Tax credit, that is. Last year’s stimulus bill included provisions expanding and renaming the Hope Credit, making it possible for more people to save on taxes when paying college expenses. (more…)
Archive for the ‘IRS Guidance’ Category
Get Credit for Education
Friday, August 27th, 2010FTD Goes Paperless
Friday, August 20th, 2010No, we aren’t talking about floral arrangements. The federal tax deposit system, or FTD, is used to collect various taxes including employment taxes and corporate income tax. (It isn’t used by individual taxpayers filing their income tax returns, so they aren’t affected by this announcement.) The system has long accepted and encouraged electronic payments, and fewer than 10% of the payments are still made with old-fashioned paper coupons. Apart from being less efficient, the paper coupons account for a disproportionately large number of errors and penalties. Beginning next year paper coupons will be eliminated and all these deposits will have to be made electronically.
Return Preparers to Pay $64.25
Thursday, August 19th, 2010Last month we reported on proposed regulations that would impose an annual user fee on paid return preparers in connection with an application for and renewal of a preparer tax identification number (PTIN). At that time we knew the IRS would receive $50 and applicants would pay an additional amount to cover the cost of a third-party vendor to operate the online system and provide customer support. The IRS has announced that the system will go live in mid-September, and the total fee for 2011 will be $64.25. This fee may change in future years as costs are re-evaluated.
This is an annual fee and will apply to all compensated return preparers, including registered tax return preparers, enrolled agents, CPAs and attorneys, even if they already have a PTIN.
Does the IRS Owe You?
Wednesday, August 11th, 2010The IRS owes lots of money to lots of people. Some failed to file returns even though they had a refund. Others filed a return but the IRS wasn’t able to find them when trying to pay the refund. Are you one of those people? (more…)
Do You Owe the IRS?
Wednesday, August 11th, 2010If you owe money to the IRS, there are a few things they’d like you to know about how to resolve the problem. (more…)
Kentucky Disaster Relief
Tuesday, July 27th, 2010The IRS has announced an extension of certain deadlines for taxpayers residing or having a business in Pike County, Kentucky, scene of severe storms beginning July 17.
Reprieve for Noncompliant Organizations
Tuesday, July 27th, 2010A 2006 tax law changed the filing requirements for many smaller tax-exempt organizations, and says they lose their tax-exempt status if they fail to comply for three consecutive years. With thousands of these organizations facing this fate, the IRS has offered a limited, one-time reprieve. (more…)
Friday Wrapup
Friday, July 23rd, 2010Tax news of interest to investors came mainly from the courts this week, though the IRS gave paid tax return preparers something to groan about. (more…)
Paid Return Preparers to Pay $50+ Per Year
Thursday, July 22nd, 2010The IRS has released proposed regulations imposing a $50 per year user fee on paid return preparers. The fee is to be paid in connection with an application for a preparer tax identification number (PTIN) and annual renewal of the PTIN. A third-party vendor will administer the program and may charge an additional fee.
IRS on Making Work Pay Credit
Tuesday, July 20th, 2010Always trying to be helpful, the IRS has published a reminder that the Making Work Pay Credit is still available in 2010, and offered some tips about the credit. (more…)
