As a tax preparer, it’s essential to ensure that the tax return that you are being paid to prepare is prepared accurately and in compliance with all applicable regulations. One critical aspect of this is the use of a Preparer Tax Identification Number (PTIN) by the tax preparer. A PTIN is a unique identifier assigned […]
When it comes to running a business, there are many ways to save money and maximize your profits. One way to do this is by hiring your child to work in your business. However, if you want to take a tax deduction for the wages you pay your child, there are certain rules and limitations […]
TikTok has exploded in popularity over the past few years, with millions of users sharing short videos on everything from dance trends to cooking tutorials. However, one area where TikTok may not be the best source of information is tax advice. While some TikTok creators may offer well-intentioned advice, there are several reasons why you […]
As a taxpayer, it is important to understand that you are ultimately liable for the information included on your tax return. This means that if there are any mistakes or inaccuracies on your return, you could be held responsible for any resulting penalties or fines. The IRS has a system in place to help ensure […]
If you’re like most people, you probably look forward to receiving your tax refund each year. However, if the bank account information you provided to the IRS is incorrect or outdated, you might be wondering how you’ll receive your refund. The good news is that the IRS will still send you a check for your […]
The IRS is at it again… Since they were shut down on their authority to mandate all tax preparers get continuing education and take a competency test, they have now developed a “voluntary certification” that preparers can opt into. The program is called the Annual Federal Tax Refresher Course; and yes, successful completion of the […]
Just as quickly as we update our ITIN materials and guidelines the ITIN policy office within the IRS has changed their stance yet again! Just released: ITINs (Individual Taxpayer Identification Numbers) will expire after 5 consecutive years of non-filing use. This is a change from the services’ previously stated policy of automatically expiring ITINs after […]
The IRS has been alerted to a new email phishing scam. The emails appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov, […]
A bill recently passed by the Senate taxwriters includes a provision that would revive and expand the use of private debt collectors, requiring the service to hand over to private firms nearly all the inactive tax receivables. The way the bill reads, that would include unpaid fines for not having health coverage, a penalty that […]
The Internal Revenue Service is giving the Mega Millions jackpot some serious competition, with tax refunds totaling $760 million ready to be handed over to an estimated 918,600 taxpayers who did not file a federal income tax return for 2010.
In past tax seasons, returns filed with an ITIN (Individual Taxpayer Identification Number) reporting wages paid had to have the ITIN listed on the wage statement to be eligible for electronic filing. Due to programming changes the IRS’ e-file system, That is no longer required. The taxpayer’s correct ITIN should be used as the identifying […]
The IRS is now accepting returns with Itemized deductions, First Time Home Buyer Credits, Educator Expenses, etc, that were previously being delayed. Be sure to make sure that the returns you have been waiting to submit are being sent in for processing. If you have any questions, be sure to contact the support center at […]
The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Be aware, these figures are for the coming year, not for taxes being filed next month! Rates for 2010 were $.50/mile for business purposes. Beginning on […]
Offices preparing returns that have had the Earned Income Tax Credit denied will be receiving compliance letters stressing the importance of operating with Due Dilligence in the future. Earned Income Tax Credit is one of the most fraudulently used tools in individual tax preparation. As a preparer you should be aware of the EITC due diligence requirements as well […]
When reviewing your clients’ prior year tax returns be sure to check to see if they claimed any college expenses, and if they did, they should have used the American Opportunity Credit. This credit has a refundable aspect to it, similar to the Earned Income Credit, and is available for the first 4 years of […]