Professional tax relief services help you resolve tax debt—and regain control of your finances.
Reduce the stress and cost of an audit with professional tax representation—from first notice to full resolution.
One of the most valuable tools to protect yourself against IRS collection actions – particularly against liens and levies – is a collection due process hearing.
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Receiving notice of an IRS levy can cause a lot of anxiety. How you can prevent an IRS levy from occurring or release a levy once it has occurred?
When shares of a limited partnership held in a SEP-IRA are completely sold are the gains subject to recapture as ordinary income as shown on the K-1 taxable?
Two siblings were listed on the title of a home with their mother. She died and the siblings sold the home and distributed the funds to the other siblings.
Groceries you buy for your household are a personal expense and are not deductible. But there are numerous cases in which food can be deductible.
IRS CP53 and 53A letters are issued because the IRS was unable to issue your refund by direct deposit. There are several reasons why this may occur.
An amended IRS tax return refund can take in the region of 20 weeks to receive. The Where’s My Amended Return? Tool allows taxpayers to check the status.
Fortunately, there are a myriad of tools available for taxpayers who want to tackle their tax debt issues and dispute the collection actions taken by the IRS.
The general deadline for an amended tax return is 3 years from when the original return was filed or 2 years from when the tax was paid, whichever is later.
An IRS Installment Agreement can be very easy or complicated, depending on your circumstances.
There is no tax benefit for applying to enter a college. However, many benefits are available when your application has been accepted and after you enroll.
IRS notice CP523 informs you the IRS intends to terminate your installment agreement or payment plan because they haven't received one or more monthly payments.
An IRS Offer Compromise is an attempt to settle your tax liability with the IRS for less than what is owed. There are three types of Offers in Compromise.
If you happen to miss one of your quarterly estimated tax payments, all is not lost. As soon as you remember, go ahead and make the quarterly payment late.
If you’ve received an IRS deficiency or IRS determination and disagree with the changes, how can you dispute them? Read on because we’re here to help!
The IRS assessment period is at least six years if enough income was omitted. If the the omission of income was deliberate, the IRS has all the time they want.
Kenneling a dog for work travel is considered a personal expense. However, I wonder if the answer is different if I make income from my dog?
How do I write off solar panels for rental properties when I claim as a real state professional to run a rental business?
IRS Notice CP21A is a letter that the IRS issues when changes have been made to a tax return by the taxpayer, usually after they have filed an amended return.
The deductibility of origination fees on your taxes from buying a new home is dependent upon a few factors - the main factor being if itemize your deductions.
Rentals are considered to be special passive activities and the amount of loss you can use in any year is limited to $25,000, if your AGI is under $100,000.
A CP518 notice is issued by the IRS to taxpayers because they have no record of a tax return being filed for the year listed on the notice.
While homeschooling, can you deduct the cost of classes for skills that the homeschooling parent doesn’t possess, such as ballet classes or piano lessons?
A number of different software applications that use a smartphone have become available for the purpose of recording business and personal mileage.
If you received an IRS notice CP521, it is because you entered into an installment agreement with the IRS for taxes owed and your monthly payment is now due.
An IRS Notice CP45 is a letter the IRS sends to notify you that your request to apply your overpayment to your next year’s estimated taxes cannot be granted.
Much like the IRS, California’s taxing agency, the California Franchise Tax Board (or CA-FTB), expects to collect your owed taxes throughout the tax year.
Similar to the IRS, New York’s taxing agency, the New York State Department of Tax and Finance, expects to collect your owed taxes throughout the tax year.
You can deduct an unpaid invoice as a business expense if all the following are true: (1) You have already included the amount of the invoice as income…
As the law currently stands for individual taxpayers, starting in the 2026 tax year, you will be able to deduct estate planning fees related to tax planning.
A child who qualifies as a dependent on their parent’s tax return will need to file a tax return in certain situations. Let's explore when they need to file.
IRS Letter 105C notifies you that the IRS did not allow the credit or refund you claimed. Usually, Letter 105C will explain why your claim was disallowed.
Now that the pandemic is officially over, can I still deduct the cost of masks and hand sanitizer for my classroom or place of business? Let's find out.
IRS Notice CP10 is issued when the IRS believes there was a miscalculation on your tax return. This results in changes that affect your estimated tax payments.
An IRS CP16 typically informs you that the IRS believes a miscalculation or other error was made on your return, and they have adjusted your refund.
If you want to deduct your first-class airfares, be aware that the IRS may question you about these expenses and will make its decision based on each trip.
A CP75D is issued when the IRS needs you to verify your income and/or withholding. This could affect whether you receive a refund or owe the IRS additional tax.
Yes, you can. Provided that the baby in question is your dependent, there is a whole host of tax benefits you can take advantage of to offset your expenses.
IRS letter CP91 states that the IRS may seize up to 15% of your Social Security because you have an unpaid tax balance due. What can you do if you get a CP91?
Your GoFundMe donations can be deductible provided that they are being sent to the correct type of organization - a registered 501(c)(3) organization.
The deduction of any expenses, including snacks for riders from rideshare drivers, depends on your personal facts and circumstances. Let's explore more.
My mom passed away about a year ago, and I inherited two IRAs. Can I roll over one of the IRAs into the other inherited IRA if it is done by direct transfer?
Tax law does allow business owners to use the gifts they made to clients to increase their deductions from taxable income, but there is a dollar amount limit.
The deductibility of an IRA contribution is affected by your filing status and your Modified Adjusted Gross Income and is subject to certain limits.
As a rideshare driver you can likely deduct your carwash expenses on your taxes. But, as always, certain conditions have to be met. Allow me to explain.
With all the required tuition, books, and fees for college students, not to mention the cost of room and board - what education expenses are tax deductible?
Under some circumstances, you can indeed deduct off-campus housing on your taxes while attending college – but the amount of the benefit is limited.
Are there situations where travel expenses are tax deductible? Yes. In this blog, we will discuss five situations where travel expenses are deductible.
The IRS regards your personal driver’s license as a nondeductible expense. A commercial driver’s license that is required for your business may be deductible.
The good news is that you can roll your 401(k) twice in one year and into an IRA without penalty, provided you take a few simple precautions.
Can you claim a depreciation deduction for Section 1250 residential property in the year the property is sold? When it comes to taxes, details matter.
An IRS Notice CP32A is informing you that your refund check has not been claimed. To resolve this notice, you must call to request a new refund check.
IRS Notice CP21C is sent out when a taxpayer requests to make a change to their tax return. The notice informs the taxpayer that the change has been completed.
Details regarding the disposition of grouping of activities in order to more easily satisfy the material participation requirements for the RE Pro status.
IRS CP06A notice asks you to verify the Premium Tax Credit you claimed on your tax return with documentation. How should you properly respond to this notice?
Notice CP14H is issued by the IRS to inform you of your unpaid shared responsibility payment that is due and to request that payment. How should you respond?
IRS Notice CP21E informs taxpayers that an audit was recently done on their tax return and the IRS determined that those changes resulted in additional tax due.
The good news is there are many different expenses that you may be able to deduct in relation to your dog-walking job – but your shoes may not be among them.
The taxpayer owed over $30,000 in back tax debt that she couldn’t afford to pay. Not knowing what to do, the taxpayer contacted TaxAudit for help.
The short answer is yes, you can deduct education expenses for your dependents, but some limitations and qualifications must be met. Let's explore more.
You just received an IRS Notice CP90 - Intent to Levy and Unpaid Taxes - in the mail. Don't panic. Let's walk through the letter and determine your next steps.
They received an IRS tax notice demanding payment for over $600,000 in tax, interest, and penalties. Not knowing what to do, they contacted TaxAudit for help.
IRS CP22E notice is the result of a recently completed audit. Because of the changes made to your tax return during the examination, you now have a balance due.
Tax law does not allow us to claim last year’s expenses on this year’s return, but does allow us to amend our returns to include missing deductions.
The good news is that, at tax time, taxpayers can often deduct part or all of the premiums they pay for long-term insurance for themselves or a dependent.
If you have a pending tax bill, putting the IRS and a bond payment together might be what works for you. How can a bond payment help you with the IRS?
My minor daughter was a beneficiary for her uncle's savings account. Does she need to report it as income? Are there tax implications if she gifts the money?
One of the most common notices we see at TaxAudit is the IRS Letter 3219C – also called a Notice of Deficiency. What is this notice? Why did you receive it?
Whether you use your second home for personal or business purposes, the interest you pay on the mortgage may very well be deductible on your tax return.
Yes, you can deduct educator expenses if you are what the IRS calls an “eligible educator.” However, there are certain limitations and conditions involved.
