Written by Aazdak Alisimo

The government never stops coming up with new things and the subject of taxes is no different. It is always updating and tweaking the laws. The bad news? You are expected to know them inside and out when preparing your returns.

The good news is tax law tends to change in small ways. To the shock of most taxpayers, the fact is most of the changes tend to be designed to solve ambiguities in the laws. Following are the latest changes you should know about.

The IRS is brilliant when it comes to disasters. It acts quickly and smartly. With the fires in California, it is living up to its reputation. All taxpayers living in fire zones have been granted automatic filing extensions till January 2008.

In addition, the IRS is waiving the failure to deposit penalty for employment and excise deposits due on or after Oct. 21, 2007, and on or before Nov. 5, 2007, as long as the deposits are made by Nov. 5, 2007.

Many tax changes deal with resolving vague laws. Requirement related to reporting poker earnings is one. As of March of 2008, anyone putting on a poker tournament will be required to submit tax forms for certain winnings to the IRS.

Once the regulation goes into effect, poker tournament sponsors will be required to report winnings of $5,000 or more. Said sponsors will not, however, be required to withhold taxes from the winnings for deposit with the IRS.

No area of business law seems to cause more problems than the “S” corporation application with the IRS. Most people dont realize there is a time limit and fail to meet it. Trying to get the IRS to give relief in such situations has always been hard.

It took a long time, but the IRS is finally acting. For corporations that file the “S” designation late, the agency is allowing an additional time buffer of the months up till the time the corporation files its first 1120S return.

Finally, there is little secret the real estate bubble has burst like an over-inflated balloon. We are talking disaster city. Many people are being pushed into foreclosure and are surprised to learn this is a taxable event.

Fortunately, the IRS is ackowledging that stacking tax debt on people who have lost their homes probably isnt to wise. As a result, it is setting up numerous program to provide stressed homeowners with relief.

Unfortunately, the rules and solutions are highly dependent on the specific facts involved in the foreclosure. There is no way to simplify it. You should visit the IRS site online to find advice on your specific situation or talk with a CPA.

The thing to understand about taxes is they are complex and will only continue to grow more so. The government will keep changing them and we will continue to be confused, but at least you now know the latest changes.

Learn more about tax help at BusinessTaxRecovery.com.

Tax Preparation, taxes