Tax-free Memorial Day shopping for some

Tax-free Memorial Day shopping for some

Are you ready for some tax-free products?
That's what's awaiting shoppers in three states, as they've added the Memorial Day weekend to their sales tax holiday calendars.
For the last several years, around a dozen or more states have tried to entice consumers by offering the chance to buy certain products without paying the usual state and, in most cases, local sales taxes. These things have become so common, I half expect to see them start showing up on mass-market datebooks.
When that does happen, most of the tax holidays will be blocked off on fall weekends, giving retailers a chance to tie tax savings to back-to-school sales.
But Tennessee decided to offer a spring event back in April. And Texas, Virginia and Louisiana are kicking off their summer seasons with tax-free holidays beginning this Memorial Day weekend.
Don't worry. The early tax-free shopping option in these four states doesn't replace their fall events. I'll get you the details on them and the other states with sales-tax holidays scheduled for later this year as those dates near.
But for this weekend (and beyond, in one case) here's the scoop on tax holidays.
Texas
The Lone Star State's early tax holiday supplements its regular back-to-school event in August. While the fall event offers tax savings primarily on clothing and footwear, this weekend is designed to save you tax dollars on energy efficient appliances.
Dubbed the 2008 Energy Star Sales Tax Holiday, it runs from 12:01 a.m. on Saturday, May 24, through 11:59 p.m. Memorial Day, Monday, May 26. During this time, Texas shoppers won't have to pay the state's 6.25 percent sales tax or associated local levies (which make the combined rate here in Austin 8.25 percent) on just about anything that bears an Energy Star sticker.
Eligible products include air conditioners, washing machines, refrigerators, ceiling fans and dishwashers. Even some light bulbs qualify.
This Web page has details on all of Texas' tax-exempt products and special situations such as Internet and catalog sales, as well as lay-away purchases.
Louisiana
The Pelican State is still recovering from Hurricanes Katrina and Rita in 2005, so its officials are still a bit wary about what the upcoming storm season might bring. And to ensure that Louisianans are prepared, this Memorial Day weekend the state is waiving its sales tax on purchases of hurricane supplies.

On May 24 and May 25, hurricane preparedness items worth up to $1,500 each are tax free. Items that qualify include radios, generators, portable lights, cell phone batteries and chargers, food coolers and "storm shutter devices."
Having been through three hurricanes myself (yep, that's a big reason the hubby and I high-tailed it back home to a more inland Texas location), I can attest to the value of getting items to help you cope with a 'cane beforehand. So you bayou area shoppers, take advantage of this tax break.
You can check out this document for holiday details, as well as this special flyer.
And while this is Louisiana's first hurricane preparedness tax holiday, it won't be the state's last. The new law calls for the event to be held on the last Saturday and Sunday of each May.
Virginia I don't seem to recall Virginia suffering through a major hurricane in a while, but officials there don't want to take anything for granted. So the Old Dominion also is offering its shoppers a chance to stock up tax-free on hurricane and other emergency preparedness items.
In fact, Virginia shoppers have a week -- from Sunday, May 25, through Saturday, May 31 -- to pick up certain tax-exempt supplies, such as portable generators costing $1,000 or less and a wide range other eligible items priced at $60 or less.
This list of items has details. You also can check out the state's frequently asked questions about the Memorial Day event.

Was Your Tax Return Stolen?

In the United States, there were ten million victims of identity theft last year, and many of these victims had their information compromised electronically. Cyber identity theft targets almost any document or website that may contain sensitive personal or financial information, and tax returns contain a great deal of both. If you submit your tax returns online or save a copy of your return on your PC, your return may be vulnerable to identity thieves. Mailed tax returns are not much safer; identity thieves can and often do steal mail quite easily. In this post, we’ll describe how to tell if your tax return has been stolen and how you can prevent it from happening in the first place.

