Tag Archives: Tax preparation

IRS clamps down on wealthy scofflaws

Millionaires cough up half a billion in overdue taxes as IRS clamps down on wealthy scofflaws

Move over, Robin Hood – the real tax redistributors in town are wearing badges, not tights. The IRS announced today that it’s clawed back a whopping $520 million from millionaires who were shortchanging Uncle Sam. That’s right, folks, 1,600 members of the one-percent club finally settled their tab, proving that even seven-figure salaries can’t buy immunity from the taxman’s gaze. Read more about how the IRS clamps down on wealthy scofflaws.

IRS clamps down on wealthy scofflaws

Newfound Muscle

This windfall comes after the 2022 upgrade to the IRS’s enforcement arsenal. Flush with new funding and a mandate to crack down on high-income scofflaws, the agency has been diligently combing through the tax returns of the 1%, separating the honest (or at least, very good at hiding) from the Houdinis of the tax code.

Tax Evasion

This crackdown extends beyond just individuals, too. The IRS is also setting its sights on complex partnerships and large corporations that have mastered the art of turning tax codes into Swiss cheese. Think loopholes so big a T-Rex could waltz through them. But even these financial contortionists are finding it harder to escape the taxman’s gaze.


Well, hopefully it means a fairer playing field. Knowing that the fat cats are paying their share might ease the sting of your own tax bill. And who knows, maybe one day, with a well-funded and effective IRS, we’ll all be able to afford that private jet (or at least a decent vacation). Until then, let’s raise a glass (of something affordable) to the IRS, the unlikely Robin Hoods in suits and ties.

IRS Tells Millions of Americans to Put Off Filing Taxes

Millions of Americans are awaiting word from the Internal Revenue Service (IRS): They can now put off filing taxes until mid-May.

With millions of Americans unable to file their taxes due to the Covid-19 pandemic, the Internal Revenue Service (IRS) has announced that taxpayers can now hold off on filing until mid-May. The decision gives taxpayers several extra weeks to get tax documents in order and prepare for what could be a complicated filing process.

IRS Tells Millions of Americans to Put Off Filing Taxes
IRS Tells Millions of Americans to Put Off Filing Taxes

In 2020, due to the Covid-19 pandemic, the IRS extended the tax filing deadline from April 15 to July 15, giving taxpayers extra time to file their taxes without incurring late penalties or interest. The deadline for some tax-related actions, such as making contributions to an IRA, was also extended. These extensions applied to individual taxpayers, regardless of location. It’s always best to check the IRS’s official website for the most up-to-date information regarding tax filing deadlines and related matters.

Here’s a breakdown of what this means for American taxpayers.

The IRS’s decision to delay the tax filing deadline will give taxpayers extra time to gather any missing documents and make sure their taxes are prepared correctly. Additionally, it provides more time for those who are expecting a refund to get their money back in a timely manner. On the other hand, taxpayers who owe money will have additional time before they must submit their tax payment – though interest may still be due on overdue payments.

What It Means for Taxpayers?

For taxpayers who are expecting a refund, the delay may mean extra time to get their money back. But for taxpayers who owe taxes, the delay may mean additional interest on late payments. It is important to note that tax returns that are not submitted by mid-May will incur penalties and fees. Therefore, it is recommended that taxpayers begin gathering any necessary documents as soon as possible in order to submit their taxes before the due date.

When Should You File Your Taxes?

The Internal Revenue Service (IRS) has announced that tax filing deadlines have been extended until May 17, 2023. This delay gives taxpayers an extra month to file their taxes and allows them more time to prepare their documents. It is important for taxpayers to keep track of the filing deadline in order to avoid any penalties or fees associated with late payments. To get started on preparing your taxes, be sure to gather all necessary documents such as W-2 forms and 1099s.

What Types of Tax Returns Are Affected by the Extension?

The tax extension applies to both individual and business taxpayers. This includes individuals filing Form 1040, corporations and S corporations filing Form 1120, partnerships filing Form 1065, and trusts and trusts filing Form 1041. Taxpayers who have filed returns for tax-exempt organizations and those who file employment tax returns are also affected. Taxpayers should be sure to check the IRS website for the latest forms in order to comply with the extended deadlines.

Will Interest and Penalties Still Apply During the Extension Period?

The IRS will continue to charge interest on any unpaid taxes and there may be penalties levied for late filings. However, some taxpayers may qualify for relief from these types of penalties if they have reasonable cause or meet specific hardship criteria. Taxpayers should contact their tax preparer or the IRS directly to discuss what options may be available.

TurboTax Deluxe

Turbotax Deluxe vs Premier

Turbotax Deluxe vs Premier: Turbotax Deluxe is the best option for people who are not self-employed or have rental properties. It’s also a good option if you’re not eligible for the free version.

Turbotax Deluxe vs Premier
Turbotax Deluxe vs Premier

TurboTax Free Edition

Turbotax free edition is designed to allow low income families and individuals with qualifying incomes to file their taxes for free.

The qualifications for the Turbotax free edition are:

  • You must have a qualifying income
  • You must be a U.S. citizen or resident alien
  • You must not be eligible to use the other Turbotax editions

1099 Income

When someone is paid as an independent contractor, they are not considered an employee. This means that they are not entitled to benefits like healthcare or retirement. The person who hires them pays their taxes instead of the government.

