Greater Phoenix's Networking Events Calendar

A taxpayer recently had over $9,900 of charitable contributions disallowed by the tax court.  Yes, the IRS and tax court takes receipts very seriously!

Joyce Ann Linzy, a self-employed tax preparer was recently taken into tax court after she was audited and the IRS disallowed deductions resulting in an IRS assessed deficiency of nearly 16,000 for the 2007 tax year.  The taxpayer had several problems with the return, and was able to get a few expenses allowed, but failed miserably in the realm of Charitable Contributions.

Today the Treasury Inspector General for Tax Administration released statistics concerning refunds for taxpayers during the recently ended 2010 income tax filing season.  The IRS received and processed 130.7 million income tax returns, 51.3% of which were e-filed by paid preparers (more paper filed returns may also have been prepared by paid preparers).

TIGTA notes that 98.2 million returns noted a refund, which averaged $2,822 of a refund.  This works out to $235 per month.

Many times when a business is starting, you have a partner who contributes cash and another who contributes "sweat equity."  Today the tax court released a memorandum decision that reminds us "you can't get something for nothing."

According to newly released information from the Congressional Budget Office, the middle class continues to be squeezed as the wealthy accumulate a larger share of annual income.

The government report, ordered by Congress, notes that the top 1% of earners realize 17% of nationwide after-tax income.  This is an increase from 8% in 1979.  Additionally, the top 5% of earners now realize 53% of nationwide after-tax income.  That means that 5% of earners generate more income than the lower 95% combined.

Lets hope we all can make it into the top 5% of earners some day ...

The median income for a US household is about $50,000.  I ran this figure for single, married, and married with 2 children.

Under Cain's plan (which has many details that have not been released), the household's tax would be $4,500.

Single folks making 50k would receive a tax break.  Under today's law, a single person taking the standard deduction would have tax of $6,256.  Cain's plan would reduce taxes by $1,756.

Unfortunately, this is where the good news stops.

Wow ... where have I been?  Mired in piles of work that’s where!  Time to get back to reality, and get some good valuable information out to the fine folks at networkingphoenix.com!

Although the computer age and modern telecommunications have reduced the need for in-person contact, it is still sometimes necessary for businesses to send employees out of town on business, or to entertain clients and customers. How travel and entertainment expenses are handled can have an impact on your net income, your paperwork burden, and on the tax results for you and your employees.

It's not the most fun topic, but I wrote this for a client who is a family law attorney, and figured I'd share it with you all as well!

When in a divorce, it is very important to plan the transfer of property between spouses very carefully.  In most cases, no taxable income is recognized on the transfer of property such as stocks and real estate between spouses.  Unfortunately, taxable consequences can be quite severe  post-divorce if tax considerations are ignored. 

The IRS announced in Notice 2011-20 changes to its lien filing process.  Taxpayers who have had an IRS lien placed on their assets can now have that lien withdrawn if they owe less than $25,000 and enter into a direct debit installment agreement.  Additionally, the IRS raised the thresholds for lien filings, though the threshold amount is kept quiet.