The Internal Revenue Service (IRS) recently stated that it is going to focus its efforts on millionaires who may have used illegal tactics to avoid their tax obligations. The announcement was part of the agency’s recent news release outlining a focus on “restoring...
Tax Law
What kinds of things can increase your chances of being audited?
The potential of an IRS audit looms over taxpayers throughout the country when they submit their tax returns. In reality, the chance of being audited is very slim. For fiscal year 2022, fewer than half of 1% of all tax returns were audited. Still, no one wants to be...
What is an offer in compromise?
When someone has a substantial outstanding tax debt, the IRS may allow them to use an offer in compromise. This opportunity isn’t be offered to everyone, and its availability is decided on a case-by-case basis. But it can be a tactic to resolve the tax issue for both...
What the IRS does when someone doesn’t file or underpays
Most people resent the obligation to pay federal income tax, but doing so is a legal and social necessity. The desire to minimize taxes and even to avoid them is perfectly normal. Quite a few people wait until the very last moment to file their tax returns or pay what...
What do you need to know about tax liens and levies?
Tax liens and levies are legal actions taken by the government to collect unpaid taxes. Although both are used to enforce tax collection, they function differently and result in distinct consequences for taxpayers. Anyone who’s facing the possibility of these serious...
5 income tax issues that are actually fraud
Keeping up with current tax laws is challenging, but it’s necessary for those who plan to do their own taxes. Even if you use a professional tax preparer, you must still ensure the information you provide to them is accurate. There are some tax issues that are...
How does the Paycheck Protection Program work?
In 2020, the CARES Act created Small Business Administration’s (SBA) Paycheck Protection Program (PPP) , which provides short-term and low-interest loans for eligible small businesses to cover business-related costs such as payroll expenses and certain operating...
What if you owe more in taxes than you can pay?
Maybe you earned a very competitive salary at the height of your career and employed an aggressive accountant who claimed to legally minimize your tax obligations. You felt pleased with the results of their work, and you had no reason to question their professional...
How shared child custody arrangements could lead to tax issues
For the average parent considering shared custody, their concerns focus primarily on access. They want to get to see their kids on birthdays or ensure that they can attend basketball games. If you don't address all of the right terms, especially if you handle your...
Will you need to attend a meeting during an IRS audit?
An audit will typically mean a careful review of your financial records and tax return filings. If there are serious issues, the Internal Revenue Service (IRS) could determine you owe unpaid taxes, and they could even pursue criminal charges in extreme cases. Audits...