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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

WebCPA reports that the IRS’s Criminal Investigation Division (CID) is getting closer to meeting its objectives for combating tax evasion, corporate fraud, financial crime and even terrorism, according to a new report from TIGTA: [The] Treasury Inspector General for Tax Administration noted that the division’s current strategic plan calls for it to maintain a focus on legal-source tax [...]