Many people like to file their taxpayers early. The motivation may be to get a tax refund sooner. It may be simply be to get taxes taken care. It could be both.
The IRS is tightening its regulation of tax return preparers. The new requirements are being phased in, but will start with registration.
The economic downturn of the past few years has caused many people in California and across the country to tighten their belts and watch their budgets carefully. For some people, wages and savings were not enough to cover costs and they unfortunately had to withdraw money from retirement accounts. Under certain conditions, taking funds out of an IRA account can have tax consequences.
The IRS creates and maintains a list of helpful tax tips that can benefit California taxpayers as they begin to prepare their 2011 returns. Failure to heed these tips may result in paying more tax than is required or may risk an audit by the IRS. An experienced California tax attorney can ensure that your taxes are in order and defend you in the event of an audit.
California residents may have heard the recent West Coast story of a man accused of tax evasion for funneling money from bank account to bank account. In the indictment handed down by a grand jury earlier this month, the man allegedly tried to fly under the radar of the IRS by transferring the money in small amounts.
Being contacted by the IRS is a scary thing especially if you have done nothing wrong. Unfortunately, many taxpayers feel harassed by the IRS every year because they have fallen victim to identity theft. Identity theft is increasingly being used to file fraudulent returns which can result in an audit when a taxpayer files his or her legitimate return. It is important to have an experienced California tax attorney on your side to help you deal with the IRS and restore your good standing with the government.
In our last post we discussed the importance of calling an Orange County tax attorney if you are contacted by the IRS. We also began discussing the tax issues that one teacher faced after someone stole his identity and filed a false return for a refund. The identity theft prompted the IRS to send the teacher audit letters and the IRS continued to harass the teacher even after he filed an affidavit of identity theft.
Dealing with the IRS can be a frustrating experience. Save yourself a headache by contacting an experienced Orange County tax attorney if you are sent a letter or given a call by the IRS. Remember, there is no harmless contact by the IRS even if you have done nothing wrong.
IRS Commissioner Douglas H. Shulman recently gave a speech at the 24th Annual Institute on Current Issues in International Taxation. One of the things that the commissioner focused on was the IRS' increasing scrutiny on taxpayers with offshore bank accounts.
Yesterday we discussed the huge payroll tax debt issues that many marijuana medical dispensaries potentially face after the IRS decided to disallow all deductions for these businesses. The IRS' decision is based on a provision in the tax code that bans deductions based on the trafficking of controlled substances such as marijuana.