According to the Internal Revenue Service, if Congress cannot come to an agreement about th budget, as many as 100 million U.S. households may not be able to file their tax returns until March 2013.
The alternative minimum tax is scheduled to affect about 32 million households. Congress’s inability to come to a decision will also prohibit the IRS to reprogram its computers to adjust to the new changes.
U.S. households will have even more questions than last year about filing so the IRS is preparing for the high volume of calls. Tax filers should wait and see if a decision is made before filing in order to avoid having to amend later. Without a “patch” to the AMT, 80% of households with incomes between $80,000 and $200,000 would owe extra taxes.
Congress must come to an agreement hopefully before the New Year.
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For more information about filing your taxes, contact the tax experts of Gonzalez & Arrambide, Inc. at 956-447-9009.
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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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