For most people, the deadline for paying taxes on income earned in 2019 will be April 15, 2020. If you have a more complicated return or just need extra time collecting the documentation needed to complete and send it, you have to file an extension with the IRS by April 15 or face interest and […]
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How To Stop IRS Wage Garnishment
When you owe money to the IRS, you’ll quickly learn that it has collection resources that outstrip any other creditor. The government has the authority to garnish your wages, salary, commissions, bonuses, and other forms of income without getting a court order first. It can also take more of your money than a regular creditor […]
IRS Now Targeting Cryptocurrency Owners
Many people invest in digital currencies like Bitcoin, LiteCoin, and Etherium but they don’t always reveal their gains at tax time. According to Fortune, only a tiny percentage of cryptocurrency owners have been reporting profits and losses on their yearly returns. After examining the 2013 to 2015 tax returns of Bitcoin buyers, the IRS found […]
Do You Have to File Delinquent Returns for All Missing Years?
People fail to file their personal or business tax returns on time for a variety of reasons. You may not have the money when your return comes due, or you could be struggling with a prolonged and debilitating health condition that leaves you unable to cope with daily life, let alone your tax obligations. Whatever […]
What is FATCA?
Do you have a foreign bank account? If so, you’ve probably received correspondence from your bank advising you that they will be providing your financial information to the IRS. When foreign governments sign the Foreign Account Tax Compliance Act (FATCA) agreements with the United States, these notices always follow to U.S. bank account holders. The […]
Tax Preparer Misconduct: What to Do
Few people have the time, experience, or inclination to navigate the often-complicated federal and state tax forms. Instead, they rely on professional tax preparer misconduct to complete and submit their personal and business returns. Unfortunately, there are tax preparers who abuse the trust placed in them. They attempt to secure a higher refund for you […]
How to Request an IRS Audit Reconsideration
Has the IRS audited one of your tax returns and determined that your tax liability is bigger than you presented? Or did it create a return for you after you filed to file and present you with a large tax bill? In either case, you can challenge the result by requesting an IRS audit reconsideration. […]
What is an IRS Enforced Collection Action?
When people joke about the IRS breathing down their throat, they’re usually talking about an enforced collection action. When it comes to claiming overdue taxes, the IRS has a wide repertoire of collection tools, the most dreaded of which are liens and levies that garnish your wages, seize the contents of your bank account, and […]
Appealing an IRS Audit
You know that the IRS can audit a person or a business for any number of reasons. What you may not be aware of is that you don’t have to accept the government’s conclusions as to the final say on whether or not you owe back taxes. You can appeal an IRS audit in the […]
IRS Scams: A Complete List
Each year, the Internal Revenue Service (IRS) releases its list of the “dirty dozen,” which it bills as the worst of the worst tax scams. While many of these scams relate to taxpayers attempting to defraud the federal government by abusing tax law or failing to report income, others involve an increasing problem in the […]
Why Do the Self-Employed Have Higher Audit Risks?
Yes, it’s true. If you forgo traditional employment in favor of the American Dream, you have a higher chance of being noticed by Uncle Sam- and not in a good way. The Internal Revenue Service has many agendas, but a top one is collecting unpaid taxes from self-employed people. The IRS believes that this group […]
Can the IRS Cancel Your Passport?
In January 2018, the IRS implemented more aggressive collection measures for people with what it described as “seriously delinquent” tax debts. This change, which applies to those who owe over $52,000, appeared as part of the Fixing America’s Surface Transportation (FAST) Act, can result in revocation of your passport. According to CBS News, the State […]
Can You Go to Jail for Not Paying Your Taxes?
One of the most common questions we receive is, “Can you go to jail for not paying taxes?’” While jail is not the default consequence for unpaid taxes, it is possible. Most famously, on October 17, 1931, Judge James H. Wilkerson sentenced Chicago gangster Al Capone to 11 years in federal prison for income tax […]
How Will A Government Shutdown Affect My NJ Tax Refund?
From December 22, 2018, until January 25, 2019, the U.S. federal government was partially shut down. Now that it’s ended, the leading question for many New Jersey residents seems to be “When will I get my tax refund?” The Internal Revenue Service (IRS) was among the government agencies impacted by the closure. It retained approximately […]
Every State’s Most Googled Tax Topics
Tax law is by far one of the most complex facets of US law. In fact, the US tax code runs over 2,000 pages in length. To make matters more complicated, laws and regulations are constantly changing year over year and state tax laws vary greatly from state to state. Failing to properly understand tax […]
How Many Years Can an IRS Audit Go Back?
If you fail to file your tax returns or the Internal Revenue Service (IRS) notes any mistakes or irregularities on the returns that you do submit, it may initiate an audit, which is an in-depth examination of your financial records and transactions. Although people dread the idea of an IRS audit, they don’t happen often. […]
Nonfilers: What to do when you haven’t filed your tax returns in years
One of the most common types of matters I handle is the nonfiler—the individual or business that has not filed taxes in one or more years. One in every ten people who has a filing requirement does not file a return. Some common reasons people don’t file: An illness or family death around tax season […]
2019 IRS Overpayment and Underpayment Interest Rates
On December 6, 2018, the IRS announced that both overpayment and underpayment interest rates for the quarter beginning January 1, 2019, were increasing over the previous quarter. The new rates will be: 6% for noncorporate taxpayer overpayments (5% for corporations) 6% for noncorporate underpayments (8% for large corporations) 3.5% for a portion of a corporate […]
What is the ABC Test in New Jersey?
There are several reasons why a New Jersey business might want to classify its workforce as independent contractors. Unlike employees, contractors are not entitled to health insurance, unemployment coverage, paid vacations, family leave, and other benefits that cost the company a significant amount of money. In addition, an employer can write off independent contractor fees […]
2018 Tax Survey Of New Jersey Business Owners
Tax and tax law can be extremely complex. In fact, there are nearly 10.1 million words in the US tax code. Moreover, tax law is constantly evolving. There were nearly 5,000 changes alone between 2001 and 2012, and there have been even more changes in the past 6 years since 2012. Being able to make […]
