Running a business is more than just monitoring and ordering inventory, managing employees and finding ways to stay competitive in the marketplace. It also takes knowledge of accounting principles and a sound grasp of the U.S. Tax Code.
In what seems to a recurring theme, a mass data release - this one known as the "Paradise Papers" - has disclosed the identities of high-profile users of offshore accounts. It is vitally important to note prior to discussing the content of the Paradise Papers that there is nothing inherently wrong with having offshore or foreign accounts. The IRS even recognizes the validity of these accounts, which is why it established protocols for reporting income from them via the FATCA and FBAR.
As national tax reform has focused on cuts and simplification of the tax brackets, Massachusetts has been discussing the “Fair Share Amendment.” The measure would create an additional 4 percent state tax on income over $1 million.
Getting mail from the IRS or Massachusetts Department of Revenue (DOR) is usually not a good thing. It can be tough to open the letter.
The Internal Revenue Service (IRS) does not hold back punches. The federal agency is currently attempting to gather late tax payments from one of the world's best fighters. Floyd Mayweather Jr. reportedly owes the federal agency $7.2 million in taxes from 2010 as well as $22.2 million from 2015.
As online sales continue to grow - estimates are 15 percent a year - many states worry that millions of dollars in sales tax are being lost. Massachusetts is one of them.
The Red Sox are in first place, but the Bruins also scored a victory this week, even though it's their offseason.
Congress passed legislation in 2015 that allowed the IRS to outsource some of its collection work. Concerns had been voiced by the Inspector General for Tax Administration and the National Taxpayer Advocate, but private collection firms started working with the IRS earlier this year.
Why it is important to ensure that each worker is properly classified? The distinction between independent contractor and employee determines the amount of taxes that must be withheld from a worker’s pay.
The rules that determine proper filing status need to be reviewed closely or you could receive a letter assessing an unexpected tax liability. Married filing joint (MFJ) verses married filing separately (MFS) status was the subject of a recent tax court case.