Tax time is coming up for Nevada residents, and this year could be more confusing than most. There are certain documents everyone needs to begin the process of filing, so it is important to remember to keep checking both your mailbox and email to ensure they are received. Doing so could make for a smoother filing process and ensure no IRS penalties are levied.
The fiscal cliff will continue to affect Nevada residents for the upcoming year. With this in mind, several tips for taxpayers are being published. Although the fiscal cliff has been avoided and the potential IRS tax crisis avoided, taxpayers should be aware there could be a wait to file taxes. It takes time for the IRS to take into account all of the changes enacted for the year. Residents may have to wait until March before they can file.
Nevada fans of comedian Katt Williams may be following his recent troubles. Although he has been the subject of several law violations, he is now in the crosshairs of the IRS. Recent news reports Williams has been hit with an IRS tax lien. The lien came about a week before Christmas and is reportedly for several million dollars.
Without the resulting fiscal cliff deal, Nevada taxpayers and those across the nation would probably have been affected by tax hikes. With the expiration of certain tax breaks, the threshold for the alternative minimum tax (AMT) would have reverted back to laws from the year 2000, potentially opening up several million people to the possibility of additional IRS debt. However, Congress came to a deal on the fiscal cliff and averted the crisis. There is now a permanent solution for the tax so taxpayers can scratch it off their list of things to worry about during tax time.
Nevada residents may be gearing up to begin tax return preparation. While many people remember to donate to their favorite charities, they may not remember to make their IRA distributions. The IRS is warning taxpayers to ensure they make the required distributions because they will likely crack down in an effort to control the loss in tax revenue.