Visit our News page for regular updates on tax regulation and the latest developments at our firm.
New Preparer Tax Identification Number (PTIN) Requirement – Effective January 1, 2011 anyone preparing all or a substantial amount of a tax return is required to be registered with the IRS. This new requirement is meant to give the IRS regulatory and diciplinary authority over all tax preparers. Please make a diligent effort to ensure your tax preparer is registered. Ask for the PTIN!
Disclosure and Use of Taxpayer Information – New IRS regulations provide taxpayers with greater control over their personal tax return information. The Internal Revenue Code, Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, became effective January 1, 2009. These regulations limit tax return preparers’ use and disclosure of information obtained during the return preparation process.
Please schedule an appointment to learn more about important changes in tax law.
IRS Expands Breaks for Struggling Taxpayers. The new features of the Fresh Start program include penalty relief for the unemployed and expanded installment payment options. The penalty relief is for “failure to pay” fines, which is usually the biggest expense taxpayers face on a tax bill. The relief grants a six month grace period to pay taxes to those who have been unemployed for at least 30 consecutive days during 2011 or in 2012 up to this year’s filing deadline. The same grace period applies to self employed workers whose business income fell 25% or more in 2011. Taxpayers who qualify for this break do not have to pay tax owed for 2011 until Oct 15, 2012. The relief is not available to joing filers whose income exceeds $200K or single filers with income greater than $100K. The balance due can’t exceed $50K. The IRS is also allowing more taxpayers to qualify for a ‘streamlined’ installment agreement in an effort to make it easier to catch up on back taxes. The ceiling for such agreements has been doubled to $50K with no financial statement required. The maximum term for repayment is now six years, up from five. A taxpayer must agree to monthly direct debit payments. Have questions?