Warning Signs

Although stolen tax returns often go undetected, there are several warning signs taxpayers can watch for. Here are a few red flags that your tax return may have been compromised:

• You receive a letter or notice in the mail from the IRS. If the IRS receives more than one tax return for the same taxpayer, it will send you a notification in the mail. Typically, multiple tax returns indicate some sort of identity theft. Similarly, the IRS will notify you if you appear to be receiving wages from an unknown employer. In this case, an identity thief may have used your information in order to get a job and has filed taxes under your name.
• You don’t receive your refund. If your tax refund never comes, you should contact the IRS immediately. While the refund may just be delayed or lost in the mail, it could have also been diverted into another account by an identity thief. When thieves steal tax returns, they often alter the account information so the refund is electronically wired to their bank accounts.
• You notice inconsistencies on your credit report. There is also the possibility that the thief did not steal your actual tax return, but did steal the information it contained. In this case, the thief could use the information to open credit cards, get jobs, and apply for loans in your name. Review your credit report for irregularities and, if you find any, consider your tax return as a possible source of the breach.

Prevention

So many tax return thefts can be prevented with a few simple precautions. Here are some things you can do to reduce the risk of theft:

• Don’t store electronic copies of your tax return on your computer. Anything you store on your computer could potentially be accessed by an unauthorized party. Many tax returns end up in large online repositories for public viewing because identity thieves have sold them for money. Instead of keeping an electronic copy, write down your tax information and keep it in a safe or lockbox.
• Shred unneeded tax-related documents. Tax documents only need to be retained for three years. After this time has passed, shed any records you will not need.
• Don’t respond to emails or unsolicited calls from the IRS. The IRS does not communicate via email and will not ask you to give your information out over the phone, so do not respond to these forms of communication.
  
  
  
  
  
  
  
  
  
  
   
  
  
  
  

Tax Relief for Victims of April 19 Storms in Tennessee

Tax Relief for Victims of April 19 Storms in Tennessee

Updated 5/27/11 to include Gibson and Lauderdale counties. AL/TN-2011-30TN, May 10, 2011 NASHVILLE — Victims of severe storms, tornadoes, straight-line winds and flooding beginning April 19, 2011 in parts of Tennessee may qualify for tax relief from the Internal Revenue Service. The President has declared the following counties a federal disaster area: Dyer, Gibson, Lake, Lauderdale, Obion, Shelby and Stewart counties. Individuals who reside or have a business in these counties may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 19 and on or before June 30 have been postponed to June 30. In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after April 19 and on or before May 4, 2011, as long as the deposits were made by May 4, 2011. If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period. The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief. Covered DisasterArea The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below. Affected Taxpayers Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief. Grant of Relief Under section 7508A, the IRS gives affected taxpayers until June 30 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after April 19 and on or before June 30. The IRS also gives affected taxpayers until June 30 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due to be performed on or after April 19 and on or before June 30. This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above. The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after April 19 and on or before May 4 provided the taxpayer made these deposits by May 4. Casualty Losses Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions. Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Tennessee/Severe Storms, Tornadoes, Straight-line Winds and Flooding” at the top of the form so that the IRS can expedite the processing of the refund. Other Relief The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS. Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS Web site, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

IRS Gives Joplin Area Taxpayers Additional Filing and Payment Relief

IRS Gives Joplin Area Taxpayers Additional Filing and Payment Relief

ST. LOUIS –– Following the devastating tornado Sunday in the Joplin, Mo., area, the Internal Revenue Service is giving victims additional time to meet their tax obligations.

Individual and business taxpayers in Jasper County now have until Aug. 1, 2011, to file various returns and pay any taxes due. In addition, federal employment and excise tax deposits due on or after May 22 are now due June 6, 2011.

This relief applies to Jasper County victims of the May 22 tornado as well as earlier storms and flooding that began April 19. For any affected taxpayer, a filing or payment deadline falling on or after April 19 and before Aug. 1 is postponed until Aug. 1, 2011. The postponement also applies to other time-sensitive actions required to be performed during this period including the June 15 deadline for making the estimated tax payment for the second quarter of 2011. 

The filing, payment, and deposit deadlines for other Missouri counties affected by recent storms remain unchanged