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Haiti Donations in Early 2010 OK For Claiming On 2009 Returns

Posted by Administrator on Feb-1-2010

The IRS announced a new tax relief for people who contributed to providing earthquake relief in Haiti. It allows contributors to get the tax advantage of the donation for their 2009 claim rather than waiting a year for the benefit.

According to the irs.gov website, only cash contributions made after January 11, 2010 and before March 1, 2010 will qualify. All cash donations made after March 1, 2010 will only be eligible to be claimed for the 2010 tax year.

To gain the benefit, you must itemize your tax deductions using Schedule A. For more information, please visit the IRS website at irs.gov.

Archive for March 21st, 2008

Mar
21

How Was The IRS Formed?

Posted by Administrator

16th-amend.jpgBelieve it or not, the roots of the IRS go all the way back to the years of the Civil War. In the year 1862 President Lincoln and The United States Congress created a new government position.

It was called “Commissioner or Internal Revenue”. The position was created in mainly in order establish and enforce an income tax to fund the war itself.

A decade down the road, this income tax was repealed. Although Congress re-established the income tax in the 1890′s, the Supreme Court quickly declared it unconstitutional.

However, the 16th amendment, which was ratified in 1913, gave Congress the power to create and enforce an income tax once again. This is the year in which the first 1040 was printed.

For anyone who made between $3,000 and $500,000 . . . the applied tax rate was 1%. Anybody who made more than $500,000 was taxed about 7%.

(A copy of the 16th amendment can be seen to the right.)

Mar
21

A Little About The IRS

Posted by Administrator

irs2.jpg The Internal Revenue Service or IRS as it is more commonly known is a branch of the United States Department of Treasury. They are ironically one of the most efficient tax agencies in the world. In 2004 alone, the IRS collected over $2 trillion in revenue. Over an astonishing 224 million tax returns were received and processed in the same year.

 

The Internal Revenue Service wants to help Americans understand and fulfill their duties as tax payers. While the IRS helps us to comply with tax laws, we can actually look to congress to create them. The IRS just helps us complete with these important laws and tries to establish equality in justice among tax payers.