Do it Yourself Tax Software Can Be Messy

by Kevin Thompson | Tax Blog

Many taxpayers use “do it yourself” tax software to file their income tax returns. However, a fair amount makes a mess of it and pay the price when they make mistakes. It’s not unusual for tax preparers to receive calls from clients asking them to fix their messed up...

Expect More Tax Audits as the IRS Hires More Workers

by Kevin Thompson | Tax Blog

Do you think the IRS has been lax on enforcing tax audits lately? Well, think again.  They are in the process of hiring 700 new employees, which means there’s more of a chance you will find an audit letter in your mailbox. Kevin E. Thompson, CPA...

Worst Ideas about Paying Taxes

by Kevin Thompson | Tax Blog

Kevin Thompson, CPA, did a recent internet search revealing some horrifically interesting ideas about paying taxes. Below are just a few of some of the worst ideas that people have come up with regarding doing their taxes. Thinking that filing taxes is...

Woman Given 2 Years for Giving False Information to the IRS

by Action Tax | Tax Blog

While this is a cautionary tale, it’s certainly entertaining and worth telling. This story highlights the importance of doing your homework before entrusting someone with your financial information. I would guess the client also had to pay some additional taxes (it is...

The Question of Dependency for Exemption

by Action Tax | Tax Blog

Often times, my clients come to me around February or March, with the April 15th tax deadline looming, asking about exemptions or credits or deductions, and how they can get them. Well by that time, it is too late. With one of the most contentious tax preferences in...

Errors at the IRS are Staggering Says TIGTA

by Action Tax | Tax Blog

According to the Treasury Inspector General for Tax Administration (TIGTA), the IRS is working to comply to an executive order for reporting requirements. Even though there has been a decline of improper payment for Earned Income Tax Credit (EITC) since the 2003...