No Appeal in Loving v. IRS

The IRS took no action in the matter of Loving v IRS and allowed the May 12th deadline for filing a Supreme Court appeal to pass.

In January of 2013, a federal court judge ruled that Congress had never granted the IRS authority to regulate tax return preparers, and in February of this year, the US District Court of Appeals for the District of Columbia Circuit agreed.  Writing on behalf of the court, Judge Kavanaugh summarized, “We agree with the District Court that the IRS’s statutory authority under Section 330 cannot be stretched so broadly as to encompass authority to regulate tax-return preparers. We therefore affirm the judgment of the District Court.” 

Further appeal was seen as unlikely as there was no disagreement between the district and appeals court. In addition, IRS Commissioner, John Koskinen, previously indicated in several interviews and testimony before Congress that, though the IRS was still reviewing options, a voluntary program seemed the best approach moving forward. “The idea of a voluntary program is under consideration because we believe it is important to maintain the momentum for regulation and oversight of unregulated preparers that has built up over the last five years, and to lessen the risks to taxpayers resulting from the lack of federal education requirements.“

You may read the full text of IRS Commissioner Koskinen’s April 8th testimony before Congress below:

Document Links

• Commissioner Koskinen’s Congressional Testimony
• More on Loving v. IRS

Original Post by: http://blog.phoenixtax.com/

Tax Preparers Can Help You Avoid Problems Before They Appear

What can possibly go wrong if we do our taxes ourselves? Almost everything, actually. First, you might be leaving a lot of money on the table. Just how much money? Quite a bit considering that there are many exemptions and deductions you might not be aware of. Quit giving Uncle Sam a fat tip every year when you can use this money to add to your nest egg or save up for a new car, sound system, or go on a much-deserved European vacation.

The other side of the equation, of course, is the much more serious danger of not paying enough taxes. Uncle Sam can be quite unforgiving when it comes to back taxes. Not only do you get dinged for taxes you actually owed but penalties and interests can pack quite a bit of a punch. Tax preparers can help you get the peace of mind you have been looking for since they make sure that, at the very least, all your taxes are paid correctly.

- See more at: http://www.theuniversaltax.com/Blog-Tax-Preparation-Services/tax-preparers-help-avoid-problems#sthash.HjaZYyQx.dpuf


Tax Preparers Can Help You Avoid Problems Before They Appear

Avoid Tax Preparation Hassles with the Right Accountant

Tax day shouldn't be a day of burden and dread. In fact, with the proper tax preparation, April 15th can be a day for fulfillment and success. There are certain steps you have to take to make sure you're tax-prepared and to ensure, your staff, and your company stay away from trouble. Here are a few tips:

Getting all your paperwork in order is the first step for tax preparation. Make sure that you have information from all your sources of income. If your employer neglects to send you an earnings statement in a timely fashion — hopefully at some point directly after the New Year — you must make sure that they do, preferably in writing with duplicates made for IRS corroboration in the event that they fail to respond.

Make a list of all your expenses and deductibles. If you have an accountant or personal bookkeeper, then this should be easier for you, but if you do your own books, then it's best to this early on. In many cases, there are work-related expenses that you did not even know you had made, or had forgotten about. Think back in your mind about all the things you had to buy for your job in the last year. Have a detailed list of your payroll, receipts, invoices, etc. Make sure you submit all these data to your bookkeeper or accountant so they could pen it in.

Learn to adapt. Paperless accounting and bookkeeping is a fast growing trend among big and small businesses in the US. Accounting and bookkeeping software are now easily available which makes doing taxes and your books faster and easier. For example, a lot of Certified Public Accountant firms turn to Quick Books consulting for a much more efficient way of tax preparation and doing the books monthly.

Get more familiar with the family. Who are the wage earners in your family? It is important that every tax-paying member has filed their own tax return. If you are the singular earning body of the family, then it would mean that you are entitled to certain things that your dependents are not. Tax preparation has variables so make sure you have a clear understanding of these processes. Ask a Certified Public Accountant firm for help if you need to.

Ask for n extension if it is only necessary. Yes, it is possible to ask for an extension on your tax report but, it is still better if you submit on time. Only ask for an extension if it is of dire need. Again, save time. Do with what you have or get professional help. Avail of Quick Books Consulting services or online bookkeeping companies. These are convenient and reliable means of getting your books and taxes done.

Learn the dos and don'ts of tax-filing. File with a preparer affiliated with a professional organization and make sure you file your taxes with someone you trust and have good knowledge of tax policies—like your accountant. If you're filing online like a lot of people, do it with a firm registered with Thawte and/or TrustE (security and privacy certification companies) and listed as an authorized e-file provider.

Know what to avoid. One important thing to avoid is purchase a refund anticipation loan (RAL). Do this only until you are clear about all your other options and know how much money you are losing.

Do not let tax preparation overwhelm you. Get on them early and make sure that you have all your tax forms prepared so that filing will go as easily as possible. And who knows? At the end of the day you may have a check coming your way — if you set about things the right way.



Avoid Tax Preparation Hassles with the Right Accountant

Five Great Tips for Freelance Tax Preparation

Five Great Tips for Freelance Tax Preparation
By Steve Patterson
The idea of setting your own work schedule and working where you prefer may seem like the ultimate way to make a living with freedom and mobility. Every work opportunity may have challenges, and this is true even if you work in a freelance format. The steps to a successful freelance experience may be easier than you imagine, and preparing taxes may be the ideal way to help others and earn money on your own terms.
1. Understand how taxes accrue
Paying taxes is different if you work for yourself as opposed to being an employee and receiving a W-2 form from a company. You may receive a 1099-MISC form as a record of your earnings, and this is what you will need to submit when you file your own taxes. Otherwise you need to track your income.
2. Keep a record of your expenses and income
You should think of your freelance work as a business, and this means that you should keep an accurate record of your income and operating expenses. You should keep receipts, invoices, and other pertinent information organized at all times. Keep these documents in a safe file in your office for when you start to prepare your taxes.
3. Make regular, estimated tax payments
Employees can have taxes withheld from their paychecks, but you will have to take the lead in setting aside tax payments if you work freelance. Falling behind can lead to problematic financial circumstances, and you may be faced with penalties if your tax payments fall behind as well. The good news is that you can make online payments, and this can eliminate the burden of having to come up with a large sum of cash when your return is due.
4. Understand your deductions
Business expenses come in many forms, but legitimate deductible expenses are characterized as being necessary and ordinary for the type of business in question. Business expenses may include insurance, rent, advertising, utilities, and personal vehicle usage.
5. Post an earning profit
Posting a loss each year may be cause for the IRS to view your business endeavors as a hobby as opposed to a way to earn income and make a profit. This may lead to costly audits, so you should exercise care as you conduct your freelance work. As long as you produce a good amount of revenue and have separate finances, you should be safe. Check with your tax professional.
Taxes are an annual occurrence, but having a plan can can keep this routine part of earning a living from derailing your dream of working independently. Work with professionals and purchase the tools necessary to keep good records, like Quicken, and prepare good tax documents, possibly H&R Block Business Edition.
For great tax software products available for download and for working online, take a look at 2013Taxes.org today.
Article Source: http://EzineArticles.com/?expert=Steve_Patterson
http://EzineArticles.com/?Five-Great-Tips-for-Freelance-Tax-Preparation&id=8345265