From audit flags to oddities: Spotting tax feature stories
By Flickr user rick
When putting together this year’s tax coverage, you might have the urge to dig a little deeper or find unique angles to take your readers inside the world of accounting. It’s a good strategy.
After you’ve covered the basics, why not give your audience a more in-depth look at some specific tax-related issues that may or may not be on their radar?
To get you started, here’s a list of features to jump on. There’s also a section on top resources to consult when putting together your annual tax coverage package.
Audit red flags. The home-office deduction is the perennial bugaboo; a number of accounting firms and consultancies.
Free filing information from the IRS; it used to be limited to low-income folks but pretty much everyone can file at no charge these days.
Help for readers. Volunteer services like Accounting Aid Society often hold special local events; the IRS also provides a page with links to VITA and other volunteers.
Taxes help for jobseekers and the unemployed: Spell out the rules on contract, casual and freelance income. Many workers turned to short-term gigs to keep the bills paid during the employment drought of 2009. That means they’ll likely be receiving 1099 forms and possibly owe self-employment taxes (Social Security and Medicare payments) in addition to ordinary income tax.
Somewhat to the shock of many recipients, unemployment benefits of more than $2,400 are taxable as income. This is a huge bugaboo for cash-strapped, out-of-work filers who didn’t or couldn’t set aside money to pay these taxes. I think this is one the strongest potential human interest stories you can do during tax season, in light of the record number of displaced workers on jobless rolls.
Certain job-hunting, relocation and business-expense deductions may apply to displaced workers as well; you can build a complete feature around career/business tax topics alone.
State and local taxes. While generally these returns are not as complex as federal paperwork, they still have their quirks; contact your state treasury or revenue department for updates, tips and resources.
Oddities. Mine the IRS publications and big tax-filing guides for fun and quirky aspects of the tax law. My favorite is the law that says funds you embezzle must be reported as taxable income. Talk about a Catch-22 there. Other interesting twists relate to casualty losses, business expenses and miscellaneous deductions. One little-known fact: You can rent out your home for up to 14 days a year without paying taxes on the income. That’s a little tax-free windfall for people who live in desirable vacation spots, or near big-ticket sports and entertainment venues. It’s also one of the last tidbits of non-taxable income out there.
Tax prep as a career stepping-stone. How many seasonal H&R Block and other franchise workers are displaced professionals picking up a little extra income? Was it worth the cost of training? This has the makings of an interesting career/coping/human interest story.
Top resources include:
The Internal Revenue Service. The IRS Web site teems with factoids, statistics, calculators and helpful brochures. Be sure to contact your regional spokesperson and be added to their tax-tips list-serv.
CPAs, enrolled agents and certified financial planners; find them through your state’s licensure office or professional associations.
Academics and local business-school libraries; many have specialty tax-law libraries and experts.
Consultancies like CCH Inc. literally write the books on tax law and often provide press kits and experts around filing season.
TurboTax offers a plethora of helpful fodder, including this e-filing infographic as well as online Q&As for individual and small business filers.
