It’s August, it’s hot, and the tax news is not. Still, we have a few items you may want to note. Read the rest of this entry »
California Asks for IRS Guidance on Same-Sex Couples
August 12, 2010by Kaye Thomas
From time to time, bar associations, tax practitioners and others plead with the IRS to issue guidance dealing with some aspect of the tax law. In an unusual move, the legislature of the State of California has done the same, adopting a resolution calling on the IRS to issue a revenue ruling on the income tax treatment of same-sex couples. Read the rest of this entry »
Does the IRS Owe You?
August 11, 2010by Kaye Thomas
The 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? Read the rest of this entry »
Do You Owe the IRS?
August 11, 2010by Kaye Thomas
If you owe money to the IRS, there are a few things they’d like you to know about how to resolve the problem. Read the rest of this entry »
Advance EIC Repealed
August 11, 2010by Kaye Thomas
Beginning 2011 the advance payment option for the earned income credit will no longer be available. This option allowed individuals who were eligible for the credit to receive it as part of their paychecks instead of waiting to file their tax return and receive it as a refund. Few taxpayers took advantage of the option, and Congress decided to eliminate it as part of the legislation providing assistance to cash-strapped state and local governments.
The legislation contains other tax provisions, but these are mainly of interest to multinational corporations that will see new restrictions on their ability to claim the foreign tax credit.
Congress to Debate 1099 Reporting
August 10, 2010by Kaye Thomas
Under current law, a business paying more than $600 for services provided by an individual other than an employee must report that payment to the IRS on Form 1099. One of the revenue provisions in the Patient Protection Act expands the Form 1099 reporting requirements to include payments to corporations (other than exempt organizations), and payments for property and other “gross proceeds.” The provision, which applies to payments after 2011, is aimed at preventing tax avoidance by individuals and companies receiving those payments. It has the virtue of raising government revenue without imposing a tax increase, yet it’s controversial because of the paperwork burden it imposes on companies making the payments. Senate debate of the small business tax bill early next month will include consideration of amendments to repeal or amend this requirement before it goes into effect. Read the rest of this entry »
Friday Wrapup
August 6, 2010by Kaye Thomas
A slow news week allows us to publish our shortest wrapup yet.
Our Friday Wrapup is also published as a free email newsletter. Click here to sign up. Read the rest of this entry »
RIP RAL?
August 6, 2010by Kaye Thomas
The disgraceful practice of persuading taxpayers to fork over part of their tax refunds so they can receive the money a few days earlier may be on the way out. The IRS has announced that it will no longer provide “debt indicators” that are used by less reputable tax return preparation companies in processing refund anticipation loans, or RALs, that sometimes bear costs that equate to interest rates exceeding 1,000%. Read the rest of this entry »
Basis Rules for 2010 Decedents
August 5, 2010by Kaye Thomas
No doubt you’re aware that the estate tax has been repealed, solely for people dying in 2010. It’s less well known that repeal of the estate tax was accompanied by a change in the rules for adjusting the basis of inherited assets. For a description of the rules that apply when you inherit from someone who dies this year, see our new page on basis of property inherited from 2010 decedents.
That Thing on Kindle
August 3, 2010by Kaye Thomas
We’re pleased to announce that our book on principles of investing, That Thing Rich People Do: Required Reading for Investors, is now available in a Kindle edition for just $6.95. Don’t have a Kindle? No problem, Amazon.com offers free apps that let you read Kindle books on many devices including a PC, Mac, iPad, iPhone or Android. Everything you really need to know about investing is packed into this short, readable book that’s now available for less than the average cost of a movie ticket.
