Archives for 2010

In addition to several new tax laws that will take effect in the next couple of years, IRS audits are also increasing in frequency. In the year 2000, the average person had a 1 in 202 chance of being audited; that number has risen to about 1 in 99 (http://www.msnbc.msn.com/id/31951548/ns/business-consumer_news/). The federal budget deficit is approximately $1.6 trillion, and the IRS estimates that the government is owed about $345 billion in taxes each year that it does not collect ($200 … [Read more...]

As part of a widespread initiative to better regulate the preparation of federal tax returns, the IRS has introduced new requirements for those who prepare tax returns for compensation.  Beginning in January 2011, any person who prepares the majority of a tax return for another person in return for payment must apply online with the IRS for a Preparer Tax Identification Number (PTIN).  Additionally, some individuals will be expected to receive continuing education credits and undergo testing, as … [Read more...]

Another significant change for the upcoming tax season was announced by the IRS just a few days ago.  Banks and professional tax preparers who offer Refund Anticipation Loans (RALs) and Refund Anticipation Checks (RACs) will no longer have access to a tool called the debt indicator, which the IRS describes as “an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded … [Read more...]