The IRS recently released a report showing that they paid out a record $125 million to whistleblowers in 2012. The IRS whistleblower program is designed to reward those who report tax evasion or fraud with financial compensation.
As we discussed last month, the much-talked-about fiscal cliff made included some changes to capital gains tax rates. Capital gains tax for households earning more than $450,000 (or individuals making more than $400,000) will also jumped from 15 percent to 20 percent. This combines with the health-care reform taxes, bringing the top federal tax on long-term capital gains to 23.8 percent.
Like many people in California and across the country, you may choose to hand over a stack of paperwork to a professional tax preparer when tax season arrives. It can be an easy way to get your taxes taken care of without spending hours poring over documents and trying to navigate complex IRS forms.
Everyone wants to lower the amount of taxes they are required to pay in a year and get that maximum refund in the spring. With filing season upon us, you may be thinking of ways to get the most bang for your buck this year - while avoiding the dreaded IRS audit.