Personal Taxes

The Foreign Per Diem Rates are available on the Internet at: http://www.state.gov/www/perdiems/.

Federal and state agencies refer to the IRS the names and social security numbers of taxpayers who are behind in their support payments, taxes, and loans. Your federal tax refund may not be refunded to you if you are delinquent in child support payments or you have a past due federal debt such as a student loan. Your refund may be used to pay other debts you owe.

If you use a dwelling as a home and rent it for fewer than 15 days during the year you should not report any of the rental income and do not deduct any expenses as rental expenses on IRS Schedule E. You may deduct the mortgage interest and property taxes on IRS Schedule A.

Per the IRs requirements, certain employers must allocate tips if the percentage of tips reported by employees falls below a required minimum percentage of gross sales.
To allocate tips means to assign an additional amount as tip income to each employee whose reported tips are below the required percentage. All tips you receive are taxable.
If you do not have adequate records for your actual tips, you must include the allocated tips shown on your Form W-2 as additional tip income on your tax return Form 1040 line 7.

When you complete Power of Attorney and Declaration of Representative Form 2848, you must enter the type of tax, the tax form number, and the year or period(s) for which the power is granted for. You can list returns for any number of specified years or periods that have already ended and returns for years or periods that will end no later than three years from the date the form is signed. A general reference to "all years," "all periods," or "all taxes" is not allowable. Form 2848 will be returned to you for correction if you use these general references.

Effective January 1, 2011, the IRS will require all paid tax preparers who sign federal tax returns to have a Preparer Tax Identification Number (PTIN). IRS online registration for tax preparers will start September 1, 2010. Tax preparers will need to register with the IRS and obtain a valid PTIN no later than December 31, 2010. Tax preparers who already have a PTIN will be reissued their current PTIN when they register online. Currently, there is no application fee for PTINs; however, the IRS does plan to charge a PTIN fee (new and renewing applicants) once registration starts September 1, 2010. In addition to the PTIN requirement, paid tax preparers who are not attorneys, certified public accountants or enrolled agents will have to pass an IRS competency exam and complete continuing education requirements. Nonexempt tax preparers will be required to: Obtain a PTIN. Complete 15 hours of continuing education on federal tax laws each year. Renew IRS registration every three years from the date of initial registration. Within three years of initial registration, pass a competency exam from the IRS. Starting January 1, 2011, nonexempt tax preparers who fail to meet the December 31, 2010 registration deadline will have to pass the IRS competency exam before they can be issued a PTIN. Exempt tax preparers (attorneys, certified public accountants and enrolled agents) can still register after December 31, 2010; however, they cannot prepare or sign federal tax returns until they register with the IRS and obtain a valid PTIN.

Yes. A moving expense deduction is permitted in connection with a move outside the US or its possessions. An additional deduction is allowed for foreign moves for reasonable expenses of moving household goods and personal effects to and from storage and of storing them for part or all of the time during which the new place of work abroad continues to be a taxpayers principal place of work.

Yes. Amounts you paid to an appraiser for determining your casualty loss are deductible as a miscellaneous itemized deduction on IRS Schedule A subject to the 2% MAGI limitation.

There are no provisions in the tax law for tax credits or refunds related to reparations for slavery. The IRS is cautioning taxpayers of illegal schemes being offered to the public by rip off artists. You should report these people to the IRS.