As published in the Winter Park/Maitland Observer, Thursday Jan. 3, 2012 Edition Offers... Read More »
Articles from January 2011
Business Non-Filers Beware
Frequent readers of this blog know that we have maintained - ad nauseum, I am sure, for some – that all small businesses should incorporate or operate as an LLC in part because they are less likely to undergo IRS scrutiny. Well, if you can believe the Government Accountability Office GAO), this may all be about to change. WebCPA…
Read Full Article Categorized in: Blog PostsMost Common Federal Tax Crimes
There are a number of possible federal tax crimes with which the United States Department of Justice may charge a delinquent taxpayer. Here are the most commonly brought charges. Failure to File Tax Returns The Law 26 U.S.C. § 7203 – Willful failure to file return, supply information, or pay tax Any person required under this title…
Read Full Article Categorized in: Tax CrimesIRS Has Only 10 Years to Collect Tax Debt
The IRS has ten (10) years from the date of a tax assessment to collect a debt from the taxpayer. The date the collection statute expires is called the Collection Statute Expiration Date or CSED. When this date passes, the IRS is barred from attempting to collect your tax debt unless you waive the enforcement of the…
Read Full Article Categorized in: Blog Posts, Statute of LimitationsIRS Audits: Why You Shouldn’t Represent Yourself
The IRS has the legal right to audit any tax return it so chooses for any reason it chooses. The threat of an audit is what makes most taxpayers take seriously their obligation to comply with the letter of the law. The odds of being audited are generally very low, therefore, if you get an…
Read Full Article Categorized in: IRS Audits, IRS Penalties, IRS ProcedureS Corporations: Compensation and Distribution Planning
A majority of American small businesses use the S corporation form of doing business. This article discusses one of the main tax planning techniques an S corporation can use to save taxes. The S Corporation and Payments to Shareholder/Employees? An S corporation is a pass-through entity and does not pay federal income tax. The net earnings…
Read Full Article Categorized in: Blog Posts, S CorporationsNew 1099 Reporting Rules Given Last Rites?
Catherine Clifford of CNNMoney reports of the imminent death of the new 1099 reporting requirements included in Obamacare: On Thursday, three Senate Democrats wrote to House Speaker John Boehner urging the House to vote to repeal the so-called 1099 provision, a hated IRS rule that imposes new paperwork burdens on businesses. The senators said they “are…
Read Full Article Categorized in: Employer Issues, IRS Procedure, Legislative Watch, NewsWarning: The IRS Knows Who the Tax Cheats Are
Tara Siegel Bernard wrote a Column in the Your Money section of the New York Times yesterday in which she considers whether more taxpayers will cheat on their taxes this year because of the bad economy: With just a few more days to file your tax returns, you may be tempted — especially in this down…
Read Full Article Categorized in: Blog PostsIRS Now Encourages Whistleblowers to Report Mere Tax Return Mistakes
Once again, the IRS wants the American people to do its job for them. Michael Cohn of Accounting Today reports that the IRS has issued new regulations making it easier for whistleblower’s to blow and collect their blood money: In December 2006, Congress amended Section 7623 of the Tax Code to establish the IRS Whistleblower Office…
Read Full Article Categorized in: IRS Audits, IRS Procedure, Legislative Watch, News, Tax CrimesDealing with IRS Collections, Do’s and Don’ts
It’s seven a.m. and you are half asleep. You hear a knock on the door and your heart starts racing. The dog barks and it races faster. But you don’t answer the door. Instead, you pull the covers over your head and wait for the knocking and the barking and the heart-pounding to stop. If the…
Read Full Article Categorized in: Blog PostsCPAs vs. Unenrolled, Unlicensed & Unaccountable Tax Preparers
CPA tax blogger Joe Kristan has written a rejoinder to Wandering Tax Pro Robert Flach, our favorite non-CPA, non-Enrolled Agent, non-lawyer, non-anything-that-requires-licensing-testing-and-accountability tax preparer: Robert D. Flach has put up another one of his occasional posts where he beats up on my profession: Don’t assume that because a person has the initials “CPA” after his name he…
Read Full Article Categorized in: Business advice, Individual Taxation, Regulation of Tax PreparersHow to Get Prosecuted for Tax Evasion
Despite the many urban myths that are circulating about the IRS’s vicious and unforgiving nature, it takes a lot before a Revenue Officer or Agent will refer a case to the Criminal Investigation Division (CID). And it takes even more for a federal prosecutor to pursue an indictment. But there are certain instances where you can…
Read Full Article Categorized in: Blog Posts, Criminal TaxHuh? IRS Caller Assistance at 90% Accuracy Rate?
File this post in the “yeah, right” department. The Government Accountability Office (GAO) today released a report titled 2010 Tax Filing Season: IRS’s Performance Improved in Some Key Areas, but Efficiency Gains Are Possible in Others in which it says that IRS taxpayer assistance personnel correctly answer taxpayers’ questions a whopping 90% of the time. Compared to 2009, the…
Read Full Article Categorized in: IRS ProcedureEmployer Alert: 2011 Payroll Tax Relief
One of the more talked about provisions of the tax bill signed into law yesterday by President Obama is the temporary payroll tax reduction. WebCPA reports that the IRS has already issued guidance on the relief measure: Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation…
Read Full Article Categorized in: Blog Posts, Tax TipsWhat the IRS Won’t Tell You (And a Few Things They Will)
SmartMoney.com has a list of 10 things the IRS won’t tell you: Like it or not, you may need help with your taxes You don’t have to be rich to get audited Fear is often our best weapon The AMT is our ATM Just because we billed you doesn’t mean you owe us money If you don’t…
Read Full Article Categorized in: Blog Posts, IRS ProcedureInnocent Spouse Relief: The Basics
Lois Weiner v. Commissioner – In a 47 page opinion Tax Court Judge J. Paige Marvel affirmed the IRS’s denial of the taxpayer’s request for innocent spouse relief under § 6015(b) and overturned the IRS’s denial of her request for equitable relief under § 6015(f). Denial of Innocent Spouse Claim The IRS argued that the…
Read Full Article Categorized in: Blog Posts, Innocent Spouse, Innocent Spouse Relief, Tax Problems