Internal Revenue Service

Seal of the United States Internal Revenue Ser...

Tax Consequences Of Retirement Plan Hardship Distributions For Employees And Employers

Tax Consequences Of Retirement Plan Hardship Distributions For Employees And Employers During the economic slowdown, many individuals are looking to their retirement savings to augment their unemployment benefits or help carry them through a period of hardship. With a lack of other cash sources, individuals are taking plan loans and hardship distributions from their retirement funds. The IRS recently...

October 1st, 2009 by The Tax Man

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Warning from the IRS regarding Suspicious e-Mails and Identity Theft

The Internal Revenue Service has issued several recent consumer warnings on the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet, it is called phishing. Image via Wikipedia Suspicious e-Mail/Phishing Phishing (as in “fishing for information”...

October 1st, 2009 by The Tax Man

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UBS settlement

High-level negotiations between the U.S. and Switzerland have resulted in an out-of-court settlement in the IRS’s dispute with Swiss banking giant UBS AG over the identities of U.S. account holders. The U.S. and Switzerland agreed to resolve the dispute under the framework of their existing tax treaty. The Swiss Federal Tax Administration (SFTA) will expeditiously process requests for information...

August 29th, 2009 by The Tax Man

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Tax break for the purchase of new motor vehicles

The Internal Revenue Service and Treasury Department announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase. The IRS and Treasury have determined...

July 10th, 2009 by The Tax Man

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Rights on an IRS Appeal

The IRS has an appeals system for people who do not agree with the results of an examination of their tax returns or with other adjustments to their tax liability. Here are the top six things to know when it comes to your appeal rights. When the IRS makes an adjustment to your tax return, they will send you a report or a letter explaining the proposed adjustments. This letter will alert you of your...

July 2nd, 2009 by The Tax Man

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Tax reminders

With 2009 nearly half over, the Internal Revenue Service reminds individual taxpayers there is no better time to check their 2009 federal income tax withholding levels to make sure they do not face any surprises when returns are due next spring. The Making Work Pay Credit lowered tax withholding rates this year for 120 million American households. However, particular taxpayers who fall into any of...

June 24th, 2009 by The Tax Man

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A diagram showing the front side of a typical ...

Watch out for scams

The IRS warns taxpayers to be on the alert for e-mails and phone calls they may receive which claim to come from the IRS or other federal agency and which mention their tax refund or economic stimulus payment. These are almost certainly a scam whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers —...

May 15th, 2009 by The Tax Man

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SAN FRANCISCO - APRIL 17: Letters to the Inte...

Last Minute Tax Tips

A few last minute tax tips this year. You do not want to miss these items on your tax return as you finish things off these last few days. Bigger standard deduction Image by Getty Images via Daylife Homeowners who pay state and local real estate taxes but don’t file an itemized return will receive a larger standard deduction. Besides the standard deduction, you can get the amount...

April 13th, 2009 by The Tax Man

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Internal Revenue Service issues standard letters and notices

The Internal Revenue Service issues standard letters and notices on a routine basis. Some will require specific actions on your part if you have received one of these letters. It is of course best to act on these as soon as possible so you do not lose any of your rights. Below is a list of standard letters and notices and actions you may take regarding each: Image via Wikipedia Letter...

April 7th, 2009 by The Tax Man

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Did you sell stock in an Insurance Company that had demutualized?

What does this recent case mean for you? If you sold shares from a demutualization, you may also be eligible for a refund of tax paid. You must file an amended federal tax return and it must be timely filed. The rules for filing amended returns, just like the facts of this case, are complex. Also, keep in mind that the IRS Image via Wikipedia may appeal the court’s decision. A higher...

April 2nd, 2009 by The Tax Man

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