Popular Tax Articles and News from Around the Web

IRS Releases the Dirty Dozen Tax Scams for 2012
IR-2012-23, Feb. 16, 2012
WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and  free money. Don’t be fooled by these scams.”

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with  the Department of Justice to shutdown scams and prosecute the criminals behind  them.

The IRS Targets Income Tricks
(WSJ) - There's a saying: Pigs get fed and hogs get slaughtered. The Internal Revenue Service surely hopes that includes tax hogs. That is the message of a recent U.S. district court case won by the IRS...

Home Office Deduction
(JofA) With Unemployment still near the highest rate in decades, it is not surprising to find many people working out of their homes. Now may be a good time to review the criteria for claiming a deduction for the business use of part of a person's residence.

IRS audits of small business software files

(JofA)Tax practitioners have always been cautious with the records they provide to the IRS in an audit to control the depth of an IRS inquiry. But IRS agents are starting to request client backup files from small business accounting software such as QuickBooks and Peachtree.

Tongue-Depressor Tax Will Harm Jobs, Innovation

(Financial Advisor) - A year from now, the federal government will start collecting a new tax on medical devices from tongue depressors to imaging machines, thanks to the sweeping health-care
overhaul.

Odds of an IRS audit are rising for millionaires

(USA Today) IRS released figures showing that 12% of earners over $200,000 a year were audited last year. That's up from 8% in 2010 and 6% in 2009.

Don't Let Scandals Stop Charitable Giving

(USA Today) The emergence of Kmart Secret Santas provided a feel-good story for the holidays, but it could also reflect a desire by some to bypass established charities in favor of one-on-one philanthropy.

The Facts on Tax Penalties

(IRS.gov) When it comes to filing a tax return – or not filing one - the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points the IRS wants you to know about the two different penalties you may face if you do not file or pay timely.