In these difficult financial times and declining home values, we have helped numerous clients navigate the tax issues of Cancellation of Debt (COD). A COD is created when a taxpayer sells their home in a short sale (sales price is less than the mortgage amount), has a property foreclosed upon, or settles a credit card debt for an amount less than the current balance.

Have you ever wondered if the group that you donated money to is a qualified charitable organization that makes your donation tax deductible?

From May 1, 2012 – June 15, 2012 the State of Ohio will allow you to pay any unpaid Ohio taxes and waive all penalties and half of the interest of any balance due amounts.

Now that you have filed your tax returns you may be wondering how long to retain the returns and the source documents. The Ohio Society of CPAs offers these guidelines for tax records and other important documents:

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!

If you haven’t filed your tax return by now, you should probably consider filing for an extension. It is a lot easier to file for an extension than it is to amend a return later for a mistake you made trying to rush your return to completion. Even more costly is if the IRS finds a mistake you made and assesses underpayment penalties and interest.