Showing posts from April, 2013

IRS Closing for 5 days in May-August

IRS to Furlough Employees on Five Days; Operations Will Shut Down Entirely The IRS will be closed for business on five days falling between May 24 and August 30. NTEU Press Release (4/19/13). Late last week, the National Treasury Employees Union (NTEU) announced that the IRS is sending out furlough notices this week to the entire IRS workforce, identifying the five following furlough days where the agency will shut down entirely: May 24, June 14, July 5, July 22, and Aug. 30. The 30-day notices to employees also leave open the possibility of another two unpaid furlough days. On those furlough days, all public operations of the IRS will be shut down, leaving taxpayers without access to information and assistance from frontline workers. According to the president of the NTEU, on those days, phone calls to the IRS will go unanswered and Taxpayer Assistance Centers across the country will have closed' signs in their windows. The furloughs are being driven by the ongoing sequestration…

How Long should You Keep Tax Records

1. Tax Returns. ALWAYS keep tax returns.They take very little space and if there is ever an argument the return was not filed, at least you have a copy.

2. Backup records. Any written evidence that supports figures on your tax return, such as receipts, expense logs, bank notices and sales records, should generally be kept for at least the three-year period.  If possible keep the records for 7 years.

Note: There are some cases when taxpayers get more than the usual three years to file an amended return. You have up to seven years to take deductions for bad debts or worthless securities, so don't toss out recoSecurities. To accurately report taxable events involving stocks and bonds, you must maintain detailed records of purchases and sales. These records should include dates, quantities, prices, dividend reinvestment, and investment expenses, such as broker fees. Keep these records for as long as you own the investments, plus the statute of limitations on the relevant tax returns.


Applicable Federal Rates - Interest Rates for Tax Underpayments, Investments

Rev Rul 2013-11, 2013-20 IRB The Applicable Federal Rates for May 2013 are reproduced below. Table 1 Applicable Federal Rates (AFR) for May 2013 Period for Compounding Annual Semiannual Quarterly Month Short-Term AFR .20% .20% .20% .20% 110% AFR .22% .22% .22% .22% 120% AFR .24% .24% .24% .24% 130% AFR .26% .26% .26% .26% Mid-term AFR 1.00% 1.00% 1.00% 1.00% 110% AFR 1.10% 1.10% 1.10% 1.10% 120% AFR 1.20% 1.20% 1.20% 1.20% 130% AFR 1.30% 1.30% 1.30% 1.30% 150% AFR 1.51% …