Wednesday, April 30, 2008

Social Security tutorial
Social Security’s new online tutorial provides an introduction to Business Services Online. BSO offers step-by-step instructions for 10 business services available online, including:
▸ Filing Forms W-2 and W-2c online
▸ Access to Social Security Numbers Verification Service for wage reporting purposes
▸ Information for reviewing and correcting submissions and reports

Sunday, April 27, 2008

Crazy new IRS disclosure regulations
Here is an example:
When George Green prepares a client's return, he routinely checks to see if the client is eligible to make a contribution to an individual retirement account (IRA). If the client is eligible, Green asks if the client wants to make an IRA contribution. He does not ask about IRAs if a client not eligible to make a contribution. Green is "using" tax return information when he asks whether a client is interested in making an IRA contribution because Green bases the inquiry on knowledge gained from information that the client furnished in connection with preparation of the client's return.

For further information, click on the following links:

Tuesday, April 15, 2008

U.S. Tax System Overview

Here is a report issued by the Congressional Joint Committee on Taxation on the Tax System in the United States:

IRS Statistics
Here is a summary from the San Jose Mercury News on April 15, 2008:
Total number of tax returns expected to be filed by midnight tonight: 126 million

Paper returns expected: 44.9 million

E-files expected: 81.2 million

Extensions expected: 10.3 million

Extensions expected to be e-filed: 2 million

Total number of tax returns expected to be filed in the final week: 23.4 million

Paper returns expected: 14.8 million

E-files expected: 8.6 million

Californians expected to file extensions: 1.6 million

Californians expected to e-file extensions: 411,000

Average tax refund as of April 4: $2,436, up slightly from last year's $2,366

Source: Internal Revenue Service

For further information, visit,,id=102886,00.html.

Saturday, April 12, 2008

Paying taxes electronically

I like electronic fund transfers and paying taxes is no exception. In my opinion, it is so much easier and safer than mailing checks. Paying taxes electronically will never have your checks fallen into the wrong hands, or keypunching errors at the IRS. And even if you mail the payment certified with return receipt, all you can proof is that you mailed something to the IRS.

If you e-file your tax return, you can set up direct withdrawal at the same time. And even if you paper file your tax return or if you have already e-filed your tax returns without selecting electronic payment options, you can still do so by going to for the IRS and for the state of California.

With direct withdrawals, you can arrange to have the taxes paid on the due date and not a day earlier. Your bank statement will clearly show the amount was paid to the IRS or Franchise Tax Board for tracking purposes.