Six Gift Deductions

The 12 days of taxes is almost half way over, but do not worry you still have 6 more days to enter our contest for $500 in gift cards. Just check out 12DaysOfTaxes.com and tell us what is your favorite thing about tax season.

Today’s featured article discusses 8 different crazy taxes that are levied upon citizens of this country. The 8 taxes are listed below, but for a full explanation check out 12DaysOfTaxes.com.
1) Illegal Drug Possession
2) Profit from Illegal Drug Dealing
3) Utah Nudity Tax
4) Money received from bribes
5) Jock Taxes
6) Stolen Property Taxes
7) Alabama Card Tax
8) Maine Blueberry Tax

On the fifth day of taxes the government gave to me…

Tax day 2008 is just one week away! If you are stressed about tax season then take a deep breath and head over to 12DaysOfTaxes.com. You can enter to win $500 in gift cards, and enjoy our videos and articles. Today’s featured article is “5 Legal Ways to Lower Your Adjusted Gross Income.” Below are the 5 different tips, but to check out the full version head over to 12DaysOfTaxes.com.

1) Take all available deductions
2) Make charitable contributions
3) Pay extra into your 401(k)
4) Defer income until next year
5) Use your credit card for year-end expenses

Money for Breakfast

On Friday morning I was interviewed on the television program “Money for Breakfast,” which airs on the Fox Business channel. During the segment we spoke about preparing for tax day, and how taxpayers can avoid getting into debt with the IRS. In case you missed the show, below are the embedded videos of my two-part appearance.

Top 50 Charitable Americans

Philanthropy.com has compiled a list of the top 50 charitable Americans for 2007. The article lists the 50 people who gave the most to charity last year, and includes the amount they have committed to donating. Those who made the list include: William Barron Hilton, Michael R. Bloomberg, Oprah Winfrey, and 47 other. Check out the full list at Philanthropy.com.

Latest Good Reads

Obama releases tax returns from 2000-2006.

Citizens for Tax Justice find the House’s budget plan better than the Senate’s.

The complications of business taxes for partnerships.

Credit repair – exactly how important is it?

13 different characters that almost all corporations have. Which one are you?

IRS examines less than 1% of exempt organizations each year.

Combat Pay Can Count toward Economic Stimulus Payment Eligibility

We all Make Mistakes – Even the Government

Today is the fourth day of taxes, and the featured topic on 12DaysOfTaxes is the covered the top 10 mistakes people make on their tax returns.



Below is a list of the top 10 mistakes, to check out the summary of each mistake head over to 12DaysOfTaxes.com.

1. Math Errors
2. Sign and Date Your Return
3. Attach Forms
4. Social Security Number
5. Check Subject
6. Verify Check Amount
7. List all Dependents
8. File Form 8606
9. Save Copies
10. File on Time

On the Third Day of Taxes…

The government gave to me… Three French returns, two W-2’s, and a partial payment in a money tree! Today is the third tax of taxes, and the featured video surrounds the idea that taxes are not just something we have in the United States.

Today’s featured article is titled “Average Tax Rates of 70 Countries around the World,” and includes the average personal and business income tax rates of 70 different countries. Check out the full table by clicking here.

Two W-2’s, and a Partial Payment in a Money Tree…

Today is the second day of taxes, and the featured article at 12DaysOfTaxes.com is titled, “9 Ways to Cut Down on Paper Usage this Tax Season.” Below is a summary of the article, but be sure to check out 12DaysOfTaxes.com for the full version along with details on how you can win $500 in gift cards!

1) Keep all important documents and tax forms in a designated file, drawer, or even box.

2) E-file your state and federal income returns.

3) E-file quarterly tax payments.

4) Save copies of online purchases on CD-R and thumb drives instead of printing them out.

5) Use software or electronic payments for payroll taxes.

6) Use a virtual fax instead of a fax machine that prints out on paper.

7) If you intend to buy a new car, consider making the purchase online.

8) Paper has two-sides: use both!

9) Print preview before every print.

Celebrate Tax Season with the 12 Days Of Taxes!

No, not the 12 days of Christmas… The 12 Days Of Taxes! Today, April 4th, begins our 12 day countdown to tax day 2008. It always surprises me how many people fear tax day, when statistics show that over ¾ of the people who file a return actually get a refund.

The employees of the Roni Deutch Tax Center™, and myself, do not fear tax season. We celebrate it! And to encourage taxpayers across the country to join in on the celebration we have launched a new site, 12DaysOfTaxes.com.

