Sunday, February 28, 2010

How Long Should You Keep Tax Records

If you can scan and store your tax return and support in cyber space, then keep them forever.
Otherwise it appears that if you file and pay your tax and none of the following situations apply, 3 years should be good.
If you did not file a tax return or filed a fraudulent tax return then there is no limit.
If you file for a claim for a loss of worthless securities or have an understatement of income of more than 25% on the tax return or file for a claim for a credit or refund after you filed your tax return, then we recommend that you keep the information for at least 10 years.

Monday, February 22, 2010

Small Business Employment Tax Audits

For the last couple of years, the IRS has increased the number of employment tax audits each year. It appears that they are increasing the number of audits for 2010.
In September of 2009, the IRS was training thousands of new auditors, so I guess the training is over. Get ready.
The areas that will be reviewed is the old argument of independent contractor v/s employee. Also we see a push to review compliance for small business corporations that include shareholder salaries.
The IRS needs more revenue, so make sure you are getting good tax planning.

Sunday, February 21, 2010

Free Tax return filing with IRS

The IRS is providing a link to a group of private software companies for you to file the 2009 tax return for free.
With the free file option you can file any hour of the day or night and generally receive your refund within 10 days with direct deposit.
Do not forget your state tax return. There is a charge for the state tax return depending the company you select.
This may not be for everyone. It seems a bit like the wolf in sheeps clothing???

Saturday, February 13, 2010

Home Foreclosure and Debt Cancellation 1099C

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.
This provision applies to debt forgiven in calendar years 2007 through 2012.

Monday, February 8, 2010

Tax deduction for Haiti relief donations

Taxpayers who itemize deductions on their 2009 tax return qualify for a special tax relief provision for the contribution until March 1, 2010. This includes text, check, or credit card.
See for qualified charities and other limits.

Thursday, February 4, 2010

Home Buyer Credit News

Form 5405 has been changed by the IRS to help prevent the bogus claims for the home buyer credit. The tax return cannot be E-filed and must have documentation attached. Based on the paper filing, the refunds will take longer.

Monday, February 1, 2010

Social media connection

Hello from everyone at Peachtree Financial Services. We provide tax and accounting services. We also serve as business consultants to our clients. We are glad to be apart of the social media network.