Revisions To Form 656, Offer In Compromise

The Internel Revenue Service (IRS) has announced the release of Form 656, Offer in Compromise, revision February 2007. The Form 656 package was last revised in 2004 to help taxpayers correctly and completely prepare an offer and reduce the chances of an offer being returned for omissions. The new form retains the taxpayer burden reduction features while adding significant changes as a result of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA). These changes include............

Business Topics - Types - By Subject

Internal Revenue Service

Audit Chances:
Under $25,000 - 1-94
25,000-100,000 - 1-140
Above 100,000 - 1-59
Above 1,000,000 - 1-16

New York Times

Michigan Gov. Granholm's Statement On Business Tax Plan Unveiled by House Democratic Caucus

LANSING - Governor Jennifer M. Granholm issued the following statement on the business tax plan unveiled by the House Democratic Caucus:

Michigan Democratic Party - Statement On Web Site
http://www.housedems.com/?p=264

Amber Alert System
http://codeamber.org
Missing & Exploited Children
http://www.missingkids.com
Nat'l Center For Missing Adults
http://www.theyaremissed.org/ncma/index.php
Homeland Security
http://www.dhs.gov/index.shtm
Michigan Homeland Security
http://www.michigan.gov/homeland

Smart Ways to Spend Your Tax Refund

Have you been dreaming about using your tax refund to buy that shiny new plasma TV? Don’t do it, cautions the Michigan Association of CPAs.

How Long Should I Keep Records?

The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or that the IRS can assess additional tax. The information here contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Internal Revenue Service

Business Or Hobby? Answer Has Implications For Deductions

The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is a business or a hobby, an activity not engaged in for profit.

In order to educate taxpayers regarding their filing obligations, this fact sheet, the eleventh in a series, explains the rules for determining if an activity qualifies as a business and what limitations apply if the activity is not a business. Incorrect deduction of hobby expenses account for a portion of the overstated adjustments, deductions, exemptions and credits that add up to $30 billion per year in unpaid taxes, according to IRS estimates.

Don't Overlook These Investment and Tax-Related Deductions

If you’re getting ready to file your 2006 tax return, you’ll want to be sure you’re taking advantage of all the deductions to which you are entitled.

Michigan Association of CPAs

New Michigan MET Enrollment Period Starts April 1

Parents Urged to Lock-in Tuition with MET

The next four-month enrollment period for the Michigan Education Trust (MET) prepaid tuition program opens April 1 and runs through July 31, 2007. A MET contract locks-in tomorrow's tuition at today's rate for any of Michigan's public colleges and universities. MET contracts are also portable to Michigan private and out of state institutions.

Michigan Treasury

Giving Up Tax Breaks: A Smart Move?

When you’re doing your taxes, sometimes it makes sense to give up even the most popular tax breaks, explains Andrea Coombes on MarketWatch.com.

A senior tax analyst she spoke with says that “sometimes using an alternative approach can give you tax savings.”

Coombes offers seven situations where giving up a tax perk may save you money. For example, some higher-income parents may be better off not claiming personal exemptions for their college-age student. That’s because the student may be eligible for certain tuition credits. And in some cases, married couples may be better off filing separately. Read the full story here.

IRS Warns Of Phony E-Mails

The Internal Revenue Service has alerted taxpayers about Internet scams in which fraudulent e-mails are sent that appear to be from the IRS.

The e-mails direct the consumer to a Web link that requests personal and financial information, such as Social Security, bank account or credit card numbers. The practice of tricking victims into revealing private personal and financial information over the Internet is known as “phishing” for information.

Pension Protection Act Includes New Rules for Charitable Giving

Don’t be fooled by its name. The Pension Protection Act of 2006, signed into law last August, includes a number of tax law changes that have nothing to do with pensions.

Michigan Association of CPAs

IRS Encourages Taxpayers To Take Advantage Of Overlooked Tax Benefits

The Internal Revenue Service urges taxpayers to take a moment before they file their income tax returns to be sure they do not overlook several important benefits to which they may be entitled.

“Many taxpayers are missing out this year on the special telephone excise tax refund and other benefits such as the Earned Income Tax Credit,” IRS Commissioner Mark W. Everson said. “If you don’t claim it, you don’t get it. That’s money down the drain for millions of Americans.”