The IRS has announced that it intends to increase its use of AI in many different aspects of its operations. One of the main goals is to increase tax law enforcement for the wealthiest taxpayers. AI can be used to track financial behaviors, patterns and other things that could indicate that an individual or company is not paying the full amount of taxes owed.
It is also likely that AI will be implemented to help the IRS go through tax returns and identify problems. However, there are some opposed to this that claim that AI being used to decide who gets audited is unfair. There are concerns that AI could produce biased results when used in this manner.
A Georgia taxpayer does not have to walk through the audit process alone. If there are concerns about the nature of the audit, it is appropriate to seek legal guidance regarding legal options. Speaking with a tax law attorney can help an individual taxpayer or business owner understand obligations.
]]>Most people know about tax deductions, which are ways to reduce the taxable portion of income in order to reduce its tax obligations. Proper application of deductions could put a business in a lower tax bracket. A tax credit is slightly more straightforward in that it reduces the overall amount of taxes owed.
A credit provides a dollar-for dollar reduction of the total amount due. There are various different tax credits for which small businesses may be qualified, including the Work Opportunity Tax Credit, Employee Retention Tax Credit, and tax credits for research and development. There are a range of different types of credits for federal and state tax purposes that could apply to different types of businesses.
A Georgia small business owner will benefit from the assistance provided by an experienced tax law attorney and professional assistance with tax preparation. This guidance is critical as an owner seeks to properly apply tax credits and meet all obligations. An assessment of the business, its operations and other details can reveal which credits and deductions may be an option for a company.
]]>The exact form you would submit to fulfill FBAR requirements is known as the FinCEN Form 114. The total amount of money in all foreign accounts at any time during a tax year is a determining factor as to whether you must report the holdings. FBAR rules are relevant to all U.S. citizens and expatriates, as well as those who possess green cards or dual citizenship.
If you have numerous bank accounts or signature authority on accounts overseas, it is important to add the total holdings in all the accounts. If, at any time during a fiscal year, your total holdings amount to $10,000, then you must submit a FinCEN Form 114.. If you fail to do so by the listed deadline, you may incur penalties, which, in some cases, could include facing criminal charges.
The IRS requests you submit an FBAR by using a digital form, online. If you typically hire a tax service to file your taxes for you, inform your tax preparer that you must file an FBAR, and they can help you navigate the process. You can also use an e-filing system independently if you do your own taxes.
Every year, in Georgia and across the country, people make honest mistakes on their tax returns. If the IRS makes you aware of an error, and you convince them that it was, in fact, not intentional, they may allow you to correct the error without penalty. However, if you intentionally omit an FBAR that you know you’re required to submit, you might wind up facing serious penalties and legal problems.
Depending on the total amount of your foreign holdings, you could face penalties of the higher amount up to $100,000 per violation or 50% of the total amount of holdings in your foreign accounts. In a worst-case scenario, you could face time in prison for willful FBAR violations. It is always best to seek guidance from a knowledgeable source rather than assume you are not required to report financial holdings, which may lead to an IRS investigation.
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