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.
You may have already heard that it is sometimes possible to settle your tax debt for less than the full amount that you owe.
Valuations on artwork are frequently too low or too high. An IRS review from 2011 to 2015, found that 58 percent of the works of art reviewed had been valued incorrectly.
The Affordable Care Act does not appear to be going anywhere this year. More failure to comply exchange notices are being sent from health insurance marketplaces to companies.
If you are making money off the sale of investment property you will probably owe capital gains. The adjusted basis on the property will be very important – remember to add capital improvements which minimize the amount of gain you realized.
There are two ways to structure a transaction. One carries a lower tax burden. You decide to use that one. The IRS cannot later force you to use the other one. In the recent case, two brothers combined two tax incentives – one common and one obscure – to limit their taxes.
The Massachusetts Department of Revenue often works in coordination with the IRS. An audit of a federal tax return may trigger a DOR Notice of Insufficient Return (NIR).
U.S. citizens are taxed on worldwide income. To collect on these taxes, the IRS requires annual reports disclosing foreign financial assets. What triggers the reporting requirements? It varies on the type of asset and amount in an account.
Challenging an IRS determination can take years. If not successful, you may also face an accuracy-related penalty.