Offer in compromise rejected

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) with the IRS to settle their debt for less than the amount owed. In one case, the IRS rejected the OIC request of a married couple who offered to pay $45,966 to settle their joint tax debt of $437,369. […]

Tax return on extension?

Did you request an automatic extension to file your 2022 tax return? If so, you still have until Monday, Oct. 16 to file, but there might be significant advantages to filing ahead of the deadline. That is, if you’re due a refund, the sooner you file your return, the sooner you’ll get your refund. Or, […]

Are you married and not earning compensation? You may be able to put money in an IRA

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made […]

District Court finds couple liable

In a recent U.S. District Court decision, the court found that a married couple who owed back taxes committed fraudulent transfers. The husband executed the transfers about four months after the IRS issued a notice of unpaid tax liabilities threatening a levy on the couple’s bank accounts and seizure of property. A total of $287,938 […]

Getting Married? A few more items to add to your to-do list

June brides (and grooms) take note: Marriage alters your tax status and adds a few more to-dos to what’s probably a long list. If one or both of you change your names, notify the Social Security Administration because their records must match those on your tax returns. You’ll be able to choose whether to file […]

Why can’t my profitable business pay its bills?

If your profitable business has trouble making ends meet, it’s not alone. Many business owners mistakenly equate profits with cash flow, leading to shortfalls in the checking account. The truth is that there are many reasons these numbers might differ. Fluctuations in working capital Profits (or pretax earnings) are closely related to taxable income. Reported […]

Is your income taxable?

When filing your tax return, be aware that not all income is taxable. Some income is partially taxed or not taxed at all. Here are just some of the nontaxable items: qualifying adoption expense reimbursements; child support payments; gifts, bequests and inheritances; workers’ comp benefits; compensatory damages awarded for physical injury or physical sickness; cash […]

TFA makes changes to whistleblower program

The Taxpayer First Act (TFA), enacted in 2019, provides for increased communication between whistleblowers and the IRS. It also establishes legal protection against employer retaliation when whistleblowers report tax abuse to the IRS. The Treasury Inspector General for Tax Administration (TIGTA) recently conducted an audit to determine the effectiveness of the IRS’s Whistleblower Program. TIGTA […]

Why auditors care about your business’s cybersecurity

Small Business Jobs Act

The U.S. House Ways and Means Committee has approved a bill that aims to cut IRS red tape for small businesses. If passed, a provision of the Small Business Jobs Act would raise the reporting threshold for IRS Form 1099-NEC from $600 to $5,000. This could eliminate headaches and extra costs by fixing an IRS […]