The IRS issued final rules pertaining to charitable deduction substantiation. With a few exceptions, these regulations will impact charitable contributions made after July 30, 2018.
Despite promises to simplify the filing of taxes, reporting your income to the IRS may now be even more complex. With the passing of the Tax Cut and Jobs Act, there are also a number of other complexities that accompany the filing of taxes.
It appears that members of Congress are demanding that the Justice Department return assets seized from taxpayers. This was in response to IRS actions levying finances contained in taxpayer bank accounts through civil forfeiture laws.
According to one commentator, the IRS suggestion that less audits are occurring is not entirely true. The problem with what the IRS is telling you is that they may define audits differently than other authorities.
Michigan taxpayers need to understand how extensive the IRS whistleblower program is. Besides having massive support from other federal branches, the IRS is always enhancing its enforcement efforts.
Michigan taxpayers sometimes make mistakes when filing returns, but only become aware of the mistake at a later date. Some taxpayers choose to amend their returns when this happens. But whether actually amending your return is the correct course depends on your individual circumstances.
We’ve long discussed on this blog the power the IRS has in imposing criminal penalties. For example, Tax Code Section 7212(a) imposes penalties upon individuals who obstruct, impede or even endeavor to obstruct or impede “the due administration” of the Internal Revenue Code.”
It is intimidating for any Michigan taxpayer to have to deal with the IRS. However, not many people know that the IRS adopted a taxpayer bill of rights.
If you are Michigan resident behind on paying your federal taxes, you are likely facing significant penalties and fines. But being behind on your taxes – even significantly behind – is not the same as saying you are guilty of tax evasion or fraud.
From the perspective of the IRS, all income from any source is subject to taxation. However, many taxpayers (including those living in Michigan) are failing to report all of the money they receive.