The IRS assigns the numbers sequentially, but keeps some numbers on ice in case related forms are created later. No, form 1 is no longer in use.
You may know that a 1040 is the form you need to send the Internal Revenue Service every year, but have you ever wondered where its name came from?
MainStreet, which has spent the better part of the past two months reminding you about your W-2s, 1098s, 1099s and the aforementioned 1040, contacted the IRS to find out if there was a method to the numerical madness.
"We pick them sequentially," a spokesperson from the IRS said, explaining that the Forms and Publications division, which is primarily responsible for the naming, will start at a certain number based on what its latest paperwork is designed to do and pick the next numeral available.
Agency pays companies that owe the government millions. Bill seeks to fire federal employees who haven't paid taxes.
Everybody is looking for more tax money to cover ginormous budget gaps. At the federal level, it looks like the search for additional revenue should start at home.
The Treasury Inspector General for Tax Administration, or TIGTA, says existing practices within the IRS let tax agency contractors get paid even though they owed back taxes.
Eleven IRS contractors received more than $356 million in payments from Uncle Sam in 2009 despite owing a combined $3.8 million in back taxes, according to the new TIGTA report bluntly titled Existing Practices Allowed IRS Contractors to Receive Payments While Owing Delinquent Taxes.
Other states also are moving to tax web-based businesses, which is strongly opposed by Amazon.
The law, known as the Mainstreet Fairness Bill, is intended to force online retailers to abide by the same tax standards as brick and mortar businesses. Until now, retailers in Illinois, and in the majority of states, only had to collect sales taxes if they had a physical location in the state, effectively granting e-commerce sites a significant tax loophole.
According to the Illinois Department of Revenue, this law could help the state earn as much as $170 million in previously uncollected sales tax revenue, which should help deal with some of the state’s projected $4.9 billion budget shortfall for the 2012 fiscal year.
Software error leads Ohio to notify 9,700 residents told they'd be getting big refunds. The problem has been fixed.
This article is by The Associated Press.
Ohio's tax department says a promise that it would send a woman a $200 million refund check was a mistake due to a software glitch.
The Sandusky Register reports that Denise Bossetti was among 9,700 taxpayers statewide who received Ohio Department of Taxation notices about mega-refunds. It's not clear if the other amounts were as big as what Bossetti was told to expect.
The woman from Huron, Ohio, was sent a letter dated Jan. 24 saying her $200 million refund could not be paid by direct deposit so she'd be sent a check.
March 15 is the final deadline to use the funds in your flexible spending account. Most over-the-counter items won't qualify.
When 2010 ended, did you leave some money unspent in your medical flexible spending account, usually referred to as an FSA?
Well, you might have a second chance at using that pretax cash. If your company allows you the IRS-approved two and a half month FSA grace period, then you still have time to use up last year's money.
But not much time.
Some states, such as Colorado, don't require much farming to get a tax-saving agricultural exemption.
Want a lower property tax bill in Colorado? Get yourself a couple of sheep. Or grow a little hay.
That's all it takes to earn an agricultural designation by the state. You don't really have to be a farmer or a rancher, just play one and that will get you the much lower property tax rate Colorado created for the agriculture sector.
The Denver Post lists the wide array of so-called Colorado agronomists who have "secured low property taxes through agricultural designations on land they own even though they personally have little or nothing to do with producing food."
Among those the newspaper cites as benefiting from being deemed owners of agricultural property are actors Tom Cruise, Goldie Hawn and Kurt Russell, a network television executive and his former-actress wife, an energy industry billionaire, a professional blackjack player turned media mogul, a ski gear inventor and a Colorado state senator.
The IRS accepts plastic but, unlike mechants, it doesn't pay the fee for you to use it, which is up to 2.35%.
This article is by Mark Jewell of the Associated Press.
Use a credit card to pay taxes to Uncle Sam, and interest charges aren't your only worry. Expect to pay fees of at least 2% on the amount of taxes owed. And that has nothing to do with whether you pay off the balance quickly or not.
Those fees are big enough that using a card to pay should be a last resort.
Regardless of how big the tax bill, any convenience from paying by credit is likely to come at a steep price. That's important to understand because some card issuers are promoting use of their cards to pay taxes, including offering discounts on electronic tax filing products for those using plastic to pay.
Many states provide tax incentives for making movies there. But some are cutting the subsidies, saying the benefits are not worth the cost.
This article is by Errin Haines of The Associated Press.
Thanks to a tax break used to lure Disney filmmakers away from North Carolina to coastal Georgia, Harry Spirides figures his beachfront hotel raked in an extra $85,000 because Miley Cyrus spent a summer filming here.
The producers of Cyrus' film, "The Last Song," were brought in with an across-the-board tax credit of 20% when they rolled into Tybee Island in June 2009. Lawmakers in Georgia and other states, though, are worried that they can't afford to offer Hollywood those incentives any longer as they struggle to find enough money to pay for programs like Medicaid.
For Spirides, though, the economic benefit from the tax credit was clear:
The crew rented a parking lot at Spirides' Ocean Plaza Beach Resort for $30,000 to set up makeup trailers and dining tents. Then there were hundreds of families working as extras on the film, who would crash at the hotel after shooting until 2 a.m.
"The shooting of the movie definitely made it a lot better of a summer financially than it would have been," Spirides said. "It really, really helped when we were in the depths of the recession."
In January, though, a Georgia state council said those benefits are fleeting. It said even though the crews bring jobs -- and lots of people who spend money locally on food and lodging -- those benefits are lost when they pack up and leave after filming.
The council recommended ditching the film tax break, which meant $140.6 million in lost tax revenues last year. Film producers spent $617 million in Georgia last year.
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