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10 abbreviations you should know to navigate your tax forms

“To help you navigate your tax forms, here are definitions of common abbreviations you may encounter while doing your taxes this year” writes Jeanne Lee for businessinsider.com. The Earned Income Credit is a “benefit for working people with low to moderate income,” according to the IRS. It is also called the Earned Income Tax Credit (EITC).This year’s new federal income tax form may be the size of a postcard, but that doesn’t mean filling it out will be a snap. Source: businessinsider.com Share This:

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The IRS isn’t calling you — it’s a scam, and here’s what to do if it happens to you

“So when I got a voicemail admonishing me for supposed issues with the tax return I filed this year, I knew it had to be the latest IRS phone scam” writes Tanza Loudenback for businessinsider.com. The IRS says direct deposit — which the government also uses for Social Security and Veterans Affairs payments — is “simple, safe, and secure.”. In some cases, the caller threatens criminal fraud charges, an arrest warrant, and to “blacklist” the taxpayer’s Social Security Number.The IRS also has detailed instructions on what to do if you…

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Donations to cut the national debt plummet to 14-year low

“Americans in 2018 drastically cut back on the amount of money they gave voluntarily to the IRS to help reduce the national debt” reports washingtonexaminer.com. It’s a significant drop from the $2.6 million donated last year, and the $5.1 million gifted to the IRS in 2014. Even if $10 million were gifted to the IRS in a single year, that would handle less than one two-millionth of the total debt.Regardless of the highs and the lows of the gift-giving, the gifts are just a drop in the ocean next to…

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With Trump’s pick in charge, can taxpayers trust the IRS?

“Only by ending the practice of inventing interpretations that fly in the face of the law can the IRS begin to restore its image as an agency taxpayers can trust” writes Ap Photo Jacquelyn for washingtonexaminer.com. For 50 years, the National Taxpayers Union has analyzed and contributed to the infrastructure in the federal tax code that protects taxpayers from unfair practices.After being elevated to take over the embattled agency by a vote of 65 to 33 in September, new IRS Commissioner Charles Rettig has his work cut out for him. Source:…

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How to get a second chance on your 60-day IRA rollover

“As a general rule rollovers will not be accepted by a financial institution after the 60-day rollover period has expired” writes Widener University for marketwatch.com. If a financial institution commits an error either making the rollover distribution or receiving the rollover contribution, a self-certification waiver is feasible. Source: marketwatch.com Share This:

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Thieves targeted $12 billion through IRS tax fraud

“The good news is the 2016 data represent a steady and significant drop in tax identity theft since 2012” writes Columnist Focusing On for washingtonpost.com. The IRS estimated online robbers attempted to steal least $12.2 billion, if not more, through identity theft tax refund fraud in 2016, according to the Government Accountability Office (GAO).Private tax collection, raising much less than expected, hit again Will scammers hide behind new law for private tax collectors?.  Source: washingtonpost.com Share This:

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Former Porterville tax preparer pleads guilty to false returns

“According to court documents, Leticia Bedolla, 39, operated a tax preparation service called Leticia Tax Service” reports thebusinessjournal.com. A former tax preparer from Porterville pleaded guilty Wednesday to aiding and assisting in the preparation and presentation of a false and fraudulent tax return.Bedolla prepared and electronically filed tax returns with the IRS on behalf of her customers.In finalizing the customers’ federal income tax returns for electronic filing, she would sometimes fabricate the amounts of deductions and deductible expenses without informing her customers that she was doing so, according to court…

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How to get the medical tax deductions you’re entitled to

“This includes documentation of the prescription for home health care from a licensed health care practitioner” writes Mark Hulbert for marketwatch.com. It might seem obvious, but it’s worth emphasizing nonetheless: You must itemize your deductions in order to deduct home health care costs.Chances are that you’re not taking all the tax deductions to which you’re legally entitled—leaving money on the table, in other words.That shouldn’t be too big of a barrier, however, since home health care costs can be substantial.But, because there is a medical necessity for the patient to…

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Democratic state attorneys general fight IRS state and local tax deduction cap

“It did not substantially change the federal deduction on state and local taxes paid by companies” reports washingtonexaminer.com. The attorneys general of California, Connecticut, New Jersey, and New York are fighting a proposed Internal Revenue Service rule aimed at preventing a workaround to the new cap on federal tax breaks for state and local taxes.It’s a contentious issue that divides along party lines following passage of last year’s tax overhaul with Republican-only support.The IRS wants to prevent that via the new rules. “The proposed rules would undermine state sovereignty by…

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IRS issues guidance on deductibility of business meals

“The agency last week issued guidance for the deductibility of food and meals under the tax law enacted in December” writes Joyce M for seattletimes.com. NEW YORK (AP) — The IRS is making it simpler for business owners to deduct the cost of meals with customers and clients.Under the IRS’ guidance, 50 percent of what a business spends on meals remains deductible, as it was before the law went into effect, as long as the expense is an “ordinary and necessary” part of conducting a business.The IRS noted that if…

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