How does the Alabama Department of Revenue choose taxpayers for audit.

New IRS 1099-K Rules on Payment Processor Payments

IRS audits have increased in recent months, especially for higher-income taxpayers, corporations, and partnerships.

Summary of the latest Build Back Better Act Tax Provisions and Impact.

The Second Round of Paycheck Protection Program loans is available to help individuals and businesses affected by COVID.

Taxation of Legal Settlements from Personal Injury, Personal Sickness, Disability Insurance Awards

Taxation of non-qualified stock options of private companies

COVID-19 SBA Paycheck Protection Loans for the Self-Employed

IRS will deny or revoke Passports for tax debt.

Coach Saban wins a Tax Court case against the IRS involving a worthless debt on $2 million dollars he had loaned for a real estate construction project.

Taxation of alimony under Trump’s tax plan and prior tax law with an analysis of divorce and taxation pursuant to Alabama state law.

The recently enacted tax reform bill has made significant changes to the taxation of business.  This post summarizes some of the more substantial changes.

Tax treatment upon the sale of property with life estates.

Summary of Trump's Tax Reform 

Tax issues with inheriting property

Trump's Tax Plan

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.

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.  

The increase in the earnings limit for social security represents the largest one-year increase in history.  The maximum social security tax is jumping from $7,346 in 2016 to $7,886 in 2017 for employees.  There is a larger increase for the self-employed as their social security taxes will be increased from $14,694 to $15,773 in 2017.  

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.