It's been slightly more than one month since the federal income tax filing deadline of April 15. For taxpayers who did file but have discovered they made a mistake, or had a change in filing status, an amended return can often be a good step to take.
There are many aspects to the problems posed by the fiscal cliff. For starters, the so-called cliff is really the confluence of two separate issues: expiring tax changes and automatic federal spending cuts.
In our December 14 post, we noted some tips from the IRS on how to properly claim tax deductions for charitable gifts. As the year draws to a close, and people make their last gifts to charity for 2012, there are a few more such tips worth noting.
In the media, the holiday season has become more associated with buying than giving or receiving. Black Friday starts earlier every year, with plenty of press coverage documenting each successive jumpstart.
Today has been designated as "Giving Tuesday." It's a new entry in the holiday gift-giving season, aimed at encouraging people to give generously to nonprofit organizations of their choice.
At this time of year, taxpayers in California and around the country are hoping to avoid the dreaded tax audit letter. The good news is that the Internal Revenue Service only audits a small percentage of the overall population--currently about 1 percent. The bad news is that audit rates are much higher among certain groups of taxpayers, whose returns single them out for additional IRS scrutiny.
Orange County residents with high incomes are more likely to itemize their tax deductions and to be targeted by an IRS audit. The IRS is more likely to scrutinize the deductions that a high-income earner takes and the failure to provide supporting documentation for a deduction can get a taxpayer into serious legal trouble.
Everybody likes a good, meaty tax deduction. But some people try just a little too hard. For instance, here are ten deductions that probably seemed like a really good idea at the time, but were not allowed by the IRS.
Today we examine two interesting court decisions that have implications for tax litigation.