her law firm and surrendered her license. The "Tax Lady" has made it into the news many times since last August when the court prohibited Deutch from destroying evidence and she proceeded to shred millions of pages of documents at her ... Read More
IRS Form 8300: Q&A on Reporting Cash Payments Over $10K
Individuals who have received over $10,000 in cash payments must understand how to report this income and which forms are necessary. To ensure that you are reporting and filing your income correctly, consider the following filing requirements as described by the IRS: What is Form 8300 and who must use it? Form 8300 is used ... Read More
