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Cook County’s new gun tax went into effect this week after a Circuit Court judge denied a motion for a temporary order preventing the tax from taking effect as scheduled. Those wanting to buy a gun in Cook County will pay an additional $25 on top of the sales price. The new tax is expected to generate roughly $600,000 this year. The money will be used to treat indigent gunshot victims at Stroger Hospital. For more read, “Cook County gun tax takes effect.” … [Read more...]

Casey Anthony filed for Chapter 7 Bankruptcy relief because of the massive debt she incurred during her defense against the murder charges for her daughter. The bankruptcy trustee in her Chapter 7 case declared that her life story is an asset of the bankruptcy estate and should be sold to pay her creditors. Anthony’s attorney has filed a lawsuit in bankruptcy court to stop the sale citing that it is an “unprecedented invasion” of privacy. For more read, “Casey Anthony asks bankruptcy court … [Read more...]

William M. Daley argued that Illinois should adopt a tax cut for the middle-class citizens that would tax higher income taxpayers. However, this “progressive tax” may be deceptive and actually end up costing middle-class taxpayers more money in the long term. If Illinois does reform its tax code, should it include a progressive tax or will this only be another failed attempt to offer relief to an already over-taxed middle class. For more detail about this tax issues read, “Modernizing … [Read more...]

Wesley Snipes has been freed from prison after serving a little over two years. Snipes was found guilty in 2008 on three misdemeanor counts of failing to file tax returns. From 1999 through 2001, Snipes did not pay over $7 million in personal income taxes. During his defense, Snipes claimed that he was following the advice of two advisers who were also convicted on charges of tax fraud and conspiracy. Snipes appealed his sentence by lost his appeals. To read more and see what Snipes … [Read more...]

If you are one of many taxpayers who have waited until the last minute to prepare your tax returns, you may be in luck. If you can utilize one of these last-minute deductions, you can lower your personal tax liability for 2012. The first is to deduct sales taxes for major purchases during 2012. For taxpayers who live in a state that has no personal income taxes or very low personal income taxes, they have the option of deducting local and state sales tax on their federal tax returns. You … [Read more...]

They may be rich and famous; however, a tax court in Italy did not consider that when it ruled that the famous fashion designers were guilty of tax evasion. Domenico Dolce and Stefano Gabbana were fined approximately $441 million (about 343 Euros) by the Italian tax agency. The matter relates to a 2004 transaction where the designers transferred D&G and the Dolce & Gabbana brands to another company they owned. For more details you can read, “Dolce and Gabbana fined $441 million for tax … [Read more...]

The United States Supreme Court does not hear many tax related cases; however, it is scheduled to hear an appeal involving a Texas billionaire and millions of dollars in tax penalties. The case involves the 40-percent penalty that the IRS assesses against taxpayers who are involved in some alleged tax shelters. The current cases concerns transactions from 2009 that the IRS alleges were done solely to offset gains by the taxpayer to avoid owing more in taxes. For more details about the case … [Read more...]

It is that time of year again - - tax time. Even though most people know that they must file their tax returns on or before April 15, many do not know that the IRS receives over 140 million tax returns each year from individuals and collects over $950 billion in taxes each year. On the other side of that coin (so to speak), the IRS issues over $325 billion in tax refunds each year. The average tax refund is $2,953 - - how do you compare? For eleven more facts about taxes read, “13 Surprising … [Read more...]

In short the Earned Income Tax Credit (EITC) is a refundable tax credit for low to medium income families and taxpayers. The credit, which was originally created in 1975, was established to offset Social Security taxes for low-income families. It is a huge tax benefit for low-income families as a married couple with three children could see a credit of up to $5,891 depending on other factors. Even a single person with no children can benefit depending on income level. For more about who is … [Read more...]

The formal name for this document is IRS CP3219B Notice or Statutory Notice of Deficiency. It sounds very ominous but it would not be the first contact you had from the IRS regarding their intent to assess a tax deficiency. You would have first received a notice requesting that you check your tax return against information that the IRS has received regarding your financial matters. The notice is not a bill; however, you can pay the additional tax if you agree with the IRS. If not, then you … [Read more...]