When accounting goes unaccounted for
an employee of Sunshine Maids, received a refund check for $122,783.51 from the service. When she reported the error to the IRS, she was instructed to void the check.
Despite the IRS error, and her honesty in reporting the mistake, she still owes $80 on her taxes.
House Cleaner Receives Accidental $122,783 Tax Refund [Web CPA]
As you’re all aware, the teen years are a confusing time. Trying to fit in, keeping the parents off your back and trying to determine what exactly is going with your body is enough to drive you to underage drinking.
Some junior and seniors at a high school in Monticello, New York have been brave enough to add tax preparation to the mix volunteering for the IRS’s VITA program. “It’s a little confusing, but you get the hang of it,” said Marcus Daniels-Penn, told the Journal. Of course not everyone participating has such a optimistic view of the experience as Adam Kaiser, who was struggling with determining who can be claimed as a dependents, noticed something most people don’t realize until long after they leave the quad, “The government can’t do anything simple,” he said.
Maybe you didn't hear about it, but last night Mitt Romney and Barack Obama were […]
If you’ve got a offshore bank account and are less than with it when it comes to tax compliance, it might be advisable that you talk to your accountant.
The IRS, who is becoming increasingly less cuddly under the Obama Administration, is stepping up its scrutiny of Americans with income derived from offshore accounts greater than $10,000.
However, because the Service doesn’t want to come off as a big meanie, it is giving everyone late to the game until September 23rd to file their Foreign Bank Account Report (FBAR). If you’re the type that doesn’t concern yourself with such matters, here are some things you can look forward to:
Those who have inadvertently failed to report offshore income, even just a few hundred dollars, could be subject to a $10,000-a-year penalty going back several years. For those the IRS considers willful tax evaders, it is much worse. The IRS can impose a penalty of $100,000, or one half the value of the account, whichever is greater, per year.
Those of you that have been scofflaws on your offshore accounts, don’t fret. The IRS is allowing to confess your sins and report yourselves under their “voluntary disclosure program”. However, you will still have to be investigated by the Service’s criminal division which sounds about as pleasant as a rectal exam in front of all your friends.
IRS Gets Tougher on Offshore Tax Evaders [WSJ]