When conducting an audit involving income tax returns, the IRS will almost always check for unreported income. The IRS has specific procedures for conducting this type of income verification. This often involves a bank deposit analysis by the IRS agent. This type of analysis can be used to identify unreported income, but it can also……
Category: Tax Law
IRS Records in the Digital Age
Small business taxpayers often pay more to the IRS because of one thing. Paper. The IRS still relies on paper records. It wants you to e-file your tax return, but what is the first thing the IRS agent will ask you for at the start of the audit? You guessed it. A paper copy of……
Court Limits IRS Passport Certification Under Sec. 7345
In recent years, the U.S. government has taken steps to increase enforcement measures to allow the IRS to collect delinquent taxes. This includes adding Sec. 7345 to allow the IRS and U.S. State Department to revoke or deny passports of individuals with seriously delinquent tax debts. In order to revoke or deny a passport, the……
Avoiding Penalties: Choosing a Reliable Tax Return Preparer
With the tax season around the corner, a significant number of taxpayers are seeking the services of tax return preparers. This often involves choosing a preparer who has been recommended by friends and family members. Tax return preparers may be referred based not on their qualifications, but on their reputation for generating large refunds for……
Amount of 179D Tax Deduction for Building Designer
Congress often creates tax incentives, but it is up to the IRS and courts to determine their implementation and interpretation. The Sec. 179D tax deduction is an example of this. The statute provides broad concepts but lacks substance, leading to the courts playing a crucial role in determining its implementation and interpretation. The details matter……
Innocent Spouse Can Benefit from Tax Savings
Innocent spouse relief is a complex and nuanced area of tax law that can be difficult to navigate. In order to successfully file a claim, one must have a thorough understanding of the rules and requirements. One example of this complexity is found in Section 6015(c), which does not require that the innocent spouse not……
The IRS OIC: How Lifestyle Choices Impact Your Offer
Owing back taxes to the IRS can be a stressful and overwhelming experience for many individuals. The financial burden of paying back a large tax debt can seem insurmountable, leaving taxpayers feeling hopeless and unsure of where to turn for help. One option that may provide relief for those struggling to pay their tax debt……
Tax Court: Is Diabetes is a Disability?
If you find yourself without a job or facing unemployment, one of the options you might consider is taking a distribution from your retirement account. This is especially true if you are disabled and need the income to pay for your living costs or even your medical care. These distributions often result in additional Federal……
About the Monetized Installment Sale
The monetized installment sale is a tax strategy that allows a party to sell an appreciated asset while deferring capital gains tax for an extended period of time and receiving a significant portion of the sale proceeds in cash. The strategy involves the use of an installment sale and a monetization loan, which allows the……