Do you have a hobby that makes money, but costs more than it makes? If so, here is what you need to know before deducting the expenses on your tax return. Business expenses are generally required to be reported on Schedule C, Profit or Loss from Business. A net loss from Schedule C is carried……
Category: Tax Law
How to Avoid the Estimated Tax Penalty
The IRS imposes penalties for a number of different types of conduct. Many of these penalties can be abated or removed based on reasonable cause. Reasonable cause refers to there being extenuating circumstances. The estimated tax penalty is different, as extenuating circumstances are largely irrelevant. This makes it even more important to pay estimated taxes……
How to Get Information from the IRS
If you have ever been through an IRS audit, you know that the IRS likes to review records. The IRS expects you to have these records. It also expects you to produce the records timely and without question. But you have the right to request records from the IRS too. The Freedom of Information Act……
The FTC Warns About Tax Relief Companies
The Federal Trade Commission (FTC) is the nation’s consumer protection agency. It works to prevent fraudulent, deceptive and unfair business practices in the marketplace. It weighed in on the tax relief companies in an article posted on its website. Taxpayers should consider the FTC’s warnings before hiring a tax relief company. Unethical Tax Relief Practices……
Submit a Frivolous Tax Return or Document to the IRS?
We all do things that we regret. It is part of being human. This article addresses one of these things. Specifically, it addresses what you need to do if you filed a frivolous tax return or another document with the IRS and the IRS is attempting to impose a penalty on you for doing so.……
Get a Notice CP2000 from the IRS? Here is What You Need to Know
No one wants to get a letter from the IRS. Even seeing the envelope is scary enough. The IRS’s Notice CP2000 is even scarier. The IRS issues Notice CP2000 to alert you to changes it is making to your tax accounts. It almost always means that the IRS is increasing the amount of tax you……
About the IRS Federal Tax Lien | Part 3
This is the third part of a three-part series of articles that explain what you need to know about the federal tax lien if you have unpaid tax debts. If you missed the prior two installments, you can find them here and here. As explained previously, the IRS’s federal tax lien can have a devastating……
About the IRS Federal Tax Lien | Part Two
This is the second part of a three-part series of articles that explains what you need to know about the federal tax lien if you have unpaid tax debts. If you missed the first installment of this series, you can read it here. The IRS’s federal tax lien can have a devastating impact on your……
About the IRS Federal Tax Lien | Part One
If you have unpaid taxes, you may be surprised to learn that the IRS has a lien against your property. The IRS federal tax lien is the tool that allows the IRS to collect unpaid taxes. The IRS’s federal tax lien can have a devastating impact on your personal finances. This is the first installment……