The sheer volume of the Internal Revenue Code may imply that every hypothetical tax issue has been anticipated. Yet murky areas do arise. Fortunately, IRS personnel have opportunities to apply discretion in certain cases.One example is the “First Time Penalty Abate.”...
Back Taxes or Tax Debt
Is the IRS losing revenue by discouraging voluntary compliance?
American taxpayers with foreign bank accounts might face steep penalties for failing to report their assets to the Internal Revenue Service. Pursuant to a 2010 law called the Foreign Account Tax Compliance Act, foreign banks must file reports or face penalties...
Don’t show your hand too early in IRS dealings
Settlement negotiations are a cornerstone of the American legal system. In fact, one doesn’t have to be in court proceedings to benefit from this type of advocacy. When responding to administrative actions from the Internal Revenue Service, a taxpayer could benefit...
How tax fraud and tax negligence differ, and what they mean
If you were to hear the two phrases "tax negligence" and "tax fraud" you would probably be inclined to think that they are the same thing. They both sound serious and they both deal with taxpayers who haven't fulfilled their tax obligations with the IRS, at least...
Proceed cautiously when collecting short-term rental income
It wasn't all that long ago that people looking to earn a supplemental income would simply search the want ads until they found a few promising leads for part-time work. While many still rely on this time-tested method, still others are harnessing the power of...
Haven’t filed your taxes yet? Here’s how to get an extension
The 2016 tax filing deadline is finally upon us. Today, April 18 is the deadline by which U.S. taxpayers must file and pay their taxes for the 2015 calendar year. While the deadline is roughly the same each year, and shouldn't therefore be a surprise to anyone, some...
In some cases, the IRS may actually forgive late-filing penalties
The 2016 April 18 tax deadline is quickly approaching and, barring special circumstances, taxpayers are expected to both file and pay their taxes on time. While the Internal Revenue Service fully expects the vast majority of U.S. taxpayers to comply with the April 18...
Small tax mistakes can add up to big costs and headaches
While no one enjoys doing their taxes, to avoid costly penalties and fees, it pays to do them correct the first time. Despite what a taxpayer may think, the Internal Revenue Service has numerous resources at its disposal which helps the agency easily identify certain...
Are you taking full advantage of tax deductions?
When it comes to taxes, most Americans are actively seeking ways to reduce the amount they pay. While it's virtually impossible, not to mention illegal, for a working individual to completely avoid paying taxes; there are ways to reduce tax burdens. Some of the most...
How participation in the shared economy affects taxes
In the U.S., there are signs that the traditional nine to five job may soon be a thing of the past. From ride-share and cleaning services to vacation rentals and delivery services, today these and a host of offerings are readily available to Americans at a reasonable...