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Taxes are an ever evolving subject and you are expected to keep up on the latest developments. Ignorance of tax law changes is not an excuse for making the right payments. The good news is tax law tends to change in small ways. To the shock of most taxpayers, the fact is most of the changes tend to be designed to solve ambiguities in the laws. Following are the latest changes you should know about. When something big and bad goes down, the IRS provides taxpayers with relief. The Southern California fires are such a thing. The IRS has announced all tax returns for taxpayers in disaster zones are now continued to January of 2008. In addition, the IRS is waiving the failure to deposit penalty for employment and excise deposits due on or after Oct. 21, 2007, and on or before Nov. 5, 2007, as long as the deposits are made by Nov. 5, 2007. In other news, the IRS is talking poker. Specifically, it is closing a loophole in reporting regulations. Starting March 4th of 08, people or businesses putting on poker tournaments will be required to report certain winnings by players. Once the regulation goes into effect, poker tournament sponsors will be required to report winnings of $5,000 or more. Said sponsors will not, however, be required to withhold taxes from the winnings for deposit with the IRS. On the business side of things, the IRS has taken steps to help small businesses with S incorporation. Many form corporations without realizing they must file the application for an "S" quickly and end up stressing trying to get it done. After years of complaints, the IRS has finally acted. It still wants you to meet the designated deadlines. If you don't, it will give you relief. You now have until the filing date of your first fiscal year corporate return to make the designation. Boom goes the real estate market and with it many homeowners. As if foreclosure wasn't bad enough, do you realize it has tax consequences? The mortgage balance you escape can be considered income to you, creating a huge tax liability. The IRS views the relief from mortgage debt as income to the homeowner. Yes, the loss of your home could actually result in a huge tax bill. Fortunately, the IRS is creating some special rules to provide relief from the tax consequences of foreclosure. As you might expect, the rules and issues are somewhat complex and highly dependent on your specific situation. I recommend that you visit the excellent site maintained by the IRS to read up on the subject if you have or are concerned about losing your home. Unless the government ever wakes up and eliminates the income tax, it is just going to get more complex. You know the latest changes, but make sure you check each quarter to stay on top of new ones.
Article Source: http://finance-cp.com
Get more information on federal income tax at BusinessTaxRecovery.com.
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