Highlights of Proposed Legislation – Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 – HR 4853

The IRS is in the process of auditing 2,000 firms, and will be auditing an additional 6,000 firms in the upcoming years. While similar to traditional audits, these Employment audits will focus more on employment tax and compliance issues. An IRS spokesperson said, “A National Research Project (NRP) is the first the agency has undertaken in 25 years. During that time business practices have changed significantly, prompting the need for this study”.

Everyone knows a child when they see one. Right? Not so fast.... Let's look at how the IRS has recently clarified the definition of a Qualifying Child?

If you were legally married on 12/31/09, the IRS considers you married for the entire year of 2009.ringsYou now must decide if you are going to file as Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Note that if you file MFJ it is an irrevocable election—you cannot go back and amend a MFJ return to a MFS return.