The IRS has some very interesting rules when it comes to reporting the income and assets of divorcing couples. Before you check the "married" or "single" box on your tax return, keep in mind that the IRS wants to know what your marriage status was on Dec. 31. If your divorce became final on Jan. 1, you must check the married box.
The Massachusetts Revenue Department announced that tax revenue for the fiscal year that ended June 30 was up $600 million over last year. Total 2012 tax collections throughout the state were more than $21.1 billion, up 2.9 percent over 2011. Those numbers exceeded projections by about $107 million thanks to sales taxes, corporate and business taxes and motor vehicle sales taxes.
A New England charity aimed at helping to keep the local dairy economy going is having to clean up a little spilled milk. Improper business formation and planning has forced the group to reorganize as s 501C3 Corporation and pay more than a third of its earnings in taxes. However, because it was a self-imposed audit that recognized the mistakes, the IRS is not seeking any punitive tax collection actions.
A 25-year-old woman has been charged with aggravated theft and computer crimes after swindling more than $2 million from the Internal Revenue Service. She incorrectly filed a false personal income of $3 million in 2011 using the TurboTax refund calculator. Her $2.1 million refund was issued on a Visa card with the full refund amount after revenue officials approved her claim.
For those Bostonians who need to file extensions, schedule payments, pay off liens or appeal a tax decision, take heart. You are not alone. It seems every week there is a new celebrity charged with tax evasion, the failure to file tax returns and/or face multiple audits.
The restrictions on investment products available to Americans make it difficult to invest in markets outside of the U.S. So much so, that it's causing some Americans to renounce their citizenship. Nearly 2,000 gave up their U.S. passports in 2011, compared with only 235 just three years ago.
Happy small business week! The IRS changed a few deductions this year, so now that we've wrapped up 2011, let's look ahead to what 2012 will bring us. Here's a little reminder of what you can and cannot deduct if you are self-employed in Boston under the new IRS allowances, including Social Security.
The IRS files federal tax liens against taxpayers in Suffolk County whom they believe are dodging their tax obligation. This action usually comes after years of letters and warnings have failed to get the money. According to the IRS, a federal tax lien is a legal claim against all your property including your real estate, financial assets and other personal property.
Closing your foreign bank account does not excuse you from disclosing it. With the end of the offshore bank account amnesty program called the Offshore Voluntary Disclosure Initiative, the consequences for not disclosing your foreign bank accounts is even greater. Transparency is truly the best policy. Those who do not follow these 10 rules may face at least five years in prison, three years of supervised probation and up to $250,000 in fines and fees.
As I'm sure you've heard Bostonians do not need to file taxes until Tuesday, April 17. While taxes are typically due on April 15, that date falls on a Sunday. Obviously, Monday would be the next logical choice. But this year Monday, April 16 is a Massachusetts state holiday, Patriots' Day. Or in other circles, Marathon Monday. (Since 1969, we've had three-day weekends during April's third week.) Monday, April 16, also happens to Emancipation Day, a holiday in Washington, D.C., and our IRS offices are also closed on Monday.