As April 18th gets closer and closer, so does the big decision: should you do your own taxes with online software, or should you grit your teeth and hire a professional accountant?
We’re not about to make that decision for you.
But we can tell you the good things and the bad things about hiring a pro. After that, it’s up to you.
Have you ever wondered where that extra $10 at the end of your cell phone bill comes from?
It’s actually a federal tax, and it’s a surprisingly high one – 17.3%, on average, of your current phone bill.
This is probably news you didn’t want to hear.
By now, you should know that you really never get away with anything.
The IRS is ALWAYS watching.
And they want to see that you report every last little bit of money you make – even things that you wouldn’t think counted as “income.”
When people don’t report their entire income, the government suffers from a sad condition called the tax gap (the amount of taxes that go unpaid every year). We can’t have THAT.
You already know that you have to report wages, salary, commissions, tips, interest and dividends on your tax return (Form 1040). (At least, we hope you know this!) But did you know....
Yes, Virginia, there is a Santa Claus.
It's the season of magic, and miracles are still possible. In order to get you in a good mood for the holidays, here are a few things you might not have to pay taxes on, for a change.
Some of them will definitely surprise you.
Nothing to get you in the holiday mood like some nice, cheerful talk about taxes, is there?
Fortunately, the IRS is less naughty than nice around this time of year. Your year-end charitable deductions can get you a bit of a break on your taxes – if you fill out all the right forms, make your list and check it twice. Some important tax law revisions have taken place over the past few years, and you need to make sure you’re up to date.
Here’s what you need to know about charity deductions…courtesy of the jolly old IRS.
Our client had previous returns prepared and filed by a national tax firm with local franchise branches that have now closed down. He was surprised when the IRS said he owed money. Our client called this national chain and learned that his last return with them in 2007 had not been filed and they no longer had any of his records. He was unable to dispute the IRS claim.
Our client no longer has a job and doesn’t have any assets. He is living solely on Social Security income. It was going to be impossible for him to pay the $11,100 bill for his unfiled 2007 return that had been accumulating penalties and interest without his knowledge. Our Financial Analyst Robyn Rudd and Attorney Chris Davis worked together to settle his case for $5!
Believe it or not, the IRS isn't all bad.
It's hard to hate farmers and ranchers – especially ones who live and work in drought-ridden states. And it seems that even the IRS has a bit of a weakness for the agriculture business.
Good news! If you own a ranch or farm and you've taken a blow this year, the government has issued an extended tax relief period just for you.