IRS Targets Wealthy With More Audits - FoxNews.com

More news on IRS enforcement actions. IRS Targets Wealthy With More Audits - FoxNews.com

Eight Tips for Deducting Charitable Contributions

I have to give the IRS appropriate credit. The IRS has followed through on their pledge to better educate taxpayers on opportunities available under the law. This summary of tips for properly deducting charitable contributions is a part of this effort and a great reminder about how taxpayers can properly claim charitable contributions.

Eight Tips for Deducting Charitable Contributions

Silver unveils plan to up "millionaires tax" threshold to $1 million a year - NYPOST.com

Looks like NYS is getting closer to a real millionaires tax.

Silver unveils plan to up "millionaires tax" threshold to $1 million a year - NYPOST.com

Check out the TeamDKB Tax Update Webinar

Click on the link title above to listen to our latest federal and state tax update webinar.

Comments and questions are welcome.

Wal-Mart Looks To Poach Amazon's California Affiliates - WSJ.com

Actions on the part of many states continue to reach beyond their physical borders to collect sales and use tax. This has led to concepts like "economic nexus" and "click through nexus". The article below details the impact this is having in the market place. Amazon has threaten to end its affiliate program with web sites in California because California is threatening to require Amazon to collect its sales tax.

Walmart being ever opportunistic has jumped in and offered relationships with Amazon's disenfranchised affiliates. Why? Because Walmart is already required to collect California's sales tax due to the fact that it already has stores in California.

Wal-Mart Looks To Poach Amazon's California Affiliates - WSJ.com

Tax Cut for Businesses May Cost States Money - NYTimes.com

Many states compute tax taxable income based on federal taxable income. The link below outlines how federal law changes that allow for accelerated depreciation of assets may impact state tax collections. Accelerated depreciation deductions will reduce state taxable income and therefore reduce state tax collections. All at a time of intense budget pressures as has been seen in Wisconsin.

Never fear for NYS. NYS "decoupled" from these accelerated depreciation rules a number of years ago. Essentially this means that accelerated depreciation deductions allowed for federal purposes are not allowed when computing NYS taxable income.

Tax Cut for Businesses May Cost States Money - NYTimes.com

Financial Planning Check Up

Great reminders and outline for financial planning from the personal tax professionals at TeamDKB.  Dennis Stein, Pam Duffy and Janet Graves are a great resource for our clients for all personal financial planning needs.  Tax season is a great time to think about opportunities to improve your overall financial health.  Click below to get a better view of how they can help you.  Don't hesitate to call them with questions.

New York Public Employee Unions Skip Usual Ad Blitz - NYTimes.com

What does this have to do with taxes?

Public employee unions are trying to identify revenue sources to continue to fund their compensation and benefits. They have suggested that New York's 8.97% income tax bracket be extended beyond its scheduled expiration in December 2011. The rate would revert back to 7.85% beginning January 1, 2012.

By the way...its not really a "millionaire's tax". The 8.97% rate is generally applied to taxable income in excess of $500,000.

New York Public Employee Unions Skip Usual Ad Blitz - NYTimes.com

Second Special Voluntary Disclosure Initiative Opens; Those Hiding Assets Offshore Face Aug. 31 deadline

The first program like this was sold to be a taxpayer's only opportunity to come in from the cold and disclose offshore assets and income and face lesser penalties and interest. The IRS provides support for "just give me one more chance" with a second voluntary disclosure initiative for unreported off shore assets and income.

The new program allows taxpayers to make disclosure of unreported income. Penalty reduction is available under the program provided taxpayers meet the August 31, 2011 filing deadline.

Second Special Voluntary Disclosure Initiative Opens; Those Hiding Assets Offshore Face Aug. 31 deadline

Punxsutawney Phil predicts early spring...and a late tax season?

"Groundhog Punxsutawney Phil emerged from his hovel Wednesday and saw his shadow, which -- according to tradition -- means that spring will come early this year." (CNN reports).  However, Phil doesn't know anything about taxes or tax season.

Spring may be early, but tax season looks like it might be late.  While TeamDKB is off to a great start to the 2011 busy season, there are many external factors that may mean a late tax season.

First, the April 15, 2011 due date has been extended to April 18, 2011 due to April 15 falling on a Saturday and Monday holiday.  We try to complete client work well in advance of the extended due date.  However, we will always have clients who "use the extra few days".  I would encourage you to assemble your tax data early to make sure you enjoy a beautiful spring weekend starting on April 15.

The IRS has delayed final release of a variety of tax forms.  Much of this delay was caused by Congress's late action on 2010 tax legislation.  Final action on 2010 legislation was not completed until December 17, 2010.  This has caused delays in electronic filing submissions due to IRS system modification requirements.  We have completed many 2010 tax returns and are not able to file them for clients because the IRS is not ready to accept them.

The IRS has granted 1099 filing extensions to many banks and brokerage firms.  Typically, 1099's are due to recipients by January 31.  Extensions have been granted so banks and brokerage firms can properly complete the forms.  Past tax seasons have been marked with amended form 1099's due to the updates of data supplied to these firms that was not available prior to the January 31 due date.  This IRS has agreed with these firms that "getting it right the first time" is better than "I'll fix it later".  Extended due dates vary from February 15th to 28th.

Even with these delays we are working hard to have an early Spring...just like Phil.