The purpose of the innocent spouse rule so far as the IRS is concerned is to effectively limit the joint liability which results when a couple files a joint income tax return. Be aware, however, that filing an innocent spouse claim is both difficult and time-consuming particularly in community property states. There is one form […]
There are many people in the United States who have neglected to take care of past due tax returns—even for more than a few years. Perhaps times were tough and they thought they would catch up on the taxes once their economic situation improved yet now there are potentially years of past due returns piling […]
In Rev. Rule. 2012-18, affecting restaurant employees, waiters and bartenders, the IRS has updated guidance on what will be considered tips, to which FICA rules do not apply, and service charges, which are wages subject to the FICA rules, requiring the applicable employee wage withholdings. In summary, the IRS will look beyond how the payment […]
Perhaps you find yourself in the unenviable position of being audited by the IRS and many of the deductions you claimed are being challenged. If you are unable to claim your legitimate deductions through lack of receipts or documentation you may find that you owe substantially more in taxes and may even owe penalties and […]
In ongoing efforts to identify US taxpayers hiding assets overseas and raise additional tax revenue, the IRS announced changes to its Voluntary Disclosure Program and the Closing of an Offshore Loophole. Under previous iterations of the Voluntary Disclosure program, the IRS states that it has collected in excess of 4.4 billion in additional taxes, bringing […]
Business owners are generally required to pay a variety of taxes associated with their business. If the business owner owns real estate associated with the business then property taxes must be paid to the city or county where the property is located. Businesses which engage in transportation, communications or fuel consumption will also be required […]
Obviously it’s a crime to cheat on your taxes or to willfully or even accidentally fail to file your taxes. That being said, in the past few years less than 2,000 have actually been convicted of a tax crime although over 4,000 are annually investigated. This number is roughly 0.0023% of all taxpayers which is […]
Like many people, you may believe that should the IRS file a lien against you it will be impossible to every market your house. Many times, even professionals are not fully aware of how the lien procedure operates. In fact, you can sell your home with a lien by the Feds against it so long […]
If you find yourself in the unenviable position of owing more taxes than you can pay, then it is possible you may be eligible to settle your federal tax liabilities by submitting an offer in compromise to the IRS. The amount you will offer will be less than the full amount due, however in order […]
June 1, 2012 – The Internal Revenue Service announced taxpayer favorable changes to its “Fresh Start” initiative. More flexible options were made to the Offer-in-Compromise (OIC) program that should help “some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past.” See IR-2012-53, May […]