Ed Fugate CPA

11/18/2019

Good idea (It's not what you think)

Better enforcement would bring in an extra $1 trillion over the next 10 years.

03/07/2017

Answer - no, it isn't.

It's easier to save for retirement when you earn a large income.

02/27/2016

Updated tally more than doubles previous damage threat for U.S. taxpayers

05/18/2015

Worth the read

The IRS normally must audit within three years of your return filing, but allegations of fraud can give the IRS unlimited time.

04/22/2015

Bill O'Reilly is an idiot.

Fox's resident war hero has literally the worst possible take on income inequalityIt’s pat at this point to observe that income inequality will be a defining issue of the 2016 race. Everyone is wondering just how far Hillary Clinton will shift to the left on economic policy to keep the Elizabeth Warren wing of the Democratic Party from revolting, and Republicans are paying lip service to the problem while pushing the policies that exacerbated it in the first place.Sensing this rising concern over income inequality among the 2016 candidates, Fox News’ Bill O’Reilly stumbled dewlap-first into the issue last night and offered his take on the state of the American economy. And, as is his wont, he got almost everything completely wrong. To Bill O’Reilly, the real inequality is found in the government’s unfair taxation of wealthy people like himself.Let’s break down Bill-O’s treatment of income inequality piece by piece to get a better handle on just how thoroughly bad his analysis was.O’REILLY: This year 2015 the feds will gather more tax dollars than ever before in the history of the U.S.A. — about $3 trillion. That’s because since taking office, President Obama has proposed a whopping 442 tax increases. Not counting 20 others associated with Obamacare.Has Obama really proposed 442 tax increases? Nope. Not even close. It’s a bogus talking point that Grover Norquist’s anti-tax group manufactured, and they arrived at that number through vigorous double-counting and by throwing in a bunch of things that aren’t actually tax increases. More to the point, the mere act of proposing a tax increase does not actually increase taxes or raise revenues. According to the Congressional Budget Office, tax revenues in 2015 are going up in part because certain business tax breaks are expiring, but also because the economy is growing, and more jobs means more taxable income.Continuing on:O’REILLY: As you may know, Americans earning more than $400,000 a year must pay close to 40 percent of their income to the feds; Social Security taxes increased from 4.2 to 6.2 percent — all workers pay that; and itemized deductions which can bring tax bills down, now being phased out for high wage earners and profitable businesses.The takeaway from this is that Bill O’Reilly doesn’t appear to understand how marginal tax rates work. In 2014, any single filer who made more than $406,750 in income was subject to the top marginal rate of 39.6 percent. This does not mean they paid “close to 40 …

03/25/2015

So, where do you live? Would you consider moving just to get lower taxes?

For most of us, taxes are overwhelmingly our largest ongoing expense—bigger than housing, transportation, and other costs. So in addition to your federal income tax, how much your state takes from you makes a big difference for your financial picture.When we recently posted a map showing counties with the highest property tax rates, more than a few readers asked for a followup comparing other taxes: state income tax, sales tax, and other tax burdens. It's very complicated to draw a complete picture thanks to special rules each state has, but Kiplinger's tax map above summarizes the various taxes by state and ranks them by how tax-friendly they are.Criteria included in the map: state sales tax, income tax range, gas tax per gallon, median property tax (tax on the state's median home value), tax on inheritances and estates, sin taxes (alcohol and to***co), vehicle taxes, and travel taxes (taxes on hotel and rental cars).On the interactive map, you can select up to five states to compare their taxes side-by-side or read about each state in particular.Another Kiplinger map for retirees shows how states tax retirement income (including Social Security benefits) and whether there are tax breaks for seniors.Overall, just more to consider if you're thinking about where to live. Unfortunately, not only is it harder to make a living in some states, depending on where you live, more of your money will be going towards taxes.State-by-State Guide to Taxes | Kiplinger

03/24/2015

This scam is making the rounds. Beware.

03/19/2015

Check this out.

Are you really you?The Internal Revenue Service (IRS) is ramping up efforts to thwart identity theft. As part of those efforts, IRS is reminding taxpayers who receive requests from the IRS to verify their identities using the Identity Verification Service website at idverify.irs.gov.I know: this sounds like a scam. You’re right to be suspicious. I just reported on a bogus IRS verification email scam making the rounds.But this is legit. Pay attention, though. You’re not going to be asked to verify your identification via email. Ditto for phone calls. The IRS will not initiate contact with you to verify your identification via email or phone.If IRS has a concern about a suspicious tax return with a real taxpayer’s name and/or Social Security number, they will send you a letter. It’s a specific letter: Letter 5071C (check the upper corner of the letter for the number). If you receive Letter 5071C, you should follow the directions and access idverify.irs.gov. If you do not receive a Letter 5071C, you do not need to access the site.On the IRS Identity Verification Service website, you’ll be asked questions that only you can answer. This is similar to the system that some states are using to confirm refunds.Once you verify your identity, you can confirm whether you filed the tax return IRS finds to be suspicious. If you did not file the return, IRS will help you with the next steps. If you did file the return, your return will be processed (it will take approximately six weeks) and you’ll be issued a refund, if one is due.If you’re nervous about using the website, you can also follow the instructions in the letter to call a toll-free number. Expect to wait a bit if you’re calling the toll-free number.When responding to the letter, you should have copies of your prior year tax return and your current year tax return, and any supporting documents, like your forms W-2 and 1099.Opportunities for fraud are plentiful these days so be careful. Use caution when replying to correspondences. Don’t respond to email purporting to be from IRS and don’t offer up personal details on the phone. If you’re visiting an IRS web site, always look for a URL ending with .gov – not .com, .org, .net, or anything else.

03/09/2015

I'm really not even sure what to say about this. I'm in favor of health care for everyone, but can't the government do anything without screwing it up?

National Taxpayer Advocate Nina Olson said the IRS is delaying refunds for tens of thousands of Obamacare enrollees.

10/03/2014

Give me a call. . .

October 2014 Tax News, New e-file Requirement for Business Entities

10/21/2013

It appears fan pages can post this morning, but not regular posts? Let me know if you see this.

07/03/2013

Check this out if you have a small business

WASHINGTON — The Internal Revenue Service today announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes.

07/03/2013

Follow me on Twitter at for up to date financial/tax info.

04/13/2013

Monday is the due date. Are you ready?

04/06/2013

Coming down the home stretch. Starting my extension list. Have you done your taxes yet, or are you planning an extension?

03/27/2013

Check out where you fall.

The Internal Revenue Service has stepped up its examinations in the past year of taxpayers with high adjusted gross incomes, according to newly released IRS figures.

01/02/2013

House of Representatives passes fiscal cliff bill. Downloaded the bill to find out how taxes are effected for me and my clients. Should make for some great bedtime reading.

12/20/2012

One more thing to worry about. . .

Potential fiscal cliff casualty: Without an AMT