If someone else files a tax return using your personal information, you’re a victim of tax identity theft. You may be unable to file a return or obtain your tax refund, and you’ll have to take steps to resolve the issue with the IRS. Signs of Tax Identity Theft You...
Month: December 2019
WHAT IS A TAX COURT PETITION?
The ability to petition the Tax Court is one of the most important rights given to U.S. taxpayers. A tax court petition is essentially a lawsuit filed by a taxpayer against the IRS. 90-Day Letters If you are audited, the IRS will have to send a Notice of Deficiency...
HOW LONG SHOULD YOU KEEP TAX RECORDS?
The general rule is to keep tax records for at least three years. But there are many situations where you may want to keep records for longer than that if you want to protect yourself in the case of an IRS tax audit. The Three-Year Rule The IRS has three years to...
WHAT TO DO IF THE IRS ASKS YOU TO WAIVE THE STATUTE OF LIMITATIONS
The IRS can ask a taxpayer to extend or waive the statute of limitations for tax assessment or collections. You should consult a tax attorney before agreeing to any extension and make sure that it is in your best interests. You may also want to limit the length or...
CRIMINAL PENALTIES FOR FBAR VIOLATIONS
Criminal FBAR penalties are among the most serious penalties that can be imposed for tax crimes. These penalties are not nearly as common as civil FBAR penalties and will only be imposed for willful violations. Criminal FBAR Penalties The general criminal FBAR penalty...
IRS RETIREMENT ACCOUNT LEVIES
The IRS is permitted to seize the funds in your retirement account, including a 401(k) plan, IRA, and many other types of accounts. Retirement account levies are generally only sought after other enforced collection actions have been unfruitful. Retirement Plan Levies...
IS CERTAIN PROPERTY PROTECTED FROM AN IRS LEVY?
The IRS has the power to seize many types of property, but certain items are exempt from levy. No matter how much you owe or how long your taxes have gone unpaid, the IRS isn’t legally permitted to take these types of property. Assets Exempt from IRS Levy The...
IRS ESTATE TAX AUDITS
Estate tax returns can be audited just like any other tax return. However, there are some unique issues to consider when you’re involved in an estate tax audit. Reasons for Audit Larger estates are more likely to be audited. Estates valued below $11.4 million in 2019...
HOW IS PARTNERSHIP INCOME TAXED?
Partnerships don’t pay taxes—their income passes through to the partners who pay their share of the taxes. If you are involved in a partnership, you should understand the tax ramifications to avoid incurring IRS tax debt or increasing your risk of an IRS tax audit....
TEXAS ATTORNEY CONVICTED FOR TAX EVASION USING FOREIGN ACCOUNTS
An attorney from Houston, Texas has been convicted of tax evasion and conspiracy to defraud the United States due to scheme involving foreign accounts. In total, Jack Stephen Pursley hid $18 million of a former client’s income from the IRS in order to avoid taxation,...