The general rule is that you’ll need to disclose all unfiled FBARs during the past six tax years. This is the disclosure period required under the Streamlined Filing Compliance Procedures and the New Offshore Disclosure Program. If you weren’t required to file an FBAR...
Month: October 2019
IRS BACK TAXES FOR VIRTUAL CURRENCY TRANSACTIONS
This summer, the IRS will send letters to over 10,000 taxpayers who were involved in virtual currency transactions. These letters are merely meant to be educational—informing the taxpayers that they may have failed to report income and pay taxes from their virtual...
IRS AUDITS FOR UNREPORTED INCOME
Unreported or underreported income is a common reason taxpayers get audited by the IRS. These cases can range from minor mistakes or serious problems. In some cases, the IRS could even pursue tax fraud penalties. How the IRS Detects Unreported Income The IRS receives...
IRS AUDITS FOR UNUSUAL DEDUCTIONS
Taxpayers are entitled to their proper share of tax deductions. But when your deductions are disproportionately large when compared to your income, it could increase your risk of an IRS tax audit. The following are some deductions that may cause an IRS audit red flag...
CAN A BUSINESS SUBMIT AN OFFER IN COMPROMISE?
Business—including partnerships, LLCs, and corporations—may qualify to submit an Offer in Compromise (OIC) to settle their IRS tax debt. However, expect the IRS to carefully scrutinize your finances before your OIC will be accepted. Your offer must be at least as much...
HOW MUCH TAX DEBT CAN YOU SETTLE IN AN OFFER IN COMPROMISE?
The IRS Offer in Compromise (OIC) program can be used to settle tax debts for less than what you owe. The most important factors in your offer will be your reasonable collection potential and the amount of your offer. If your offer exceeds your reasonable collection...
PROS AND CONS OF EACH TYPE OF INNOCENT SPOUSE RELIEF
Innocent spouse relief can be an effective way to escape from liability for your spouse or former spouse’s tax debt. There are three types of innocent spouse relief, and each has its own costs and benefits. Traditional Innocent Spouse Relief Traditional relief can be...
HOW LONG DO YOU HAVE TO REQUEST INNOCENT SPOUSE RELIEF?
Several factors can influence how long you have to file an innocent spouse relief request, including: Which type of innocent spouse relief you are requesting When you became aware of the tax liability that you are requesting relief from If requesting equitable relief,...
WILL THE IRS LEVY YOUR ASSETS IF YOU HAVE AN INSTALLMENT AGREEMENT?
The IRS generally won’t levy your assets or garnish your wages while you are paying off your tax debt with an installment agreement. However, you must meet all the terms of your installment agreement to avoid a potential payment plan default. Permitted Collection...
OVERVIEW OF GEORGIA TAX AUDITS
Georgia tax audits have some similarities to IRS tax audits. However, Georgia also takes advantage of the information the IRS has access to in order to make sure your state tax return matches with your federal tax return. How Returns Are Selected for Audit Georgia...