Credits are extended into 2011, but aren’t as much of an incentive.
Forget holiday door-buster sales. For big savings, some homeowners are actually buying themselves new doors for Christmas this year, in time to claim the government’s tax credit for home energy efficiency on their income taxes.
Here are 12 hot spots on your return that can raise the chances of scrutiny by the IRS.
1. Failure to report all taxable income. …………
2. Returns claiming the home-buyer credit. …………
3. Claiming large charitable deductions. …………
4. Home office deduction. …………
5. Business meals, travel and entertainment. …………
6. Claiming 100% business use of vehicle. …………
7. Claiming a loss for a hobby activity. …………
8. Cash businesses. …………
9. Failure to report a foreign bank account……………
10. Engaging in currency transactions. …………
11. Math errors. …………
12. Taking higher-than-average deductions. …………
WASHINGTON – The Internal Revenue Service is making it a bit riskier to cheat on your taxes.
The tax agency increased the number of returns it audited by nearly 11 percent this year, statistics released Wednesday show. Wealthy taxpayers and big businesses were most likely to be targeted.
The IRS also stepped up audits of charities and other tax-exempt organizations. story
Here are four of the most important changes to know about as you prepare your 2010 return. link
Adjust your tax withholding now to boost your take-home pay or to avoid underpayment penalties when you file your 2010 tax return.
Your old tax returns still have value.
Small-business owners looking for tax relief would be wise to review the past years’ filings, for a number of reasons. For one, there may be opportunities to amend your returns to receive tax refunds, which could provide some much-needed cash. And for another, old filings can remind you of carryovers and other deductions that you can plan to take this tax year.
Call us now for a free review of your last 3 tax filings.
Sales Taxby Mary Beth Franklin, Senior Editor, Kiplinger’s Personal Finance
Tuesday, May 18, 2010provided by
Don’t wait until you file your return to find ways to lower your tax bill. These moves will help you save throughout the year.
But keep in mind that an extension to file is not an extension to pay.
As the deadline approaches for filing tax returns, the process of claiming a tax break created by the stimulus package has proved to be more work than millions of people had bargained for.
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