IRS GEARING UP FOR INCREASED COLLECTIONS

IRS gearing up for increased collections. The IRS has, as many businesses during the Covid pandemic, had a rough time lately. After being shut down for nearly 7 months during the initial outbreak of the virus, then starting up only to be shut down for a shorter period during the Delta variant, they fell behind […]

IRS RAMPING UP CRYPTOCURRENCY TAXATION

IRS ramping up cryptocurrency taxation. This emphasis comes from the need for additional revenue, due to the large government expenditures related to the Covid pandemic, and as the IRS seeks to increase taxpayers reporting compliance and ramp up enforcement. The IRS recently released a version of updates on the subject, IRS form 14457, Voluntary Disclosure […]

CHOOSING THE RIGHT STATUS FOR YOUR COMPANY

Choosing the right status for your company. When starting a business, the first question that needs to be answered is, what type of operation is it, and what type of status for tax purposes do you want it to be ? That needs to be done upfront, otherwise you may well end up like the […]

PANDORA PAPERS REVEAL TAX SCHEMES

Pandora papers reveal tax schemes. The Pandora Papers, and prior to that, the Panama Papers, have revealed a worldwide conspiracy by the world’s richest individuals, celebrities, politicians, and sports figures, to hide assets and income, in offshore bank accounts, trust accounts, and dubious corporate entities used exclusively to hide assets and the reporting of those […]

TWELVE EXPENSES YOU SHOULD NOT CLAIM

Twelve expenses you should not claim. No one wants to pay more than he or she has to in taxes. Fortunately, numerous deductions and credits can help lower your tax bill. However, don’t make the mistake of trying to claim one of the these expenses or you might get into an audit with the IRS. […]

IMPACT OF TRUMP TAXES REMAINS HIDDEN

Impact of trump taxes remains hidden. Armed with legions of lobbyists, companies have been pushing hard–and successfully–to weaken new federal taxes that take aim at overseas tax havens. Many of them have managed to avoid publicly disclosing how much they owe under the new taxes. Without such figures, it becomes virtually impossible for outsiders to […]

GILLETTE AND SZCZEPANSKI V COMMISSIONER

Gillette and Szczepanski v Commissioner. In our ongoing coverage of Tax Court issues and cases we focus on this case, an Offer in Compromise issue case. The petitioners, Gillette and Szczepanski(a married couple), were assessed a liability on their 2012 federal income tax which included the penalty for early withdrawal from an IRS and the […]

RECONSTRUCTING RECORDS AFTER DISASTER

Reconstructing records after disaster. This may be essential for tax purposes, getting federal assistance or insurance reimbursement. After a disaster, taxpayers might need  certain records to prove their loss. The more accurately the loss is estimated, the more loan and grant money there may be available. For taxpayers who have lost some or all of […]

FAST TAX CUTS COULD HURT REPUBLICANS

Fast tax cuts could hurt republicans. When President Trump signed the Tax Cuts and Jobs Act into law in 2017, the Internal Revenue Service moved to make sure the savings showed up quickly in paychecks. Doing so probably lifted consumer spending last year, but it may have hurt Republicans politically, new polling shows. Administration officials, […]

TAX MOVES TO AVOID PENALTIES

Tax moves to avoid penalties. With the end of 2018 fast approaching, end of year investing and tax moves can pay dividends in the new year. One of those  is for people aged 70 and a half or older: do not forget to take your required minimum distribution or you could face a very large […]