Thirty days from the date of the IRS Notice CP90, the IRS has the right to begin taking assets. This can include bank accounts, wages, and retirement accounts.
Yes, the tax code allows you as an individual to deduct the sales tax you paid during your tax year but, first, you must meet certain conditions.
The IRS will calculate your interest and penalties daily and add them to the amount of tax debt you owe. Tax debt increases each day at an annual rate of 7.25%.
If you are self-employed, you may be able to deduct your home office internet expenses on your taxes. Let's review the guidelines for an internet deduction.
Many taxpayers use a written logbook that they keep in their vehicle or a software application on their smartphone to track their deductable miles.
A tax refund offset can indeed be reversed – but it is not a simple matter. It would be much better for taxpayers to prevent the offset from happening.
IRS CP80 notice explains you have a credit on your account for the tax year in question but have not filed a return. The credit will apply to any amount due.
The answer to the question "Can I Deduct Federal Taxes Paid?" is maybe – it all depends on where you live or what you do for a living. Let's explore more.
IRS Notice CP60 informs taxpayers a payment was posted to their account in error. The IRS removed the payment and the taxpayer now owes additional tax.
The IRS is required to send out these notices to any taxpayer who has filed a return and has a balance due that has not been paid.
Rest assured that there are extensive resources available to help a taxpayer who owes more taxes than he or she can pay. Let explore some options.
The Department of Treasury is authorized by the U.S. tax code to withhold part or all of a taxpayer’s Federal tax refund to pay past-due debt of $25 or more.
Generally speaking, to deduct donations or contributions to your church, you must itemize your deductions on Schedule A (Form 1040).
An IRS Notice CP49 is a letter from the IRS informing you that they used all or part of your tax refund to pay a past-due tax debt that you have.
HOA fees are not deductible for a property used as your private home all year. But there may be a deduction for those who use their home for business purposes.
An IRS CP501 is an official notice from the IRS Collections Unit that is sent to taxpayers to inform them that they have an outstanding debt.
According to the Federal tax laws, unreimbursed COBRA payments are deductible as medical expenses on your tax return if you qualify to itemize your deductions.
There is a very good chance that you can deduct your Medicare Premiums that you paid on your taxes. As always, there are different conditions that must be met.
There are many ways taxpayers can deal with getting their tax debts settled but the best path for each taxpayer depends on the circumstances of their case.
IRS letter 4800C is typically asking for verification of items you claimed on your tax return, such as credits, wages, and withholding.
Dental expenses (if qualifying) can be included on Schedule A, Itemized Deductions - Medical and Dental Expenses, subject to a 7.5% Adjusted Gross Income.
A tax refund offset occurs when the Federal Government’s Treasury Offset Program withholds part or all of an expected Federal tax refund to pay past-due debt.
Kindergarten tuition is not deductible because the costs to attend are considered educational expenses. However, qualifying childcare expenses are deductible.
A CP30 notice is sent to inform you that your anticipated refund has been reduced. The IRS will outline why your refund was reduced and list the new amount.
Yes, you can indeed receive a tax benefit for installing new energy efficient windows on your house – provided that certain conditions are met.
Whether you can write off karate classes on your taxes relies heavily on your personal circumstances. Let's explore more.
The State of Mississippi’s Department of Revenue (DOR) provides a number of different methods for you to deal with your tax problems and get your debt resolved.
If you meet the conditions for the home office deduction, you are allowed to deduct a portion of your home insurance premium.
Even though the amount you owe the State of New York Taxation Department seems overwhelming in terms of your ability to pay, there are some options open to you.
I'm inheriting $44,000 from my father's house being sold in New York. I just want to know how much tax, if any, would I have to pay in South Carolina. Thank You
IRS CP23 letter notifies you of a change to your return due to a difference between the amount of estimated tax payments and the amount posted to your account.
There are some tax-saving opportunities available for graduate school tuition, like the credits for undergraduate expenses. They each have some limitations.
The IRS sends out a CP14 notice to notify a taxpayer when they have unpaid taxes and/or penalties and interest. What should you do if you get a CP14?
When it comes to medications, you can only deduct the amounts that you pay for medicines or drugs that have been prescribed for you by a doctor.
In 2023 the tax returns are due April 18th for most taxpayers. However, if you live in California, Alabama, or Georgia your taxes may be due at a later date.
My brother's wife died and he was left with the house. He gifted (no exchange of money) me the house and I sold it. How do I report capital gains?
The biggest chunk that will be deducted from your paycheck is most likely taxes, both federal and state. Federal taxes include income tax and FICA.
Can Grandparents take a deduction for paying the preschool tuition costs when the child still lives with the parents? To qualify you must meet the following.
The IRS CP22A notice is letting you know that changes were made to your filed tax return, and because of this, there is now a balance owed.
While some legal settlements can be excluded, either in full or partially, the vast majority of legal settlements will be considered to be taxable income.
Generally, the costs of moving or disposing of items are considered personal expenses and are not deductible, even though removing the items are required.
The IRS wants to get paid but it understands a lot of folks cannot pay in full right away, so the IRS created several ways to work with taxpayers who owe money.
Writing off the purchase of solar panels for your sole proprietorship can be complicated, but we will try to highlight some of the options for you to consider.
Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties.
If the IRS hasn't debited your accound payment, the first step is to contact your bank to see if the payment has been taken from your account.
To claim a dependent on your tax return (and all the credits that come with that dependent), your child must meet a set of requirements.
Because of changes to tax law in 2018, Schedule A deductions for advisory-type expenses will not be available until 2026 at the earliest.
The IRS is billed you $4,000 due to a $8,000 capital gain or dividend. You don’t know what the $8,000 is from and believe if inherited it should be tax free.
IRS letter CP13 states a miscalculation was made on your tax return and that you do not owe any additional tax, but you will no longer be receiving a refund.
Employees cannot deduct dry-cleaning costs on federal taxes until 2026, but self-employed individuals can take the deduction by meeting 3 qualifying tests.
Fortunately, the short answer to the original question is yes, Illinois state payroll tax debt can quite possibly be reduced.
The IRS has the power to impose some very strong penalties for businesses that fall behind in their obligations to make the scheduled payroll tax deposits.
CP11 explains that the IRS has made changes to your return in order to correct a miscalculation made while filing your taxes and additional taxes are due.
You cannot claim yourself as a dependent. It can be helpful for you find out who actually can claim you as a dependent and whether or not they intend to do so.
CP504 is one of the scariest notices you can receive as it is considered a final notice, warning that the IRS is preparing to levy (or seize) a property.
When considering using retirement funds to help pay for a new home, there are generally two common options taxpayers can consider: A 401(k) plan or an IRA.
An Offer in Compromise may help certain taxpayers who cannot pay their tax debt to the California Franchise Tax Board in full. Let's review the requirements.
Yes, you can deduct your business meals – but there are conditions that must be met. Under normal circumstances, qualifying business meals are 50% deductible.
The IRS sends letter 4464C to inform you they have chosen to verify your return accuracy. It's sent after a return has been filed but before a refund is issued.
Medical expenses are deductible, but whether or not you can claim this deduction depends entirely on the amount you spent and the amount you earned.
The IRS has established payment programs to allow a personal or business debt to be paid off over an agreed period of time. Here's how to set up a payment plan.
The length of a tax audit depends on many factors and can go on for months or even years. You don't have to face a tax audit alone though - TaxAudit can help!
Not all IRS letters are bad news, and the CP09 is one of them. The IRS noticed you did not claim the Earned Income Credit and believe you might qualify for it.
A large tax refund alone will not necessarily generate a tax audit, but if the reason why you received a large refund is questionable the IRS may peek closely.
Taxpayers receive an IRS CP503 because they have an unpaid tax debt. This is the 2nd notice the IRS sends taxpayers that they have an outstanding balance due.
You can likely deduct your out-of-pocket assisted living expenses on your Form 1040 tax return. But, as always, there are some conditions that have to be met.
As with most tax questions, the answer to this question can be a little complicated. Dependent adult children will fall into one of two categories.
Is investing in real property, particularly rental property, a good idea for your retirement investments, especially your traditional IRA or Roth IRA?
You can indeed arrange IRS payments. You can negotiate a plan with the IRS to pay your debt off in either a short-term or long-term series of installments.
Are attorney’s fees deductible on my tax return? The answer, like a lot of answers to tax questions is: Sometimes yes, sometimes no. Let's explore more.
The IRS likely sent you a CP14 prematurely. The IRS may have received your payment, but it hasn't been fully processed due to the IRS enormous backlog of work.
