In 2012, a $305 million IRS budget reduction resulted in $5 billion less in enforcement revenue.

The Internal Revenue Service has issued final regulations requiring any person who has been assigned an Employer Identification Number to provide updated information to the IRS.

Recently the Tax Court ruled on a situation where a taxpayer claimed dependent exemptions and the Child Tax Credit for two children.

Payroll tax cut ended. As you probably noticed by now, your payroll check is less than last year. This is because the payroll tax cut expired at the end of 2012. In 2011 and 2012 you paid 4.2% of your income into Social Security. Starting in 2013, the Social Security tax rate has returned to 6.2%.

The Internal Revenue Service receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the IRS. Many of these scams fraudulently use the IRS name or logo as a lure to make the communication appear more authentic and enticing. The goal of these scams – known as phishing – is to trick you into revealing your personal and financial information. The scammers can then use your information – like your Social Security number, bank account or credit card numbers – to commit identity theft or steal your money.

Aaaah……The week after tax season (and the first full weekend home in two and half months) is the best week in a tax accountant’s life!