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PostHeaderIcon Tax News – July 25, 2013

Getting audited by the IRS is a major fear for a lot of people. In fact I’ve had clients intentionally pass on deductions just because they thought it was more likely to get them audited.  Most audits are performed by mail these days and if you get a notice, I recommend you respond as soon as you can and if you need help, just contact a professional.  In the meantime, Entrepreneur.com has a nice piece with some pretty graphics on the statistics of IRS audits.

Everyone wants a break these days and FratPAC, the political action committee that represents fraternities and sororities, is looking to push through legislation that would allow frats and sororities to use charitable contributions to build chapter houses and they want to do it with no penalties that might come about from hazing activities.

One way for states to raise revenue is through amnesty programs.  Taxgirl.com talks about a recent program being introduced in Louisiana that allows taxpayers who owe money to come clean and pay less in penalties.  While a lot of people get worried about the IRS, in my experience, it’s the states that come with the biggest issues.  The dollar amounts are usually smaller but I’ve found issues are more difficult to resolve.  Having something like this to allow people to get the monkey off their back is a good way to go about it.

New York is issuing tax refunds to same sex couples that file amended estate tax returns.  This is all coming about after last months Supreme Court ruling that struck down DOMA laws.  The court case, U.S. vs. Windsor, had a lot to do with taxes and New York is one of the states that’s following this federal decision.

There was a lot of tax reform stuff out there but probably the funniest is the fact that Senate Finance Committee discussions on tax reform will be sealed for more than 50 years.  You also have Harry Reid talking about how he thinks tax reform should be revenue positive and his number is just south of $1 trillion over 10 years. Of course this will be a non-starter in the House with the conservative leaning members not wanting to raise taxes.  Already we have lines being drawn in the sand that will ultimately prevent reform from happening.