The first of 6000 planned employment tax audits are now under way.  Small businesses will be a big target of the audits, with 2000 exams being done each year over the next three years.  The IRS will use the audit results to select targets for future payroll tax audits and refine estimates of the tax gap.  Agents have just completed a special training program to prepare for these exams.

Making energy saving improvements to your home this year?  Take note:  The improvements must be installed by December 31 to qualify for a tax credit.  Home owners can claim a credit for 30% of the cost of energy saving improvements made to a primary residence.  They include skylights, outside doors, windows, pigmented or special asphalt roofs plus high efficiency furnaces, water heaters and central air conditioners.  The maximum credit available for 2010 is $1500, but the ceiling is reduced dollar for dollar by any credit that you claimed last year.

Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition.  You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property. (per IRS calendar)