The first-time homebuyer's credit -- of up to $8,000 -- has certainly been popular. And, it's given a much-needed boost to the lagging real estate market.

But according to a report from the Treasury Inspector General last year, the program has seen plenty of dubious activity. In fact, there are now more than 107,000 civil cases in progress (even a four-year old claimed a credit!).

Continue reading First-Time Homebuyer's Credit Gets a Makeover

First-Time Homebuyer's Credit Gets a Makeover originally appeared on BloggingStocks on Sun, 17 Jan 2010 11:40:00 EST. Please see our terms for use of feeds.

The federal and state governments regulate a variety of industries that help with your money -- such as stockbrokers. However, when it comes to preparing taxes, the licensing is fairly sporadic. Only a few states have requirements. Kind of scary, huh?

Well, things are going to change. The IRS has announced that it will take the responsibility of regulating U.S. tax preparation companies, such as H&R Block (HRB) and Jackson Hewitt (JTX).

Continue reading IRS Finally Regulates Tax Preparers

IRS Finally Regulates Tax Preparers originally appeared on BloggingStocks on Tue, 05 Jan 2010 13:40:00 EST. Please see our terms for use of feeds.

With the recession, the federal government implemented a variety of tax-saving programs to spur business. But as should be expected, there are limits. Might some of the tax-breaks go away next year?

To get some insight on the matter, I had a chance to talk to Michael D'Avolio, who is a senior tax consultant at Intuit (INTU). When considering any tax advice, you certainly should talk to a pro.

Continue reading Entrepreneur's Journal: Some last-minute tax strategies

Entrepreneur's Journal: Some last-minute tax strategies originally appeared on BloggingStocks on Sun, 29 Nov 2009 18:10:00 EST. Please see our terms for use of feeds.

Another player in the Bernie Madoff saga has fallen. His longtime auditor, David Friehling, pleaded guilty in federal court on Tuesday to charges of securities fraud, investment adviser fraud, making false filings with the SEC, and obstructing or impeding the administration of the Internal Revenue laws (among others).

Despite the plea, Friehling still told U.S. District Judge Alvin K. Hellerstein, "At no time was I ever aware Bernard Madoff was engaged in a Ponzi scheme."

Continue reading Friehling: Another Madoff domino falls

Friehling: Another Madoff domino falls originally appeared on BloggingStocks on Wed, 04 Nov 2009 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Homebuyer's tax credit: A hotbed of fraud?

Homebuyer's tax credit: A hotbed of fraud? originally appeared on BloggingStocks on Thu, 22 Oct 2009 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Swiss banks give a little but still have bloody hands

Swiss banks give a little but still have bloody hands originally appeared on BloggingStocks on Thu, 20 Aug 2009 17:10:00 EST. Please see our terms for use of feeds.

DailyFinance today: Viewer beware of financial shows, IRS gives banks special treatment, lumber car company anyone, and Summers see end to economic free-fall soon originally appeared on BloggingStocks on Thu, 09 Apr 2009 18:15:00 EST. Please see our terms for use of feeds.

If I could be reincarnated, I would come back as a banker. The world revolves around them. They get multi-million dollar bonuses, live in Fifth Avenue apartments, own spreads in Greenwich, CT, and summer in seaside cottages in the Hamptons. When their money-making schemes go awry, taxpayers bail them out -- and even pay their bonuses!

But we already knew that. What I did not know, until I read this, is that banks also get the kid glove treatment from the Internal Revenue Service (IRS) when it comes to audits. In fiscal 2008, the financial services industry got audited at a 9% rate -- less than half the 19% audit rate for all other industries that fiscal year.

Is banking getting off easy because it's so much more virtuous? Not at all. In fact, recent IRS audits reveal that banks under-report taxable income at a far higher rate than IRS audits of the four other industry groups. And this doesn't even include Swiss banks like UBS (NYSE: UBS) which have been helping clients dodge U.S. taxes for years -- it just paid $780 million in fines for those sins.

Continue reading Is the IRS giving banks the kid glove treatment?

Is the IRS giving banks the kid glove treatment? originally appeared on BloggingStocks on Thu, 09 Apr 2009 12:00:00 EST. Please see our terms for use of feeds.

A lot of observers have been complaining that federal bailouts of failed financial institutions have been too generous.

Now the Washington Mutual's holding company is making exact opposite claim, suing the Federal Deposit Insurance Corporation. The company claims that the fire sale to JPMorgan Chase (NYSE: JPM) violated its rights, arguing that a more orderly liquidation would have provided greater value to the company's constituents.

Continue reading Washington Mutual sues FDIC over fire sale

Washington Mutual sues FDIC over fire sale originally appeared on BloggingStocks on Sun, 22 Mar 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading IRS says it was ripped off by Stanford too

IRS says it was ripped off by Stanford too originally appeared on BloggingStocks on Mon, 16 Mar 2009 12:45:00 EST. Please see our terms for use of feeds.

