Tax season is stressful enough without the thought of being audited by the IRS. The IRS audits about 1% of all tax returns because of lack of staff and resources, so the odds are in your favor. However, there are some things that could cause the IRS to take notice of your tax return.
These are things the IRS looks for:
- Make too much money – The odds of the IRS taking notice increases by almost 3% for people making more than $200,000.
- Didn’t report all taxable income – The IRS has copies of all of your W2s and 1099s so make sure and claim all of your taxable income.
- Charity donations – Claiming you donate more than what you make can raise a flag. The IRS can calculate how much you can donate based on how much you make.
- Deducting business expenses – If you are self-employed, claiming excessive deductions for travel, meals and entertainment can raise a flag.
These are just a few items on your tax return that can cause the IRS to take notice.
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For more information on filing your taxes, contact the Weslaco accountants of Gonzalez & Arrambide, Inc. at 956-447-9009.
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The ramifications of the Fiscal Cliff still bring confusion to many people. Although there may be benefits for some, the majority of people will see changes this coming tax year. The following is a short summary of the many changes most taxpayers will see.
1. Since everyone’s taxes went up-on January 1st, we will all pay higher taxes.
2. Republican and Democrats did agree on something. They agreed that “high income earners” are people that make $400,000 if single and $450,000 if married.
3. Tax rates will rise for high-income earners to 39.6%.
4. Tax rates were extended for most taxpayers.
5. The Patient Protection and Affordable Care Act went untouched.
6. The alternative minimum tax is fixed.
7. The Social Security tax break expired.
8. Unemployment benefits have been extended for a year.
9. Estate tax remains at a $5.12 million exemption.
10. More tax talks are in the works for February to resolve further issues.
The Fiscal Cliff may have been averted, but we are still at the mercy of the federal government.
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For more information on the Fiscal Cliff and new tax laws, contact the tax professionals of Gonzalez & Arrambide, Inc. at 956-447-9009.
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The new tax hikes that were enforced led to the wealthy giving less to charities last year. Data taken by Blackbaud, a company that tracks the monthly numbers for more than 3,100 non-profits, stated that charitable giving only grew by 2% compared to 4% in 2011. They claim that charitable giving amounted to $304 billion in 2012.
Steve MacLaughlin, co-author of the Blackbaud report and director of Blackbaud’s Idea Lab claims that natural disasters and cautious giving were to blame for the decrease in charitable giving. The two major disasters in Haiti and Japan in 2010 and 2011 boosted international giving. Superstorm Sandy in 2012 helped to boost giving at the end of 2012.
MacLaughlin stated that smaller non-profit organizations with less than $1 million in contributions saw an increase of about 7% last year compared to larger non-profits who only saw an increase of 0.3%.
Faith-based groups and education account for nearly half of all charitable giving in America. International affairs, healthcare, and human services organizations were those that saw the least in charitable giving.
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For information on how your charitable donation can be a deduction on your taxes, contact the tax experts of Gonzalez & Arrambide, Inc. at 956-447-9009.
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As the old adage goes, “You can run, but you can’t hide.” The IRS is out for money, monitoring the activities and posts of suspected tax cheaters on Facebook and Twitter accounts, called data mining. Recent reports have hinted of the IRS’s intent, though mention as to how deep they will mine for data is unknown. According to the IRS, solely accounts of persons whose tax forms have signaled a red alert will be monitored. Tax evasion is a serious matter, costing taxpayers and the government billions of dollars a year.
Go ahead and tremble tax delinquents, as this the IRS is not bluffing; history proves they are not. Officials, ranging from the FBI to city police officials, have conducted social media investigations in search for clues involving a suspect’s illegal activities (e.g. gang members, sexual predators). Recently, the NYPD, created a task force specializing in social media investigations. Successful investigations have resulted in the indictment of criminals.
The price to pay for tax evasion is dire: prison time, fines and maximum repayment of owed taxes. Do not waste your time trying to cheat the IRS; auditors and agents are on the lookout.
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File a sound, justifiable tax return today to avert IRS involvement with our trusted McAllen CPAs from Gonzalez & Arrambide, Inc. Come by today or contact us at 956-447-9009 to schedule an appointment.
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According to United States law, legally blind is defined as a person who has no eyesight at all, a person whose good eye has a vision measure of 20/200 and uses corrective lenses, a person whose vision falls at or below 20 degrees. American citizens who are legally blind qualify for exclusive tax deductions to benefit from a substantial tax break, including work expenses and medical deductions.
Be sure to mark of boxes 39A and 23A on tax forms 1040 and 1040A, respectively. Discuss your options with a trustworthy accountant if you are 65 and older or are married to a visually impaired individual, as savings may increase. The medical deduction benefit represents the highest tax deduction.
If you qualify, medical deduction perks include: deducting transportation to and from the doctor’s office and pharmacies, and expenses based on the prevention, diagnosis and treatment of the illness. If legally disabled, you may also be able to deduct any optical surgical procedures, home modifications and nursing services, to name a few.
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For superior tax services in your community, contact our dependable accountants from Gonzalez & Arrambide, Inc in McAllen. Visit us or contact us at 956-447-9009 to file your tax return today.
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