Decoding BBA Partnership: Navigating IRS Audit Regime
Navigating the complexities of a BBA partnership can feel like trying to solve a Rubik’s cube blindfolded. It’s no secret that when it comes to understanding tax laws and IRS audit regimes, many business owners are left scratching their heads… A BBA partnership isn’t just another acronym. The BBA partnership is a distinct set of […]
Understanding FBAR Penalties: What You Need to Know
Understanding FBAR penalties is crucial if you have any offshore account with balances over $10,000. Non-compliance with FBAR regulations can incur severe consequences, including financial penalties and imprisonment. The IRS and FinCEN are responsible for enforcing FBAR penalties. Navigating these complexities might seem daunting, but with proper knowledge, you can avoid falling into costly traps […]
Expert Tax Audit Representation Services For IRS Audit Defense
Tax audit representation can feel like navigating a labyrinth. The fear of the unknown, the stress of potential penalties… It’s enough to keep one up all night. But here’s the truth – you’re not alone in this. With the help of a tax audit specialist, you can take this challenging experience and make it manageable. […]
How Long Do IRS Audits Take? (4 Audit Types & Timelines)
How long do IRS audits take? It’s a question that can keep many taxpayers up at night. Dealing with an Internal Revenue Service (IRS) audit letter is stressful, and dealing with tax audit timeframes can be overwhelming. You have no idea how long your time and energy — and possibly finances — will be tied […]
Navigating Employment Tax Audits: Essential Tips
Maintaining adherence to federal guidelines and certifying the correctness of a business’s financial reporting necessitates employment tax examinations. As businesses face increased scrutiny from IRS auditors, it is essential to be proactive in addressing potential employment tax issues before they escalate into costly disputes. This blog post will delve into common employment tax audits issues […]
7 IRS Payment Plan Options Compared (Short & Long Term Installments)
Key Takeaways: Installment agreements, or IRS payment plans, allow taxpayers to pay off their tax liability over time The types of payment arrangements include: Short-term IRS payment plan Long-term IRS payment plans (Installment Agreements) Direct debit installment agreement Non-direct debit installment agreement In-Business Trust Fund Express Installment Agreements Guaranteed Installment Agreements Partial payment installment agreements Offer in […]
Accuracy-Related Penalties According to the 2022 AUR
Key Takeaways: Filing and paying taxes is something many Americans dread. The process is time consuming and requires close attention to detail, but making a mistake can also lead to fees and penalties. The IRS has systems in place to check for any inconsistencies, ensuring taxpayers pay everything they owe and report income and expenses […]
Form 911: IRS Request for Taxpayer Advocate Services (Guide)
If you’re looking to submit Form 911, understanding the intricacies of this essential document is crucial for resolving your tax-related issues. In this comprehensive blog post, we’ll delve into every aspect of IRS Form 911 and how it can provide relief in specific situations. We will guide you through the purpose and role of Taxpayer […]
How to Survive an IRS Audit of Any Scope When You Receive IRS Letter 4549, IRS Letter 566, FBAR Audit, IDR, IRS Letter CP75, IRS Letter CP75A, IRS Letter 718, CP2000, or IRS Letter 4564
Key Takeaways: An IRS audit inspires fear in many people, including business owners and individual taxpayers. The thought of going through your finances with a fine-tooth comb, answering probing questions, and potentially owing more money in taxes is enough to make anyone stressed. One study found that a fourth of Americans are afraid they’ll be […]
Criminal Tax Defense: What Is It and Why Do You Need It?
Key Takeaways: Facing criminal tax charges can feel like your worst nightmare. Most people fear issues with the IRS, and the potential consequences can completely change your life. Tax laws are complex and constantly changing. It’s easy to make mistakes or misunderstand the requirements, even inadvertently. Ignorance, unfortunately, is not a defense when it comes […]
Are You at Risk? How Signature Authority Works for Your Agent on Foreign Accounts
Key Takeaways: The IRS strives to ensure all U.S. taxpayers report their offshore assets and pay all the taxes they owe. The Bank Secrecy Act implemented requirements for filing an FBAR (Report of Foreign Bank and Financial Accounts) each year. Any required American will use the Financial Crimes Enforcement Network (FinCEN) Form 114 to report […]
What to Know about Offshore Prepaid Cards and the IRS
Key Takeaways: More and more people are traveling and conducting business across international borders. This is why offshore prepaid cards have emerged as a convenient option. These cards help people who need to make international transactions without having to worry about exchange rates or carrying large amounts of cash. The use of these cards, however, […]
Why Resident Aliens Must Take Offshore Asset Reporting Seriously
Key Takeaways: Your tax obligations extend beyond U.S. borders as a resident alien or U.S. citizen. This can be a confusing and overwhelming prospect, but it is crucial to take offshore asset reporting seriously. Failure to do so can result in severe legal and financial consequences. Resident aliens are required to report all assets held […]
Resident Aliens and Form 8938: How to Comply With FATCA Reporting Requirements for Offshore Assets
Key Takeaways: Holding offshore accounts is not illegal, but taxpayers must disclose their foreign accounts and assets to the IRS, since all U.S. citizens’ income and assets are taxable. U.S. taxpayers with offshore assets may be subject to the Foreign Account Tax Compliance Act (FATCA) reporting requirements. This typically involves filing Form 8938, Statement of […]
Red Flag Gambling Tax Problems!
