Tax Tips for Year-End Giving

Charity - canstockphoto16357066Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years.

Some of these changes include the following:

Special Tax-Free Charitable Distributions for Certain IRA Owners

This provision, currently scheduled to expire at the end of 2013, offers older owners of individual retirement arrangements (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. [Read more…]

Medical & Dental Expenses – 8 Things to Know

If you, your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return.  Here are eight things the IRS wants you to know about medical and dental expenses and other benefits. [Read more…]

12 Red Flags to Trigger an IRS Audit

Why is it that some people get audited while others do not?  Is there a little man in a room just randomly pulling out returns to target?   Actually the IRS computers are responsible for catching most discrepancies that flag your account for further inquiry.  Usually a notice is generated, and the ball is in your court to address the issue.

The IRS actually only audits a little over 1% of all the individual tax returns each year.  With those odds, your chances of getting audited are quite low.  Math errors may get you an IRS inquiry, but not likely a full-blown audit.  So how do you avoid an IRS audit?  Well there’s no sure fire way to avoid an audit, but there are certain things that can attract attention from the IRS.  Here’s a list of twelve areas that could wave little red flags and target you for an audit. [Read more…]

Record Keeping

Do you know how long to keep certain tax records? Here’s a tip from the IRS on good record keeping:

If you have any questions regarding record keeping, please call our office at 770-478-7424.