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Tag Archive for IRS

Will The IRS Turn Your Contractors Into Employees?

Dan Selner, Tax Advisor, Tax Blog, West Saint Paul, Minnesota, USA, TaxConnections

One of the big red flags with the IRS these days happens when you have independent contractors or subcontractors.

If you do not properly prepare Form 1099s for them, the IRS may deny the deduction for amounts you pay them. They may even decide they should be employees instead of independent contractors (ICs).  Note: Most businesses do not prepare 1099s properly. Read more

Five Tax Tips For Job Changers

Henry Lock, Tax Advisor, Auburn Hills, MN, TaxConnections

There are a lot of new things to get used to when you change jobs, from new responsibilities to adjusting to a new company culture. One thing you may not have considered are the tax issues created when you change jobs. Here are tips to reduce any potential tax problems related to making a job change this coming year.

Don’t forget about in-between pay. It is easy to forget to account for pay received while you’re between jobs. This includes severance and accrued vacation or sick pay from your former employer. It may also include unemployment benefits. All are taxable but may not have had taxes withheld, causing a surprise at tax time. Read more

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

2018 Q1 Tax Calendar – Important Deadlines For Businesses

Richard Yorke, Tax Advisor, TaxConnections

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. 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

What You Need To Know About Renouncing U.S. Citizenship

Olivier Wagner, Tax Advisor, Vancouver, Canada, TaxConnections

The U.S. citizenship comes with all the arduous requirements and liabilities, hence why more people than ever started to question whether the benefits outweigh the costs. Thought of renouncing a U.S. citizenship may pass through your mind if you are already a dual citizen, have no ties with the U.S. and don’t want to carry the U.S. tax burden anymore. Some people fall into the category of “Accidental Americans” and they have never even considered themselves being Americans, so it’s the only way to free themselves from the IRS and stop playing their tax game. 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:

Read more

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 And FTB Power Of Attorney Forms Have Changed

Betty Williams, Tax Advisor, Sacramento, CA, TaxConnections

If you are a tax professional, take note of recent changes that the Internal Revenue Service (IRS) and California Franchise Tax Board (FTB) have made to their power of attorney forms that may affect your ability to access client information.

The IRS form, found here, has expanded section 5a to include a box you must check if you have intermediaries access client transcripts for you.  The FTB has completely rehauled its power of attorney form system — there is a new form to use for individuals, a separate form for business entities, and a third form to use when you want to revoke your power of attorney.  Read more

Be Prepared: Filing Season Begins Jan. 29

Tyler Hamelwright, Tax Advisor, Mesa, AZ, TaxConnections

Filing season will begin on Monday, Jan. 29, the Internal Revenue Service announced.

The final tax deadline will be Tuesday, April 17. (April 16 is Emancipation Day, a legal holiday in Washington, D.C.). The IRS expects nearly 155 million individual returns to be filed in 2018.

In 2017, the IRS began accepting returns on January 23; it set the date at January 29 this year to make sure that its key processing systems are ready, and to give it time to determine how late December’s Tax Cuts and Jobs Act will impact tax returns. 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