CPAdirectory - Find a CPA in Our Directory of Certified Public Accountants

Calculators

Retirement+Estate

House Issues

Tax Tips

Federal Taxes

• Search CPAdirectory.com

Advanced Search

Download IRS Forms

• Internal Revenue Service

• TaxTimes

IRS Problem Solver Sites

• American Society of IRS Problem Solvers

• American Tax Deal Negotiators

IRS Watchdog Links

• A Vision for a New IRS

National Commission on Restructuring the Internal Revenue Service. Congress created the Commission to make positive improvements in our nation's tax collection system. Their job is to recommend policy designed to move the Internal Revenue Service into the 21st century.

• Americans for Tax Reform

• Taxpayer Advocacy Panel

• Citizens for Tax Justice

• SuperCitizen.com

Top Errors for Paid Preparers

According to the IRS News for Tax Professionals bulletin on April 25th. Top errors for paid preparers on paper return submissions this filing season relate to SSN's or Individual Taxpayer Identification Numbers and to names. Names and numbers for taxpayers and for dependents are illegible, incorrect or do not match IRS or SSA records. Visit the following web site for more information about this article.
Internal Revenue Service

Third-Party Can Now Resolve Certain Tax Issues with IRS

Beginning with the 2001 Filing Season, paid preparers, with their clients' permission can work with the Internal Revenue Service to resolve processed tax issues.

Currently, Attorneys, CPAS, Enrolled Agents and other paid preparers need a Power of Attorney to talk with the IRS. Next tax season a taxpayer will be able to identify in a checkbox on Form 1040 returns the individual paid preparer who can serve as the designee to resolve tax processing related problems.

The taxpayer's designee will only be allowed to resolve and work with the IRS on certain matters. The taxpayer will need to sign a Power of Attorney for examinations, under-reported income, tax appeals, and collection notices.

Visit the following web site for more information about this article.
Internal Revenue Service

Another Look at Penalties
Brian G. Toennis, CPA

One of the Internal Revenue Service's greatest weapons in its efforts to force taxpayer compliance is the ability to impose penalties. This article will highlight some of the more common ones.

Underpayment of Estimated Tax by Individuals: The IRS requires taxpayers to pay their tax throughout the year as they earn their income. Individuals make payments via payroll withholdings, estimated tax payments, or credits earned throughout the year. This penalty can be avoided by paying in an amount equal to or greater that the taxpayer's prior year tax. The underpayment of estimated tax penalty rates vary from quarter to quarter. They are currently in the range of eight to nine percent of the amount underpaid.

Underpayment of Estimated Tax by Corporations: An interest-like penalty is charged to corporations that fail to pay adequate estimated tax throughout the year.
more...

FUTA (EMPLOYER PAID)

Maximum Taxable Earnings: $7,000

• Percent of Taxable Wages: 6.2%
• Maximum Credit: 5.4%
• Normal Net Tax: 0.8%

2000 Payroll

Federal Government Wage and Tax Bulletin

• Maximum Deduction: No Limit
• Self-Employment Tax: 2.9%
• WAGE INFORMATION
Minimum Wage: $5.15/hr
• Minimum Cash Wage: $2.13/hr
Note: Tipped employees
• Maximum Tip Credit:$3.02/hr
• Youth Subminimum Wage: $4.25/hr
• FICA/SOCIAL SECURITY
Maximum Taxable Earnings: $72,200 Note: Up from $72,000 in 1999 in 2001=$80.400.00
• EE/ER Deduction: 6.2%
• Maximum Deduction: $4724.00
Note: Up from $4501.20 in 1999
• Self-Employment Tax Rate: 12.4%
• FICA/MEDICARE
Maximum Taxable Earnings: No Limit
• EE/ER Deduction: 1.45%