Get Started

Press Releases

image_pdfimage_print

IRS Budget Cuts Devastate the Service

By Watson CPA Group (Google+) Posted September 13, 2014   Has anybody else noticed that the hold time when calling the IRS has gotten worse? Thank goodness we all have wireless headsets so we can run errands, cruise the cubes, run a marathon (with that pumpin’ IRS hold music), etc. Who knew that was even…

EFile Signatures Via Website

By Jason Watson (Google+)   Here at the Watson CPA group, we try to stay up to date on ways to use technology to better serve our clients. Client portals, online submit forms, blah blah blah.   As nice as it can be to get real-life paper mail, something makes me think that the IRS…

What Is Your Chance Of Being Audited?

­­­­­­­­­­­­­­­­ By Jason Watson (Google+)   Current Audit Rate Statistics Yearly, the IRS publishes their statistics, determining who they may audit. This chart provides the last three years of published statistics and trends since 2008:   Individual Audit Rate Statistics   Fiscal Year Year 2012 2011 2010 2008   All Individual Tax Returns 1.03% 1.11%…

Tax Breaks for Caregivers

By Jason Watson (Google+)   You might be able to claim tax breaks for taking care of someone else. To qualify, you must be able to claim the person as a dependent. So, you need to provide over half the person’s support which includes expenses for medical treatment, food, housing and transportation, and they must…

Same-Sex Couples Might Need to File Refund Claim

By Jason Watson (Google+)   Recently the United States Supreme Court announced it was scheduling hearings for a case brought against the Defense of Marriage Act (DOMA). Same-sex couples could be entitled to several tax credits and refunds starting with tax returns filed in 2009, but hurry ‘cause time is running out.   The 1996…

Federal Government Freezes Travel Reimbursements for 2013

By Jason Watson (Google+)   Recently the U.S. Government Services Administration (GSA) announces that per diem rates and allowances will remain at 2012 levels. This is the first year in over a decade that the rates have not been increased.   Being reimbursed for travel expenses through per diem allowances alleviates a lot of the…

Canceled Debt That You Dispute May Be Non-Taxable

By Jason Watson (Google+)   In a recent Tax Court Summary Opinion 2012-122, the Court allowed the IRS to consider debt cancellation as income. The taxpayers argued that the canceled debt was a part of an agreement with the credit company to cancel a portion of the debt because of misleading financial arrangements.   In…

Tax Court Reminds That Turbo Tax Is Not a Defense

By Jason Watson (Google+)   In Tax Court Memo 2012-341, a taxpayer erroneously took the First Time Home Buyer Credit using TurboTax. The IRS audited them and discovered that they had an interest in a property within 36 months and denied the credit. In addition, the IRS tacked on an accuracy-related penalty. Bummer.   Accuracy-related…

Side Jobs Cannot Create Tax Deductions

By Jason Watson (Google+)   A taxpayer in Tax Court Summary Opinion 2012-125 was a full-time employee of a pest control company. On the side, he also provided consulting services to one client. In tax years 2008 and 2009, he reported over $80,000 in expenses on his tax returns (Schedule C) while only showing business…

Tax Court Reminds an Employee That Commuting Expenses Are Not Deductible

By Jason Watson (Google+)   A taxpayer worked three jobs and attempted to deduct the Federal per diem allowance and mileage for the days he was away from home. Generally a person’s tax home is determined by the regular or main location of the taxpayer’s place of business.   According to court documents, the IRS…