On Thursday, President Barack Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both he expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act (PL 111-240). The Senate approved the bill on April 5, and the House voted in favor of it on March 3. (more…)

Just a reminder to those who have not yet filed their 2010 tax return that April 18, 2011 is the due date to either file your return and pay any taxes owed, or file for the automatic six-month extension and pay the tax you estimate to be due.  Normally the deadline is April 15, but when a due date falls on a weekend or holiday, the due date is extended until the next business day.  Thus, since April 15 is a legal holiday in Washington, D.C. (Emancipation Day), the due date for 2010 tax returns is extended until Monday, April 18, 2011. 

In addition, the April 18, 2011 deadline also applies to the following: (more…)

The vast majority of Americans get a tax refund from the IRS each spring, but what if you are one of those who have received a tax bill?  What do you do if you owe money to the IRS and can’t pay?

The IRS encourages you to pay the full amount of your tax liability on time.  If you get a bill for late taxes, you are expected to promptly pay the tax owed including any additional penalties and interest.  It is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS.  You can also pay the bill with your credit card.  The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. (more…)

April 18 is the due date for the first estimated tax installment for the 2011 tax year and only a couple of weeks away.  

You may not realize it, but taking a few minutes to plan your estimated tax payments and/or proper withholding amounts for the year can actually insulate you from underpayment penalties in 2012.    

Congress considers our tax system as a “pay-as-you-go” system.  To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-go” requirement.  These include: 

• Payroll withholding for employers;  
• Pension withholding for retirees; and  
• Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding. (more…)

 If you, a member of your family or a friend has a refund coming from a 2007 return that has yet to be filed, you only have until Monday (April 18) to claim your refund.   The IRS reports that it has refunds totaling approximately $1.1 billion for the nearly 1.1 million people who did not file a federal income tax return for 2007.  

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund.  If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.  (more…)

Individual

April 2011

April 1 – Last Day to Withdraw Required Minimum Distribution

Last day to withdraw 2010’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2010. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn. Taxpayers who became 70½ before 2010 were required to make their 2010 IRA withdrawal by December 31, 2010. (more…)