Accountant fees for a business purpose are generally deductible, but when those fees are incurred for a personal purpose, they are currently not deductible.
My wife will be inheriting her father's home. We intend to sell our home and invest the proceeds to remodel this inherited property. What is the tax process?
Can you negotiate to avoid a wage garnishment before it starts? Can you negotiate the amount of the wage garnishment? Let's explore the answers.
The qualified business income deduction is calculated by taking the income and losses from all your business activities and netting them into one amount.
You owe money to the IRS and you can’t pay it all off right now. Let's explore different payment plan options based on your tax situation.
The IRS treats payroll tax debt seriously. Any employer or employee whose job it is to collect and pay the taxes, but willfully fails, can be held responsible.
The costs of utilities can indeed be deductible under certain circumstances, so let us talk about those occasions when you can deduct your utility expenses.
For most taxpayers bank fees are not deductible. However, taxpayers who operate their own business may be able to deduct bank fees.
Electing to group properties together into one activity to qualify for real estate professional status comes with some disadvantages. Let's explore more.
Now that you have received a notice from the IRS, you want to know if you are still going to get your tax refund. The answer is – maybe. Ler's explore more.
Your son does not need to report or pay tax on the $70,000 you gifted him from the inheritance your wife received from her mother’s probate! Let's explore more.
There is a very good chance you can get a deduction on your taxes for the State sales taxes that you had to pay on your new car, truck, van, or other vehicle.
What can cause a tax audit? Let’s talk about some of the primary triggers that may cause you to receive an audit or other notice.
Making sure your tax return is correct, even if that means amending your return, is better than having an incorrect return and hoping the IRS doesn’t notice!
Do we actually know what a tax audit is, why they exist, and what we can do to prepare for one? Let's explore the answer to these tax audit questions.
The IRS has an Offer in Compromise program to allow qualified taxpayers settle their tax debt for less than the full amount owed. Here's what you should know.
The answer to “Can I Deduct Property Taxes?” is not simple. Hopefully, this article will give you a better understanding of when you can deduct property taxes.
Yes, you can deduct interest on your business and personal credit cards to the extent that the interest relates to business expenses. Let's explore more.
A taxpayer can seek relief from a spouse's tax burden by applying for the Innocent Spouse program or the Injured Spouse program, depending on the circumstances.
When someone other than a spouse inherits an IRA, the IRA is considered an inherited IRA and the rules are stricter than when a surviving spouse acquires it.
Cryptocurrency is not treated as money for U.S. federal income tax purposes, but rather as property so tax rules that apply to property apply to cryptocurrency.
The IRS uses an annually updated wage garnishment table to determine how much the taxpayer needs to live on and then the IRS takes the rest.
If you review the CP12 notice and do not believe it is correct, it is vital to contact the IRS within 60 days of the date on the notice to request an abatement.
Yes, you can deduct a portion of your home rent for your home office on taxes – but as always , this benefit is only available if certain conditions are met.
We sold my wife's parents' house. Do we have to pay taxes on it if we put it in a money market account in our name? It depends on a taxpayer's circumstances.
If your rental property is incurring losses, those losses may be limited on your taxes based on other income you receive. Let's explore more.
If the IRS notices that you filed an amended return, will that cause them to inspect your tax return more closely and trigger a full-blown tax audit?
The IRS offers a series of payment plan options for those individuals and businesses who need more time to pay their tax debt.
The good news for other farmers is that, under certain conditions, the tax code allows for the deduction of farm expenses even if they are greater than income.
The IRS will always notify you by mail if your tax return is selected for audit. The IRS will not initiate an audit by a phone call, email, or text message.
The IRS takes payroll tax debts very seriously and has the power to impose some very strong penalties for businesses who fall behind in this area.
"Winning a tax audit,” simply means that you’ve paid the IRS no more than you rightfully owe. This is where the professionals at TaxAudit come in to help!
If you have ever gone through an audit with the IRS or are just curious why the IRS audits tax returns in to begin with – you are in the right place.
Two payroll tax deferral programs were launched in 2020 in an attempt to relieve the cash flow squeeze that was affecting both businesses and their employees.
The surprising answer is yes – you can deduct some of your wedding expenses from your taxes under certain circumstances. Let's take a closer look.
Certain categories of employees can claim the deduction for unreimbursed employee business expenses, but not all. Let's explore some examples.
The IRS has a fixed amount of time to try to get you to pay your tax debt. This fixed period is known as the “statute of limitations,” which generally 10 years.
The gap between what taxpayers owe versus what they actually pay looms large. IRS audits are an attempt to collect the funds required to close this gap.
If you owe the IRS money for taxes and have not been able to pay or make other arrangements, the IRS has the legal right to seize some of your possessions.
State agencies who collect income tax can audit your tax return. One of the most common reasons for a state audit is the audit of your federal tax return.
Insurance policies may cover part of nursing home costs and the unreimbursed expenses can often be deducted on a Form 1040 individual tax return.
Yes, the IRS does offer payment plans to those taxpayers who owe taxes. The IRS offers a series of payment plan options for those who need more time to pay.
Since the government considers your vehicle to be just another piece of property, so is there a tax deduction for the theft of your car? Let's find out.
There are some parts of the tax code that, in fact, can allow tuition fees to be fully deductible. However, in most cases you cannot deduct private tuition.
If you suffered economic losses, you may have a net operating loss (NOL) on your taxes. Getting audited by the IRS for an NOL can be complicated.
You received an IRS notice CP162 in the mail. You are probably wondering why you received this notice and what it means – we are here to answer your questions.
We had a water leak in our home. The clean up used chemicals which caused us to get rid of our clothing, bedding, and furniture. Is this deductible?
If you’ve been lucky enough to never receive a love letter from the IRS, you’ve probably wondered: What is it like to go through a tax audit?
If you volunteer for an organization, do you get a tax deduction for your time or talent? Let's also look at volunteering use of property and other expenses.
With TurboTax Audit Defense if you receive a letter from the IRS or state tax agency, simply contact TaxAudit that you’ve received IRS correspondence for help.
If you have audit protection, you don’t have to panic when you get a letter from the IRS. Instead, you can call TaxAudit right away, so we can step in to help!
First, the essential concept to understand is that cryptocurrency is not treated as money for U.S. federal income tax purposes but is treated as property.
What is Audit Defense? And is it worth it? Let's provide some clarity about exactly what you are getting when you purchase Audit Defense from TurboTax!
You’d like to know if you can file an amended tax return to claim the Recovery Rebate Credit if you did not receive the economic stimulus payment.
I received 3 1099 forms - 1 for interest and two from houses which were sold in the months after his passing. Is the estate required to file a return?
If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf.
As the person wrapping up your loved one’s financial affairs, you know at the very least you will need to file their final individual income tax return.
When you owe money to the IRS, they can take a variety of actions against you to collect the balance due. You can repay the IRS debt using unemployment checks.
Communicating with the IRS to work out a payment plan, put a hold on your account, or even negotiate a lesser amount due may help delay or avoid the IRS levy.
Whether an amount paid for taxes as the result of an IRS or state tax audit is deductible depends on the type of taxes involved. Let's explore more…
Father died 30 years ago. Stepmother just sold house and children split father's portion of sale (after filing of an affidavit of heirship). Do we owe taxes?
TaxAudit specializes in tax relief help, and we are so confident in our ability to help taxpayers navigate tax debt - we believe we have it down to a science.
The 2021 expense limit for this credit is $8,000 for one qualifying child, and $16,000 for two or more qualifying children. The credit is a % of those expenses.
Is there relief from the government in the form of a tax break? Like many things in taxes, this can depend on different things, such as what caused the fire.
You received an IRS Notice CP12 because the IRS corrected one or more mistakes they believe were made on your tax return. What do you need to do?
For many taxpayers who operate small businesses, the qualified business income deduction can be an excellent way to reduce your income taxes.
TaxAudit provides Tax Debt Relief services that make dealing with the IRS or state less stressful. We know the the laws regarding taxes and tax debt collection.
You asked if you could deduct tuition expenses for enrollment in a graduate degree program as a job-related education expense on federal and NY state taxes.
You asked whether the mortgage payments that your ex paid on the house you received in the divorce are taxable. This answer depends on your specific situation.
To know if your home inheritance is taxable income you will need to start by figuring out what your step up in basis is - the property value when someone dies.
Now that you have your Letter 6475, what should you do with it? The letter will inform you of the amount that the IRS paid to you for the third EIP payment.
My fiancé has recently been incarcerated. Prior to arrest he filled on pandemic unemployment, but I did not. How should I file taxes this year?
There are many options for managing your small business tax debt. A tax resolution specialist from TaxAudit can guide you in choosing the best approach.
