Friday, July 25, 2008

FDR SSSocial Security Launches Online Retirement Calculator


July 24, 2008 -- The Social Security Administration has launched an online calculator that will provide benefit estimates to help people plan for their retirement.

The Retirement Estimator at CLICK HERE is tied to a person's actual Social Security earnings record and eliminates the need to manually key in years of earnings information.

The calculator lets the user compare different retirement options. For example, a person can change retirement dates or expected future earnings. Individuals also can print out up to three different scenarios at one time, in addition to information about their benefits at age 62 (current age if older), full retirement age and age 70.

Best of all, the Retirement Estimator is secure. The only thing it provides online is retirement benefit estimates. It does not show the earnings record information on which the final benefit estimate was calculated, nor does it reveal other personal information.

“The Retirement Estimator is just one of many things we are doing to make more information and services people need available over the Internet,” Commissioner Astrue stated. “We recently unveiled a new home page at www.socialsecurity.gov that reduces visual clutter and is easier to navigate. Since its release, we have received many positive comments. In the fall, we will introduce the public to our next initiative:

SSA Commissioner Michael Astrue said the agency will soon complete a total overhaul of its online retirement application to better handle the baby boomer wave. When complete, the new application will reduce the average filing time from 45 minutes to about 15 minutes




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Stephen Martinez






Petition Dismissed for Untimeliness, Penalty Imposed on Taxpayers Who Altered Documents

Late Tax ReturnPetition Dismissed for Untimeliness, Penalty Imposed on Taxpayers Who Altered Documents
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A petition seeking redetermination of a couple's tax deficiency was dismissed for lack of jurisdiction because it was filed after the 90-day filing period had elapsed. The envelope containing the taxpayers' petition was postmarked four days after the end of the filing period. Furthermore, the petitioners had altered the copy of the notice of deficiency that was attached to the petition as an exhibit by changing the date of issuance and the stated "Last Date to Petition Tax Court "so that it appeared that the petition was timely filed. The IRS pointed out the alteration in its motion to dismiss, and the taxpayers did not address the issue despite multiple invitations and orders from the court. A $1,500 penalty was imposed under Code Sec. 6673(a) because merely dismissing the petition would have reward the taxpayers' dishonesty by allowing them to delay payment during the course of the proceedings without penalty.

C. Samaniego, TC Memo 2008-175, Dec. 57,495(M)





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Stephen Martinez

Monday, July 21, 2008

Cumpliendo con la ley de Impuestos Patronales

Tornadoes

Requisitos de Impuestos Sobre el Empleo

Los patronos están obligados por ley a retener impuestos patronales de sus empleados. Los impuestos patronales incluyen:

  • Retención de impuestos federales
  • Contribuciones al Seguro Social y Medicare

Los impuestos por concepto de ingresos son “pagados según son devengados”. Usted tiene que pagar impuestos según recibe ingresos durante el año. Para la mayoría de los empleados, esto se hace mediante la retención de impuestos de su cheque salarial. Las personas que poseen negocio propio también están obligadas a efectuar el pago de impuestos estimados durante el año. El sistema de pagar impuestos según se devengan los ingresos fue diseñado para asegurarse que los contribuyentes puedan cumplir con sus obligaciones contributivas a tiempo.

Las contribuciones al seguro social y Medicare se usan para pagar los beneficios que los trabajadores y sus familias reciben bajo la Ley de la Contribución Federal al Seguro Social (Federal Insurance Contributions Act, FICA por sus siglas en inglés). Las contribuciones al seguro social pagan beneficios de edad avanzada, a sobrevivientes, y parte del seguro por discapacidad de FICA. Las contribuciones al Medicare pagan beneficios de hospital. Cada empleado aporta parte de estos impuestos y el patrono aporta una cantidad igual.

Los contribuyentes con negocio propio también tienen la obligación de pagar las contribuciones al Seguro Social y Medicare, pagando impuestos sobre su ingreso por cuenta propia.

Los programas que reciben fondos de impuestos patronales proveen beneficios esenciales a muchos trabajadores. La importancia de estos programas continuará creciendo entre tanto más trabajadores se acercan a la edad de retiro o jubilación. La contribución bajo la Ley Federal de Impuestos De Contribución para el Desempleo (Federal Unemployment Tax Act, FUTA por sus siglas en inglés), en conjunto con los sistemas de desempleo estatales, provee el pago de compensación por concepto de desempleo a trabajadores que han perdido sus empleos.





