There are many advantages of having a foreign bank account, such as convenience, hedging against currency risk, etc. For U.S. persons, those advantages have to be weighed against the reporting requirements. Our laws require most foreign bank accounts be reported. There can be stiff civil and criminal penalties for failing to do so. The Foreign……
Category: Tax Law
Am I Required to File a Tax Return?
It can take a considerable amount of time to actually prepare and file a tax return. The IRS puts the time and cost at 13 hours and $210 dollars for the average income tax return. The numbers jump to 22 hours and $430 for the average business income tax return. Luckily, many taxpayers are not……
8 Things About the IRS Offer in Compromise
An offer in compromise is a legal agreement between you and the IRS that settles your tax debt for less than the full amount you owe. It provides you with a path for paying off your tax debt and getting a “fresh start.” If you have unpaid tax debts, here are eight things you need……
Tips For Finding the Right Tax Firm
There are quite a few tax firms out there. It can be hard to tell one from another. While there are a number of factors to consider when hiring a tax firm, here are several tips on how to whittle down the list. Identify what you need from a tax firm. Do you need tax……
10 Common Complaints About Tax Return Preparers
Here are ten of the common complaints that are filed with the IRS about tax return preparers: How to File a Complaint With the IRS To file a complaint, you typically have to submit Form 14157, Complaint: Tax Return Preparer. If a tax return preparer filed a return or altered your return without your consent……
When the IRS Seizes Your Property…
The IRS has the authority to take your funds or property if you do not pay your taxes. This is commonly referred to as a “seizure.” Our Tax Code and the IRS’s Internal Revenue Manual provide specific rules and procedures the IRS has to follow to seize your property. Here are the four primary rules……
3 Common Questions About Paying the IRS
Working with the IRS can be difficult. If you are trying to make a payment to the IRS, you may find that you cannot even get the IRS to accept your payment. Here are the three most frequent questions clients ask us about making payments to the IRS. When Must Taxes Be Paid? Income taxes……
IRS’s Collections Create an Economic Hardship
The IRS has broad collection powers that it can bring to bear to collect unpaid taxes. Even though it has these powers, it often chooses not to use them. This is especially true in cases where the collection actions would result in economic hardship for the taxpayer. What is an Economic Hardship? The term “economic……
6 Tips for the Trust Fund Recovery Penalty
If you are running a business and it is not withholding or remitting payroll taxes to the IRS, you should be aware of the trust fund recovery penalty. This penalty can make the business’ payroll taxes your personal tax problem. The IRS is able to assess the penalty against you individually. That means that the……