Archive for May, 2009

There are times when a joint return results in liabilities in the form of penalties, tax, and interest. Sometimes, one spouse may be innocent. In the past, an innocent spouse had only two years to apply for relief. A recent Tax Court decision loosens some of the restrictions. This article outlines the current landscape around innocent spouse rules.

Read the rest of this article »

A yearly review is a must but you may want to take a peek now.

It’s a very good idea to do an annual review of your Form W-4s and/or have a review performed by a professional. Normally these reviews take place at the end of the year, however, developments since the beginning of 2009 may require withholding adjustments and you may want to do a review in the near future.

A year-end review of the W-4 should assess your tax situation and adjust your withholding accordingly. If you get married, divorced, change the number of dependents you have or have a change in income you may need to claim fewer withholding allowances or even additional allowances.

Here are some key areas to consider.

Read the rest of this article »