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Is It Really Allowed – Making a Non-Deductible IRA Contribution Followed By a Roth Conversion?

Understanding the Roth Conversion of previous non-deductible IRA contributions. Also known as the Back Door Roth contribution.

Withholding Tax Without Income?

Did you know you can have tax withheld from a distribution from an IRA without having to recognize income from the IRA?

Do You Need a Friend at the IRS?

If you need help dealing with the IRS, the Taxpayer Advocacy Service may be just the ticket. They’re really your only friend at the IRS.

IRS Penalties – 8 Facts You Need to Know

Just a few facts you should know about the IRS penalties that may apply to you if you do not file or do not pay your taxes.

How to Get Your Prior Year Tax Return Information From the IRS

If you need your information from a prior year’s tax return, here’s how the IRS suggests that you can get this information.

Avoid Errors In Your Tax Filing

Common errors in tax filing that you can avoid easily by paying attention to detail and using available software tools.

When a 60-day Rollover is Not a 60-day Rollover

Review of a PLR that provides relief for a taxpayer who did not complete a rollover within the required 60 days.

Should I Itemize or Use The Standard Deduction?

Taxes (Photo credit: Tax Credits) As you prepare your tax return, you have a decision to make about your tax deductions – you can choose between itemizing and using the standard deduction.  But how do you choose? The Standard Deduction is just what it sounds like – a standardized deduction that you can choose to utilize by default, and you don’t have to do a lot of recordkeeping through the year in order to use the the standard deduction.  In order to itemize deductions, you need to save receipts from various deductible expenses through the year, and use those to prepare your itemized return. Oftentimes it is a foregone conclusion, once you understand the differences between itemizing and the standard deduction. Standard Deduction vs. Itemizing: Facts to Help You Choose Each year, millions of taxpayers choose whether to take the standard deduction or to itemize their deductions.  The following seven […]

How a 401k Contribution Affects Your Paycheck

Do you know how a 401k contribution affects your paycheck? Your take-home won’t go down by the same amount that you defer into the 401k.

Time for your paycheck checkup!

This time of year is a perfect time for a paycheck checkup to make sure that you are having enough tax withheld from your pay. Do it soon!

Taxpayer Bill of Rights – Do You Know Your Rights?

Do you know your rights as a taxpayer? There’s a Taxpayer Bill of Rights, and you should become familiar with it. Know your rights!

What to do When You Owe Taxes

If you have found yourself in a situation where you owe taxes to the IRS, there are ways to arrange a payment plan with the IRS. Here’s how.

IRS’ Offer in Compromise

The IRS has a process to provide a compromise when you owe taxes and penalties and you have no capacity to pay. The compromise is a reduction in the tax.

Answers to Common DIY Income Tax Questions

DIY income tax preparation can cause lots of questions to come up. Here we review some of the more common questions with DIY income tax.

IRS Warns of Phishing Scam

IRS has been tracking an email phishing scam lately. This one is particularly nasty, and it’s evolving in the targeted organizations.

Tax Refund Myths Debunked

Recently the IRS published a Special Edition Tax Tip which debunks some very common myths about your income tax refund. You may find some of these surprising. These myths are pervasive and can lead you astray if you believe them. In my experience the information in the Tip below is great advice for finding information about your tax refund. The complete text of the Tip (IRS Special Edition Tax Tip 2017-02) follows below: IRS Debunks Myths Surrounding Your Tax Refund As millions of people begin filing their tax returns, the Internal Revenue Service reminds taxpayers about some basic tips to keep in mind about refunds. During the early parts of the tax season, taxpayers are anxious to get details about their refunds. In some social media, this can lead to misunderstandings and speculation about refunds. The IRS offers these tips to keep in mind. Myth 1: All Refunds Are Delayed […]

IRS’ 2017 Mileage Rates for Taxes

IRS has published the rates for 2017 mileage classifications. Slight changes have been made for some of the mileage classes.

New IRS Site for Taxpayer Information

Quick, how do you find out what your balance is at the IRS? Call somebody? Wait for a paper notice? Who knows??

The bureaucracy that is the Internal Revenue Service just got a bit easier…

Earlier W2 Filing Requirement in 2017

Beginning with 2017 there is a new, earlier W2 filing requirement for employers. This won’t likely impact employees. Tax preparers will be busy in January!

IRS Warns of Surge in Email Scams in 2016

Recently the IRS issued a memo regarding the recent uptick in the occurrence of email phishing scams this year. Below is the text of the warning memo (IR-2016-28): Consumers Warned of New Surge in IRS E-mail Schemes during 2016 Tax Season; Tax Industry Also Targeted WASHINGTON – The Internal Revenue Service renewed a consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season. The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information. Variations of these scams can be seen via text messages, and the communications are being reported in every section […]