Every day leading up to April 15th a new “day of taxes” will be unveiled at exactly 12:00am. The days will feature videos of Roni Deutch Tax Center™ employees singing and dancing to the 12 Days Of Taxes paired with interesting tax articles. Additionally, we are also sponsoring a contest with a $500 gift card package for the winner. All you need to do to enter is go to 12DaysOfTaxes.com and tell us what is your favorite part about tax season. So go check out the site, enter the contest, and tell every one you know about it!



Today, the first “day of taxes” features RDTC Inc. employee Sue Ann Wilkes singing the phrase, “on the first day of taxes the government gave to me, a partial payment in a money tree.” The associated article is titled “12 Different Ways Americans are Taxed,” and describes the following 12 different ways to Americans pay the government:

1) Income Taxes
2) Business Taxes
3) Payroll Taxes
4) Capital Gains Taxes
5) Inheritance Taxes
6) Sales Taxes
7) Property Taxes
8) Excise Taxes
9) Gift Taxes
10) Retirement Taxes
11) Tariffs
12) Tolls

To read the full article, and see the first video installment please check out 12DaysOfTaxes.com.

SacBee Article

On Saturday, my tax franchise and I were featured in the business section of the Sacramento Bee. In case you missed it I have included a quote below. You can also check out the online version of the article.

“Sacramento-area tax attorney Roni Deutch has launched more than 170 Roni Deutch Tax Center franchises across the country, mushrooming beyond the 17 centers she debuted in a nationwide opening in January.

Long known as the ‘Tax Lady’ through her tax resolution legal practice and her many television appearances, Deutch stepped last year into a U.S. accounting and tax preparation market worth upward of $65 billion.”

Tax Season Do’s & Don’ts

Do - File Something
You must file a return with the IRS before April 15. If you do not then you will face penalties and fees that will eventually catch up with you. Even if for some reason you cannot file a return, at least file for an extension using IRS Form 4868. If you are likely to owe the IRS money, also consider sending in a payment to avoid additional fees.

To become eligible for benefits under the economic stimulus package, you need to file a return this tax season – even if you do not normally file a return. The IRS is going to determine the names and addresses of those eligible for a stimulus check based off this year’s tax returns. Therefore, if you do not file a return you will not get up to $600 in payments.

Don't – Omit Any Income
One of the biggest mistakes taxpayers make when preparing their returns is to omit part of their income. Remember that the IRS requires you to report all income including wages, business profits, interest, dividends, capital gains, pensions, tips, and even gambling winnings.

Do – Seek Help
If your taxes are too confusing or you simply have a question about your return, then do not be afraid to ask for help. There are accountants and tax preparation offices all over the country to prepare your return for you. Most will answer simple questions for you over the telephone.

Don’t – Get Audited
Technically you are always at risk for an audit since there is a random element in the IRS’ audit selection process. However, below are five red flags you can avoid to decrease you chances of getting an audit.

1. Drastic changes in income
2. Too many charitable contributions
3. Excessive amount of credits taken
4. Inconsistencies between previous returns
5. Reporting a suspiciously low income

Do – E-file
If you are going to file your return yourself then you should e-file. Studies show that people who e-file make fewer errors. You will also have confirmation from the IRS within a few days of receipt of the return. Additionally, if you chose to have your refund direct deposited, then you will receive it in as little as 10 days.

Don’t – Throw Away Documents
Just because you have sent your return to IRS does not mean it is ok to throw away your important forms, records, and receipts. If you are ever audited you will need all of these documents. Please make sure to store them in a safe place.

Do – Save Your Refund
Although most taxpayers look at a refund from the IRS as “free money,” the smartest thing you can do with your refund is use if to pay off high interest debts. The average household has nearly $10,000 in just credit card debt and most Americans either have a home mortgage or an automobile loan. Instead of wasting your refund on something useless why not pay extra on one of these lines of credit?

Happy St. Patricks Day

LA Times: How to Avoid a Tax Audit

Yesterday, I was quoted in an article for the Los Angeles Times on IRS tax audits. Below is a short quote from the article, to read the full version check out "How to avoid a tax audit, and how to prepare for one."

You can take some comfort in the fact that audits are remarkably rare, hitting about 1% of taxpayers each year. However, the rate is rising, and if you happen to pull a few audit triggers, your chance of getting that ominous letter or phone call from the Internal Revenue Service can soar tenfold or more, experts say.

