That dreaded, fifth season of the year is soon to be upon us: Tax Season. Many Americans are turning their attention to tax returns and as they file, most people wonder “could I get audited this year?” The statistical chances of a tax return getting flagged for an audit are very small, but it still weighs on one’s mind. So, let’s take a look at the filing and audit process a little closer: Read more >>
January 28, 2021
A merchant who buys and sells wines through an LLC that shows up as a Schedule C business on his personal tax return was recently audited. Read more »
October 16, 2020
Like so many businesses, the IRS shut down most of its operations during the early months of the pandemic, returning to full work only in early July. Read more »
September 4, 2020
Bad news: your uncle dies. Good news: he left you money and a house. You’re also a beneficiary on a life insurance policy he had. Bad news: he named you as the executor of his estate, so you have to fill out paperwork now that he’s gone. Read more >>
September 27, 2019
When the IRS does not have enough people to answer questions, perform audits, or collect the taxes, several things happen. The US Treasury doesn’t collect as much tax revenue as it should. Some people start evading taxes, figuring they can get away with it. Read more »
September 13, 2019
The IRS treats taxpayers who owe more than $100,000 very differently than it does those who owe less than $100,000. If you owe more, the IRS expects immediate payment. It also uses harsh collection measures and makes invasive financial information demands. If you owe less, then you get up to five years to pay what you owe, and the process is relatively easy. Read more >>
October 9, 2018
A client ran a landscape maintenance company in LA for 30 years. His crew showed up at clients’ houses to mow, blow, and go. My client called his crew “contractors,” to avoid paying payroll taxes. He also didn’t issue Forms 1099 for them. Uh-oh… Read more >>
August 9, 2018
Americans who work overseas are entitled to exclude $80,000 of annual income from their tax return. It’s called the “foreign earned income exclusion.” Read more >>
January 19, 2018
The private collectors are not as well trained as IRS employees, and generally violate taxpayer rights much more often than the federal employees. Read more >>
May 30, 2017
My client’s shaking, horrified. She lied on her tax return and worries the IRS will find out when they open the audit. She thinks she’ll end up in handcuffs if she even talks to the IRS. She won’t. But the IRS will be happy that she is scared. Read more >>
May 26, 2017
