Newsletters

Student Loan Interest Deduction

The cost of higher education is just getting higher and higher each year. Congress has passed tax laws that permit a special deduction for interest paid on qualified student loans, which sets them apart from most of other non-deductible personal interest payments. If all the requirements for the deduction are met, it is claimed as an adjustment to income; therefore, the taxpayer does not have to itemize deductions to take advantage of this tax benefit.

Clean Fuel Tax Deduction

A taxpayer who is the original owner of a qualifying hybrid vehicle that combines an electric motor with a gasoline-powered engine may be eligible to claim a one-time tax deduction on his or her federal income tax return. In an attempt to encourage consumers to purchase more fuel efficient automobiles, Congress has enacted a federal tax law that allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that uses a clean-burning fuel. Hybrid vehicles obtain higher fuel efficiency and produce fewer harmful emissions than similar gasoline-powered vehicles.

Corporate Fraud

The Internal Revenue Service gets involved in corporation fraud investigations when a large publicly traded or private corporation violates the Internal Revenue Code (IRC) and related laws. Generally, corporate schemes to evade taxation are broad in their scope, complex, and have a great negative economic impact on communities, employees, creditors, investors, and financial markets.

Veterans' Organizations Exempt under IRC 501c19

Prior to the enactment of Internal Revenue Code Section 501(c)(19) in 1972, war veterans' organizations were grouped together with all other veterans' organizations and recognized as tax-exempt under the social welfare and social club sections of the Code. Under the original version of the statute, an organization formed under Section 501(c)(19) could carry on programs involving Americanism, youth activities, community activities, and educational programs on issues of national security and foreign affairs. In addition, veterans' organizations could receive exempt income by providing certain insurance benefits for members or their dependents.

Taxation of Payments Made to Volunteers

As a volunteer worker in the Peace Corps or similar agencies, you most likely will receive certain payments in the form of allowances or reimbursements. The Internal Revenue Service has provided guidance as to the taxability of these payments.