Posts Tagged ‘Tax exemption’

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Internal Revenue Service Crisis Update:

In Accounting & Finances,Business,Taxes on June 26, 2013 by Sufen Wang Tagged: , , , , , , ,

Daniel Werfel is IRS’ New Acting Commissioner

There’s a new sheriff in town, and he’s here to stay…only until the end of September. On May 22 Daniel Werfel, the White House Office of Management and Budget Controller, replaced Steven Miller as Acting Commissioner of the IRS.

His job: immediate crisis management regarding the agency’s improper scrutiny of conservative-leaning groups applying for tax-exempt status. Already he has replaced Lois Lerner, the director of Exempt Organizations, with Ken Corbin. And Werfel’s being kept under close watch by the big men on campus: President Obama and Treasury Secretary Lew want a progress report within 30 days.

The new Commissioner is supposed to 1) ensure that staff who acted inappropriately are held accountable, 2) examine and correct any failures in the system that allowed this behavior to happen, and 3) take a forward-looking, systemic view of the agency’s organization.

It’s too soon to tell how well Werfel is handling his role, but let’s hope he does a better job than Miller, so the IRS can start focusing on its day-to-day operations again. 

 

Sufen Wang, M.S. Accountancy,

Wang Solutions, Long Beach, CA (562) 856-0793

Editor: Hannah Huff, M.F.A. Creative Writing: Poetry, (626) 806-5805

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Tax Relief for Hurricane Sandy Victims…

In Accounting & Finances,Business,Culture,Family,Insurance & Liability,Taxes on November 23, 2012 by Sufen Wang Tagged: , , , , , , ,

Hurricane Sandy Qualifies as a Disaster: Victims Given Much-Needed Tax Relief

Just because Hurricane Sandy has disappeared from the Doppler radar does not mean its aftermath dropped off the map. Almost a month has passed, but many East Coast residents are still picking through debris on their lawns and others will be homeless for the holidays. The storm really was a disaster in many ways – which is why it has been designated as a “qualified disaster for federal tax purposes.”

That’s actually good news: victims can exclude qualified disaster relief payments received from their employer (or anyone else for that matter) from their taxable income. So any payments used to repair homes or repair/replace the contents not covered by insurance, would not be included in the individual recipient’s gross income. This is also the case with any payments received for uninsured personal, family, living, or funeral expenses resulting from the storm. As a result, hurricane victims won’t have to worry about paying extra later when they’ve already lost so much.

Hurricane Sandy being named a “qualified disaster” will also help anybody trying to help the storm’s victims. Now, employer-sponsored private foundations can provide disaster relief to employee-victims in areas affected by the hurricane without having to worry that their tax-exempt status will change. An official list of those affected areas can be found here.

This tax relief is nice, but assistance for Hurricane Sandy victims shouldn’t stop there. Every cent does count, so donate whatever you can. Or if you don’t have a lot of money, volunteer a little of your time. It’s the season of giving after all.

Happy Thanks–Giving…. 

Sufen Wang 

Wang Solutions