Tax numbers Feed

Sometimes justice does prevail. Last week it arrived along with a dose of schadenfreude from all us who've paid, albeit usually grudgingly, our taxes over the years. On Friday, June 21, Virginia tax attorney-turned-lobbyist James F. Miller pleaded guilty to willfully filing a false tax return. And Miller wasn't just any National Capital area tax attorney. He was former employee of the Department of Justice' Tax Division. Again, schadenfreude. Six-digit tax bill on under-reported millions: The amount of money involved in Miller's case also is impressive. Miller, 67, under reported his gross income on his 2010 through 2014 tax returns... Read more →


The Internal Revenue Service wants the money you owe. It prefers you pay your taxes on time and in the conventional manner. But Uncle Sam's tax collector is not averse to working with delinquent taxpayers so that it can get the due taxes without an undue hardship on the debtors, such as via an installment payment plan. There are, however, limits as shown in two recent U.S. Tax Court cases. Within weeks of each other, two companies on opposite sides of the country, found their efforts to pay their very large tax bills over time overruled for basically the same... Read more →


James Holzhauer's epic winning run on Jeopardy finally came to an end, leaving him with winnings of almost $2.5 million. The take fell just short of the television game show's record winnings, but neither Holzhauer nor the tax collectors who'll get a nice chunk of the cash are complaining. James Holzhauer finally learned you can't win 'em all. It's been a good week for gamblers. For tax collectors, too. A 66-year-old North Carolina retiree came forward to claim the $344.6 million Powerball drawing, which he won thanks to numbers from a fortune cookie. A yet-to-be-announced lottery player in San Diego,... Read more →


The Internal Revenue Service did do away with two versions of Form 1040 and shortened, a bit, the lone document we now use to file our annual tax returns. But the tax agency went the other way with Form W-4. This form, officially titled Employee's Withholding Allowance Certificate. is what we give to our bosses to ensure that the correct amount of income taxes come out of our paychecks each pay period. Now instead of a brief, 10-item form, the IRS' W-4 proposed revision takes up a full letter-sized page. And while there are just seven boxes to fill out,... Read more →


Donald J. Trump is golfing this Memorial Day weekend, this time with Japanese Prime Minister Shinzō Abe during Trump's visit to that nation. (Photo courtesy Japan Prime Minister Instagram account) Memorial Day weekend obviously is about honoring the men and women who died in service to our country. But it's also a major recreational weekend. Folks will be taking time to spend with family and friends and, in many cases, enjoying their favorite avocations. For some, that's a round of golf, not to mention a few rounds at the 19th hole. Trump's links love: Golf gets a lot of attention... Read more →


A big part of companies' federal tax responsibilities is paying employment taxes for their workers. These are the Social Security, Medicare and unemployment taxes on those employees' wages. However, when it comes to workers who are hired as contractors, it's the worker who's totally responsible for these taxes, in addition income tax withholding via estimated tax payments. That's why, when appropriate and fiscally feasible, many firms try to hire independent contractors. Sometimes, though, the line between employees and contractor is fine. It's facts and circumstances in each case when deciding how to classify a worker. And if the Internal Revenue... Read more →


Mom's obviously enjoying the Mother's Day gifts from her children. (Photo by Loren Kerns via Flickr CC) Anna Jarvis organized the first Mother's Day observances in Grafton, West Virginia, and Philadelphia, Pennsylvania, on May 10, 1908. As the annual celebration became popular around the country, Jarvis became the driving force behind a special day to honor moms and asked members of Congress to make it official nationwide. She succeeded in 1914. That year, Congress designated the second Sunday in May as the official celebration of Mother's Day. President Woodrow Wilson's proclamation declaring May 9, 1914, the first national Mother's Day.... Read more →


Today is the start of the annual Small Business Week. And yes, you can combine it with Cinco de Mayo and raise a margarita to your favorite entrepreneur. These 30 million or so smaller companies are hailed as America's backbone. Approximately 10 million are women-owned, 29 percent are minority-owned and nearly 10 percent are veteran-owned. Running a small business has never been easy. In fact, their size tends to put more pressure on such operations. Profit margins are thin. The ability to offer benefits to workers is stretched. And small companies tend to be more at the mercy of the... Read more →


It was a gorgeous sunset at this Astros game at Minute Maid Park, but the Houston MLB franchise and other professional sports teams are looking at a recent IRS ruling that provides them a bright new dawn for favorable tax treatment of player trades. (Photo by Kay Bell) It's a busy time for professional sports fans. National Basketball Association (NBA) and National Hockey League (NHL) playoffs are in full swing. Major League Baseball's (MLB) early season is already full of surprises. Just what is wrong with the World Series champion Red Sox and Chris Sale? The National Football League (NFL)... Read more →


Multiply this computer trouble by 150 million taxpayers and you'll get an idea of the scope of the IRS' new plan to upgrade its technology systems. The Internal Revenue Service made it relatively unscathed through the 2019 main tax filing season. That's pretty amazing when you consider the agency: had sworn in a new commissioner just a few months earlier, had to tailor the season's opening around the longest-ever federal government shutdown, was still working on implementation of and guidance for the first major tax reform bill in more than 30 years and did it all using antiquated computer systems.... Read more →