Trade or business property is considered section 1231 property. For taxation purposes, section 1245 or 1250 applies depending on the property’s characteristics.
To claim a child for this credit, the child has to meet several tests. Biology isn’t a disqualifier in claiming dependents, but other factors must be met.
One of the best ways to check the status of your refund is on the IRS website. Your tax professional may also be able to give you a timeframe for your refund.
Yes! Audit Defense is worth it. Not only do audit defense members get help with IRS and state correspondences – there are a variety of other benefits.
If you are one of the millions of taxpayers who use TurboTax to file their taxes, you may have asked: Can I deduct my TurboTax purchase? In short: it depends!
The IRS will issue Letter 6419 to provide the total amount of advance credit that was paid to the taxpayer - keep this letter for your 2021 tax return!
If you find yourself with tax debt due to unpaid payroll taxes, you may have options to help settle the debt. Let’s review some payroll tax debt relief options.
If you have a large tax bill, figuring out your options for getting out of tax debt can be stressful. Thankfully, there’s a proven approach you can follow.
You open your mail and see IRS Letter 5071C. What on earth does this letter mean? Are you being audited? Why did you receive this letter in the mail?
The IRS has several courses of actions they can take to collect funds owed to them. The three most common are liens, levies, and garnishments.
You received an IRS Letter 5071C for a tax year in which you never filed a tax return. It is likely that someone might have filed a tax return in your name.
If you’re struggling with back taxes, you may be able to qualify for assistance under an IRS initiative called Fresh Start. Here are 3 ways to be eligible.
Yes, the length of time the IRS is allowed to collect a tax debt is generally limited to 10 years. Is waiting out this period a strategy for resolving tax debt?
When a taxpayer fails to file their return, the IRS will come knocking usually in the form of a notice of tax due for back taxes. Back tax help is available.
If you qualify, Innocent Spouse Relief can help remove or particialy remove a tax burden from an innocent spouse.
Estimated tax payments are additional payments that taxpayers may make on a quarterly basis to cover any additional taxes that may be due.
Generally, the IRS can take up to 3 years from the date you filed to review your return. In certain situations the statute of limitations can be extended.
A taxpayer with a sole proprietorship and reports business income and expenses on a Schedule C may claim a prorated amount of the Audit Defense Membership.
As a military member do you have the same tax filing deadline as U.S. citizens? Are there tax filing extensions available for deployed members of the services?
Taxpayers who are behind on their federal taxes may be surprised to know that their Social Security benefits are ripe for the picking by the IRS.
Yes, TurboTax Audit Defense It is absolutely worth it. Those who have audit defense do not have to panic or make frantic calls upon receipt of IRS tax notices.
The most important thing about having audit defense, in my opinion, is peace of mind. Your tax professional will help you navigate the waters of a tax audit.
If you are a small business owner, you may have heard about net operating losses. If you have one, it may create a reduction in your taxes in other years.
The first thing to do when you get audited by the IRS is to not panic! It be scary but with the right tools and resources you will be able to get through it.
Absolutely! Now’s let’s chat about how and why audit defense works. Any taxpayer may be subject to receiving an audit or notice in the mail.
Recently, the IRS sent many taxpayers a confusing set of letters. The follow-up notice, Letter 6470, notifies the taxpayer of their legal rights to appeal.
Rest assured the IRS has no advance knowledge that you have elected to have representation in the case of an audit through Audit Defense.
You might be questioning if TurboTax Audit Defense is any good as you file your tax return through TurboTax. Yes, you want audit defense and it is worth it!
Back taxes are defined as taxes that were not paid in the year they were due. Penalties and interest may also get tacked onto back taxes if they remain unpaid.
One way to find out how much money you owe the IRS is to use the IRS Online Account tool, which allows you to view helpful information about how much you owe.
Audit Defense means you will have professional representation in the case of receiving an audit notice from the IRS or any state income taxing agency.
If you haven’t received a notice from the IRS, but think you might owe money to the IRS, you can also utilize the IRS' Online Account tool.
One of the frequently asked questions we get from our customers is, “Can I buy audit defense for tax returns filed in previous years?” The short answer is: Yes!
Under certain circumstances you can indeed claim a tax benefit for preschool tuition - called the Child and Dependent Care Expenses tax credit.
New Jersey, NJ imposes a tax on the beneficiaries of estates. The tax return requires the tax be paid by the estate on behalf of all the estate’s beneficiaries.
The terms ‘audit support’ and ‘audit defense’ may sound like the same thing for the average taxpayer. But in the world of taxes, they can be very different.
My Aunt died and the bank sold her house. The bank sent me a check for "excess proceeds" from the house sale. Do I owe any tax on this money?
As long as you used the home as your main residence for at least 730 days during the last 5 years, you may be allowed to exclude up to $500,000 of capital gain.
It seems like a simple idea: convert that account to a Roth and you can withdraw the money tax-free in future years. But is it a good idea for you?
I could not have been more pleased with TaxAudit services. I highly recommend this service for anyone who does their own taxes.
Whether you will be taxed on the money received from a trust will depend on the type of trust and the instructions laid out, the assets titled, and more.
You are responsible for paying the taxes on the amount realized in the sale. The buyer is generally not required to withhold income taxes on the proceeds.
As taxpayers, we are personally responsible for filing our returns both on time and accurately. Failure to do one or both can result in significant penalties.
Generally, the IRS has ten years from the date tax is assessed to collect a delinquent tax liability. However, the answer is not that straight forward.
Can you inherit an IRA and not pay tax? Individual retirement accounts can transfer to a beneficiary without immediate tax consequences if no money is withdrawn
An RMD is a required minimum distribution from a retirement account such as a Traditional IRA or defined contribution plan (like a 401k).
Yes, TaxAudit is a good company that has been providing clients with A+ rated tax representation services since 1988. TaxAudit truly cares for its clients.
There are hundreds of different types of letters and notices you can receive from the IRS. Let's focus on a few of the more common IRS notice types we see.
A lien is when the IRS makes a legal claim to property as security for the payment of tax debt. There are many methods to resolve an IRS tax lien.
The fastest answer is how far back do you need to file? How deep do you want or need to dig into your records to get your taxes up-to-date with the IRS?
The results of the Tax Cuts and Jobs Act have made brokerage fees non-deductible for any returns filed between 2018 to 2025.
You are ready to begin the process of preparing your back taxes – but you realize your records are lost. Never fear. There are ways to rebuild your records.
There are several tax benefits which you might want to anticipate before you file your 2021 tax return next year. Here is a summary of some of the tax changes.
If you are under audit, it is acceptable to submit your current tax return. Just be mindful that you may have to amend it once the previous year's audit closes.
An incarcerated person can actually e-file for themselves online if they have internet access in prison. If they are unable to do so, you can do it for them.
Put simply, your audit defense membership is valid as long as your tax return is eligible to be selected for audit or review by the IRS or State!
If you operate a business from inside your home, the home office deduction can be one of the largest deductions you can take as a tax write-off.
My wife drives to transport our granddaughter to our house to watch for the day. Is this to-and-from mileage deductible as a job-related expense?
When you prepare your federal income tax return, your business may incur a loss. Here are the tax implications if you have suffered a net operating loss.
As a self-employed taxpayer, you can deduct your business-related parking fees as an expense on Schedule C, Profit and Loss from Business.
I had investment capital losses of over 17,000 dollars, yet my Schedule D is only allowing a $3,000 loss. Can I take the additional losses in future tax years?
I inherited a property located in foreign country from non-US relative, do I need to file 1099-S? I did not receive 1099-S since the property is not in USA.
The IRS encourages electronic filing to avoid processing delays. However, you may mail your IRS and state returns in. You can find the address required here.
Well, the truth of the matter is that an attorney is not always needed but, in some cases, one is absolutely required. So, how do you know when that might be?
The IRS takes payroll tax delinquency seriously – so seriously that IRS Revenue Officers have closed down businesses for not paying them. Tax help is available.
When you filed your tax returns through TurboTax, you decided to opt in and purchase Audit Defense. If you get a future IRS letter, how does Audit Defense work?
The thought of owing the IRS money can be a scary thought – especially if you’re not sure you do! The IRS has provided tools to help taxpayers like you!
Your audit defense membership with TaxAudit provides expert representation for each tax return year for which you have a membership.
The IRS denied your request, so what now? What if you do not have resources to pay the additional tax that may not have been yours to begin with?
There are several different tax breaks available for solar panels used either in the home or in a business. Let’s look at a couple of examples.
For IRA contribution purposes, certain third-party sick pay does qualify as compensation. But, there are instances where it is not considered compensation.
