The limitations period is the amount of time you are allowed to amend a tax return to claim a credit or refund. It also gives the IRS or California Franchise Tax Board (FTB) time to assess additional tax.
It’s never a pleasant experience to check the mail and find a letter from the IRS. Over the last decade, the use of IRS correspondence tax audits has skyrocketed.
Budget cuts over the last five years have affected customer service at the IRS. In April, we discussed how furloughs of IRS workers and a hiring freeze also resulted in weaker enforcement of tax laws.
When legitimate warnings go unheeded, it is only natural to revisit them when the warned-of events come true.
"It is better to be loved than feared," Machiavelli advised in his famous essay "The Prince."
Forewarned is forearmed.
In part one of this post, we noted that the home-office deduction has come to have some fairly complicated features for such a basic deduction.
With so many people now self-employed, or working at home on employer-provided laptops, the home-office tax deduction has become more important than ever.
It's been more than half a year since we last devoted a post to e-filing.
The tax compliance challenges faced by small business owners are one of the important threads in this blog. A few months ago, for example, we devoted a two-part post to issues involving income reporting by small businesses.