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First-Time Homebuyer Credit Extended to September 30, 2010

WASHINGTON — Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

For more information: http://www.irs.gov/irs/article/0,,id=225078,00.html?portlet=7

How the Oil Spill in the Gulf May Affect Your Taxes

BP payments for lost income are taxable in the same way the wages or business income these payments are replacing would have been. The law treats compensation for lost wages or income differently for tax purposes than compensation for physical injuries or property loss, which generally are nontaxable.

Link to http://www.irs.gov/pub/irs-pdf/p4873.pdf

Unemployment Compensation Fully Taxable

All unemployment compensation received in will be taxable.  The first $2,400 received from unemployment income is not longer exempt from tax.

All Paid Tax Preparers Required to Have a Preparer Tax Identification Number

WASHINGTON — The Internal Revenue Service announced that a new online application system for compensated tax returnpreparers is expected to go live in mid-September. The IRS has proposed torequire all individuals who receive compensation for preparing all orsubstantially all of a federal tax return or claim for refund after Dec. 31,2010, to have a Preparer Tax Identification Number (PTIN).