Experienced-Diligent-Effective
Articles and News
IRS Rule on PayPal and Venmo Transactions
New IRS 1099-K Rules on Payment Processor Payments
IRS--Back to the Office, Appeals and Tax Court
IRS employees are going back to their offices and backlogged Tax Court cases are being assigned to Appeals.
Biden's Tax and Spending Plans
Summary of President Biden’s Tax and Spending Proposals with tax changes for individuals and corporations.
IRS Funding, Audits and Bank Accounts
Spending Proposals IRS budget increase will result in more audits and more information reporting requirements for banks.
IRS COVID-19 People First Initiative
IRS COVID-19 Tax Relief and the People First Initiative
Summary of The Trust Fund Recovery Penalty
Summary and computation of Trust Fund Recovery Penalty
Is the Internal Revenue Service Going Back to Work?
More than one-half of IRS employees are going back to work at the end of January through the tax filing season.
Taxes on Using Ebay and Paypal
Sellers who use Ebay and Paypal or other payment processors may receive Form 1099-Ks.
IRS List of Top Taxpayer Scams
The Internal Revenue Service has released its annual list of tax scams. A summary of the list, called the "Dirty Dozen" is provided in this article.
Tax Returns and Health Insurance
The IRS was prepared to require tax filers to indicate on line 61 whether they and their family had health coverage during 2016. If not, taxpayers are subject to a penalty. Now it appears, due to President Trump, that filing out line 61 is optional.
IRS Collection Fast Track Mediation
The purpose of the mediation is to resolve disputes in the early stages of the collection process and within 40 days after the mediation application is accepted by the IRS. In order to be accepted into the process, taxpayers must make a good faith effort to resolve matters with the IRS collection officer followed by a conference with the officer's manager. Acceptance into the mediation process does not mean that taxpayers can't pursue other options if mediation doesn't resolve their case.
Internal Revenue Service Offshore Bank Account Enforcement
The IRS along with the DOJ has been aggressively pursuing offshore account holders to disclose their overseas bank accounts before it's too late. There are significant penalties for holding accounts in certain foreign banks. However, in an effort to encourage account holders to disclose their accounts, the IRS started the Offshore Voluntary Disclosure Program (OVDP) and the streamlined procedures enable taxpayer to meet their tax obligations while limiting the potential penalties for continued non-compliance.
Alabama Sales Tax and Online Companies
More and more consumers are buying all kinds of stuff online--over the internet from companies such as Amazon. Many of these sales transactions occur without the payment of sales taxes, as the selling company likely has no physical presence in the state of the purchaser. Many brick-and-mortar companies argued that they were at a disadvantage as they were forced to compel customers to pay more (often times 8% or more) to cover the state sales tax.
Multiple Businesses and the IRS
A recent decision by the Tax Court should serve as a warning to people that own multiple businesses but don't always "respect the corporate formalities" associated with each business entity. If you own more than one business and sometimes have Company A pay the expenses of Company B, or perhaps task an employee of Company A to do things for Company B, the IRS may deny your deductions.
IRS Statute of Limitation on Collecting Taxes
For some the only hope of relief from unmanageable federal tax debts may be the statute of limitations on collection. In theory, the IRS has only 10 years from the date of assessment to collect. However, this 10-year limitation has many exceptions, waivers and overlapping extensions such that in all but the simplest of cases computing the correct “collection statute expiration date” is quite difficult.