While the IRS does not have the manpower that it had 20 years ago, there are certain taxpayer actions that can trigger an audit by the Internal Revenue Service. As technology continues to evolve at a significant rate, the IRS has increased its use of automated...
Month: February 2020
TIMING AND TAX REFUNDS
Tax-filing season is upon us, and, as always, the Internal Revenue Service is cautioning taxpayers not to rely on receiving their refunds by a certain date. Every tax return is unique, and, correspondingly, so is each taxpayer’s refund. Different variables may...
IRS UNDERSTATES COMPLIANCE EFFORTS USING “REAL” AND “UNREAL” AUDITS
The National Taxpayer Advocate (NTA) has published several opinions about the issue of “real” vs. “unreal” audits. Under Internal Revenue Code (IRC) § 7602(a)(1), the IRS has the authority to examine any books, papers, records, or other data that may be...
TAX RELIEF FOR TAXPAYERS AFFECTED BY DISASTERS
Since January 2017, FEMA has issued three Emergency Declarations, four Major Disaster Declarations, and one Fire Management Assistance Declaration (FMAD) for the State of Georgia. These were related to hurricanes Michael, Dorian, and Irma, as well as severe...
REASONABLE GROUNDS FOR TAXPAYERS TO GET RELIEF FROM IRS PENALTIES
If a taxpayer tries to comply with the requirements of the law but was unable to do so because of circumstances beyond his or her control, help may be available if the taxpayer has “Reasonable Cause,” which is a type of penalty relief offered by the IRS. The...
ABOUT IRS PENALTY RELIEF
Any taxpayer may qualify for relief from penalties if they made an effort to comply with the requirements of the law but were unable to meet their tax obligations due to circumstances beyond their control. The Internal Revenue Service (IRS) does not abate...
SITUATIONS WHEN A 1099 MUST BE FILED
Anyone who makes or receives a payment during the calendar year as a small business or self-employed individual must likely file an information return, such as 1099, with the IRS. Taxpayers are not required to file information return(s) if either of the...
USING A HOME FOR BUSINESS, PART TWO
Taxpayers, such as attorneys, doctors, dentists, and other professionals, often use part of their homes for business concerns. Taxpayers may deduct expenses related to the business use of part of their home if certain requirements are met. Part One examined the...
USING A HOME FOR BUSINESS, PART ONE
In most circumstances, taxpayers may not deduct items related to their homes, such as real estate taxes, mortgage interest, rent, maintenance, depreciation, property insurance, or utilities as business expenses. Some taxpayers regularly use part of their homes...
USING TAX-FREE DOLLARS FOR MEDICAL EXPENSES
American workers may be eligible to use tax-free dollars to pay medical expenses that not covered by other health plans. Any eligible employees of businesses that offer a health flexible spending arrangement (FSA) must act before their medical plan year starts...