Why doesn't my IRS account show I owe money if I received a Notice of Deficiency? A Notice of Deficiency represents an estimated amount due and isn't finalized.
When you inherit real property, like a home, then for tax purposes the beneficiaries receive what is called a “stepped-up” basis.
When you are relieved of debt through the cancellation of debt, that amount is considered to be income to you, even though you did not receive cash.
The IRS has not issued guidance on whether an EIP distribution will be placed on hold if a taxpayer’s 2020 return is audited to question dependents.
You can "deduct" real estate taxes paid over the course of owning a piece of land in the year the land is sold, if the land was vacant, but there is a catch.
Under the CARES Act, you can receive a “qualified coronavirus-related distribution” from your retirement plan and avoid the 10% penalty on early distributions.
Generally, as long as the incarcerated person is a US citizen (or resident alien), has a valid SSN, and is not claimed as a dependent, they may qualify.
What should I do if I receive a notice for overpayment from work benefits with the workforce commission, and I have already filed my taxes?
For 2020 taxes, the CARES Act allows individual taxpayers who do not itemize to claim a deduction up to $300 ($150 for MFS) for cash charitable contributions.
If I haven't worked in a couple of years and didn't file taxes or get the first stimulus check, then where do I start or how do I file?
My grandson is in my custody and his mom allowed another person to carry him on taxes..my taxes were rejected. What should I do next?
It is not uncommon for state wages to be higher than their federal wages. This alone generally should not trigger a return to be rejected for e-filing.
If the income items on the Schedule K-1 are sufficiently large, they will generate additional taxes due on your return. You will need to amend your tax return.
Yes, you can purchase audit defense a la carte on TaxAudit's website (www.taxaudit.com). TaxAudit is the leading audit defense company in the nation.
Overall, two things are important when determining if you can deduct your zoo membership. The first is what type of organization is the zoo? Is it a non-profit?
What a satisfaction it is saying goodbye to old debts. There are several options available to taxpayers who want to make a payment for back taxes to the IRS.
Retirees should be aware that, for calendar year 2020, the required minimum distribution (RMD) requirements have been temporarily suspended.
Having custody does not determine who can claim a child as a dependent. The IRS will look to who can prove the child lived with them most of the year.
If you didn't receive an Economic Impact Payment and meet the requirements, you can still receive the payment when you file your 2020 federal income tax return.
When you purchase Audit Defense from TaxAudit, you’re purchasing more than just assistance with your IRS or state notice. You are choosing peace of mind.
When you can't make your tax due payment without impacting your ability to pay for living expenses, the IRS can put you in Currently Not Collectible status.
There are several federal and state agencies that may have an interest in questioning a business’ operations, income, and expenses after it is closed.
There are a bevy of options available to taxpayers who want to make a payment to the IRS online. The IRS even has an app for that!
Replacing an entire roof will increase the cost basis of the home. However, any costs paid or reimbursed by an insurance are not added to the home's basis.
Most CP05 letters will not require immediate action on your part. Generally, the IRS does their review within the timeframe noted, and the refund is released.
When a taxpayer does not file their income tax return or ignores an audit notice, the IRS makes tax assessments based on info received from third parties.
If you are buckling under the weight of an IRS wage garnishment, it is time to get yourself free! We have seven practical ways to stop an IRS wage garnishment.
Depending on the nature of the education, there may be an avenue to account for work related education expenses on one's tax return.
Funeral and burial expenses can be deducted if they were paid out by the estate of the deceased person. However, most estates never use this deduction.
Real Estate taxes might be deductible on your personal or business taxes, it depends on your situation. Let's start by looking at the tax assessor’s bill.
The general rule is that you can deduct the costs of vitamins as a medical deduction only if your doctor prescribed them to treat a specific medical condition.
When people ask me for advice on how they should deal with filing unfiled tax returns, I usually tell them to file the most recent year first.
You can deduct certain state and local taxes (SALT) if you choose to itemize deductions on your tax return rather than claiming the standard deduction.
There is a very good chance that you can indeed deduct the cost of your oil changes if you use your car or truck for business purposes. Let's look closer at it.
In general, only mortgage interest and property taxes are deductible in the transaction year, while some expenses and fees can be added to the cost basis.
Avoid the temptation to ignore the notice. In most cases, the IRS or a state agency may only need additional information to finish processing your return.
Knowing whether you are liable for back taxes owed by your spouse depends upon a variety of factors. Let's discuss the various aspects of spouse liability.
Yes, of course – well, maybe. Like many tax deductions, the student loan interest deduction for parents comes with a list of conditions that must be met.
We know our senior citizen population can be particularly vulnerable to being targeted by scammers looking for free money or personal information.
When a taxpayer receives a collection notice from the Internal Revenue Service, their typical first reaction is one of panic but it doesn't have to be scary.
The length of an audit depends heavily on the issues being addressed, the level of documentation required, and the Examination Division doing the audit.
The cost of baby formula for your own infant is generally not considered something you can write off on your taxes. However, there are exceptions.
CNC status is for taxpayers who cannot make any tax debt payments without seriously jeopardizing their ability to pay for their basic living expenses.
The IRS can attempt to collect unpaid taxes for ten years from the time the tax was assessed. The IRS can try to collect the tax in a variety of ways.
A tax deduction for qualified tuition expenses has generally been available for many years. However, it has never been a permanent part of the tax code.
Generally, a “regular” limited partnership does not throw off any income that would make it currently taxable while it is inside an IRA.
Consider the potential risks and benefits before adding an adult child or caregiver as an owner of your home, bank account, credit card, or any other asset.
If you choose to mail in your tax payment to the IRS or state, I recommend mailing it via certified return receipt or priority mail so that you can track it.
When operating a business, the last thing you want to worry about is being audited by the IRS or a state agency. Record keeping should be a high of a priority.
The IRS generally considers your primary residence to be the home where you spend the most time, but also looks at numerous other factors.
The tax gap is the difference between what the government actually collects in taxes versus what they should have collected to cover the real tax liability.
If you owe the IRS back taxes, don’t start spending your refund before it arrives. The IRS can levy or take your refund and apply it to your tax debt.
For individual taxpayers, the cost of driving your vehicle for work is not an allowable deduction for tax years 2018 - 2025. This rule does not apply…
With innocent spouse relief, you can request the IRS remove your liability for taxes, penalties, and interest owed on income your spouse did not report.
First, it is essential to make sure you actually owe the tax due. The next step is to figure out how to pay the tax as quickly and painlessly as possible.
First and foremost, audit defense works by protecting you from the hazards and stress of facing off against the IRS (or a state tax agency) on your own.
A person may be relieved of paying some or even all of the tax, penalties, and interest on a tax debt if they meet the conditions for Innocent Spouse Relief.
The interest rate charged by the IRS on back taxes is the federal short-term rate plus 3%. The rate is set every 3 months.
Yes, TaxAudit, the exclusive provider of TurboTax Audit Defense, represents members through the completion of any state or federal income tax audit.
Yes, there are legitimate tax relief companies that can help you reduce your tax debt. However, there are scam companies as well. Learn what to look out for.
Costs for home improvements, such as a new roof, add to the cost basis of your property and will reduce your taxable gain when you sell your home.
TaxAudit is the exclusive provider of TurboTax® Audit Defense. The phone number for TaxAudit’s customer service department is 877.829.9695.
The employer has the job of gathering the information needed from the affected employee to determine the correct wage garnishment amount from the IRS tables.
The first step in preparing for that audit is reading the letter carefully. Audits rarely examine everything on the return, but only ask about specific items.
If you need some time to pay, the IRS has payment plan options available. (1) Short-term payment plan (2) Long-term payment plan (paying in more than 120 days)
The answer for most states is no. However, 6 states allow some form of this tax break (AL, IA, LA, MO, MT, OR), but only AL, IA, and LA allow a full deduction.
With the July 15th tax deadline approaching, here’s what you need to know. (1) If You Need More Time, You Can Still File for an Extension (2) Pay What You Owe
The reality is you can sell your house to your child, grandchild, or anyone else for that matter, for $1. But just because you can doesn’t mean you should.
Yes, it is possible to make a deal to keep the IRS from garnishing your paycheck. Making payment arrangements with the IRS maybe all that is needed.
Audit defense gets you access to a dedicated tax professional who will develop a strategy and handle all communications with the IRS or state agency.
When you enter into a payment plan with the IRS, known as an Installment Agreement, the IRS will release an active wage garnish order.
Before your audit defense certificate can be sent via email, TurboTax must first notify TaxAudit of the audit defense purchase. This usually takes 1 to 6 days.