Continue reading UBS announces further losses

UBS announces further losses originally appeared on BloggingStocks on Wed, 11 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

American International Group

Continue reading AIG sues U.S. over tax dispute . . . talk about cojones

AIG sues U.S. over tax dispute . . . talk about cojones originally appeared on BloggingStocks on Mon, 02 Mar 2009 08:45:00 EST. Please see our terms for use of feeds.

The New York Times reports that Wall Street investment banks -- including UBS AG (NYSE: UBS); whose vice chairman, Phil "Americans are Whiners" Gramm resigned as chief economic advisor to John McCain -- have been helping foreign hedge funds dodge U.S. dividend taxes. The good news is that the amount of lost taxes looks to be in the "mere" hundreds of millions -- a tiny amount when you consider the record $490 billion deficit we face for 2009.

The tax dodging scheme -- dubbed "dividend enhancement" -- is complex and UBS was not alone in pushing it. The New York Times reports that Morgan Stanley (NYSE: MS), Lehman Brothers (NYSE: LEH), Deutsche Bank (NYSE: DB), Merrill Lynch & Co., Inc. (NYSE: MER) and Citigroup, Inc. (NYSE: C) joined UBS in this scheme to sell complex financial products that enable offshore hedge funds who get dividends from U.S. stocks to dodge the 30% dividend tax.

But UBS is continuing to look more and more like a shady enterprise. First, it gained notoriety for its brazen policy of dumping Auction Rate Securities (ARS) from its own books into the accounts of its unsuspecting "private banking" clients. It has since settled those charges. And now it stands accused of helping a hedge fund, Maverick Capital, bilk the U.S. government of "$95 million in dividend taxes from 2000 through 2007," according to the Times.

Continue reading UBS helps foreign hedge funds dodge U.S. taxes

UBS helps foreign hedge funds dodge U.S. taxes originally appeared on BloggingStocks on Thu, 11 Sep 2008 10:00:00 EST. Please see our terms for use of feeds.

In a tough economy, the income tax burden on individuals becomes more of a weight. Add the payments to higher gas prices, mortgages that are being reset at lofty levels and rising food costs and the results can be awful.

But at least corporations are paying income taxes to carry part of the burden of running the federal government, right? Too bad that it turns out that this assumption is wrong. As The New York Times writes, "Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released Tuesday by the Government Accountability Office, the investigative arm of Congress"

How sweet a deal is that?

Part of the trick is that many companies move money to countries outside the U.S. where the tax burden is lower.

In a period where the federal deficit is at nose bleed levels and individual tax payers are being crushed, Congress will probably be upset enough to pass bills to correct the inequity.

How the companies got away with it for so long is a question that is pretty disturbing.

Douglas A. McIntyre is an editor at 247wallst.com.

Companies that don't pay taxes - and it's most of them originally appeared on BloggingStocks on Wed, 13 Aug 2008 12:40:00 EST. Please see our terms for use of feeds.

Dan Solin is the author of The Smartest Investment Book You'll Ever Read (Perigee Books, 2006) and The Smartest 401(k) Book You'll Ever Read (Perigee Books, 2008).

Dumb Money Move No. 7: If you can't pay your taxes, don't send in your return originally appeared on BloggingStocks on Fri, 08 Aug 2008 06:00:00 EST. Please see our terms for use of feeds.

Continue reading IRS has money to give -- 'Please stay on the line...'

IRS has money to give -- 'Please stay on the line...' originally appeared on BloggingStocks on Fri, 20 Jun 2008 14:26:00 EST. Please see our terms for use of feeds.

Continue reading An IRS letter worth waiting for

An IRS letter worth waiting for originally appeared on BloggingStocks on Fri, 29 Feb 2008 11:16:00 EST. Please see our terms for use of feeds.

Continue reading As gasoline price rises, so does clamor for gasoline tax credit

As gasoline price rises, so does clamor for gasoline tax credit originally appeared on BloggingStocks on Wed, 27 Feb 2008 17:35:00 EST. Please see our terms for use of feeds.

Actor Wesley Snipes' trial for tax evasion will begin today in Oscala, Florida. Between 1999 and 2004, Snipes earned $38 million and paid precisely nothing in taxes.

What's his explanation? Ah, that's easy: He doesn't think he has to pay taxes. According to the New York Times, Snipes has "become an unlikely public face for the antitax movement, whose members maintain that Americans are not obligated to pay income taxes and that the government extracts taxes from its citizens illegally."

Snipes will argue that he didn't break the law on the basis of the so-called 861 provision which claims that only "compensation for services" and not wages are taxable. The theory has been rejected in the past but, in recent years the government has lost several major cases involving tax deniers.

In order to be successful, Snipes will have to convince people that he genuinely believed that he did not have to pay taxes. The case's high profile nature makes it a must-win for the government: A loss would be a big boon to the antitax movement, and would doubtless embolden tax evaders.

Wesley Snipes tax evasion trial begins originally appeared on BloggingStocks on Mon, 14 Jan 2008 14:50:00 EST. Please see our terms for use of feeds.

Continue reading For some Americans, the wait for tax refunds could be longer than expected

For some Americans, the wait for tax refunds could be longer than expected originally appeared on BloggingStocks on Fri, 28 Dec 2007 15:18:00 EST. Please see our terms for use of feeds.