Photo by Coolcaesar via Wikipedia Commons Two American institutions that regularly catch a lot of flak find that they are good partners each April. I'm talking, of course, about the Internal Revenue Service and U.S. Postal Service. True, software-assisted return prep and e-filing by individual taxpayers or the tax preparers they hire now is the dominant way we get our 1040s to the IRS every year. Most of the 50 million yet-to-file taxpayers, who are this week's By the Numbers honorees, will use these electronic methods by the end of tomorrow. But until Uncle Sam forces all of us to... Read more →


The larger standard deduction amounts created by the Tax Cuts and Jobs Act (TCJA) mean that fewer filers claim itemized expenses. That also could be trouble for those of us who still will file a Schedule A. With fewer itemized expenses to review, the Internal Revenue Service theoretically could have more time to spend looking at everything we write off on this Form 1040 attachment. And excessive deductions are one of the common tax audit triggers. One of those deduction amounts, the one for state and local taxes, is changing, thanks to the new tax law. Some taxpayers and their... Read more →


John Lithgow in Daddy's Home2 via Tenor We've been hearing all filing season about how ticked off lots of folks are about the size of their tax refunds. Last week, one Indiana woman was especially upset, but not over the refund amount. She was royally ticked that the tax check hadn't yet arrived, so much so that the wait allegedly drove her to violence. Unwelcome wait reaction: The apparently tardy refund actually was intended for Claudia Pedroza's ex-boyfriend, who's also the father of the couple's three children. He had filed his return, claiming the youngsters as dependents, and Pedroza reportedly... Read more →


Unfortunately for taxpayers and the Internal Revenue Service, there's nothing new under the sun when it comes to tax scams. Fortunately for taxpayers and the IRS, the tax agency and its Security Summit partners are still on top of the most common scams that continue to pop up in some form year-round. These 12 schemes, which have been dubbed the Dirty Dozen tax scams, get added attention, of course, during the main tax filing season. During these hectic days from Jan. 1 — yes, some folks are ready to file that soon — through April 15, millions of us are... Read more →


Photo by GotCredit via Flickr CC Most of the focus on tax refunds this year has been on how many people are unpleasantly surprised by how small they are. In many (probably most) cases, the relatively small refunds are because people didn't adjust their payroll withholding last year to account for the Tax Cuts and Jobs Act (TCJA) changes to income tax rates and earnings brackets. Now we have another refund situation that also can be blamed on filers, or actually on nonfilers. Yes, I'm talking about the annual announcement by the Internal Revenue Service that millions of folks who... Read more →


Happy St. Patrick's Day! March 17 is one the top days for beer drinkers, ranking up there with New Year's Eve and Mardi Gras celebrations. Guinness says 13 million pints of its stout will be consumed worldwide today in celebration of the Emerald Isle's patron saint. The average number of drinks is just more than 4 per person. The folks making all the Erin go Bragh toasts and the establishments selling the drinks aren't the only ones celebrating St. Patrick's Day. Here in the United States, all that beer, green or otherwise, and other alcoholic beverages are taxed. Sales tax... Read more →


Lee County, Alabama, March 3 tornado damage. (Photo: Nicholas Baretto via Twitter) As expected, once the White House declared parts of Alabama a major disaster area, the Internal Revenue Service followed up by offering affected residents a variety of tax relief. Victims of the deadly tornadoes and severe storms that raked areas of the Yellowhammer State now have until July 31 to file some individual and business tax returns and make certain tax payments. "With the regular deadline just a few weeks away, we want storm victims to focus on their families and recovering, rather than worrying about the tax... Read more →


It's taken a few weeks, four to be exact, but the 2019 tax season is finally catching up. The latest Internal Revenue Service filing season statistics show that while most categories that the agency tracks each filing season are still lagging 2018 figures, the differences are starting to shrink. And there's even better news for folks who are getting refunds. The average check amounts issued through Feb. 22 are dramatically larger than the week before. More notable, those average refund amounts have finally topped the averages of year ago. Unpleasant tax refund surprises: In case you haven't been following the... Read more →


Some worry that smaller refunds will be a drag on our consumer-driven economy. There's a smidgen of good data news for the Internal Revenue Service. One category the tax agency tracks each filing season has moved into positive territory for 2019. For the week ending Feb. 15, the number of returns that were prepared and submitted directly by taxpayers hit 21.77 million. That was 18,000 more than the third week of the 2018 filing season, or a 0.1 percent increase from last year. Yay all y'all folks who plugged in your tax data on your own and hit send. Unfortunately,... Read more →


NASCAR's 2019 season started today with the auto racing series' biggest event, the Daytona 500. Congratulations to Denny Hamlin and Joe Gibbs Racing for taking the checkered flag in the Great American Race. Things aren't so clear-cut, though for the expired tax break for motorsports speedway improvements and more than two dozen other assorted tax benefits. These tax breaks expired in 2017 and are not on track for reinstatement. Yet. In fact, they're looking as messy as today's closing laps pile-up. Extenders indecision: These assorted tax breaks are known collectively as the extenders. They get that name because they are... Read more →