Anything you get in the mail from the IRS besides a tax refund probably isn’t a letter you want to receive. One such letter is the Notice of Unreported Income, known to many as “CP2000.” The purpose of this notice is to inform you of the IRS’ assessment that you did not accurately report all of your income for the previous tax year. It is NOT a bill nor is it an ironclad assessment of tax obligations—including Read More
Did You Know the IRS Gives Out Badges?
It’s true. However, these badges aren’t something the federal agency gives out for a job well done. Rather, tax professionals refer to these designations as badges of fraud. As the name suggests, these badges are indicators to the IRS that a taxpayer committed an error with possible fraudulent intent. This puts the taxpayer in danger of having to pay civil or criminal fines. In the most severe cases, prison time is Read More
IRS Penalty Relief: First-Time Penalty Abatement
For all the doom and gloom surrounding “the IRS” — a mere mention of the federal agency is enough to make some taxpayers shudder — plenty of people might be surprised about how willing representatives are to help taxpayers settle tax liabilities and penalties. The IRS is typically more lenient toward taxpayers without a long rap sheet. In other words, you’re more likely to receive penalty relief for your first tax Read More
6 Common Deductions Taxpayers Overlook
Because the IRS extended the tax deadline by three months in 2020, it might seem like you were filing your taxes just the other day. However, it’s time to start thinking about paying taxes again, as there is no indication the yearly April 15 deadline will be moved again. Before you file, it’s worthwhile to ponder the deductions available to you. Many taxpayers are not aware of the numerous deductions and credits Read More
Own Cryptocurrency? Be Prepared for a Potential IRS Audit
At the risk of spreading a fear-mongering headline — theoretically, just about any U.S. taxpayer could be audited at any point by the Internal Revenue Service — it is true that cryptocurrency owners may now be at an increased risk of an audit. Recent actions by the IRS have given us clues that it is adding capacity to examine taxpayers who may not have complied with tax reporting requirements of cryptocurrency Read More
Payroll Tax Issues When You Misclassify Workers as Independent Contractors
No one wants to be in trouble with the IRS. Most of the time, you may not even be aware that a specific action could lead to a dispute. One of the most common mistakes is confusing whether a worker is an employee or an independent contractor. Sometimes the lines are blurred and it’s less clear than it should be. Here’s how the IRS defines the two: Employee - An employee is someone who works for you and you Read More
Practical Guidance on Filing Income Taxes Jointly or Separately
If you’ve recently wed, congratulations! One of the benefits of marrying the love of your life is being able to file one tax return for both of you. Are you still wondering why it’s beneficial to now file income taxes together, though? In this blog, we’ll break it down in an easy-to-understand way, plus we’ll give some essential information on claiming a child as a dependent. Reasons for Filing Jointly vs. Read More
Ensuring Your PPP Loan is Forgiven
In an economy that is constantly changing and shifting due to COVID-19 and subsequent stay-at-home orders, one of the more enduring programs has been the Paycheck Protection Program (PPP). Funding for the original round went quickly, with an additional round soon after and more, possibly, on the way. For small business owners simply trying to keep afloat, there are many appealing features of the program. Even if Read More
Currency Transaction Reports: Has One Been Filed on You?
Plenty of otherwise innocent people are unaware that some of their large deposits or withdrawals to or from their bank are discreetly flagged in what is called a Currency Transaction Report (CTR). This report is completed by employees of financial institutions when cash transactions of $10,000 or more pass through the institution in some capacity. It also applies to transactions involving other negotiable instruments Read More
Owe Back Taxes? Considering Bankruptcy? Consider These Three Alternatives First
Many people who are facing overwhelming debt and struggling to make ends meet are aware that bankruptcy may be a way out. Bankruptcy can be an effective solution, but it can have serious consequences and should only be taken as a last step. Bankruptcy may be your best option, especially if you have substantial consumer debt. But bankruptcy will not always solve a person’s tax problems. Certain types of back Read More
