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Archive for IRS

How To Know If The Knock On Your Door Is Actually Someone From The IRS

Jeffrey Schweitzer, Tax Advisor, Tax Blog, TaxConnections

People can avoid taking the bait and falling victim to a scam by knowing how and when the IRS does contact a taxpayer in person. This can help someone determine whether an individual is truly an IRS employee.

Here are eight things to know about in-person contacts from the IRS. Read more

Am I At Risk For Being Audited?

Frank Hider, Tax Advisor, Dallas, TX, TaxConnections

Even though some IRS audits are chosen at random, there are a few factors that could put Texas taxpayers at an increased risk.

Taxpayers in Texas may understandably have a fear of being audited. After all, an Internal Revenue Service audit may be incredibly time-consuming and end in the consumer having to pay money to the government. However, that is not always the case. Read more

Do You Really Like Loaning The Government Money?

Brian Stoner, Tax Advisor, Burbank, CA, TaxConnections

This is a reprint of a blog I wrote over three years ago, but it still makes sense today.This is a reprint of a blog I wrote over three years ago, but it still makes sense today.

So, you have filed your income tax return with the IRS and your state, and are now waiting for the refund the government(s) owe you. You are thinking of all the things you can do with that money when you get it. Here are some things to think about as you wait:

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IRS Amnesty; The Offshore Voluntary Disclosure Program Explained In Less Than 5 Minutes

Richard Lehman, Tax Advisor, Boca Raton, FL, TaxConnections

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IRS Says It Can’t Satisfy Member’s Tax Liability Out Of Single Member LLC Assets

Brett Thompson, Tax Advisor, Katy, TX, TaxConnections

I. Single Member LLC Asset Protection

A Debtor argued that the Bankruptcy Trustee acts merely for her creditors and is only entitled to a charging order against distributions made on account of her LLC member interest. However, the charging order exists to protect other members of an LLC from having involuntarily to share governance responsibilities with someone they did not choose, or from having to accept a creditor of another member as a co-manager. Read more

IRS Bills, Penalties And Interest Charges

Generally, April 15th is the deadline for most people to file their individual income tax returns and pay any tax due. During its initial processing, the IRS checks for mathematical accuracy on your tax return. When processing is complete, if you owe any tax, penalties or interest, you’ll receive a bill which you’re responsible for paying. Interest and penalties can add up quickly if you don’t pay the full amount right away. Read more

IRS Baby Boomer American Dream Trap

Rodney Kooi, Tax Connections

I always felt sorry for people in their 60s, 70s, and even 80s having to make mortgage payments.  To see someone living on social security and still making $1,500 per month house payments is not an ideal situation to be in. This often happens when a baby boomer pockets part of the equity received in selling a home and then getting another 30-year mortgage.  Next thing you know is that you are 60 and have 25 years left to pay on your mortgage. Read more

IRS Debt Settlement- Scams Vs. The Real Deal

All over the television, and in your spam email box, there are advertisements for IRS settlements.  These companies can help you lower your IRS debt for a fee, customers say they paid a minimal amount, blah blah.  Is this a scam? Well, most likely.  There is a possibility of a settlement for your IRS debt, but you definitely do not need to pay horrendous fees to a company to do it for you.

 Here are some tips:

1.An IRS settlement is called an Offer in Compromise.

2.  The IRS cannot accept a settlement if you can actually afford to pay your bill.  If you know this is you, check out the payment plan options on the IRS website.

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Steps to Avoid an IRS Worker Classification Audit

Any small business must hire more people as the business grows and thrives. At the initial stage when work is sporadic, it may make sense to hire contractors like a web designer to create an online presence or a bookkeeper to manage business accounts. But as work piles up, it may require hiring a full-time employee.

The line between independent contractor and employee is not always clear. A construction firm may have contracted with several roofers as projects dried up during the recession. As work picks up and the firm needs more help, several of the roofers may give up other jobs in exchange for steady schedules and access to the firm’s retirement savings plan. Does this mean that they should instead be classified as employees? Read more

IRS Updates AFRs; Interest Rates Remain Unchanged

Betty Williams, Tax Advisor

The Internal Revenue Service (IRS) has updated its applicable federal rates (AFRs) used for a variety of IRS calculations, such as the minimum interest rate for intra-family loans. For calendar year 2017, AFRs for short-term loans have increased from 0.96 percent to 1.52 percent, AFRs for mid-term loans have fluctuated around 2 percent, and AFRs for long-term loans have fluctuated between 2.6 percent and 2.82 percent. For a detailed list of AFRs by month and year, click here.

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Transferee Liability for Unpaid Corporate Taxes of Minority Shareholders

Ronald Marini, Tax Advisor

The Eleventh Circuit affirmed the Tax Court’s determination that petitioner was liable as a transferee under 26 U.S.C. 6901 for his former employer’s unpaid taxes, in Kardash v. Commissioner of IRS, US Court of Appeals for the Eleventh Circuit, Docket: 16-14254.
The Tax Court had previously found two minority shareholders liable to return several million of dividends they received from a corporation when the corporation failed to pay federal income taxes at the direction of majority shareholders, which majority shareholders also drove the company into insolvency by siphoning off corporate funds.

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What You Need to Know About Deductions for Your Holiday Giving

Betty Williams, Tax Advisor

November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.

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