IRS - TAX PRO " ETHICAL STANDARDS "

IRS REVISES AND UPDATES CIRCULAR 230 STANDARDS TO PROMOTE ETHICAL PRACTICE BY TAX PROFESSIONALS.

COMPREHENSIVE DOCUMENT IRS CIRCULAR 232 HAS FIVE SUB PARTS.  HIGHLIGHTS ARE:

o SUB PART A :  RULES GOVERNING PRACTICE BEFORE IRS AND WHO IS ENTITLED TO PRACTICE IN IRS COURTS.
o SUB PART B: RULES ABOUT DILIGENCE, FEE SOLICITATION RESTRICTIONS, CONFLICT OF INTEREST, STANDARDS FOR ADVISING WITH RESPECT TO TAX RETURN POSITIONS.
o SUB PART C: SANCTIONS FOR VIOLATIONS OF CIRCULAR 230.
o SUB PART D:  DISCIPLINARY ACTIONS AND PROCEEDINGS FOR CIRCULAR 230 VIOLATIONS
o SUB PART E: MISCELLANEOUS PROCEDURES & RULES.

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IRS - UNDELIVERED REFUND CHECKS...

IRS SEEKS TAX PAYERS TO RETURN REFUND CHECKS WORTH :

1.  164.6 MILLION DOLLARS

2.  111,893 TAXPAYERS REFUND CHECKS RETURNED TO IRS.

MOST COMMON REASONS FOR CHECK RETURN ARE ;
 o  CHANGE OF MAILING ADDRESS.
 o  MAIL ADDRESS ERRORS.
 o UNDELIVERED REFUND CHECKS AVERAGE $1472 PER TAXPAYER TAX YEAR 2009.

TO AVOID THESE PROBLEMS eFILE & DIRECT DEPOSIT YOUR REFUND. AFTER THREE TAX YEARS IRS WILL KEEP YOUR REFUND.

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2011 "W2" REPORTING REQUIREMENT --> HEALTH COST OPTIONAL

IRS GUIDE IS THAT WHEN 2011 " W2" FORMS ARE ISSUED IN JAN 2011, IT IS NOT MANDATORY THAT EMPLOYERS DO THE FOLLOWING:

1.   REPORT COST OF HEALTH CARE IN WAGE & TAX STATEMENT - W2 FORM

2. THIS RELIEF WAS GRANTED TO GIVE TIME TO EMPLOYERS TO UPDATE THEIR SYSTEMS AND PROCEDURES NECESSARY TO COMPLY WITH THIS NEW REQUIREMENT.

IT IS VERY LIKELY THAT EMPLOYERS HEALTH CARE COST MAY BECOME A TAXABLE BENEFIT TO EMPLOYEES. STAY TUNED, AS LAME DUCK SESSION OF THE CONGRESS MEETS IN FEW WEEKS.

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NEW: TANNING SALON TAX DEADLINE...

IF OWN A SKIN TANNING SALON, FIRST PAYMENT OF YOUR TAX IS DUE NOV 1, 2010.   DETAILS  ARE:

1.  NEW TANNING TAX IS 10% TO BE REMITTED TO IRS 11/1/2010.

2. QUARTERLY FEDERAL EXCISE TAX FORM 720 NEEDS TO BE FILLED OUT.

3.  THESE PAYMENTS CAN BE SENT ELECTRONICALLY BY IRS "EFTPS" SYSTEM.

4. PROVIDERS OF TANNING SERVICES COLLECT THIS TAX  WHEN THE PURCHASER PAYS FOR TANNING SERVICES.

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IRS PROBLEMS AND TAX RESOLUTION OPTIONS

BEFORE CONSIDERING OFFER IN COMPROMISE (IOC), IT IS ADVISABLE TO EXPLORE THE AVAILABLE IRS TAX DEFICIENCY OPTIONS.  SOME OF THEM ARE LISTED BELOW:

1. FULL PAYMENT OF THE TAX OWED.
2. GET CURRENT WITH YOUR TAX RETURNS AND SEND UNFILED RETURNS TO REPLACE  IRS SUBSTITUTE FOR RETURNS (SFR's).
3. DISPUTE TAX ON TECHNICAL GROUNDS.
4. CURRENTLY NOT COLLECTIBLE STATUS
5. INNOCENT SPOUSE
6.  OTHERS  
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C CORP TAX RETURN DEAD LINE...

Q: WHAT ARE THE TAX CONSEQUENCES OF A CALENDER YEAR C-CORP. NOT FILING TAX RETURN AFTER ITS EXTENSION DEAD LINE OF SEPT 15 2010  ?

A:  THE C-CORP. WILL HAVE TO PAY THE FOLLOWING PENALTIES TO IRS:
1.  LATE FILING PENALTY
2. LATE PAYMENT PENALTY

THESE PENALTIES MAY BE WAIVED IF A C-CORP. CAN SHOW THAT THE FAILURE WAS DUE TO REASONABLE CAUSE.  A STATEMENT EXPLAINING REASONABLE CAUSE MUST BE ATTACHED WITH THE TAX RETURN.

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HAVE Corrosive Dry Wall REPAIR EXPENSES ?

Q: Do you know how to handle damage resulting form Corrosive Drywall ?  Is there a way to  determine what loss can be taken and how much ?

A:  Any person who pays to repair damage to personal residence or household appliances that results form Corrosive Dry wall can deduct it as casualty loss in the year of payment. 75% of the unrerimbursed expenses can be claimed as casualty loss using Safe harbor method.  Losses claimed for replacement of household appliances are limited to lesser of the current cost to Replace Appliances or their Basis.
See Revenue Procedure 2010-36 for details.

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