Gambling is a popular pastime enjoyed by millions of people around the world. Whether it’s playing slot machines, blackjack, or betting on horse races, many people enjoy the thrill of trying their luck and potentially winning big. However, for those who are not careful, gambling tax can become a trap that can lead to higher […]
Avoid the IRS with the OnlyFans Taxes Guide
OnlyFans has become a popular platform for content creators to share their work and monetize their content. Many performers on OnlyFans have earned a significant income from their work on the platform, but some have not reported their income to the IRS. It is extremely important for these performers to understand how OnlyFans taxes work, […]
What Every Contractor Needs to Know About IRS Audits: Insights From Tax Professionals
Key Takeaways: Taxes can be complicated for the average American. Self-employed individuals have even more to navigate, from paying quarterly taxes to tracking expenses to claiming business tax breaks. The prospect of an IRS audit can add even more stress to the equation, unfortunately. You may be worried you did something wrong and that you’ll […]
How the IRS Automated Underreporter Unit Works and What It Means for You
Key Takeaways: The issue of underreported income continues to be a problem for both the IRS and taxpayers. Failing to pay taxes owed leads to a lot of back and forth with the IRS and can lead to penalties and even charges for the taxpayer. One study found that all groups within the U.S. population […]
Common Mistakes to Avoid During a Shareholder IRS Audit: Tips from Tax Experts
Key Takeaways: Running an S corporation business brings a lot of benefits, like pass-through taxation and avoiding the double taxation many C corporations have to deal with. An important thing to remember for S corporations, however, is that shareholders of the business are considered employees for tax purposes. Failing to account for this fact can […]
Tax-Related Identity Theft and 2022 AUR Changes
Key Takeaways: Tax fraud is one of the biggest headaches taxpayers and the IRS have to deal with each year. One form of tax fraud to be on the lookout for is identity theft. Tax-related identity theft may occur when someone gets your personal information and uses it to file a fake return so they […]
Understanding FBAR and Form 8938: A Guide to Offshore Asset Reporting
Key Takeaways: Preparing and filing taxes is already complicated. Tax obligations become even more convoluted for expats and U.S. taxpayers with foreign assets. Two forms you need to know are Form 8938 and FBAR (Report of Foreign Bank and Financial Accounts). Both forms may be required in some cases. Only one form may need to […]
Tax Implications of S Corp Election: The Small Business Guide
Key Takeaways: Business owners have a lot on their plate, including hiring and managing staff, completing all reporting requirements, paying taxes, getting new customers, monitoring finances, and many other moving parts. One of a small business owner’s biggest considerations is what kind of business structure to use. Each comes with different responsibilities and requirements, and […]
IRS Negligence Penalty: Who Gets It and How to Fight It
Key Takeaways: Paying taxes can be a major headache, especially if you can’t pay your full tax bill or have a complicated tax situation. You want to do everything you can to lower the amount of tax you have to pay, but only within what tax law allows. The IRS issues penalties when taxpayers make […]
What Is a Schedule C Audit and How Can I Pass It?
Key Takeaways: Taxpayers are required to file a tax return each year that only includes accurate and transparent information about income and expenses. There is a chance the IRS will audit the taxpayer or business anytime a return is filed. This chance remains low, but it’s been found to increase for complex business tax returns […]
What Is the Substantial Understatement Penalty?
Key Takeaways: Paying taxes is stressful for some Americans, especially when they fear they won’t be able to pay their tax bills. This problem can unfortunately lead to negligence or intentional mistakes on their tax returns. The IRS will issue penalties when it uncovers a mistake, such as the understatement of income or inaccurate deduction […]
Tax Implications for Professional Gamblers
Key Takeaways: Most people gamble for fun or to win big, and they don’t pursue the hobby as an actual profession. Gambling can, however, be a lucrative career for some. This is especially true if you are committed to learning tips and tricks for gambling, consulting with experts, and continuing to improve your approach. The […]
What Can I Expect From the Failure to Pay IRS Penalty?
