Perhaps, the number one IRS audit risk for many taxpayers will be the failure to report foreign bank accounts. There it is. I said it. Plain and simple. If you have a foreign bank account and you’re not reporting it to the IRS, you’re taking a huge risk, and I believe that sooner or later, you’re going to get caught.... Read More
Have you ever known someone who had an income tax audit by the IRS or state taxing authority? They’ll tell you that once was enough and in most all cases, will do everything not to have that sort of problem ever again. It’s important to know how an audit is triggered and what you can do to prevent one from... Read More
With the year-end fast approaching, many individuals and business owners are often left scrambling to take actions to reduce or eliminate income taxes they may need to pay. There are many significant tax changes to consider in year-end tax planning tips and strategies to consider. Of significant importance are the many of the previous tax relief provisions that are set... Read More
Here’s Nine Things You Really Need to Know Regarding S Corporations and Income Taxes What is an S-Corporation? An S-corporation is a corporation that makes a federal election to have the federal income taxes paid by its shareholders rather than to the Company. In most cases, S corporations do not pay any federal income taxes. Instead, all items of business... Read More
Recent changes to tax collection procedure established by the Internal Revenue Service (IRS) “Fresh Start” Initiative have now made it possible to often prevent federal tax liens or have existing tax liens by the IRS withdrawn. What is a Federal Tax Lien? The federal tax lien is one of many tools used by the IRS to help secure your tax... Read More
In 2010 (the most recent year for which figures are available) nearly 3.4 million taxpayers claimed deductions for the business use of a home. In January 2013, the IRS issued new simplified rules for the deduction of the home office expense [Rev. Proc. 2013-13]. This revenue procedure provides an optional safe harbor method that individuals may use to determine the... Read More
Or is it? These are the 3 main reasons people get in trouble with the IRS. Best Price Tax Preparation In the last three days, we acquired three new clients, for each of the three biggest reasons they got in trouble with the IRS. When I asked why they chose to have their taxes prepared by the tax preparer they... Read More
Anyone reading the news in the past several weeks has been bombarded with the “fiscal cliff” – a proposed increase to federal taxes resulting from the expiration of previous Bush era tax cuts; originally designed to as an imputes to stimulate the struggling economy. On December 31st, competing Democratic and Republican law makers claimed “victory” that a settlement has been... Read More
Single individual taxpayer CC fails to file prior years tax returns and is assessed around $40,000 in back taxes. CC was previously an attorney and investor earning over $300,000 annually during better times. After several years of success, CC suffered a serious decline due to drug dependence, thereby causing her to lose her job, her position in the community, all... Read More
Without appropriate professional advice, entrepreneurial taxpayer, BB, decided to form a Company, go into business and strike out on his own. The good news is that the taxpayer made it big – everything he touched turned to gold. The bad news is that he failed to timely file a subchapter S election for his new Company – an election which... Read More