While there are several ways to save on your tax bill, one of the easiest ways is to put money away for retirement.
For 2018 taxes I did not add my 1099. The IRS is saying I owe. How can I remedy this? I have the 1099 ready to add.
I am a mobile notary Signing Agent. When doing quarterly payments, would I claim pay on the month I do appt. or when I get paid?
In 2011, the IRS launched the Fresh Start program and has since expanded the program in the hopes of assisting more taxpayers who carry federal tax debt.
It all depends on your babysitting gig. Are you employed by an agency to work as a babysitter? Or are you self-employed with your own babysitting business?
Credit card interest for personal expenses is generally not deductible. However, credit card interest connected to trade or business expenses can be deductible.
Generally, when you inherit money it is tax-free to you as a beneficiary. However, like so much in tax law, the answer to this question is “it depends.”
The IRS has published a “Dirty Dozen” list to warn taxpayers to beware of joining the thousands of people who lose millions of dollars to scammers each year.
If you are currently under audit with IRS, you will still receive a stimulus check if your income falls within the eligibility limits.
If you are the sole proprietor, the chance of being selected for audit by the IRS is 4.5 to 12 times higher than it is individuals without a business.
If you received a CP2000 notice from the IRS, it helps to understand what it is and how to handle it. Here are a few essential things to know about a CP2000.
Taxpayers must constantly be on the lookout to avoid getting caught up in the many scams and schemes that try to separate us from our hard-earned dollars.
Generally, yes. If you owe back taxes or have a payment agreement with the IRS, you will still receive a stimulus check if you are eligible to received one.
Thankfully, for those who owe federal income taxes on their 2019 individual income tax return or are on the hook for prior tax years, help has arrived.
Under current federal law, union dues are generally not deductible. However, there are a few exceptions, and if your union dues meet one of them you are in luck
Generally, Married Filing Jointly is more beneficial as some deductions are not allowed if you file Married Filing Separate. You can use tax software to compare
For some of us, retirement seems like an eternity away; for others, it is just around the corner. It is never too early to start saving for the future.
The IRS may collect federal taxes that are due by garnishing (levying) a taxpayer’s wages. The IRS will notify your employer to begin garnishing the wages.
Many people try to guess the amount of their closing costs and use that for their taxes. If they are ever audited, this would not likely work out well for them.
President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The bill includes tax-related provisions for individuals and businesses.
The Fresh Start program is designed so that taxpayers pay their debt in full within six years, and without a serious financial burden being placed upon them.
If you owe back taxes, there are options to resolve your back taxes, and TaxAudit can help. Here are a few possible options:
On March 20, 2020, U.S. Treasury Secretary Steven Mnuchin announced that the Treasury Department is extending the filing deadline for 2019 tax returns.
Audits happen for many reasons, and while you may think a disgruntled neighbor ratted you out, the reality is most IRS audits are initiated for other reasons.
There is a growing number of criminals and fraudsters that are constantly trying to gain access to our bank accounts through clever scams and schemes.
The CP2501 notice is just one way IRS asks you about the income you reported on your return and where they feel you may have omitted something.
Yes, it is possible to pay taxes in installments. For many people, the process of applying for an installment plan with the IRS may not be difficult.
For federal tax purposes, there is no deduction available at this time. However, the loss may or may not be deductible on your state tax return.
Two words: almost anything. Wages, retirement accounts, bank accounts, vehicles, houses, furniture, and even passports are all fair game.
Tax Topic 151 means the Department of Treasury will be taking your refund or part of your refund to pay for something that has been reported that you owe.
Whether it’s an audit or a notice, receiving a letter in the mail from the IRS is most taxpayers’ worst nightmare. What can you do that will lower your risk?
Paying for college tuition is an expensive endeavor. Fortunately for those who qualify, there are some tax breaks available.
No matter the cause of each person’s tax debt, there are a number of different programs offered by the IRS to help taxpayers get back into the good books.
From a tax standpoint, a relationship that is established by marriage, such as your relationship with your mother-in-law, does not end with divorce.
Options are available to those who cannot pay their taxes in full by the deadline. A good line of communication with the CA Franchise Tax Board is critical.
Having a tax bill is not a situation anyone wants to be in. Fortunately, there are ways to deal with tax debt owed to the IRS. Let's explore a few solutions.
If you have unreimbursed business expenses as an employee, then those expenses are generally no longer deductible on your 2019 federal tax return.
The answer to this depends on your particular financial circumstances, how much you owe the IRS, and why you owe them money in the first place.
A tax professional spends four to ten or more hours per audit - think of the time and stress you could save yourself if you purchase pre-paid audit defense.
If certified by the IRS to have seriously delinquent tax debt, the U.S. State Department can deny passport applications or revoke currently active passports.
Full Audit Representation through an Audit Defense Membership, is included at no additional cost. Other tax experts charge roughly $150/hour for representation.
The most likely answer for most people would be no, as the general rule is that you cannot deduct the cost of the gym membership. However, there are exceptions.
With Full Audit Representation, also known as Audit Defense, a Tax Professional will defend your tax return through the entire audit process if you are audited.
Generally, amending an already filed tax return will not extend the time the IRS has to audit the return, which is normally three years.
The good news is that you can deduct car insurance from income when preparing your taxes – but the bad news is that you must first meet certain conditions.
Even if you cannot deduct your unreimbursed business expenses for your federal return, you may still be able to deduct them for your state return.
If the taxpayer has costs for after school care of a qualifying dependent, those costs may provide some tax benefits. Let's explore these tax benefits.
With excellent customer service and well-trained tax professionals, TaxAudit is set up to be the best tax debt relief program in the industry. Here's why:
Sales tax on a car or automobile purchase might be deductible. It depends on the taxpayer’s circumstances. Generally, the following conditions must all be met.
The IRS generally has three years from the date the returns were filed to audit. However, in certain circumstances a return can be audited within six years.
Just like there are hundreds of poses in yoga, the tax law is not so simple - and there are subtle variations that determine whether the answer is yes or no.
Yes, under certain conditions, health insurance premiums are tax-deductible. Generally, the health insurance premiums can be deducted in one of two ways.
On the IRS’s website is a list of Audit Technique Guides (or ATGs) that IRS examiners use as a roadmap when auditing various types of income tax returns.
Simply stated, child support is not deductible. However, it is worth noting that identifying child support payments may not be so simple.
Real estate closing costs can be pesky things. And since you are paying for them, can you at least deduct them from your taxes?
Tax deductions and credits serve the same purpose − to reduce the amount of a taxpayer's tax owed. The way that each serves this purpose is different.
In 2019 self-employed taxpayers can deduct their car expenses at the standard rate of 54.5 cents per mile driven for business. However, most employees cannot.
Millions of individuals and business owners in America currently have unpaid IRS tax liabilities. Here are a few items to consider for tax debt relief options.
You can call the IRS to see if your refund has been flagged for garnishment. Then you can reach out to set up a payment plan − if warranted.
Yes, kids may have to pay taxes. No matter a person's age, if they have income that exceed certain IRS thresholds, the income should be reported.
In regard to the personal home mortgage interest deduction on the Schedule A, the answer is yes, but only if certain criteria are met.
One way to offset the rising costs of health care is by claiming an itemized deduction for qualified medical expenses paid during the year on your income taxes.
The PMI deduction was not permanent. This expiration date was extended twice, eventually to 12/31/17, and any PMI paid after that date is not deductible.
If you paid someone to care for your child so that you could work or look for work, you may be able to take the credit for child and dependent care expenses.
The fact is that there is no standard answer to how long it will take for the IRS to finish up your audit and tell you what, if anything, you owe.
Audit defense is a service offered through TaxAudit to support our members in the event that their state or federal tax return is selected for review or audit.
Responding to an IRS audit is not the easiest thing to do. Surviving an audit is much easier with professional representation.
The IRS declared that any cryptocurrency with an equivalent cash value is to be treated as property for tax purposes, and transactions are therefore taxable.
This seems a simple question, and it has a simple answer, which is probably. First, all the usual requirements of deducting mortgage interest must be met.
Prescription eyeglasses for correcting your vision are deductible as a medical expense, but you may not be able to deduct them based on other factors.
Generally, the IRS has three years form the date the return is filed to conduct an audit. However, there are exceptions to this three-year rule.
If you paid off a prior year state or local tax obligation to your state, you can include these payments as a state tax deduction, subject to the $10,000 cap.
Most taxpayers are familiar with the terms standard deduction and itemized deductions, but many are unaware of the differences between the two.
The moving expenses deduction was eliminated for all tax years from 2018 through to 2025 for all taxpayers except those who are members of the Armed Forces.
