Married couples don’t always agree – and taxes are no exception. In certain cases, an “innocent” spouse can apply for relief from the responsibility of paying tax, interest and penalties arising from a spouse’s (or former spouse’s) improperly handled tax return. Although it isn’t easy to qualify, potentially affected taxpayers should review the rules. Applicants [...]
Like many people, you probably feel a great sense of relief wash over you after your tax return is completed and filed. Unfortunately, even professionally prepared and accurate returns may sometimes be subject to an IRS audit. The good news? Chances are slim that it will actually happen. Only a small percentage of returns go [...]
If you’re a shareholder-employee of an S corporation, you more than likely considered the tax advantages of this entity choice. But those very same tax advantages also tend to draw IRS scrutiny. And the agency has made clear that its interest in S corporations – including possible audits – will continue. WHAT’S THE PROBLEM The [...]
If a relative needs financial help, offering an intra-family loan might seem like a good idea. But if not properly executed, such loans can carry substantial negative tax consequences – such as unexpected taxable income, gift tax or both. Here are five tips to consider: Create a paper trail. In general, to avoid undesirable tax [...]
When you sell a capital asset, the sale results in a capital gain or loss. A capital asset includes most property you own for personal use (such as your home or car) or own as an investment (such as stocks and bonds). Here are some facts that you should know about capital gains and losses: [...]
IRS WARNS TAXPAYERS TO BEWARE OF PHISHING SCAMS Phishing is a scam typically carried out by unsolicited email and/or bogus websites posing as legitimate sites luring unsuspecting victims to provide personal and financial information. The IRS has recently warned consumers to watch for emails appearing to be from the Taxpayer Advocate Service (TAS) that include [...]