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Stephen Martinez

IRS Steps Up Enforcement

TornadoesWashington, D.C. (July 21, 2008)
By WebCPA staff
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The Internal Revenue Service's Criminal Investigation Division increased its enforcement activities last fiscal year after they fell behind in fiscal 2006, according to a new report.

The Treasury Department's inspector general said the number of investigations initiated by the division increased 7.8 percent in fiscal year 2007, compared to a decrease of 8.5 percent in the previous year. In addition, the number of investigations recommended for prosecution increased 4.3 percent in fiscal year 2007, compared to a decrease of 4.9 percent the previous year

The numbers of subjects convicted and sentenced in fiscal year 2007 increased by 6.7 percent and 5.1 percent, respectively, compared to decreases of 6.1 percent and 3.6 percent in fiscal year 2006. Nearly 65 percent of the division's time was spent on tax-related cases, an eight-year high.

One area of concern, however, is the growing inventory of investigations referred to the Justice Department and the decrease in experienced IRS agents.

"For the first time since we began reporting on its enforcement activities, the division had more investigations awaiting prosecution by the Department of Justice than open subject criminal investigations within the division," said Treasury Inspector General for Tax Administration J. Russell George. The increase has come just as the IRS is facing the growing challenge of hiring more agents to replace those who are leaving.





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Stephen Martinez

Monday, July 14, 2008

Victims of Floods, Storms and Tornadoes In Six States Now Have Until Aug. 29 to File Certain Returns

TornadoesVictims of Floods, Storms and Tornadoes In Six States Now Have Until Aug. 29 to File Certain Returns

IR-2008-89, July 14, 2008

WASHINGTON ––The Internal Revenue Service is postponing until Aug. 29 the time to file certain tax returns, to make certain tax payments and to perform time-sensitive acts for storm, flood, and tornado victims in presidential disaster areas in six states, mostly in the Midwest.

Previously, these deadlines varied by state, and the postponement provides people affected by the disasters with additional time.

"Our hearts go out to to the people hit by these disasters," IRS Commissioner Doug Shulman said. “We realize that as people put their lives back together, they need additional time to work on these tax issues."

This announcement will affect counties in Indiana, Iowa, Illinois, Nebraska, West Virginia and Wisconsin that qualify for individual assistance. Affected counties in Missouri previously have been granted relief until Aug. 29.






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Stephen Martinez

Friday, July 11, 2008

Cómo Evitar Multas y la Brecha Tributaria

Penalty

Cómo Evitar Multas y la Brecha Tributaria


WASHINGTON — El Código de Impuestos Internos impone muchas diferentes clases de multas, las cuales fluctúan entre multas civiles hasta el encarcelamiento por la evasión tributaria criminal.

Si usted no presenta su declaración y paga su impuesto para la fecha de vencimiento, quizá podría tener que pagar una multa. También, quizá podría tener que pagar una multa si subestima sustancialmente su impuesto, si subestima una transacción que se tiene que declarar, presenta una reclamación errónea reclamando un reembolso o crédito o presenta declaración de impuestos frívola. Si usted provee información falsa en su declaración, quizá podría tener que pagar una multa civil por fraude.

Por lo general, las multas son pagaderas cuando se notifica y se exige el pago. Generalmente, las multas son tasadas, cobradas y pagadas de la misma manera que los impuestos. La notificación incluirá el nombre de la multa, la sección del código que corresponde y cómo se calculó la multa (o información sobre cómo obtener el cálculo, si éste no está incluido).

Esta hoja informativa es la vigésima segunda de la serie sobre la Brecha Tributaria. Esta provee orientación a los contribuyentes sobre las multas civiles y las consecuencias por subestimar el ingreso y sobrestimar los gastos.

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Stephen Martinez

Scammers Use e-Mail, Fax to Pose as IRS

Con Man
Scammers Use e-Mail, Fax to Pose as IRS


IR-2008-88, July 10, 2008

WASHINGTON — The Internal Revenue Service cautions taxpayers to be on the lookout for a new wave of scams using the IRS name in identity theft e-mails, or phishing, that have circulated during the last two months.

In May and June alone, taxpayers reported almost 700 separate phishing incidents to the IRS. In 2008 so far, taxpayers have reported about 1,600 phishing incidents to the IRS.

“Taxpayers should take steps to keep their personal information out of the hands of identity thieves,” said IRS Commissioner Doug Shulman. “That includes not falling for any of the phony e-mails or faxes now in circulation pretending to come from the IRS.”

