Implications Of Passing A Senate Bill Enacting An Online Sales Tax
Posted on | May 10, 2013 | 2 Comments
The Senate Bill Enacting An Online Sales Tax
Congress is currently moving forward with a Senate bill that could place sales taxes on buyers who place orders for items housed out of state. This proposed law applies to e-commerce sites, and the main goal of this online sales tax is to generate revenue for cash-strapped state governments in jurisdictions where online retailers are headquartered. The bill has its opponents among online retail giants such as eBay, and it also has supporters among the President and a number of state government officials.
Oregon – no sales tax (Photo credit: Richard Masoner / Cyclelicious)
Only online retailers that gross more than $1 million per year in sales will be subject to this online sales tax. Shoppers at large online retailers such as Amazon will see slightly higher bills for each order they place, and the tax will also apply to brick-and-mortar retailers who sell items online. A few of these vendors include Best Buy, Target, Wal-Mart and many others.
Proponents of this online sales tax Senate bill argue that it will level the commerce playing field for both physical store locations and online retailers. Some believe that online vendors have had an unfair competitive advantage of being free from such sales taxation until now. According to this viewpoint, having a set of laws that taxes both types of sellers equally is considered a fair rule of doing business in the digital age. Depending on the individual taxes rates in different geographic regions, some states could have an online sales tax of 7% per purchase while others could have one as high as 9%.
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Tags: Best Buy > Bill (law) > eBay > Online shopping > Sales tax > Senate > tax > Walmart
TurboTax Fights Filing Reform
Posted on | April 5, 2013 | No Comments
TurboTax Fights Filing Reform
TurboTax has come under fire recently after a report from Propublica revealed that Intuit, TurboTax’s parent company had launched a massive lobbying effort against what is known as return-free tax filing.
TurboTax app (Photo credit: fixedgear)
This method, which is already used in other countries, would have the IRS prepare an estimate of the taxpayer’s liability. The recipient would have the option to accept the estimate, make corrections to it, or reject it and prepare his own return, using a tax preparation company or other option.
This process puts the onus on the IRS to use the information that employers and banks have already provided to them to prepare these files. The taxpayers who would benefit most from this process are those who file simple forms with no itemization. Up to 40% of taxpayers could benefit from this system.
TurboTax 2013 would have suffered a clear loss of revenue by implementation of this plan. Fewer taxpayers would actually need to file, and TurboTax, being the largest online tax preparation firm, would certainly feel the loss of preparation fees.
Other tax firms and some political figures have opposed return-free filing because they feel the plan expands government control and that receiving a “bill” from the government might intimidate taxpayers into paying the amount without question.
Free Turbo Tax 2013 preparation would not have been necessary if the return-free plan had been adopted. Considering that TurboTax 2013 garners much business by selling consumers upgrades to more expensive packages, the company’s opposition is understandable from a financial standpoint. They cannot, however, claim an impartial interest in the matter.
Return-free filing is not a new idea and has been endorsed by two Presidents and a host of consumer advocates. Other countries have already successfully adopted such a plan, but strong lobbying efforts by TurboTax and other tax preparation firms have so far kept it from becoming a reality in the United States.
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Tags: internal revenue service > Intuit > irs > Propublica > tax > Tax Preparation > TurboTax > United States
Turbo Tax Television Ads Will Continue
Posted on | March 20, 2013 | No Comments
Turbo Tax Television Ads Will Continue
TurboTax. H&R Block was attempting to stop their television ads from airing. The initial lawsuit was filed in January, 2013 on the grounds of an infringement on the company’s trademark. H&R Block stated that Intuit’s TurboTax commercials showing people having their taxes prepared by inexperienced tax preparers was directed at the company.
H&R Block, Miles City (Photo credit: dave_mcmt)
H&R Block is trying to stop Intuit from airing two ads. The first is a scene of a shopper checking out in a women’s clothing store and the sales clerk remembers that she did the customer’s tax return the previous week. The second commercial shows a plumber that is fixing a kitchen sink and he announces to the family that he did their taxes.
First Lawsuit Lost
The U.S. District Court for Missouri ruled against H&R Block’s first lawsuit filed in January, 2013. H&R Block is headquartered in Kansas, Missouri. This in essence meant that Intuit could continue to run its ads and to promote its services such as Turbo Tax 2013 free, and the benefits of using the online software for free tax preparation.
Preliminary Injunction Denied
H&R Block attempted a preliminary injunction to cease the TV ads in March, 2013, but once again, the U.S. District Court rejected the request.
The television ads do not mention H&R Block by name and Intuit has made it clear that the advertisements were to educate the public on tax preparation. Many people have no clue when it comes to taxes and depend on a professional software application such as Turbo Tax 2013 free or a professional tax preparer. H&R block is continuing its lawsuit against Intuit, a spokesperson for the company confirmed.
Why H&R Block is Concerned
Intuit notes in the ads the lack of experience needed in retail tax stores. Intuit stated they only hire CPAs, tax attorneys, and Enrolled Agents to offer advise to customers about tax questions. With both attempts by H&R Block to stop the commercial ads, it’s clear that the U.S. District Court does not see this as an infringement on the company’s trademark, which was the grounds for the original lawsuit.
