The IRS has an unlimited amount of time to assess tax for a period where no return was filed. Technically, you should keep your records forever for any tax year where you did not file a return, but in practice the IRS doesn’t commonly go back more than six years when...
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TAX PROBLEMS FOR NONRESIDENT ALIENS
The IRS determines residency for tax purposes based on its own rules. Your residency for immigration purposes is not necessarily the same as your residency for tax purposes. If you are a non-resident alien, you should make sure you understand your tax filing...
TAX TIPS FOR UBER DRIVERS
People who drive for Uber, Lyft, or other rideshare companies can run into tax problems if they aren’t familiar with certain tax laws. Rideshare drivers are generally treated as independent contractors, which means they are responsible for the following things:...
TAX ISSUES FOR CONSTRUCTION WORKERS
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...
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 MISS AN ESTIMATED TAX PAYMENT
Self-employed taxpayers are generally required to make four estimated tax payments each year. If you miss a payment, you should pay it as soon as possible to minimize underpayment penalties. What Are Underpayment Penalties? Underpayment penalties can be charged if you...
TAX CONSEQUENCES OF A HOME FORECLOSURE
A home foreclosure is treated as a taxable transfer of your home. It is possible that you could have income from this transaction and need to pay taxes, which would likely be taxed at the capital gains rates. However, there are some cases where you may be able to...
TAX CONSEQUENCES OF SELLING A RENTAL PROPERTY
You will generally owe capital gains tax when you sell a rental property for a gain. If you have a large gain on the sale, this could result in a significant tax bill. You may also owe depreciation recapture tax. This applies to offset all of the depreciation...
TAX PROBLEMS FOR SELF-EMPLOYED TAXPAYERS
Self-employed taxpayers generally have more control over their tax situation. You can make the following decisions related to your taxes: What business expense deductions to claim What business entity to use, such as a partnership or C-corporation How much to pay in...
TAX ISSUES FOR REAL ESTATE AGENTS
Many real estate agents operate their businesses as sole proprietorships. They have unique (and often complicated) tax issues because they need to incur and track a lot of expenses in order to make commissions. This can lead to IRS or state tax problems if you don’t...