Like most taxpayers, construction workers were impacted by changes made under the Tax Cuts and Jobs Act (TCJA). A failure to account for these changes could lead to unexpected tax bills, penalties, and tax debt that continues to accumulate. Worker Classification...
Month: October 2019
PAYMENTS AND PENALTIES RELATED TO TAX FILING EXTENSIONS
A tax filing extension can be a life saver, but it’s important to understand what a filing extension does and doesn’t do. Some taxpayers get into trouble because they request filing extensions as a means of delaying payment of their tax bill, which can lead to...
HOW SCHEDULE K-1 IMPACTS YOUR TAXES
A Schedule K-1 is an informational return contains a partner’s share of their partnership’s tax items. You need to include the items in this form on your tax return and pay taxes on these amounts. How Partnerships Are Taxed Partnerships are pass-through entities. This...
WHAT TO DO IF YOU OWE DELINQUENT SELF-EMPLOYMENT TAXES
Self-employment offers many benefits. It also involves more complex tax compliance requirements, which causes some taxpayers to fail to pay their self-employment taxes. What Are Self-Employment Taxes? Self-employed taxpayers must generally pay 15.3% of their income in...
5 WAYS TO RESOLVE YOUR IRS TAX DEBT
Every tax resolution case is unique. There are many ways to resolve your tax problems, but you need to find the right strategy for your case. If you’ve been dealing with IRS notices and a growing unpaid balance, consider any of these 5 ways to resolve your IRS tax...
WHAT TO DO IF YOU FORGOT TO FILE YOUR TAX RETURN
Many taxpayers forget to file their tax returns every year. This could happen for several reasons: You completed your tax return and thought you submitted it to the IRS, but you never did. The IRS rejected your return and you did not resubmit it. You were distracted...
TAX PROBLEMS FROM UNTAXED FOREIGN EARNINGS
Changes made under the Tax Cuts and Jobs Act (TCJA) have changed the way foreign companies may be taxed on foreign earnings. There are basically three different scenarios you need to understand when it comes to earnings of certain foreign companies: The law before the...
IS VIRTUAL CURRENCY TAXABLE?
The IRS considers virtual currencies such as Bitcoin as property for tax purposes. If you receive Bitcoin as compensation, it would be considered taxable income by the IRS. A failure to report virtual currency income could result in back taxes, penalties, interest,...
HOW TO AVOID FBAR PENALTIES
FBAR penalties can be up to $10,000 for non-willful violations. Willful violations have much higher penalties, so taxpayers with foreign accounts should take the time to understand their filing obligations and comply with them. Who Needs to File an FBAR Did the total...
PENALTIES FOR UNDISCLOSED FOREIGN ACCOUNTS
You may face any of the following penalties for the failure to disclose your foreign accounts: Willful or non-willful FBAR penalties. Accuracy-related penalties for the failure to report foreign income. Civil fraud penalties. Late-payment penalties and interest....