It’s important to understand the tax consequences associated with receiving a legal settlement or award. A failure to pay attention to detail could result in a significant tax liability and other IRS tax problems. What’s Taxable? Legal settlements may compensate a...
Month: January 2020
TAX PROBLEMS RELATED TO UNEMPLOYMENT
Unemployment may be a cause of IRS tax debt problems. It may also exacerbate existing tax problems because you’ll have less money available to make regular payments towards your tax debt. Past-Due Tax Bills If you already have accumulated tax debt, you may be unable...
TAX PROBLEMS RELATED TO DIVORCE
Divorce involves the division of all marital assets and many other financial issues. Many tax laws come into play during a divorce, so beware of the following tax problems before, during, and after your divorce. Property Division The transfer of property from one...
HOW TO USE THE STREAMLINED FILING COMPLIANCE PROCEDURES
Once you’ve determined that you are eligible to use the Streamlined Filing Compliance Procedures, there are many documents and forms you’ll need to submit for processing. You also need to send a full payment of any back taxes, interest, and penalties due. The...
ELIGIBILITY FOR THE STREAMLINED COMPLIANCE PROCEDURES
The Streamlined Filing Compliance Procedures offer taxpayers a less costly alternative for disclosing their unreported offshore accounts. There are several eligibility criteria. Make sure you meet all of them before using this offshore disclosure method....
3 COMMON MISTAKES WHEN YOU HAVE IRS TAX DEBT
IRS tax debt can cause a lot of stress and anxiety. Some people panic and end up making their tax problems worse. Watch out for these three common mistakes when you have IRS tax debt. Mistake #1: Ignoring the IRS It may seem easy to ignore your tax debt at first. You...
VIRTUAL CURRENCY TAXES FOR U.S. TAXPAYERS
Virtual currency taxes are a relatively new issue. The IRS will continue to issues guidance as time passes, but taxpayers still need to properly report their virtual currency transactions, pay taxes on virtual currency income, and correct any noncompliance on...
3 THINGS YOU NEED TO KNOW WHEN YOU RECEIVE A NOTICE OF DEFICIENCY
A Notice of Deficiency is an official tax assessment letter from the IRS. The notice is informing you of your rights and what you have to do to contest the tax assessment. You Have 90 Days The Notice of Deficiency is also referred to as a 90-day letter. You...
THE TOP 5 REASONS THE IRS WILL AUDIT YOUR BUSINESS
You can’t completely eliminate your risk of being audited by the IRS. However, some taxpayers are more likely to being audited than others. If you have a higher audit risk, make sure you double-check your numbers and have your supporting documentation ready in...
IRS CHALLENGES DUE TO UNREASONABLE COMPENSATION
Reasonable compensation issues can come up in a variety of circumstances. An IRS tax audit may result in an adjustment to your compensation or the compensation of your employees, causing you to owe additional taxes, penalties, and interest. The IRS may...