Let’s be honest for a moment and acknowledge that not everyone is 100% honest or accurate when filing their tax returns. There are lots of people out there who wouldn’t be shocked to hear from the IRS that they owe more or didn’t pay enough, which is why thousands of Americans have been scammed out of millions of dollars by con artists pretending to represent the IRS. [More]
Seeking tax preparation help from the Internal Revenue Service this year might be a futile test of patience, as the agency’s taxpayer advocate predicts services for taxpayers are likely to drop to the worst levels in more than a decade. [More]
If you’ve got a tax refund coming and are eager to file your return to get the money flowing, your haste may end up causing errors that could hold things up. You should give your tax return a once-over before you send it off to make sure you haven’t screwed up some key areas. [More]
A retail trade industry survey finds more Americans plan to put the “fun” in “tax refund” this year. [More]
What many taxpayers don’t know when they step into H&R Block, Jackson Hewitt or go to some tax-preparation site is that there are several thousand IRS-approved volunteers out there willing to do the job for free if you qualify. [More]
Consumer Reports cautions that buyers of popular hybrid vehicles may soon be ineligible to claim the Alternative Motor Vehicle tax credit. The credit sunsets when a manufacturer sells more than 60,000 qualifying vehicles, a figure Toyota has already reached.
The credit has already begun to phase out for Toyota and Lexus hybrids purchased after September 30, 2006, and others will follow suit as they reach the sales volume target. The 2006 Prius’ tax break, for instance, dropped in half to $1,575 if it was purchased after that date, and it will split again to $788 between April and the end of September, 2007. After that, the Prius rebate disappears altogether.
The IRS provides a list of models certified for credit. Available only to those not subject to the alternative minimum tax, the credit can be worth up to $3,150 for vehicles purchased after 2005. — CAREY GREENBERG-BERGER