WHAT DOES YOUR W-2 SAY ABOUT YOU?

The Form W-2, Wage and Tax Statement, is a form millions of Americans receive annually.  The form is required to be prepared by every employer engaged in a trade or business who pays remuneration for services performed by an employee. The form is prepared with five copies to be distributed as follows: Social Security Administration…

The End of 2013 is Just Round the Corner

Hopefully there will not be a repeat of the 16-day government shutdown following the 12 days of Christmas.  The IRS has already announced to tax preparers that they likely will not be accepting tax returns prior to January 28, but maybe not until February 4 – more specific dates will be announced in December. Each…

What’s New at the IRS?

The Internal Revenue Service has been in the news lately, and not for the normal reasons.  The IRS has been called out for using its power in the wrong ways to monitor non-profit organizations, making poor choices on spending money to train employees, and for other questionable practices. Beyond this internal strife, there is news…

2013 Tax Planning – Beware the New Taxes

There are at least six changes to the federal income tax laws which need to be considered in individual tax planning for 2013 and beyond: Increased Medicare tax for high-earning employees and self-employed [.9 percent] Surtax (Medicare contribution tax) on net investment income of higher-income individuals [3.8 percent] An increased top income tax rate of…

How to Handle IRS Correspondence

As tax returns are processed by the IRS, some do not pass certain tests or meet specific criteria. IRS correspondence is initiated to obtain more information or clarify inconsistencies between information reported on the tax return and information reported by third parties, such as 1099’s, W-2’s, or 1098’s. Some new processing tests have been developed…