Health Insurance for Adult Children up to the Age 27
http://www.revenue.wi.gov/taxpro/news/091124.html
Wisconsin Economic Outlook
Volunteer Tax Preparers Have High Error Rates
Beware of Marketing Scams
Identity Theft
Top Ten Tips to Prevent Fraud
American Housing Rescue and Foreclosure Prevention Act of 2008
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IRS tax-filing software often problematic
An audit finds many free programs offered on the agency's site can't complete basic returns.
The Internal Revenue Service's free tax-filing program, which has had it share of controversy, got some more as auditors said much of the program's industry-supplied software couldn't handle simple returns.
The IRS has been offering free electronic filing for the last four years as part of a partnership with about 20 tax-software companies that agreed to provide free electronic filing for taxpayers with simple returns. In exchange, they enjoy a form of free advertising on the IRS website because it has links to the vendors' sites. About 95 million people, or 70% of taxpayers, qualify for the program based on income, but only about 3.9 million used it last filing season.
The program has been plaqued with problems from the start. Some taxpayers said they were forced to pay for services that were supposed to be free. Others complained of incessant advertising for profit-generating services, such as refund anticipation loans and state tax return preparation. By and large, those problems have been fixed, according to the audit by a Treasury Department unit responsible for oversight of the IRS.
But the audit also found that there was no assurance of accuracy with the free-file software and that many of the programs simply couldn't handle basic tax situations.
For instance:
*One-fourth of the free-file tax software programs would not allow taxpayers to take either the
earned income tax credit or the child and dependent care credit without also claiming an exemption
for a dependent, even though these credits don't always require that you claim a dependent.
*Almost half of the programs did not ask users for enough information to determine whether they
were entitled to claim an exemption for a dependent.
*One program improperly allowed exemptions for dependents.
*Some software wouldn't allow taxpayers to claim more than four dependents.
The auditors also found that a section of the IRS website that promised to guide the user to an appropriate free-file vendor sometimes went astray, leading the taxpayer to a program that couldn't complete the return.
Taxpayers who were sent to the wrong software program often didn't discover it until they were midway through the process, forcing them to start over with another free-file vendor or go elsewhere for their tax preparation - and pay for it.
In a written response to the audit, the IRS agreed that it needed to work on its guide to vendors, but said it could not verify the accuracy of the vendors' software because the agency's contract with companies didn't give it the right to demand software corrections.
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Voluntary Compliance Program for Tax Shelters
If an individual or corporation has used a tax shelter to avoid Wisconsin income or franchise taxes, an audit could result in costly penalties. Through October 1, 2007, the Multistate Tax Commission (MTC) is administering a nationwide program to encourage taxpayers to voluntarily disclose their participation in tax shelters in order to avoid penalties. Wisconsin is participating in this program.
Benefits of Program:
The Department of Revenue (DOR) will waive all civil and criminal penalties on tax that is attributable to tax shelters disclosed in this program. This waiver is only valid for transactions disclosed on or before October 1, 2007.
Who is Eligible:
Any taxpayer who has used a tax shelter (also known as a "tax avoidance transaction") to reduce or eliminate Wisconsin income or franchise tax liability for any tax year beginning before January 1, 2006, is eligible. A "tax avoidance transaction" is a plan or arrangement devised for the principal purpose of avoiding federal or Wisconsin income or franchise taxes.
Additionally, a taxpayer must meet the following criteria to participate in the program:
* The taxpayer has not been informed by the department that an audit or criminal investigation is
being conducted or will be conducted relating to the tax avoidance transaction;
* The taxpayer has not received a federal audit report which is final from the Internal Revenue
Service (IRS), if the changes or corrections on that report relate to the tax avoidance transaction
and are required to be reported to the department;
* The taxpayer has not misrepresented facts relating to the tax avoidance transaction.
How to Participate:
For each year the tax avoidance transaction was used, do the following:
* Complete an amended Wisconsin income or franchise tax return, or if no Wisconsin income
or franchise tax return was previously filed because of the tax avoidance transaction,
complete an original return;
* Write "MULTISTATE VCP" boldly and conspicuously at the top of the first page of the
return;
* Complete IRS For 8886 http://www.irs.gov/formspubs/index.html?portlet=3 (2005 or
later version). If the transaction affected Wisconsin tax liability without affecting federal tax
liability, complete Form 8886 as if the transaction affected federal tax liability;
* Complete form VCP-1. Form VCP-1 is available on the MTC's web site at
www.mtc.gov/Resources.aspx?id=2394;
* Send all of the above items, with payment of the tax due (payable to the Wisconsin
Department of Revenue), to the Multistate Tax Commission, Multistate Tax Shelter
Voluntary Compliance Program, 444 North Capitol Street, NW, Suite 425, Washington
DC 20001. These items must be receive by the MTC, not merely postmarked, on or
before October 1, 2007. The MTC will then forward them to the Wisconsin Department
of Revenue.
For More Information:
The MTC's web site www.mtc.gov/Resources.aspx?id=2390 has further details of the program's
policies and procedures, a list of participating states, and the benefits offered by each state. Also, see the DOR's press release at http://www.revenue.wi.gov/news/070626.html.
If you have questions about the Multistate Tax Shelter Voluntary Compliance Program, please contact the MTC by e-mail at VCP@mtc.gov or by telephone at (202) 624-8699.
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ADJACENT REAL ESTATE FOR SALE
Norm Packer 920-233-4260 npacker@packercpa.com
Intersection of State Road 44 and State Road 91
58,428 sq. ft. 1.3+ acres Lot 1 vacant lot
Permitted uses - offices, business and professional (the covenants have more detail about uses). Zoning variance may be possible.
$205,000
Property address: State Road 91 Lot 1
Parcel: 1329103201
Part of the Oakwood SouthPointe Condominium Owners Association, Inc.
Located in the Universal Business Park
Water available off both State Road 91 and State Road 44
Sanitary sewer off State Road 91
Water and sewer may be available off existing structure at site.
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