Innovative Strategies For Tax Controversies, Business Structuring And Estate Planning
The IRS has a 3 year statute of limitations to conduct an audit. This can be extended to 6 years for the under-reporting more than 25% of gross income. In an attempt to extend the statute of limitations, a taxpayer that correctly reported gross income, but overstated...
The IRS keeps hiring “Revenue Agents” (the IRS term for Auditor). In the last few years, there has been a massive increase of auditors for Large Businesses (the is is called the LB&I – Large Business and International group). Now the IRS is going after Small...
US Tax Court – Interesting and Different Most people have not heard of the US Tax Court. It was founded in 1969 and is the only Court that will hear tax case prior to payment of tax. It has strict rules – you must file within 90 days of the date of an IRS Notice of...
Engineers Going to Jail – Not Paying Employment Taxes In U.S. v. DeMuro the Federal 3rd Circuit Court of Appeals upheld the conviction of husband and wife engineers for the failure to pay employment taxes. The business owners failed to pay $500k in taxes and...
Suppose you made a mistake on your income tax return? For example, if you excluded income from a 1099 or K-1 that arrived after you filed your return, it is usually not necessary to file an amended return. Usually the IRS matching system catches these errors and the...
New Tax changes hurts rental real estate For tax years beginning after Dec. 31, 2012, a 3.8% Medicare tax will be charged on net investment income. This applies to individuals with modified adjusted gross income in excess of $200,000 ($250,000 in the case of married...
They usually advertise on Cable Stations such as Sports and Home Shows. “If you owe more than $10,000 in taxes we can help.” Or they inundate you with letters and calls after a Federal Tax Lien is filed. They promise relief and give glowing testimonials of clients...
Government Forcing Small Business to convert independent contractors to employees The federal government is doing everything possible to convert true independent contractors and independent business owners into employees. Because there are significant tax and business...
General Results: Business Owners face a 4.5% chance of audit More audits are detailed audits with Revenue Agents rather than correspondence Audits Almost 1/3 of Individual Returns Audited were for the Earned Income Tax Credit IRS has issued its annual data book, which...
Cantor bill would give “small businesses” 20% domestic business income deduction On March 21, House Majority Leader Eric Cantor (R-VA) introduced the “Small Business Tax Cut Act,” which would allow qualified small businesses (those with fewer than 500 employees) to...