Intuit and Television Ads
Intuit has said they will continue to run the two ads despite the H&R Block’s determination to keep the lawsuit going. The TurboTax software can be accessed on a secure website and offers free tax preparation in an intuitive and user friendly application. The programs walks the filer through the process by asking question. It sometimes will recommend a different filing especially for the self-employed.
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Tags: Block > Enrolled Agent > H&R Block > Intuit > Kansas > R Block > Tax Preparation > TurboTax
What Do The IRS And Your Ex-Girlfriend Have In Common?
Posted on | February 26, 2013 | No Comments
You Don’t Want To Hear From Either One Of Them
What does getting an email from the IRS and getting an email from your crazy ex-girlfriend have in common? They are both something that you don’t want to open. The best advice is, don’t. If you get one of the IRS emails, it is best to not open it, or even altogether ignore it. We all know that the IRS is anything but a friend of yours, so why would they be sending you an email? They probably wouldn’t. It is just one of the latest scams that impostors are trying to pull off.
Exterior of the Internal Revenue Service office in midtown New York. (Photo credit: Wikipedia)
Scammers know that when you see the IRS come up on any document, your first reaction is fear, and the second is that you had better answer it quickly to avoid penalty. When you use Turbo Tax 2013, you will have direct access to the IRS email, but they will never have a reason to reply unless it is an auto response. As a general rule, if you ever receive an email from any company asking you for personal information, don’t answer it. Any doubts you have about its authenticity, which there should be many, can be addressed by contacting them directly. If you are the one to contact them using official channels, than you can feel secure about any information that you supply to them.
It is best, if you receive IRS emails, to pick up the phone and contact them directly. After all, nothing ever gets settled through email, you will have to follow up any issue with a live representative anyway. So, it’s best to do with that email what you would with your ex-girlfriend’s, ignore it.
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Tags: Confidence trick > Identity theft > internal revenue service > irs > Personally identifiable information > Phishing > Social Security number > tax > Tax Preparation > tax return > TurboTax > United States
Turn to a Phoenix Tax Lawyer for Advice
Posted on | February 7, 2013 | 1 Comment
Taxes (Photo credit: Tax Credits)
Filing taxes can feel like a daunting process at times. Tax laws at the federal, local, state, and foreign levels change constantly, causing potential confusion for taxpayers filling out a return. Turn to a Phoenix tax lawyer for advice; they possess the knowledge and combined expertise of tax, business and litigation to counsel and guide individuals effectively. Their understanding of how the different tax laws interplay helps clients to minimize their tax liabilities.
Tax issues can impact many areas of a person’s life, from estate planning to formation of a new business, and bankruptcy, to name just a few. Attorneys can assist with protection of assets through by setting up an entity to protect from malpractice, divorce, or any other threats to a client’s assets. In essence, proper planning avoids stress and anxiety in the event of unpleasant circumstances threatening the client’s tax situation.
A Phoenix tax lawyer can also assist with waiving IRS penalties and working out a payment plan for individuals owing money. In some situations the debt can be settled for less than the amount originally owed. Individuals behind on their filings can catch up quickly with an attorney’s assistance, thus avoiding further accrual of interest and penalties.
Individuals in need of tax assistance should seek a Phoenix tax lawyer today. Any issues or questions related to repayment of debt, filing, can be addressed knowledgeably by an attorney. They can help the client plan for the future and unpleasant events such as divorce, death, or malpractice.
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Tags: Arizona > Business > Income tax > internal revenue service > irs > Law > lawyer > Phoenix > Phoenix Arizona > tax > Tax Law > United States
Free Tax Filing for 2011 Taxes
Posted on | January 16, 2013 | 3 Comments
Tax Filing for 2011
Each year, thousands of taxpayers fail to file their federal income taxes. Some individuals willingly forgo this action while others run into special circumstances. No event or situation frees a taxpayer from their responsibilities though. With that in mind, a person can always file back taxes in order to start catching up. Various options are currently available for taxes 2011.
Tax Preparation (Photo credit: agrilifetoday)
Filing tax returns for previous years often proves relatively simple. However, an individual needs the right software and extensive records for that particular year. Products like TurboTax, TaxAct, and others offer software for past returns. Free tax filing 2011 is hard to come by but is not impossible to find. Undoubtedly, taxpayers want to save as much money as possible.
For taxes 2011, the taxpayer needs to fill out all necessary tax return forms. They should treat this return just like any other one, making sure to avoid common mistakes. Failure to do so might cause problems when the IRS receives the return. Without a doubt, it is important to handle this matter quickly to avoid major consequences and problems.
Free tax filing 2011 is still available even though it is a past tax year. Many people fail to realize that they can still finish taxes 2011. The longer an individual waits, the more penalties they will face. In the end, finishing this task quickly produces the best results under all circumstances. That fact should not be forgotten for obvious reasons. The IRS takes federal income taxes very seriously after all.
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Tags: internal revenue service > irs > tax > Tax Preparation > tax return > taxact > TurboTax > United States
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