Yes! Losses on bitcoin and other virtual currencies are deductible but be aware that in an audit the IRS can and will disallow any improperly claimed losses.
Besides official IRS examinations, the IRS also conducts other types of tax reviews that are not classified as official audits, and these are far more common.
Non-refundable credits can reduce your tax liability to zero. Refundable credits can give you money back if the amount of the credit is more than you owe.
When it comes to the deductibility of business expenses the answer is likely to be “Yes, No, Maybe So, or Not Now.” Here are a few examples to consider.
401k loans aren't reported on your federal tax return unless you default on them. Then it becomes a distribution and subject to the rules of early withdrawal.
If you need to amend your federal tax return, this is done on Form 1040X. Here are some dos and don'ts when filing an amended tax return.
Yes, you can deduct student loan interest on your tax return if you meet the specific requirements to claim this deduction. The amount you can claim will vary.
Before signing on the dotted line, it’s important to understand the potential tax, liability, and equity issues of transferring your house deed to your child.
Inmates are responsible for filing taxes. While you can certainly help your boyfriend file his taxes, you can’t sign and submit the return on his behalf.
As part of the tax reform laws, the home office deduction was eliminated for all tax years from 2018 through to 2025 for taxpayers who are employees.
The fact is that running your own business increases your chances of being audited by the IRS or your state tax agency.
A Notice of Deficiency (aka Statutory Notice of Deficiency, Stat Notice, 90-day letter) is the last letter the IRS sends before making its assessment of tax due
Life insurance premiums are generally not deductible on your tax return. However, there are few exceptions, such as life insurance premiums paid by a business.
Some people can, and some people can’t. It depends on the date your divorce was finalized whether you fall under the new TCJA tax law.
The IRS’s “Where’s My Refund” app should be your first your first destination to find out the status of your refund.
A bonus is considered a supplemental wage payment and is therefore subject to slightly different withholding guidelines under federal rules.
Choosing the right tax preparer is serious. Picking the wrong tax professional may have a severe impact on the health of your finances. So choose wisely!
The first thing to do is to check every name and Social Security number listed on the return with what is listed on their Social Security cards.
Not all taxpayers are required to file a federal income tax return. Determining if you have a filing requirement starts by evaluating your gross income.
While increasing allowances leaves you with more available funds throughout the year, it will have a rippling effect and your tax refund will decrease.
Returns are being processed, and refunds are being issued. Things seem back to normal.
If you are facing an unexpected tax bill, here are some things to keep in mind. The IRS offers multiple payment options.
Below is a list of misconceptions and examples of misinformation taxpayers may encounter during the upcoming tax season.
IRS Commissioner Chuck Rettig made it clear that the agency would be processing returns and providing refunds as scheduled, despite the government shutdown.
Here is a list of some of the taxpayers who will generally benefit from the new tax law.
When sitting down to prepare taxes, password security may be the last thing on our minds. But realistically, it should be one of the first.
Many people will likely owe extra money as a result of inadequate withholding because the new withholding tables were not accurate.
Taking these few steps today will save you time and hassle come time to file your 2018 tax returns in 2019.
Deductions for expenses considered to be entertainment, amusement or recreation have basically been eliminated except for the deductibility of business meals.
TCJA (The Tax Cuts and Jobs Act). Not since the Tax Reform Act of 1986 has there been a more sweeping reform of the tax code.
When it comes to taxes, there is no shortage of situations to prepare for. One of the most overlooked areas relates to natural disasters.
Divorces finalized after 1/1/19 no longer required the spouse receiving alimony to report the income, and in turn, did away with the deduction for the payer.
The Tax Cuts and Job Act presents many substantial changes to filing requirements; however, the reporting of healthcare coverage remains consistent.
So, what happens if you miss an Installment Agreement payment and/or can no longer make the agreed upon payments?
Taxpayers who filed for an extension to file their 2017 tax returns should keep in mind that the extension deadline is October 15th, 2018.
Of all the types of Installment Agreement requests, Streamlined Installment Agreements are the most varied and provide a bit of flexibility for the taxpayer.
The Tax Cuts and Job Act of 2017 introduces some perks for small business owners that you won't want to miss.
You can reduce your risk of falling victim to scammer's schemes by developing a basic understanding of what the IRS can and cannot do.
In order to avoid a failure-to-pay penalty, it’s important to file your tax return by the filing deadline − even if you can’t pay what you owe in full.
For the American Opportunity Credit, a student is required to be in pursuit of a degree or recognized education credential and be enrolled at least half-time
When more than one person wants to claim a child on their tax return, sorting it out becomes complicated. Not only are there five tests to meet for a child...
Lottery earnings are generally reported on Form W-2G, taxed as ordinary income, and expected to be reported as “other income” on the federal tax return.
This may seem like a strange question, but with over 1.1 billion dollars of unclaimed money at stake, it's a question worth asking.
"Unreal audits" often require the same verification principles as traditional audits and incite the same level of discomfort as a real examination.
This blog post discusses the rules and fees regarding Guaranteed Installment Agreements for taxpayers whose tax debt is $10,000 or less.
The new bill lowers some current tax rates, which changes the income thresholds at which the rates apply. Below is a comparison chart outlining the differences.
Sometimes it only takes six little letters to strike fear in the bravest of taxpayers: IRS IOU (technically, it's not an IOU, but rather a bill).
With the holiday season upon us, fake charities are on the rise. Below are some factors to take into consideration before making a donation.
If you are in a domestic abuse type situation, it is important to understand your rights as a taxpayer so that you can safeguard your finances for the future.
The IRS is searching for volunteers to lend a helping hand and to share some wisdom in their communities.
The IRS offers a number of resources to help you make sense of your withholding requirements, including YouTube videos and an online withholding calculator.
With the increasing popularity of ridesharing services such as Lyft and Uber, you may be asking yourself, “Can I make extra money doing this?”
Have you or someone you know experienced loss from a disaster? You may be able to deduct the loss you incurred on your federal income tax return.
The IRS recently issued a warning that tax-related scams are still on the rise and are urging taxpayers to take caution!
Congress reauthorized the IRS to use private debt collection agencies, or PDC, to collect outstanding tax liabilities.
When determining the deduction for a home office, there are two different methods to choose from: Actual expenses and the simplified method.
When a person is ineligible to receive a Social Security number, an Individual Tax Identification Number or ITIN must be obtained in order to file a tax return.
The IRS encourages all businesses and business owners to know the rules when it comes to classifying a worker as an employee or an independent contractor.
The IRS general rules for keeping tax records and returns is you must keep them for the period of time in which the IRS can audit you and assess additional tax.
The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.
Your company offers you employee stock options. The paperwork says they are Nonqualified Stock Options (NQSO’s). You don’t quite understand what that means...
While real IRS letters go through the mail, tax scammers have shipped out their own tax bills in an attempt to take advantage of the unsuspecting taxpayer.
One of the most frequent scams we see during tax season is that of the crooked tax preparer.
This scam involves cybercriminals approaching a tax preparer in the guise of a potential client, sending an email which asks about using the preparer’s services
Thieves are creating convincing IRS CP2000 letters and sending them to unsuspecting taxpayers via the postal service and as an email attachment from the “IRS.”
There are some tax benefits available to our military personnel. These adjustments are designed to give back to the men and women who have given so much for us!
President-elect Trump has listed a series of major changes and reforms that he aims to make during the first 100 days of his presidency.
The IRS has some quick and helpful tips for those who are anxious to get their yearly tax filing out of the way.
The single most important thing you can do <a href="~/TaxAlerts/Alert/What-Documents-Do-You-Need-for-an-Audit" target="_blank">to make sure you’re prepared for an audit</a> is keep good, organized records in a safe place.
The IRS is currently offering this cash payment alternative at participating 7-Eleven stores in 34 states.
Some people can claim an exemption from the health insurance requirement, but everyone else needs to show the IRS that they are covered or else pay a penalty.
The IRS recently announced that their "Get Transcript Online" feature is now available for taxpayers who would like to obtain their tax transcripts.
I got a phone call from the IRS last week.
There are a few things you should know about gambling and how it can affect you when tax time rolls around.
The IRS is well aware that the U.S. Olympic Committee pays medalists a cash bonus of $25,000 for winning gold, $15,000 for silver, and $10,000 for bronze.
Scammers, despite their many flaws, tend to be clever, and often create fake charities that have names strikingly close to vetted non-profit organizations.
We have created a list of 5 quick tips on how to deal with any IRS letter you receive to help make the process as quick and painless as possible.