Key Takeaways: Staying in good standing with the IRS means you file your tax return on time each year, pay quarterly estimated taxes if applicable, and pay your tax obligation right away. However, sometimes taxpayers may miss a deadline, fail to file their return properly, or fail to pay the tax they owe on time. […]
Your Guide to IRS Civil Penalties
Key takeaways: Filing tax returns and paying taxes is just part of being an American. It’s a legal requirement to report income and pay taxes on it, and the IRS takes necessary action when someone is late, fails to pay, includes false information, or makes some other illegal move or mistake. Taxpayers are usually not […]
Your Guide to IRS First Time Penalty Abatement Success
Key Takeaways: Have you ever felt like the IRS was this colossal giant, looming over your finances with a fine-tooth comb and an unforgiving eye for penalties? Taxpayers often find themselves in hot water, not by intention but by simple human error or unforeseen circumstances. But here’s something that might change how you view the […]
Tax Attorney vs Enrolled Agent: What Are We and What to Expect
A business relies on ethical, reliable, and experienced professionals to reduce their tax burden and stay compliant with tax regulations. Working with a qualified team of tax professionals is beneficial whenever you face a complicated tax problem. These experts have vast experience handling tax issues and can make tax season less stressful. Choosing the right […]
Can You Go to Jail for Not Filing or Paying Taxes?
Key Takeaways: Many taxpayers worry that making a tax mistake can lead to serious penalties or prison time. As long as you do everything honestly, you have little to worry about. You may still be wondering, however, “Can you go to jail for not filing taxes?” The important thing to remember is you won’t be […]
5 Reasons to Work With Third-Party Tax Counsel
Tax preparation can be daunting and tedious, with complex legal jargon at every turn. While some taxes have relatively straightforward filing requirements, others are hard to dissect. Staying on top of your taxes is easier when you don’t have much on your plate, for example, but it can get overwhelming when your business grows or […]
Everything You Need to Know About a California State Tax Levy
Key Takeaways: •Failing to pay taxes to the California Franchise Tax Board (FTB) can lead to a tax levy, which is an unpleasant process that involves seizing assets and funds. • Getting help from a tax expert is often the best way to resolve a California state tax levy. • The FTB may be willing […]
Your Guide to Principal Residence and Taxes
Your Guide to Principal Residence and Taxes Key Takeaways: Planning for taxes each year requires a lot of knowledge about the tax code, your assets and liabilities, IRS definitions, and state and federal laws. Some taxpayers may just have one income stream from a typical W-2 job, while others may own multiple investment properties or […]
3 Elements of Tax Evasion and How to Avoid It
Key Takeaways: Paying taxes is something many Americans dread. They may not support high tax rates or they simply struggle to afford their tax bill each year. Unfortunately, this leads to issues like tax evasion, which may lead to criminal charges for the taxpayer. Tax evasion is a significant issue in the United States. Around […]
What Happens if You Forget to File Your Taxes and What to Do Next
The IRS requires you to file a tax return if you earned over the standard deduction for your filing status during the tax year. The standard deduction changes every year, and as of tax year 2022, it is $12,950 for a single filer and $25,900 for a married couple filing jointly. You also must file […]
5 Common Business Accounting Issues (and How to Get Past Them)
Key Takeaways: Every business depends on a successful accounting process to keep it running. Your operations won’t succeed without putting financial reporting and bookkeeping systems in place to understand how your business is doing – and where it’s headed in the future. You need to prioritize visibility and organization. Unfortunately, no business is immune to […]
Underreported Income to the IRS? Here’s 4 Simple Steps To Take
Key Takeaways: Under reported income includes any earnings subject to tax that are left off of a tax return The largest portion of the tax gap tracked by the IRS is made up of underreported income Taxpayers may underreport income due to a desire to avoid paying tax or simple mistakes What to do if […]
Business Owner’s Guide: Where to Begin With Small Business Accounting
The goal of running a business is to make money, but if you’re not tracking the numbers correctly, you’ll never be able to optimize your financial potential. Small business accounting isn’t just a chore or something you need to deal with at tax time. It’s a critical component of a successful business. Small business accounting […]
What Is Capital Gains Tax? A Complete Overview
Key Takeaways Many Americans understand the benefits of investing in the stock market, real estate, or other types of assets that increase in value. Over time, these investments may gain capital and can see significant profits when sold at a later date. Investing is a smart way to earn money, especially in the long run. […]
