The Use of Mail Delivery Services to Timely File a Petition with Tax Court
A timely mailed petition to Tax Court can be treated as if it was timely filed, even if not received by the filing due date if mailed using an acceptable mail carrier. Therefore, a petition received by...
View ArticleTax Court and S Corporation Wages
A recent tax court case, David E. Watson, P.C. v United States, has upheld the IRS re-characterization of S corporation distributions as wages. The individual shareholder-employee in the case, David...
View ArticleTax Settlements to Exonerated Prisoners: A Way to Avoid this Tax Problem
Federal Congressmen introduced a bill on March 22, 2012 that would prohibit the Internal Revenue Service from taxing settlements awarded to anyone wrongfully convicted of a crime and then exonerated...
View ArticleMileage Logs: Keeping records is not enough to guarantee tax deductions
Every year the Internal Revenue Service issues optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes....
View ArticleThe Foreign Account Tax Compliance Act (FATCA) and Effect on 2012 OVDI
Foreign financial institutions are now required by law to disclose information on U.S. account holders, and have until the end of 2013 to implement new policies to prevent those holders from evading...
View ArticleThe IRS, Tax Preparers and the US Supreme Court
On March 13, 2012, three tax preparers filed a lawsuit against the Internal Revenue Service in the U.S. District Court for the District of Columbia. They filed the suit because they believed that the...
View ArticleIRS Calls Practitioners over EITC Claims
The Earned Income Tax Credit, often called the EITC, is a tax credit that can help taxpayers keep more of what they earn. It is a refundable federal income tax credit for individuals and families who...
View ArticleFailure to File and Failure to Pay
When a taxpayer does not file their returns for their personal income taxes, or if a taxpayer files for an extension but never files, the IRS does not forget about the unfiled returns. For each year a...
View ArticleNew York State Filing Tips
According to the New York State Department of Taxation and Finance, taxpayers tend to make several common mistakes every year. The following list is a way for you to double check so you can hopefully...
View ArticleThe Internal Revenue Service Disallows Child Tax Credits
The Internal Revenue Services is strict when it reviews child tax credits. The tax law allows a deduction for each dependent the taxpayer is supporting. A dependent is defined as a qualifying child...
View ArticleItemizing vs. Standard Deduction
Each tax season taxpayers have to choose to between standard and itemized deductions. It is smart to compare the two methods, and pick the one that gives you the largest tax benefit. The following are...
View ArticleUnfiled Tax Returns
Unfiled tax returns can cause a multitude of tax problems. Non-filers often do not file because they are unable to pay the taxes owed. This only adds to your tax problems, and can result in wage...
View ArticleFresh Start Program Helps Taxpayers Who Owe the IRS Back Taxes
If you owe back taxes, the Internal Revenue Service offers a Fresh Start initiative that makes it easier to pay back taxes and avoid tax liens. This program can benefit small business taxpayers and...
View ArticleIRS Tax Fraud Alerts
Tax fraud is common, and not always the fault of the taxpayer. The IRS warns taxpayers of scams and fraud that they might unknowingly become a part of. Listed are some common tax fraud types that...
View ArticleIRS and Levies
If you do not settle your tax debts from back taxes, the Internal Revenue Service can put a levy on your bank account. A levy is a seizure of your property to settle a tax debt. This seizure is legal,...
View ArticleNew York State Sales Tax Audits
The New York State Department of Taxation and Finance will conduct sales tax audits in order to verify that business owners paid the correct tax. If audited, business owners will be required to...
View ArticleRecordkeeping for Individual Taxpayers
One of the best ways to be able to prove your case in a criminal or civil tax audit is through your financial records. Unfortunately, most taxpayers are unaware that they have a legal responsibility to...
View ArticleForm 1040X: The Amended Tax Return
Having your tax lawyer revising your Form 1040, U.S. Individual Income Tax Return, is done if information reported on the form is incorrect and changes the tax calculation. Filing an amended return is...
View ArticleInnocent Spouse Relief on Jointly Filed Income Tax Returns
Married taxpayers often choose to file joint tax returns because of the benefits this filing status permits, especially tax credits and exemptions. When filing a joint return, both of the taxpayers...
View ArticleDetermining Filing Status
When taxpayers file their income tax return, one of the first questions required is their filing status. Filing an income tax return with the correct filing status is important for taxpayers; the...
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