The most common scams involve tax refunds and, this year, economic stimulus payments.

Although most of these scams consist of e-mails requesting detailed personal information, the IRS generally does not send e-mails to taxpayers, does not discuss tax account matters with taxpayers in e-mails, and does not request security-related personal information, such as PIN numbers, from taxpayers.




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Stephen Martinez






Debtors Prison
IRS May Have Goofed on 385,000 Stimulus Payments


Calculations of economic stimulus payments by the Internal Revenue Service may have been wrong in nearly 400,000 cases.

Treasury Inspector General for Tax Administration J. Russell George said in testimony before the House Ways and Means Oversight Subcommittee that as of June 13, the IRS had issued approximately 76.5 million stimulus payments totaling approximately $63.9 billion. His office has determined that the IRS correctly calculated the stimulus payment for 99.6 percent of the returns.

However, TIGTA identified approximately 385,000 stimulus payments in which its calculation did not agree with the IRS's. The differences in some cases resulted from programming that did not include all qualified self-employment income and losses in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed.

"In these cases, TIGTA believes that taxpayers were entitled to an additional $16.5 million," said George. "These errors affected clergy and other individuals whose income is not subject to the self-employment tax."

Many taxpayers did not receive the child portion of the stimulus payment because they did not check the Child Tax Credit qualifying box on the tax return. When TIGTA raised this concern, the IRS initially responded that it could not allow the child portion of the stimulus payment in these instances because eligibility for the Child Tax Credit could not be determined from the information on the tax return.

The IRS subsequently announced that it would issue the additional child portion of the stimulus payment to approximately 350,000 households in July. TIGTA is in the process of quantifying the number of individuals that might be affected




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Stephen Martinez

Thursday, July 10, 2008

IRS Aumenta Tarifa del Millaje Hasta el 31 de Diciembre, 2008

IRS Mileage Rates

IRS Aumenta Tarifa del Millaje Hasta el 31 de Diciembre, 2008

IR-2008-82SP, 23 de junio, 2008

WASHINGTON — El Servicio de Impuestos Internos (IRS) anunció hoy un aumento a la tarifa estándar opcional por millaje para los últimos seis meses del 2008. Los contribuyentes pueden usar la tarifa estándar opcional para calcular los gastos deducibles de operar un automóvil para propósitos de negocio, caritativos, médicos o de mudanza.

La tarifa subirá a 58.5 centavos por milla para todo el millaje de negocio incurrido entre el 1º de julio, 2008 y el 31 de diciembre, 2008. Este es un aumento de ocho (8) centavos de la tarifa de 50.5 centavos en efecto los primeros seis meses del 2008, estipulado por el Procedimiento Tributario Rev. Proc. 2007-70.

Reconociendo el reciente aumento en los precios de la gasolina, el IRS hizo este ajuste especial para los últimos meses del 2008. El IRS normalmente revisa la tarifa por el millaje una vez al año en el otoño para el siguiente año calendario.






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Stephen Martinez






Debtors Prison
IRS May Have Goofed on 385,000 Stimulus Payments


Calculations of economic stimulus payments by the Internal Revenue Service may have been wrong in nearly 400,000 cases.

Treasury Inspector General for Tax Administration J. Russell George said in testimony before the House Ways and Means Oversight Subcommittee that as of June 13, the IRS had issued approximately 76.5 million stimulus payments totaling approximately $63.9 billion. His office has determined that the IRS correctly calculated the stimulus payment for 99.6 percent of the returns.

However, TIGTA identified approximately 385,000 stimulus payments in which its calculation did not agree with the IRS's. The differences in some cases resulted from programming that did not include all qualified self-employment income and losses in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed.

"In these cases, TIGTA believes that taxpayers were entitled to an additional $16.5 million," said George. "These errors affected clergy and other individuals whose income is not subject to the self-employment tax."

Many taxpayers did not receive the child portion of the stimulus payment because they did not check the Child Tax Credit qualifying box on the tax return. When TIGTA raised this concern, the IRS initially responded that it could not allow the child portion of the stimulus payment in these instances because eligibility for the Child Tax Credit could not be determined from the information on the tax return.

