Abstracts » Business, general

More on tax reform

Article Abstract:

The Tax Reform Act of 1986 requires individuals to: submit new W-4 forms to employers no later than October 1, 1987; report the social security numbers of all dependents listed on tax returns (except when the dependent is younger than five years of age); report all tax-exempt interest received; file a Form 1099 each time title to real property passes or royalty payments larger than $10 are received; mail all tax information reports (such as Forms 1099) to the Internal Revenue Service in envelopes marked "Important Tax Return Document Enclosed"; and to pay 90 percent of current year taxes in estimated tax payments (for those taxpayers who must pay taxes quarterly). Penalties will be assessed upon taxpayers for failure to comply with these new rules. In addition, the Omnibus Budget Reconciliation Act of 1986 has raised tax penalties in two areas: (1) failure to comply with the federal tax depository system results in 10 percent (rather than 5 percent) penalty assessments, and (2) taxpayers' understating taxes by more than 10 percent or greater than $5,000 will be assessed 20 percent (rather than 10 percent) penalties. Tax penalties related to filing of tax shelter information after October 22, 1986 are also briefly described.

Finance, taxation, & monetary policy, Analysis, Taxation, Tax reform, Interest, Interest (Finance), Tax penalties, Tax collection, Withholding tax, Payroll deductions

---

Are your tax preparation fees deductible?

Article Abstract:

The IRS has released a new Revenue Ruling on the deductability of fees incurred by individual taxpayers who have their income tax returns prepared. The new Revenue Ruling allows a portion of income tax preparation fees to be claimed as a deduction by self-employed individuals and sole proprietors filing a Schedule C, taxpayers with royalty and rental income filing a Schedule E, and taxpayers with farm income filing a Schedule F. The Revenue Ruling, which is enforced retroactively, also allows these taxpayers to file refund claims for the last three tax years.

Column, Tax returns

---

Section 179 deduction

Article Abstract:

The IRS has issued new rules for the expensing election deduction of Section 179 of the Internal Revenue Code that will take effect in tax years ending after Apr 29, 1991. Section 179 permits taxpayers to deduct as much as $10,000 of the cost of tangible property utilized in a trade or business as an expense. The new regulation restricts the expensing election in that taxpayers must reduce the deduction on a dollar-for-dollar basis if they acquire over $200,000 of property in one year.

Tax elections

Some parts © 2012 Advameg, Inc.