Taxes

Tax fraud

It’s income tax day and if you’ve left your electronic filing until today, you could be in for a rude awakening. Not your tax bill, but the fact that someone might have already claimed your refund. Identity thieves are still plaguing the tax system and if you think you’re not at risk, think again.

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For most Americans, the tax increases passed in January 2013 look like ancient history. But for the wealthy, the bill for those changes is now coming due. The euphemistically named American Taxpayer Relief Act brought the top tax rate to 39.6 percent from 26 percent in 2012. (Whether you call this “reverting” or “raising” depends …

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There’s one week to go before your federal taxes are due. Now, if you haven’t done you 1040s yet, there’s still some time and if you’re a last-minute filer, Sharon Epperson has some money-saving advice on getting the most out of your return.

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If you’re a New York multimillionaire, you now have another incentive to stay alive. A change this month in New York’s estate tax, which was billed as tax relief for the wealthy, contains a hidden wrinkle that could leave some multimillionaires with a much bigger surprise tax upon their death. Certain estates could even wind …

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With time running out to file your 2013 tax return, you want to make sure you’re on top of the available deductions to maximize your tax savings. Taxpayers may be aware of numerous tax breaks, but depending on your income, many deductions may no longer be as valuable—or you may be ineligible entirely. Due to …

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Almost 4 million taxpayers are expected to get hit with the Alternative Minimum Tax—the dreaded AMT—on their 2013 tax return. They’ll face a tab of $6,600 on average, according to the Tax Policy Center. Many taxpayers don’t realize that we have a two-tax system in this country—with the regular tax and the AMT—and that taxpayers …

Senators question Caterpillar tax strategy

Caterpillar avoided paying more than $2 billion in U.S. taxes since 2000. That’s according to a congressional report that says the manufacturing company used an aggressive tax strategy to shift profits overseas. A hearing will be held on the issue tomorrow.

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Small-business owners who didn’t bother taking full advantage of tax deductions and credits in the past—because they knew they would have to pay the Alternative Minimum Tax—should take a closer look at what’s available to them now. While the rules for calculating the AMT didn’t change much last year, the increase in the top marginal …

Tax scam

An important warning to taxpayers from the IRS about a sophisticated telephone fraud the agency is calling the biggest scam of its kind ever. Callers claim to be with the IRS targeting tax filers, demanding immediate payment for overdue taxes. And a lot of people are falling for it. http://nbr.com/wp-admin/post-new.php#edit_timestamp

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It’s bad enough that you might get stuck paying the alternative minimum tax (AMT). That it takes a tedious calculation to know for sure is salt in the wound. Indeed, IRS Form 6251, which is used to calculate taxable income under the AMT, requires 60 lines of mind-numbing computation using a different set of tax …

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Identity thieves are stealing billions of dollars a year through fraudulent tax refunds—and the IRS isn’t the only target. The 43 states that collect an income tax are also being flooded with these bogus returns. How serious is the problem? A report from the Treasury inspector general for tax administration estimated that fraudulent tax refunds resulting from …

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Some wealthy and low-income married couples are losing out at tax time, but experts say eliminating the so-called marriage penalty is more complicated than you might think. “It’s just impossible to get rid of it with the tax system that we’ve got,” said Roberton Williams, senior fellow at the Tax Policy Center think tank. That’s …

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Doing your tax return by yourself—even if you use tax preparation software—can still be a challenge. We all know the tax code is complex and constantly changing. And that creates a great deal of anxiety and apprehension for some filers. “They know they don’t understand it and they’re not sure they can handle it,” said …

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When it comes to tax refunds, many Americans say they plan to do something virtuous with the money they get back from Uncle Sam, like pay down debt or put it in the rainy day fund. We’re not completely fooling ourselves: Experts say people who plan to save their refund or use it to pay …

GOP tax reform

House Republicans are preparing to unveil a new plan to simplify the nation’s tax code.