The tax agency in Travis County, Texas, has kept millions of dollars that taxpayers overpaid and should have returned, according to a published report.
Over the past three years, a variety of people and agencies from homeowners to developers have overpaid about $21 million in property taxes. The county tax office is supposed to make sure that property owners get the money back, but Travis County officials have not been diligent in making sure that happens, according to the report.
Beginning in July, tax agencies in Texas will begin to collect tax revenues on sales made by the online retailer Amazon.com, meaning the tax will be passed on to Texans who order books and other merchandise on the company's website. Texas-based online retailers should be prepared to face tax bills from the state if they have not been collecting sales taxes.
The agreement ends a two-year battle between the state and Amazon over the issue. Amazon, which reported $48.1 billion in sales in 2011, traditionally has been opposed to collecting sales taxes from its customers. Texas officials, who want the revenue, and store owners, who said they can't compete with online retailers who do not assess a sales tax, want the taxes collected.
A change made by the Internal Revenue Service will alter the way the tax agency requires a reporting of interest payments, which could affect the depositors of Texas banks.
Under the rule, which takes effect on Jan. 1, 2013, the IRS will mandate that interest paid to depositors who do not live in Texas be reported to the agency. Industry analysts said the change could mean that non-residents who have their money in banks in U.S. border states could pull their funds out of the institutions. Could this be a case of the IRS not being aware of the unintended consequences of its decisions?
The power of the IRS may one day extend to Americans' summer vacations. Congress is pondering a proposal that, if approved, would keep Americans from getting a passport or revoking current passports if they owe $50,000 or more in back taxes. With the federal government desperate for revenue, members of Congress are looking for any possible money that may be owed.
Sen. Harry Reid, the Senate majority leader, initially proposed the measure, but it has been incorporated into a broader bill to provide funding for federal highways and highway safety programs. It already has passed the Senate and is awaiting approval from the House of Representatives.
Some residents of Dallas and all across the country might not have to pay taxes, interest and penalties if the Internal Revenue Service finds the return to be fraudulent. It's important that people who are conned by others not go through the grueling process of having the IRS audit their finances.
Some people might be eligible for tax relief by using the IRS' innocent spouse relief rule. Under that regulation, according to IRS policy, the agency might not find a co-signer on a joint tax return liable if the spouse can prove he or she was unaware or didn't have a reason to challenge the veracity of a tax return.
Texas residents and Americans across the country are always looking for financial breaks. However, what if a financial break meant thousands of dollars in tax liability? This is exactly what happened to one woman who is now struggling to pay off her tax obligations, which resulted from a release of student debt.
This story began when $91,000 of a woman's student loan balance was discharged due to her total disability. However, while this financial release seemed like a dream come true, the story quickly evolved into a tax nightmare.
Continue reading Release of debt for a disability can lead to taxable income
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When the Internal Revenue Service employees review tax returns from Dallas and around the nation, there are some sure signs they look for that will trigger an audit. To make sure the IRS doesn't clamp down on your return, experts recommend following these steps to try to audit-proof your return.
Millionaires in Texas and throughout the United States should be on alert for the IRS to come calling. The federal tax agency is reaching auditing these wealthy individuals more than ever.
Data recently released by the IRS showed that millionaires last year were audited almost twice as much as they were in 2010. In all, the IRS audited 1.1 percent of taxpayers in 2011, about the same rate as the year before. For taxpayers who earned between $1 million and $5 million, the number rose from 7 percent to 12 percent.
The Internal Revenue Service is making it easier for some taxpayers who can't pay their taxes in full to do so over time, without the fear of accruing substantial penalties and interest.
Additionally, the IRS has announced that it will give taxpayers who were out of work for a long period in 2010 a six-month grace period from penalties for failing to pay. Those who are self-employed and earned sharply less than the year before because of the woes of the national economy also can have the six-month grace period. In both instances, taxpayers must meet conditions related to things such as maximum income or maximum taxes due.
Continue reading IRS offers ways to cut down on penalties for unpaid taxes
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The Internal Revenue Service is watching tax returns closely, using improved computer systems to detect any potentially inaccurate returns. But for Texas taxpayers who have doubt as to liability, producing good records and calling on professionals if help is needed can produce a good result to any audit.
The IRS typically will send a letter first seeking more information if officials have spotted an abnormality from previous years. Then, taxpayers can review their returns to see if they contain any of the following nine warning signs that can trigger an audit.
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10440 N. Central Expressway
Suite 1040
Dallas, TX 75231
P: 972-591-0134
T: 866-721-8711
F: 214-706-0861
Map and Directions
10440 N. Central Expressway
Suite 1040
Dallas, TX 75231
P: 972-591-0134
T: 866-721-8711
F: 214-706-0861
Map and Directions
