Rapid Tax

A blog focused on providing informative tax and personal finance information.

Archive for July, 2009

Easy Tax Returns: Is the 1040-EZ as easy as can be?

Friday, July 24th, 2009

Some of the earliest examples of writing historians have discovered include records of tax payments. And complaints that taxes are too complicated are nearly as old. Tax authorities have always tried to strike a balance between a simple tax code and a tax code that rewards behaviors they’d like to encourage.

The most effective way to do that? Give different taxpayers different ways to file — big corporations like GE may file a 40,000-page tax return, while an individual might file a 1040-EZ. But are these “easy” tax returns easy enough?

Photo credit: striatic on Flickr.

 

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IRS: “Help us decide who does your taxes.”

Wednesday, July 15th, 2009

This just in: the IRS wants taxpayers to help them decide which tax preparers… they can decide to work with. At first, it seems like a pretty redundant exercise: the IRS is asking taxpayers and other interest groups to decide what criteria they’d like someone to satisfy before that person can prepare their taxes. People already do this — by paying someone to prepare their taxes.

So what is the IRS trying to add here? (more…)

Recovery Rebate Ruckus: Why are TurboTax Users Getting Angry Letters from the IRS?

Tuesday, July 7th, 2009

Bloggers and forums are abuzz over the news that TurboTax may be calculating the Recovery Rebate incorrectly. Apparently TurboTax users are getting letters from the IRS complaining that they claimed too large a credit for the rebate, and that they’ll need to pay it back. The TurboTax team has responded to explain some of the confusion, but that’s not the whole story.
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California is Nearly Bankrupt — And They’re Printing Money!

Tuesday, July 7th, 2009

How does an effectively bankrupt state pay the bills? By printing its own currency! California is issuing IOUs instead of paying bills in cash. In other words, instead of borrowing from people who want to lend money, and using that money to pay its bills, the state is borrowing from people who it already owes money to, and promising to pay the bills a little later (with a little interest).
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National Taxpayer Advocate’s Report to Congress: Once a Year, Taxpayers Talk Back — and Congress Listens

Thursday, July 2nd, 2009

It may feel like taxpayers always complain and Congress never listens, and perhaps most of the time that’s true. But once a year, Congress asks the National Taxpayers advocate to report on taxpayer concerns. And the latest report just came out. So what’s coming up next? Ten highlights:
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