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Outrageous Tax Deductions

The Minnesota Society of CPA’s (MNCPA) released their annual list of outrageous tax deductions.  The MNCPA surveyed member CPA’s for their most outrageous deductions clients tried to claim on their individual tax returns.  Below is the MNCPA list and a few of our own. Questionable dependents: Attempting to claim “Fido” as a dependent is popular amongst clients […]

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Tax Season 2015 is now underway

The IRS threw open the doors Tuesday, kicking off the tax season 2015 for individual filers.  The IRS’s Modernized e-File system began accepting individual tax returns on the 20th of this month. The IRS began accepting business returns on the 9th. While IRS commissioner John Koskinen said he was “delighted that the filing season is […]

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TAX AUDIT INFORMATION

As first reported by Richard Rubin of Bloomberg: the IRS audited less than one percent of individual tax returns for 2013, declining for the second straight year, the lowest rate since 2005. The IRS has lost $1 billion in funding and 8,000 employees over the past three years.  The IRS has less than 20,000 key […]

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Client Letter 2014

I would like to welcome our new clients and personally thank all of you for allowing us to prepare your income taxes this year. For those of you who have referred friends and family, I would like to extend a special thank you. It is greatly appreciated. I noticed this year that a number of […]

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NEW IRA TAX RULING

The U.S. Tax Court recently ruled that taxpayers can no longer make a non-taxable rollover from one IRA to another if they have already made a rollover from any of their IRAs in the preceding one year period. What does this mean? Beginning as early as January 1, 2015, you can make only one rollover […]

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TAX SEASON 2013/2014 CALENDAR

Dec. 31, 2013 Last trade date to recognize a gain or loss Last day to convert/transfer a Traditional or Roth IRA Last day to take a Required Minimum Distribution (RMD) from a retirement account Last day to gift to a 529 College Savings Plan Last day to make a gift to an individual or charitable […]

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IRS Operations during the lapse in appropriations

Due to the current lapse in appropriations, the IRS on Monday released a memo describing the scope of the limited operations they would be offering  until normal government functions are restored.  In the memo, the IRS assured the American taxpayer that the “underlying tax laws remain in effect and all taxpayers should continue to meet […]

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All Legal Same-Sex Marriages Will Be Recognized for Federal Tax Purposes

In late August 2013, the U.S Department of the Treasury and the IRS ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.  The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does […]

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SMALL BUSINESS AND SELF-EMPLOYED TAX CENTER

The IRS offers a website for small business and the self-employed. The Small Business and Self – Employed Tax Center is a tax resource center for small business and the self – employed. It serves taxpayers who file form 1040, Schedules C, E, F, or Form 2106 as well as small businesses with assets under […]

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