Unfortunately, we are all too familiar with the sales tax audits – or in Arizona, transaction privilege tax audits. The regulatory agency in question usually has an onerous list of records that they want to peruse, frequently covering a five … read more
As the world continuously moves toward digital bill paying, statement delivery, and record retention, why do we still have so much paper? No matter how much of your financial life you move online, there are still some documents you’ll need … read more
I recently read a scary headline to an article. It was something along the lines of “tax penalties do not correlate to income levels”. This intrigued me, so of course, I dug a little deeper. The article was referring to … read more
IRS has issued its annual data book (http://www.irs.gov/pub/irs-soi/12databk.pdf), which provides statistical data on its fiscal year (FY) 2012 activities. The data book provides valuable information about how many tax returns IRS examines (audits) and what categories of returns IRS is … read more
Did you know that only a small percentage of all the individual tax returns filed each year will be audited? The selection process is done mostly by a computer model setup by the Internal Revenue Service. This model was designed … read more
Is there an old tax return that may need to be amended? Usually the approach to this topic is out of sight, out of mind. But before that old tax return is completely forgotten, you may want to consider the … read more
Have you received correspondence from the IRS auditing your Schedule A? The audit can be narrow, i.e. limited to charitable only, or broad, i.e. all deductions claimed on Schedule A. Following are some tips to assist you. Quick books and … read more
During a past tax season, I reviewed a return for an executive who wanted to take a non-cash charitable deduction for his business suits. Since it was years ago, I do not recall the amount he valued the suits at, … read more
The penalties under OVDI are higher than the original disclosure initiative announced in 2009. The 25% penalty can be mitigated under certain circumstances. It is reduced to 12.5% if the taxpayer’s highest aggregate account balance or assets was less than … read more
Charitable contributions can yield great tax benefits, but taxpayers need to have the proper documentation for them to have the deductions hold up in the face of an audit. Cash contributions are relatively simple to substantiate. The taxpayer just needs … read more
There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.
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