A job loss is an unfortunate event that can throw household finances and debt repayment for a loop. When it happens to you or your family, it's essential to make a list of your monthly payments and any expected household income, and to begin prioritizing them.

Typically, investment interest is only deductible to the extent of investment income. Any investment interest not allowed in the current year due to the investment income limitation is carried forward indefinitely.

In our CPA practice, we find that many clients want to hold all of their tax information until they have received that final Form 1099 or K-1. Yikes! Don't do that! Some brokerage firms don't deliver 1099s until as late as March 8th, or amend the original 1099s frequently until March 31st.

Several court decisions affirmed IRS denials of taxpayers’ charitable contributions because they failed to satisfy all of the requirements of Sec. 170 and the regulations. These cases serve as reminders for taxpayers to consider their due-diligence standards for charitable contributions. Give us a call any time for advice on how to make contributions that will be safe from IRS challenge. Here is a summary of the cases:

It is never a good idea to file a tax return late. The IRS, State of Ohio and virtually every municipality will assess penalties on returns filed past the due date. If you simply run out of time, or don’t yet have all the needed information, it is perfectly fine to file for an extension.

In a recent report, the IRS says that in 2001 they closed 538,000 mail audits of individual tax returns and assessed about $1.4 billion in additional taxes.