Everywhere you look these days, it seems as though someone is suggesting a flat tax. Our complex tax code is under fire, and many demand a simpler structure. The flat tax seems to fit the bill exactly. However, there is a great debate as to exactly what form a flat tax would take.

Here is a look at both sides of the argument:

Arguments in Favor of a Flat Tax

Many cite the complexity of our current system, and the existence of loopholes that make it possible for many people to not pay any taxes at all. A flat tax, some argue, would eliminate these loopholes, and require that everyone pay the same percentage of their income to the government.

Sometimes, travel is necessary in order to improve your business. The good news is that the IRS allows you to deduct many of the expenses that come with your business-related travel.

You do need to be careful, though. Make sure that your expenses are truly related to business, and that your trip is more about business than about pleasure.

The Internal Revenue Service (IRS) has launched a program called the Voluntary Classification Settlement Program (VCSP) or amnesty which enables employers to reclassify certain workers from independent contractors to employees going forward without being liable for all federal employment tax liabilities that would be due for misclassifying workers in the past.

In short, employers can get into compliance with tax laws with a small payment to cover past prior payroll tax obligations instead of waiting for the bigger penalties that could come about with an audit.

Bartering is the oldest form of commerce, dating back to long before the development of money in its current form.

With the high rate of both unemployment and underemployment, people are forced to get creative in order to obtain the goods and services that they used to be able to pay for in a more traditional manner. Bartering is an excellent way to continue receiving the goods and services that you are no longer able to afford.

Keep in mind, however, that the IRS gets their cut, so you must declare the fair market value of good or services gained through bartering as income on your taxes just as if you had received cash in exchange for them. 

The IRS today announced that the per mile deductible rate for operating an automobile for business purposes is going up to 55.5 cents from 51 cents a mile. Moreover, the rate for calculating deductible medical and moving expenses also increased by 5.5 cents to 23.5 cents a mile.

This change takes effect starting in July. Therefore, for the first six months of 2011, the rate is 51 cents for business expenses (19 cents for medical and moving) and from July through December 31st it is 55.5 cents (23.5 cents for medical and moving).

For those of us who work from home - either for someone else or in our own small business - the home office deduction is a valuable tax break that can save you hundreds of dollars and help defray the upkeep costs of your office.

The IRS allows you to take a deduction for a portion of your home’s expenses - such as rent, electricity, and maintenance - as an expense of your business. However, it’s important to know the rules so you don’t accidentally go overboard - it’s a very commonly abused deduction and some argue is an audit “red flag”.

At the end of 2010, Congress passed a bill called the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010" that will help many Americans during the 2011 and 2012 tax years. Many of the provisions of the bill are extensions from Bush Era tax credits, while others are brand new.

If you have received your first paycheck of the year, you may have been pleasantly surprised. Americans will be receiving more in their paychecks during 2011 thanks to the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The cut is another attempt to stimulate the economy by giving Americans more discretionary income to play with.

Are you a paid tax preparer? If you intend on preparing tax returns after January 1, 2011, you will be required by federal law to use a Personal Tax Identification Number (PTIN) when submitting tax returns. Previously, paid tax preparers were permitted to use their Social Security number; however, as part of a new oversight program initiated to regulate the tax preparation industry, all tax preparers will be required to register for and use a PTIN.

The IRS is sending out reminders to the estimated 1 million tax preparers to ensure that all preparers are notified of this requirement. Sending approximately 125,000 notification letters per week over an 8-week period, the IRS provides information needed to guarantee all tax preparers are ready to work in 2011.