The IRS implemented a new program for taxpayers who process a significant amount of transactions from credit cards and other third party vendors (such as PayPal). Such businesses are now required to submit a Form 1099K: Payment Card and Third Party Network Transactions. This give the IRS more detailed information about their electronic transactions. If […]
1099K Matching Program: How This Program Impacts Taxpayers Read More »
There are numerous radio and television ads these days geared toward individuals who owe back taxes to the IRS. They usually mention the IRS Fresh Start Initiative and make claims that they can settle your tax debt for “pennies on the dollar.” This is accomplished through what is called an offer in compromise (OIC). Though
IRS Offers in Compromise: Are they a Realistic Settlement Option Read More »
In 2013, lawmakers in Congress introduced the Marketplace Fairness Act, a plan to compel Internet retailers to collect state and local sales taxes for out of state customers. Last session, the Act passed the Senate but did not make it through the House of Representatives. Earlier this year, the bill was reintroduced with support from
Congress Renews Push for the Marketplace Fairness Act Read More »
If you fail to pay your taxes on time, the IRS assesses penalties and interest. There are a number of “reasonable causes” listed in the IRS manual for penalty abatement. These include ordinary business care and prudence, undue hardship, and poor professional advice. Interest abatement (having the interest on your late tax payments forgiven) is
Can Interest Be Waived On Late Tax Payments? Read More »
Many taxpayers who owe a substantial debt to the IRS are unable to pay it all in one lump sum. To help individuals get back on their feet, the IRS offers the option to pay your debt in monthly installments over time. However, there are some conditions. First, to qualify for an installment agreement, you
What You Need To Know About IRS Installment Agreements Read More »
For all taxpayers, getting audited by the IRS is a scary process. When an agency with virtually unlimited power wants to know about your finances, it is understandable that people get nervous. The truth is, the majority of audits are done by mail, these are referred to as “correspondence audits”, and they are usually not
What Happens at an IRS Audit? Read More »
According to the Joint Congressional Committee on Taxation, the average U.S. taxpayer pays 10.1% in income taxes. Many at the bottom pay little or no income tax at all, and some even receive more back in credits than they pay in. On the other hand, the top federal marginal rate is 39.6% with several brackets
How Much do Americans Really Pay in Taxes? Read More »
During tax season, one of the biggest worries taxpayers have is being audited. The idea of having your return singled out for extra scrutiny strikes fear into many. As an accounting firm, our job is not to help our clients avoid an audit, but rather to ensure that the return will stand up to IRS
What are your Chances of an IRS Audit? Read More »
This month, millions of Americans will be getting tax refunds back from the IRS. Some will receive a few hundred dollars while others may get several thousand. For many taxpayers, their refund is the largest lump sum they will receive all year. With a big sum of money that is outside your regular monthly income,
Don’t Be a Fool with your Tax Refund Read More »
Entering retirement is a completely new phase of life not only in terms of career and possibly in terms of your living situation, but financially as well. Employer income typically replaced with Social Security and combined with either a pension or IRA/401K withdrawal. On top of that, you still may be maintaining a part-time job
Important Tax Tips for Seniors Read More »