The IRS subsequently announced that it would issue the additional child portion of the stimulus payment to approximately 350,000 households in July. TIGTA is in the process of quantifying the number of individuals that might be affected




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Stephen Martinez

IRS Takes Heat for Mishandling Its Mail Audits

IRS Man Handling
IRS Takes Heat for Mishandling Its Mail Audits
By TOM HERMAN (The Wall Street Journal)

July 10, 2008 (Associated Press) -- Finding an IRS audit notice in your mailbox is stressful enough. But a senior IRS official says many taxpayers facing questions from the agency in recent months have suffered needless aggravation because IRS workers frequently fail to follow procedure.




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Stephen Martinez






Debtors Prison
IRS May Have Goofed on 385,000 Stimulus Payments


Calculations of economic stimulus payments by the Internal Revenue Service may have been wrong in nearly 400,000 cases.

Treasury Inspector General for Tax Administration J. Russell George said in testimony before the House Ways and Means Oversight Subcommittee that as of June 13, the IRS had issued approximately 76.5 million stimulus payments totaling approximately $63.9 billion. His office has determined that the IRS correctly calculated the stimulus payment for 99.6 percent of the returns.

However, TIGTA identified approximately 385,000 stimulus payments in which its calculation did not agree with the IRS's. The differences in some cases resulted from programming that did not include all qualified self-employment income and losses in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed.

"In these cases, TIGTA believes that taxpayers were entitled to an additional $16.5 million," said George. "These errors affected clergy and other individuals whose income is not subject to the self-employment tax."

Many taxpayers did not receive the child portion of the stimulus payment because they did not check the Child Tax Credit qualifying box on the tax return. When TIGTA raised this concern, the IRS initially responded that it could not allow the child portion of the stimulus payment in these instances because eligibility for the Child Tax Credit could not be determined from the information on the tax return.

The IRS subsequently announced that it would issue the additional child portion of the stimulus payment to approximately 350,000 households in July. TIGTA is in the process of quantifying the number of individuals that might be affected




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Stephen Martinez

Tuesday, July 8, 2008

Croc Dundee to Tax Authorities: 'Come and Get Me'

Croc Dundee
Crocodile Dundee Snarls at Aussie Tax Authorities


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Crocodile Dundee actor Paul Hogan has told Australian tax authorities to “come and get me” after being told in California that the Australian Taxation Office is asking the U.S. Internal Revenue Service to help round up nine years’ worth of records from three U.S. banks.

The actor told The Australian newspaper that the tax authorities are on a “long-distance fishing expedition” to get his financial records. Four companies related to him are allegedly part of the probe. But Hogan is defiant. “They should build a statue of me up there at the tax office,” he said to reporters outside his Santa Barbara mansion, according to wire reports.

Despite the tax probe, Hogan plans to return to his native country in September to shoot a movie. “I’ll be arrested the minute I land on the shore, of course, but I have a gun, so be warned,” he said to Australia’s Ten Network television channel.




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Stephen Martinez






Debtors Prison
IRS May Have Goofed on 385,000 Stimulus Payments


Calculations of economic stimulus payments by the Internal Revenue Service may have been wrong in nearly 400,000 cases.

Treasury Inspector General for Tax Administration J. Russell George said in testimony before the House Ways and Means Oversight Subcommittee that as of June 13, the IRS had issued approximately 76.5 million stimulus payments totaling approximately $63.9 billion. His office has determined that the IRS correctly calculated the stimulus payment for 99.6 percent of the returns.

However, TIGTA identified approximately 385,000 stimulus payments in which its calculation did not agree with the IRS's. The differences in some cases resulted from programming that did not include all qualified self-employment income and losses in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed.

"In these cases, TIGTA believes that taxpayers were entitled to an additional $16.5 million," said George. "These errors affected clergy and other individuals whose income is not subject to the self-employment tax."

Many taxpayers did not receive the child portion of the stimulus payment because they did not check the Child Tax Credit qualifying box on the tax return. When TIGTA raised this concern, the IRS initially responded that it could not allow the child portion of the stimulus payment in these instances because eligibility for the Child Tax Credit could not be determined from the information on the tax return.

The IRS subsequently announced that it would issue the additional child portion of the stimulus payment to approximately 350,000 households in July. TIGTA is in the process of quantifying the number of individuals that might be affected




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Stephen Martinez

Tuesday, July 1, 2008

Automatic Filing Extension for Partnership, Trusts and Estate Tax Returns Reduced

Automatic Extension

Automatic Filing Extension for Partnership, Trusts and Estate Tax Returns Due After 2008 Reduced from Six to Five Months (IR-2008-84; T.D. 9407; NPRM REG-115457-08)

The IRS has issued proposed, final and temporary regulations relating to simplification procedures for obtaining automatic extensions of time to file returns. The final regulations adopt temporary regulations previously issued in T.D. 9229 without significant change.

