Since the recession began, a number of new businesses started to supplement or substitute incomes during situations of job loss. It is important for these small businesses and their owners to be cognizant of the hobby loss rule instituted by the IRS. Business or Pleasure? The hobby loss rule relates to business expenses used as a deduction for activities considered to be hobbies by the IRS. The rule can effect and limit how you account for write-off... 

Part of proper personal finance management is all about staying organized. One rule to good organization is keeping up with your documents as soon as you are done with them. There are some documents that need to be kept for years and some that can be tossed as soon as you have finished using it. Acting immediately can help cut down on the clutter and the disorganizations. By filing away paperwork as…  Read More →

If you got a lot of cash, this may be your year to kick the bucket. 2010 is a year in which Congress has permitted the estate tax to slip which means heirs to a fortune will be receiving their inheritance without having to pay the government. This is the first time in nearly 100 years the estate tax has lapsed. When owner of the New York Yankees died in recent weeks, it shed light on the fact that Steinbrenner’s heirs would not be required... 

If you got a lot of cash, this may be your year to kick the bucket. 2010 is a year in which Congress has permitted the estate tax to slip which means heirs to a fortune will be receiving their inheritance without having to pay the government. This is the first time in nearly 100 years the estate tax has lapsed. When owner of the New York Yankees died in recent weeks, it shed light on the fact that Steinbrenner’s heirs would not be …  Read More →

Taxes have been the bane of many American’s existence since way back. With the current state of the economy and budgetary concerns of state governments, tax relief is not in the cards any time soon on a large scale but there may be some highlights on a smaller scale. Back to school shopping is big business for retail stores and a necessary evil for parents with school-aged kids. Since consumers are cutting back on spending and not hitting... 

With the Bush tax cuts set to expire and a Democratic led congress at work, America could potentially see a tax increase of $115 billion for the next year- a scenario of minute desirability to anyone, especially when juxtaposed with the present economic climate. From higher income taxes and individual state taxes, to halved child care tax credits and expired IRA conversion rules, congress seems notably out for a change.  While democrats remain... 

The US Government has been charged with the task of setting the American people back to work after the devastating effects of the financial crisis. The Government recognizes that massive unemployment only exacerbates the situation and so it has tried to come up with initiatives to stimulate employers to hire additional staff or to retain existing ones. The HIRE Act and the Payroll Tax Exemption are two such initiatives and the following questions... 

Between her two reality TV shows, clothing store DASH, and LA Laker husband Lamar Odom,  Khloe Kardashian has still somehow managed to score herself a tax lien . Last time I checked, reality TV, luxury retail, and basketball all pay pretty well, but apparently just not well enough. Either that, or Khloe is just another celebrity who thinks messing around with the IRS is no big deal. Constantly in the limelight, Khloe has been spotted spending... 

Beginning in 2011, the Internal Revenue Service will be changing the rules for tax preparers who are paid to complete and file an individual or a business tax return. The IRS will require all paid tax preparers to register with the agency and take tests of competency and pass successfully. This new regulation is a national measure meant to raise the standards of companies that provide tax preparation and filing services. The move is the largest... 

Beginning in 2011, the Internal Revenue Service will be changing the rules for tax preparers who are paid to complete and file an individual or a business tax return. The IRS will require all paid tax preparers to register with the agency and take tests of competency and pass successfully. The only caveat is that 2 competency exams do not need to be passed until December 31st, 2013. This new regulation is a national measure meant to raise the... 

Just about one year ago, we reported on funny guy Chris Tucker owing over 3 million in back taxes. You’d think that his reported $20 million ‘Rush Hour 2’ and $25 million ‘Rush Hour 3’ paychecks would have had him more than able to pay off the bill, but apparently his taxing situation has only gotten worse. Recent reports have appeared, and Tucker allegedly now owes over $11.5 million in back taxes to the IRS from years 2001, 2002,... 

It is a common misconception that when it comes to the IRS, you have little or no rights concerning tax issues. With thousands of tax codes to contend with, it is not unusual for taxpayers to feel overwhelmed and intimidated by the entire tax process. While it is true that the IRS is a powerful and sometimes unforgiving collection machine, the taxpayer still has rights that must be acknowledged. If you feel that the IRS has made a…  Read More →

If you have received a notice from the IRS the first and most important thing is to not panic. Most notices are minor and should not be of long lasting concern and many do not even require any action on your part. Here is some information that will help guide you through the process and put your mind at ease. First, read the letter in full. Most often when you receive a notice from the IRS it is for something simple and straightforward. The... 

In a perfect world we could be rest assured that any person, company, or offer we came across was legitimate. Unfortunately, this is not the reality of the world in which we live and therefore consumers across the nation must always be on the lookout for scams perpetrated by con artists. Criminals looking to make a quick buck have been doing so for generations, however with the invention and subsequent popularity of the Internet, these …  Read More →

The IRS 1099-Misc form has always been used to track payments made from one company to either an individual or another company that are not salary-based.  If you hire someone to design a website, it’s a one time payment.  If that payment is more than $600, then you issue that person a 1099-Misc form, and send one to the IRS, so that they can accurately claim the income on their income taxes.  These forms have been used for independent...