Drake Software blog for tax pros, covering tax, IRS news, and more

Dangerous Liaisons

Dangerous Liaisons

It is the proper reporting of wages to a domestic employee. A domestic employee is someone that you employee to work in or around your home. This can include individuals who are gardeners, landscapers, housekeepers, maids, caregivers, and even your handyman. For our discussion, let’s limit this to caregivers.…

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Audit Risk

Audit Risk

A new study by the National Taxpayer Advocate used confidential IRS data to show large clusters of potential tax cheats in these five metropolitan areas. The IRS uses the information to target taxpayers for audits....…

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Interim Results for 2013

Interim Results for 2013

The IRS faced several time constraints this year. Tax professionals and taxpayers everywhere were anxious to process returns, and the effects of the delay were felt by everyone when tax season did not start on time. The major reason for the deferral was ...…

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Tax Preparer Legislation Filed

Tax Preparer Legislation Filed

Richmond’s Taxpayer Protection and Preparer Fraud Prevention Act of 2013 would give the Internal Revenue Service more oversight to certify paid tax preparers and ensure they are “competent, of good character and able to render services.” The legislation also would allow the IRS to...…

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Happy Birthday Income Tax

Happy Birthday Income Tax

The Congress shall have power to lay and collect taxes on incomes from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. [U.S.…

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