The newly issued temporary regulations, however, revise certain of the previously issued temporary regulations by reducing, from six months to five months, the automatic extension period for partnerships filing Form 1065, U.S. Partnership Return of Income, or Form 8804, Annual Return for Partnership Withholding Tax, and estates and trusts filing Form 1041, U.S. Income Tax Return for Estates and Trusts.

For example, in the case of a calendar-year partnership, Form 1065 will need to be filed by September 15, rather than October 15. This change should enable individual taxpayers to obtain the Schedule K-1 information necessary to complete their returns by their October 15 six-month extended due date. This one-month reduction in the six-month extension period is effective for returns due on or after January 1, 2009. The six-month extension period for partnerships that file Forms 1065 or Form 8804 and trusts and estates that file Form 1041 will continue to apply to returns required to be filed before January 1, 2009.

CCH Comment. Under the current rules, a calendar-year S corporation with a six-month extension is already required to file its return by October 15 since the unextended due date for Form 1120-S is March 15. Thus, S corporations will continue to receive an automatic six-month extension period.

The final regulations adopt without change the earlier issued temporary regulations that provided an automatic six-month extension for individual returns if a timely, completed application for extension is filed on Form 4868, Application for Automatic Extension of Time To File a U.S. Individual Income Tax Return. Under the rules in effect prior to issuance of T.D. 9229, an individual could obtain an initial automatic four-month extension by filing Form 4868 and apply for an additional two-month discretionary extension by filing Form 2688, Application for Additional Extension of Time To File U.S. Individual Income Tax Return.

CCH Comment. A commentator suggested that the elimination of Form 2688 adds an administrative burden on individual taxpayers living abroad who may qualify for an extension beyond six months. The IRS, however, will not retain Form 2688. Taxpayers living abroad will need to file a letter containing the information required by Reg. §1.6081-1(b) that was formerly provided on Form 2688.

With respect to corporate filing extensions, the final regulations now explicitly state that the requirement to list with an extension request the name and address of each member of an affiliated group has the effect of granting an extension for each member's separate return in the event that the member does not file as part of the consolidated group.

The final regulations also adopt without change temporary regulations that: (1) provide an automatic six-month extension to file certain excise, income, information and other returns by filing Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns; (2) allow administrators and sponsors of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to report information concerning the plans and direct entities to obtain an automatic two-and-one-half-month extension of time to file by using Form 5558, Application for Extension of Time To File Certain Employee Plan Returns; and (3) allow donors who do not request an extension of time to file an income tax return to request an automatic six-month extension of time to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, by filing Form 8892, Payment of Gift/GST Tax and/or Application for Extension of Time to File Form 709.

The text of the temporary regulations serves as the text of proposed regulations set forth in NPRM REG-115457-08. Written or electronic comments and requests for a public hearing must be received by September 28, 2008.




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Stephen Martinez






Debtors Prison
IRS May Have Goofed on 385,000 Stimulus Payments


Calculations of economic stimulus payments by the Internal Revenue Service may have been wrong in nearly 400,000 cases.

Treasury Inspector General for Tax Administration J. Russell George said in testimony before the House Ways and Means Oversight Subcommittee that as of June 13, the IRS had issued approximately 76.5 million stimulus payments totaling approximately $63.9 billion. His office has determined that the IRS correctly calculated the stimulus payment for 99.6 percent of the returns.

However, TIGTA identified approximately 385,000 stimulus payments in which its calculation did not agree with the IRS's. The differences in some cases resulted from programming that did not include all qualified self-employment income and losses in the determination of eligibility. As of May 30, 2008, TIGTA had identified approximately 25,000 returns for which the stimulus payment was not allowed.

"In these cases, TIGTA believes that taxpayers were entitled to an additional $16.5 million," said George. "These errors affected clergy and other individuals whose income is not subject to the self-employment tax."

Many taxpayers did not receive the child portion of the stimulus payment because they did not check the Child Tax Credit qualifying box on the tax return. When TIGTA raised this concern, the IRS initially responded that it could not allow the child portion of the stimulus payment in these instances because eligibility for the Child Tax Credit could not be determined from the information on the tax return.

The IRS subsequently announced that it would issue the additional child portion of the stimulus payment to approximately 350,000 households in July. TIGTA is in the process of quantifying the number of individuals that might be affected




Continue ->


Stephen Martinez