The Massachusetts Department of Revenue works closely with the IRS. The information sharing between federal and state or within state agencies is frequently a trigger. This means what seemed like a problem related to the classification of workers could be something much larger when the state and federal tax implications are layered on.
Why is the Department of Revenue auditing your tax return?
Could Pease limitations affect your itemized deductions?
Almost all higher-income taxpayers itemize deductions on their tax returns. The Massachusetts Department of Revenue reports each year on the number of million-dollar earners in the state.
Bruins still await Tax Court ruling on team-meal deductions
The Bruins are off to a 4-4 start this season. This puts them in the middle of the pack in the standings in a tough Atlantic Division led by the undefeated Montreal Canadiens.
Timing and discharge of tax debts in bankruptcy
Of all the debts that can be discharged in bankruptcy, past due federal taxes might be subject to the most complicated timing rules. There are generally no exceptions, so get a date wrong and you might not receive a discharge.
IRS begins using private collection agencies next spring
A federal law enacted almost a year ago authorized the IRS to start working with private contractors to collect overdue federal tax debts. Next spring, four contractors will begin taking over older, overdue accounts that the Service is no longer actively working.
Massachusetts estate tax on property outside the state
An estate tax return must be filed after the loss of a loved one. The federal Estate and Gift Tax exemption has increased over the last few years to its current $5,450,000. A couple can combine the exclusion to pass up to $10.9 million dollars without federal tax consequences.
How to submit an Offer in Compromise that will be accepted?
Make a mistake in the filing process or offer an amount that is too low and you could have to start from scratch again. In our last post, we explained how it is necessary to be up-to-date in filing your tax returns.
IRS collection actions: 10 year statute of limitations
The amount of the time that the IRS has to collect back taxes is generally 10 years. Certain actions can stop the clock. An offer in compromise is one of them.
What are the fees for tax installment agreements?
The IRS recently proposed a new fee schedule that would take effect at the beginning of 2017 for taxpayers who enter installment agreements. While the overall fee increases, direct debit and online options will reduce the total you pay.
Short-term rentals remain tax free in Massachusetts
This month, Airbnb starts collecting taxes from hosts of short-term rentals in Los Angeles. Massachusetts will not follow this lead. Even after Airbnb lobbied for a recent tax proposal that would have extended hotel levies to short-term rentals.
