Spaniard Accidently Accumulated $172 Million Tax Bill

A young former day-trader from Barcelona has inadvertently accumulated $172 million in back taxes after neglecting to report his activities to the IRS, the existence of which the man had been unaware of until recently, according to the New York Daily News. Moving to New York City in 2006 to try his hand at the market, he moved back home one year later after taking significant losses. However, by not reporting his losses or expenses to the IRS, the government simply assumed that all his trading activity resulted in nothing but pure profit and so taxed him on $500 million worth of income that he never actually had. When informed by his friends of what was going on, the man allegedly asked “who’s the IRS?”

Spaniard Accidently Accumulated $172 Million Tax Bill

100-plus tax breaks on the line

Washington fiddles as usual... meantime, tax planning is nearly impossible -- or extremely costly, since there are so many scenarios to consider..No matter what your tax bracket, this becomes very expensive for all taxpayers since IRS forms need to be changed, etc.

100-plus tax breaks on the line

100-plus tax breaks on the line

Second Phase of PA Cash for Furnaces Program

You may remember that in the spring there was a "cash for appliances" program that each state could run with stimulus money.

Pennsylvania chose to only give rebates to furnaces and water heaters - NOT through the tax return; rather, purchasers have to apply directly to the state.

Apparently the money hasn't been moving too quickly, because the rebate amounts have been increased - doubled or more, effective for purchases on or after 8/2/10 (apparently they still have more than three-fourths of the money to give out).

More information is at http://www.paheatingrebates.com/

TTFN 

Second Phase of PA Cash for Furnaces Program

IRS Announces New Return Preparer Application System and User Fee; IRS Also Releases Proposed Regulations to Amend Circular 230 Rules

My first post! Those who know me know I have been very interested in the new tax preparer rules and regulations IRS has been creating, which will be effective for tax returns prepared for the 2011 tax season.

IRS issued a release dated 8/19/10 regarding the systems and Circular 230 changes. They also say PTIN application process will be suspended August 22 in preparation for September rollout of the online PTIN application.

http://www.irs.gov/newsroom/article/0,,id=226697,00.html

Also, some more FAQ's on PTINs were updated 8/18:

http://bit.ly/ciHosl

More to come.

IRS Announces New Return Preparer Application System and User Fee; IRS Also Releases Proposed Regulations to Amend Circular 230 Rules