TL;DR Substance over form is both a principle and a doctrine. As an accounting principle, it is designed to ensure that an entity’s financial statements provide an accurate and complete overview of its events and transactions. These statements measure and report the economic impact of a transaction instead of its legal form, which could conceivably […]
Are Offshore Accounts Legal? How Do They Affect My Taxes?
TL;DR On April 3, 2016, the German newspaper Süddeutsche Zeitung published the ‘Panama Papers,’ which were confidential documents belonging to Panama-based law firm Mossack Fonseca. Among other things, the papers exposed over 214,000 tax havens for politicians, celebrities, and current or former world leaders. While most of the documents involved offshore business entities that were […]
Do I Need A Tax ID Number For My Business?
TL;DR Thanks to the gig economy, a growing number of people are inspired to take control of their financial future by starting their own business. One of the first things they ask themselves is, “Do I need a tax ID number for my business?” In most cases, the answer to that question is yes. But […]
IRS Tax Resolution Services: Helping with Federal Tax Problems
TL;DR Are you dealing with tax issues that are causing you sleepless nights? Do you feel overwhelmed by the complexity of your tax situation? It may be time to consider finding tax resolution solutions with the help of a qualified tax resolution attorney. In this article, we will take a closer look at tax resolution […]
How Does The IRS Prove Tax Fraud or Tax Evasion?
TL;DR The IRS proves tax fraud or evasion by showing underreported taxes, a tax deficiency, and willful intent to evade taxes Common red flags include unreported income, false deductions, and personal expenses claimed as business costs When records are missing, the IRS may reconstruct income using spending patterns, net worth increases, or business markups Defenses […]
Owe Back Taxes? Everything You Need to Know
TL;DR Back taxes can result from insufficient withholding, IRS audits, or failing to file returns, often leading to penalties and interest The IRS offers resolution options like installment agreements and Offers in Compromise to reduce or manage tax debt You may also qualify for currently not collectible status if you cannot afford payments If ignored, […]
What Triggers a New Jersey Residency Audit?
TL;DR New Jersey residency audits determine if you should be taxed as a resident on all worldwide income Residency depends on domicile, permanent home, and time spent in the state (183+ days rule) You can still be taxed as a statutory resident even if you live elsewhere Common triggers include filing as a nonresident while […]
What Happens with Cash Transactions Over $10k?
TL;DR If you run a business that handles larger cash transactions, you probably know that federal law requires you to report cash payments of more than $10,000 by completing a Form 8300, which is jointly issued by the IRS and the Financial Crimes Enforcement Network. This form, which requires the payor’s name, address, and tax […]
What Assets Can the IRS Legally Seize to Satisfy Tax Debt?
TL;DR If you have just received a notice from the Internal Revenue Service (IRS) stating that they intend to enact a tax levy, you’re going to be alarmed. Your biggest questions will likely be “Can they actually do this?” and “What can they take?” The answer to the first question is “Yes.” When you owe […]
IRS Gambling Losses Audit
TL;DR Gambling winnings are taxable income for federal and state taxes and must be reported, often via Form W-2G or as “other income” on Form 1040. Recreational gamblers can deduct gambling losses only if they itemize on Schedule A, and only up to the amount of gambling winnings. Losses cannot offset non-gambling income, and any […]
Statute of Limitations for New Jersey Tax Audits
TL;DR New Jersey can audit state returns, and the typical audit statute of limitations is 4 years (with some exceptions), but the time limit may not apply if you did not file, filed fraudulently, or failed to report federal changes. Audits can be triggered by unusual return items, large refunds or credits, high tax-exempt sales, […]
What is the Difference Between Forms 433 A, B, F, & H?
TL;DR When you can’t afford to pay your tax debt, the IRS relies on collection statement forms to determine if you are able to pay and, if so, what options are available to you. At present, it uses four forms: While all of them provide the IRS with insight into your financial situation, they are […]
What Does a WR-30 Look Like & How Do I Do It?
TL;DR In New Jersey, employers are required to file an Employer Report of Wages Paid, or WR-30, form within 30 days of the end of each quarter ( March 31, June 30, September 30 and December 31). This report, which lists all people who were employed and/or paid by your company during the specified time […]
Understanding ERTC Audits and How to Prepare for Them
The Employee Retention Tax Credit (ERTC) is a federal program aimed at helping eligible businesses keep their employees on payroll during the COVID-19 pandemic. While the program has been immensely helpful for many organizations, it has also drawn the attention of the IRS. Unfortunately, many less-than-ethical companies sprung up overnight to take advantage of ERC […]
Requesting a Refund or Abatement from the IRS: When Can You Use Form 843?
If you owe money to the Internal Revenue Service (IRS), you are probably looking for any possible way to resolve the matter or reduce the amount that you owe. In some situations, you may be able to request a refund or abatement of your tax debt. This can be done by filing a Form 843. […]
Can’t Pay Your Taxes in Full? Consider Filing IRS Form 9465
For many American taxpayers, April 15 is the worst day of the year. Beyond the drudgery of filling out forms and assembling documentation, these individuals know that they will have to write a big check to the Internal Revenue Service (IRS). So what happens if you owe more in taxes than you can pay on […]
IRS Tax Debt Forgiveness
It can happen to anyone. Getting behind on your taxes is a far too common occurrence. Yet tax debt can often be overwhelming, threatening your financial security and making it hard to keep up with your other bills. If you owe money to the Internal Revenue Service (IRS), there are options. In some situations, the […]
FBAR Penalties
Each year, individuals in the United States who hold foreign financial accounts are required to file a Report of Foreign Bank and Financial Accounts (FBAR). A failure to file when required to do so can lead to serious penalties. This may include substantial monetary fines as well as possible criminal charges. FBAR penalties are among […]
Offer in Compromise Pre-Qualifier Tool
Tax problems can happen to almost anyone. Perhaps you got behind on your estimated payments as a self-employed individual, or you withheld too little from your paycheck, and now owe thousands of dollars to the IRS. Whatever the case may be, if you are having trouble paying off your tax debt, you may be able […]
