TurboTax Tries to Avoid '07 Filing Nightmare

Millions go unreported thanks to 'unrealized appreciation'

(NEWSER) - If President Obama wants a "Buffett Rule" to keep billionaires paying their fair share of taxes, he’ll have to look at the "800-pound gorilla" in the room, tax experts say. That gorilla, explains one expert, is "unrealized appreciation"—cash that America’s wealthiest take in via stock transactions that isn't considered taxable income, Bloomberg reports. Case in point: Sports impresario Red McCombs claimed a $9.8 million loss on his tax return, but conveniently omitted the $259 million he’d scored by loaning shares of Clear Channel to an investment bank. Because he won't actually sell them to the bank for a few years, he didn't pay capital gains tax at the time. More»

IRS rules onerous, expatriates say

(NEWSER) - It's April again: time to add up receipts, find little-known tax breaks , and, in some cases, renounce US citizenship altogether. In fact, a record number of Americans abroad renounced their citizenship last year as complaints increased about IRS rules, Reuters reports. One rule forces all Americans to file forms for foreign accounts containing at least $10,000. Another, newer rule stipulates that financial institutions must cough up information on US clients to the IRS. More»

Accountants and tax lawyers share tips for beating Uncle Sam

(NEWSER) - So the New York Times is offering tips for tax cheaters. Guess we know which newspaper will be audited next—but for now, let's take advantage of the paper's survey of 20 tax lawyers, accountants, and policy wonks:

• The easiest way to cheat is ... running your own company—or, more specifically, being the sole proprietor of a Schedule C business. Such tax filers write off tons of personal expenses and payments to family members (even to "infant children," says one CPA).

He could owe tens of thousands, tax lawyers say

(NEWSER) - Newt Gingrich's tax returns might qualify him for an audit, tax attorneys tell USA Today, saying that the presidential contender may have dodged paying tens of thousands in Medicare tax. Gingrich's campaign contends that "the salary and distribution were handled properly and legally." The matter stems from Gingrich's use of what is known as an S Corporation, which sends income and losses to shareholders for tax assessment. S Corporations don't have to pay a 2.9% Medicare tax on non-salary distributions—but they are supposed to pay employees via salary to a "reasonable" extent, the IRS says. More»

Also of note: Tax day has changed

(NEWSER) - Cheer up 99%; at least you're not getting audited. The IRS turned up the heat on the wealthy in 2011, auditing 12% of people earning a million dollars or more, according to figures released yesterday. That's up from 8% of millionaires in 2010 and 6% in 2009. By contrast, only 1% of people making $200,000 or less got a call from the tax man, the AP observes. More»