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PostHeaderIcon Monday Tax Bits a Day Late – 12/13/2011

Yes, I know it’s Tuesday.  but here’s what’s been in the news lately.

The infamous payroll tax cuts will go through another political vote today as the House is tying it to an oil pipeline deal that they know won’t pass the Senate or President Obama’s desk.  My guess is it passes, the Senate nixes it but this is too political of a topic to let it slide.  We’ll still be talking about this in two weeks but I think they’ll eventually get it done.

Taxgirl has a lot of good stuff this past week but I particularly liked her discussion on getting paid under the table.  She goes into how a person can dispute their classification and a lot of the tax implications and she does it in typical taxgirl style (i.e. easy to understand and informative).

The IRS is looking at a real time tax system and they have hearings coming up on the subject.  Basically they want to match everything up on your tax return with the source documents when it comes in so you have time to fix any discrepancies.  Sounds like a solid system, but I have a feeling that, to go along with it, there will probably be more information reporting down the road.

Finally, last week some of the more left leaning states are looking to tax the wealthy even more.  New York and California are both looking to raise marginal rates on their top earners.  Be on the lookout for this kind of thing in your state.