"I am hearing about more audits than I ever have," said Roni Deutch, a tax attorney in Northern California who has been practicing for 17 years. "People will try to alleviate your fears and tell you that an audit is not a big deal. It is a big deal. It's like having a root canal without Novocain."

The number of returns audited by the IRS jumped 7% last year to 1.38 million, up from 1.29 million in 2006.

MLB Files Incorrect Return

According to TaxProf.org and Street & Smith's Sports Business Journal there are some potential problems with the Major League Baseball’s October 2006 Tax return.

"MLB did not include the compensation amounts for its other top officers in its most recent return. The names of MLB President Bob DuPuy and four executive vice presidents are listed but without pay totals. Those numbers appeared in prior MLB tax returns, with DuPuy pulling in a total of $4.875 million in the 2005 fiscal year.

Nonprofit tax experts said such omissions are not permissible under the current tax code. "The [tax return] instructions just couldn’t be clearer. The compensation of the officers, directors and key employees must be disclosed in the return," said Marcus Owens, former director of the IRS’s exempt organizations division and currently an attorney with Caplin & Drysdale in Washington, D.C., representing a variety of nonprofits.

Said DuPuy of that assessment, "We respectfully disagree."

Leaving out officer compensation in Part 5-A of the nonprofit return could be considered an incomplete return and could subject MLB to fines up to $50,000 per year from the IRS, Owens said."

“Hi, I’m Roni Deutch!”

While, it is nice to get noticed, the "flickering bale light of hell" is a bit much.

IRS New CADE System Processes 15 Million Tax Returns

According to the IRS, one quarter of all individual tax returns so far this tax season are being processed by the IRS’ new, modernized computer system. It is called the Customer Account Data Engine, or CADE. It has already successfully processed over 15 million individual tax returns, or 25 percent of all those processed so far this year.

"This system is the centerpiece of our modernization efforts at the IRS," notes Richard Spires, IRS Deputy Commissioner for Operations Support. "CADE is handling significantly more tax returns each year. The long-term investment in this program is paying off with meaningful results for the American taxpayer."

CADE, which is at the core of the effort to replace many of the agency’s aging systems, dramatically speeds up internal IRS processing, permitting taxpayer accounts to update on a daily basis. The older system updates only on a weekly basis.

"This supports better customer service for the taxpayers, processes refunds quicker and helps the IRS better administer the nation’s tax system," continued Spires.

Today’s Tax Reads

World Central banks unite to help ease current credit strain.

Are State gasoline taxes the best source of highway revenue?

IRS announces 2008 low-income taxpayer clinic grant recipients.

U. S. Senate holds hearing today on federal estate tax alternatives.

The Wall Street Journal examines Obama’s plan for fixing social security.

IRS using every trick in the book to track down those eligible for an economic stimulus check.

12 Days Of Taxes

I am excited to announce the launch of 12DaysOfTaxes.com, a new site that will showcase some of my employees celebrating the 12 days that lead up to tax day. Although the full site will not be up until April 4, they posted the following short teaser video.



For more information check out 12DaysOfTaxes.com and signup for the newsletter.

Tuesday Linkage

Wealthy Americans using inflated art appraisals to gain millions from excessive deductions.

A few things to consider when deciding weather to e-file or not.

Tax court rules against deductions for getting a Harvard MBA as an educational expense.

Reasons why everyone should file a tax return this year, even if you normally do not.

Medical expense deductions for embryo and cord blood storage.

Interest rates drop for the second quarter of 2008.

15 Tax Blogs Worth Reading

IRS Claims E-Filing off to a Strong Start

The IRS announced that e-filing is off to a great start this tax season. So far, over 38 million returns have been electronically filed. This represents a 5 percent increase from the same period last year, with double-digit growth coming from taxpayers filing from their home computers. More than 12.3 million returns were filed from home computers, which is an increase of almost 14 percent from the same time last year.

“E-filing continues to be the preferred way to file your tax return. It is the fast, easy, safe and more accurate way to file your tax return,” claimed IRS Acting Commissioner Linda E. Stiff.

As for the total amount of all refunds, $106.7 billion has been issued so far in 2008 with the average refund amount of $2,708, up two percent from the same time last year. So far this year, the IRS has directly deposited 33 million refunds out of the total of 39 million refunds. The direct deposit refunds were valued at just over $96 billion with the average amount of a direct deposit refund of $2,900.