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.
Make a mistake with the choice of entity or contract terms when starting up a company and it could have serious consequences down the road. A warning comes in the form of a tax court case decision at the end of December.
The Offshore Voluntary Disclosure Program (OVDP) is not a given. You must apply to take part and then be accepted into the program.
With the year end quickly approaching, you generally have until December 31 to take actions to impact your 2016 tax return. If you missed the April and extended October tax return filing deadlines for tax year 2015, now is also a good time to finally clear up lingering issues.
The IRS officially announced that tax season will begin on January 23rd when it starts accepting returns. You will have a few extra days to get your returned filed with a due date of Tuesday, April 17 in 2017.
This summer the city council in Philadelphia passed a measure approving a 1.5 cent per ounce tax increase on beverages with added sweeteners. Last week, voters passed ballot measures in three California communities adding a penny per ounce by overwhelming majorities. Boulder had the closest contest, but instead will raise the levy by two cents per ounce.
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.
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.