IRS Notices with Interest Calculation Error – IRS to send out special mailings
The IRS recently announced it send a number of Form CP2000s out to taxpayers with interest rate calculation errors on them. Please be aware of the problem. Noted here is a copy of a recent interest error calculation announcement made by the IRS. If you recently received a form CP2000 from the IRS please be aware an adjusted, higher interest amount may be owed. The IRS alerted taxpayers and tax professionals about an interest calculation error on certain notices mailed the weeks of July 1 and July 8. The IRS discovered errors in the CP2000 notices during a two-week period
Avoid the Gambling Winnings Tax Surprise
It’s your lucky day. You just won $5,000. Are you prepared for the tax event to follow? Here are some things to think about. With the increased popularity of lotteries and casinos, more unsuspecting winners are experiencing a lucky payday only to end up with a huge tax head-ache when filing their income taxes. Here is what you need to know: Look for the warning signs You are required to report as income any winnings you receive including, but not limited to: • slot machines • bingo • pull tabs • horse/dog racing • game shows • raffles • lottery
Business Capital Expensing – Good or bad decision?
The bonus depreciation and Section 179 tax code provisions allow small businesses to expense large capital purchases. Is this better than depreciating the purchase over time? Here are some thoughts on the matter. As a reminder, businesses may accelerate the expensing of qualified capital purchases. This can be done within two special provisions in the tax code. Section 179 The American Taxpayer Relief Act of 2012 extends the annual $500,000 amount of qualified assets that may be expensed (instead of depreciated) for 2013. This benefit can be maximized as long as total assets purchased by your firm does not exceed