This type of income is called 1099 income because the IRS form for it is 1099-MISC and it’s a miscellaneous income. It’s also called contract work, and you can receive this type of payment from any number of sources including clients, customers, or employers.

The 1099 form is used to report all the money received by a business for services rendered in which the client does not withhold taxes from the payer’s wages or other compensation.

TurboTax Premier is the best option if you’re self-employed with 1099 income, have rental property income/expenses, or are eligible for the free version of TurboTax Freedom Edition.

TurboTax Comparison

TurboTax Deluxe is a software that is designed to make filing taxes easier. It includes the most popular tax forms and provides the basic features for simple tax returns. TurboTax Premier, on the other hand, includes all the features of TurboTax Deluxe and also offers more complex features like audit assistance, cost of home ownership and investment income.

Audit Assistance

Audit assistance is a service that helps with the process of auditing. This is usually done by an external professional, but it can also be done by someone inside the company who has been trained to do so. Audit assistance can be provided in many different ways:

  • Internal audit assistance: this is when the company hires someone internally to provide audit assistance. This person would work both on their own as well as in conjunction with other employees to complete audits. They might also be tasked with training new employees on how to do audits.
  • External audit assistance: this is when a company hires an external auditor to help them with their audits and ensure that they are being completed correctly.
  • Audit consulting: this is when a company hires an outside consultant who helps them find solutions for any problems they are having related to their auditing process, such as how often they should be doing them or how best to go about doing them.


TurboTax Premier has a higher price than TurboTax Deluxe because it offers more advanced features which are not necessary for everyone. The Premier version has some additional features and benefits that make it worth the price tag. If you need to deduct investment expenses or get a refund on past-year over-payments, then you should choose this version instead of Deluxe.

Past Year Over-Payments

When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.

Many taxpayers think of past-year over-payments as refunds, but they are not. When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.

TurboTax Deluxe

TurboTax Deluxe Buyers To Get Free Premier Upgrades

TurboTax, a popular tax filing software recently announced that it will offer users free upgrade to the premier version of the software on 7 February, 2015. The catch: only TurboTax Deluxe users will be able to avail it.


A spokeswoman for the company told the press that starting the coming Saturday, users will be able to click on a link in their TurboTax software to upgrade to the home or business version of the Premier version of TurboTax. The announcement has outraged devoted users of the desktop version of the TurboTax Deluxe because, for this season, the Premier version will effectively replace the older tax preparation software after the free upgrade.

TurboTax Deluxe
Photo by State Farm

Users who bought TurboTax Deluxe software this year were angered by the company’s decision to remove capital gain reporting capabilities from the new edition. Self-employed taxpayers, to whom this feature was indispensable, found themselves forced to spend 50% more than the TurboTax on buying the Premier version. TurboTax is an operation of Inuit, a company that specializes in making financial software solutions.

The Deluxe version’s hitherto loyal following protested on Amazon and tax software forums. Meanwhile, TurboTax’s H&R department tried to placate angered users with free updates for their copies of the software.

Inuit’s CEO, Brad Smith has apologized to buyers for not explicitly alerting them of the change beforehand.

The company began damage control by offering $25 refunds to all TurboTax Deluxe customers whose process of filing their 2014 Taxes was hampered by the changes in the Deluxe version of the software.
Next, the company offered free upgrades to the Premier version and has promised to restore the deducted capabilities to TurboTax Deluxe next year.

Buyers of TurboTax Deluxe receive their upgrades starting Saturday.

Taxes Become More of A Networking Opportunity For Small Business

Every year millions of people scramble to do their taxes, and companies have been noticing a swell of people that want to go online to get things done. That’s where companies like Turbotax Online, and others have come together to connect those millions of people that have been using their line of products, with others that are like minded. From gathering in a connection setting like “QuickBooks Connect”, to other meet ups and information that is getting people together, the notion of taxes has never been more social than ever. This is a huge Networking Opportunity For Small Business.


Decades of Connecting Small Business With Tax Help

QuickBooks - Networking Opportunity For Small Business

QuickBooks (Photo credit: Wikipedia)

No matter what the size of your company is, taxes are a big matter. This becomes obvious when you’re pushing forward as an entrepreneur. Entrepreneurs, small businesses, and accountants are not alone, and that’s why more social, networking events are being held. These vents, attract a great deal of people from all sorts of industries, and the main goal is to connect everyone into a far easier tax filing ideology. It’s at these types of events, that all walks of life, backgrounds, industries, and more find news on the latest software releases, and so much more.

The Move To Online

Looking at how taxes have changed in the past 20 years, you will find that there are a variety of different changes that have come through for the better. If you haven’t used Turbotax Online just yet, you will definitely be connecting in the near future. From developers to entrepreneurs, more and more people are using online solutions and learning about the latest tax incentives, laws and more through online means and social events like “QuickBooks Connect”, and it’s going to be a mainstay year to year.

Whether you have been doing things the old way, or you have adopted a new path towards doing your taxes, there’s nothing quite like knowing that technology is right there to help you get the most out of filing quarterly, and even annual returns. As more people get together to discuss changes, and build a broader network of clients, colleagues, and more, you’ll find that greatness abounds.