The latest news from the IRS regarding the amounts taxpayers are allowed to spend on necessary living expenses when owing the IRS is not for the faint of heart.
The Child and Dependent Care Credit is available to help offset some expenses of childcare or daycare costs.
If you missed the tax filing date, you are certainly not alone; there are thousands of taxpayers who miss the filing cutoff every year.
If my ex-wife lives with me and I provided more than half of her financial support will I be considered single status or head of household?
You have three extra days this year to file, as 2015 federal tax returns are not due until April 18th (or April 19th for residents of Maine or Massachusetts).
While tax season may have ended, scam artists are still working around the clock and the IRS is continually encouraging taxpayers to keep a vigilant eye out.
Form 1095-A, Health Insurance Marketplace Statement, is issued by the federal and state healthcare marketplace exchanges.
I’m legally married and live with my spouse. We file our taxes separately. Can I file as head of household while he files as married filing separately?
I have a question about a head of household. My ex-husband passed away, which left his mother needing someone to care for her. I took her into my home…
The TAS is an independent organization within the IRS, created with the intention of identifying and resolving problem areas within the tax system.
I spent 30K on a new roof last winter after my old one collapsed under 100 inches of snow. Where do I report the cost of the roof on my taxes?
As this year’s tax season shifts into full gear, tax scammers are at hard at work.
Hello fellow taxpayers. The Wily Tax Blogger is back to kick off 2016 with a new blog about an investment management tool I’ve discovered.
The correspondence at the focus of my holiday lament is IRS Letter 4464C, otherwise known as the <em>Questionable Refund 3<sup>rd</sup> Party Notification</em>.
Congress extended many of the tax breaks that were set to expire at the end of 2015 as well as expanded a number of other tax provisions.
January is right around the corner, so let’s make a tax list - and check it twice - for last minute tax saving opportunities!
"We have our own marketing and design business. This year we ordered expensive gourmet chocolate gift baskets for each of our ten clients to thank them..."
This is a brief summary of the IRS's numerous requirements in regard to charitable giving.
Where does America stack up in the world as far as corporate tax rates?
Here are 3 tips to help make the upcoming tax filing season just a little bit easier.
There are only two months left in the year. What can I do now to avoid paying a big tax liablity on my Schedule C business next year?
The letter you hoped would never come arrived. You open it and discover the IRS has graciously sent you an invitation to their work mileage deduction review.
The Cadillac tax has zero to do with automobiles and everything to do with health care.
Tax nightmares aren’t just for scammers. They can happen to people who make innocent mistakes, and even to those who believe they are doing the right thing.
In essence, the flat tax is a system of taxation where one tax rate is applied to some types of income with no deductions.
Are Education Tax Credits Available When the Education Expenses are Covered by a Scholarship or Grant?
What do “Scarface” Capone and a tax audit have to do with each other? Scarface went to prison for - of all things - tax evasion!
I got a CP2000 notice from the IRS. It says I owe $12,269 for securities I sold. I purchased the stock in 2005 and sold it at a loss of almost $10,000...
We wanted to let you know that, yes, there are some tax benefits to hitting the books.
While I was working out at the gym, someone broke into my locker and stole my diamond ring. It’s my wedding ring and I always take it off before doing...
My boyfriend and I are buying a house together, and the property includes a rental apartment above the garage. How should we report our rental income?
My wife and I are considering installing a solar electrical system on our house - can we use the cash in our IRA to pay for it?
If you are getting married, keep these tax items in mind as part of your wedding checklist.
Starbucks? Coffee beans? Lattes? What do they have to do with taxes? Don’t worry, we will get to that! But first, let’s discuss your Golden Years again...
Are disability payments taxable? This is a good question, but there is no correct general "yes" or "no" answer.
I do PR in the Bay Area. My hairstylist says I can deduct my entire salon bill on my taxes because it helps me look good at events. Is this correct?
You remember you hit the snooze button on preparing your 2014 return in April and decided to file an extension, instead.
I want to donate to my favorite politician’s 2016 campaign for our state’s House of Representatives. Are there limits to how much I can deduct?
Should I include notary feeds on my tax return?
IRS Partners have begun to create and initiate essential changes which will revolutionize and improve taxpayer security in the coming years.
I received a 1095-A form for health insurance after I had already filed my taxes.
I would really appreciate some advice on filing estimated taxes. Please let me know if you provide this service.
The IRS estimates they received over 2.4 million fraudulent returns for the 2013 filing year. If you’ve been the victim of this type of crime…
Since 2008, college costs in the U.S. have risen 30%. Many folks' salaries are not keeping pace.
My husband spends a lot of time printing church service bulletins and other special design and print jobs. Can he deduct the time he works as a volunteer?
The IRS has taken the initiative to remind taxpayers about the importance of protecting and preserving important documents, should disaster choose to strike.
What is the best option are for getting rid of an old vehicle? Should I donate it for the auto valuation guide value of $3,000 or sell it now for $1,500?
My husband and I bought a home. We sold our old house a few months later. Will the profit on the old house be taxed if we do not roll it into the new house?
The expenses I paid out on my rental were $12,000 more than my rental income, yet my tax return shows a deductible rental loss of zero. Why?
These thieves use a legitimate taxpayer’s name, address and social security number to file a fraudulent return claiming a large refund, and then divert...
If you get audited, do they send a letter or do they call you?
You want to save money towards your retirement, but your employer does not offer a retirement plan, such as a 401(k). You are not alone...
The IRS opened up its LITC grant application process for organizations looking to serve and educate low-income taxpayers.
I inherited a home in 1988 from my father. I sold that home during the 2014 tax year at a gain. I did considerable renovations on this property...
What do I do with a stepdaughter who doesn't live with us? She is in college and lives with her mom. How do I list that? My husband pays child support.
You have your traditional IRA account invested at your bank but you are not happy with the rate of return. You’ve heard that it’s possible to move your IRA...
My wife made a $5,000 contribution to her IRA in last year. Through using TurboTax, we learned that we don't have the earned income to support a deduction...
You just found out your Uncle Jerry passed away and that he had listed you as the sole beneficiary to his traditional IRA account. You go down to the bank...
My wife is training to begin her career as a life coach. Can the expenses of her training, including tuition, room, board & travel, be tax deductible?
In the Fall my son will go to college and I will be paying his tuition. Can I still claim Head of Household status for my taxes while he is attending college?
U.S. citizens and resident aliens who work and live overseas during large portions of the tax year may still have IRS tax filing requirements.
You may not be feeling the groove just yet. It’s been a long winter, and you are hoping that maybe the deep freeze caused the IRS to forget about you this year.
My boyfriend and I have been living together for nine years. Can we file a joint tax return this year?
You might have thought that with the new Health Care Reform more of all the money you spend on health insurance and medical expenses would be deductible.
I am a policy and procedure writer for a company. Due to my long commute, my boss lets me work from home one day a week. Can I write off my home office?
You have been talking to your financial advisor or hear in the news how great Roth IRAs are and that you should be contributing to a Roth IRA.
How long does it take to get my refund if I e-filed my taxes? It seems like I should have received it by now.
Crowdfunding is a popular way to raise funds for businesses, charities and individuals. It occurs when someone asks others to contribute to their idea or cause.
My wife and I are preparing our taxes, and, due to her employment situation(s) and our investments, we have received a number of 1099s...
I have a confession to make: I’m thirty, single and have about a hundred dollars in my savings account. In addition, I have no retirement plan!
When your electronically filed tax return is rejected by the IRS, it can be frustrating. But, most of the time, there’s a simple explanation for the rejection.
How many miles can I claim on my tax return when driving for work?
With the costs of obtaining a Master of Business Administration skyrocketing - often costing up to $80,000 - you might be wondering: is my MBA tax deductible?
My brother was moved to a nursing home/memory care unit. He had to live in the nursing home area until the memory care unit had an opening. When he was in...
Are you short on cash and don’t have the money to pay your tax bill? The IRS does have a few options for the taxpayer who is cash short at tax time.
filed my tax return, and then a W-2 came in the mail for a job I worked earlier this year that I had forgotten about. How do I file this?
I am considering buying Gold Bullion. I am 68 and do not plan on using an IRA of any kind for this. What are the tax implications of buying gold?
Are you gathering all your necessary tax documentation now?
The Earned Income Tax Credit is available to workers who earn $52,427 or less from wages or self–employment.
If you have started a family, you know there are many things to take into consideration, including planning for your child’s education.
My wife and I bought a townhouse in 2014. What tax deductions can we take?
With the tax filing season in full swing, the IRS has reissued warnings to all taxpayers to be on alert for tax scams.
My wife has an IRA under professional management with a financial advisor here in Portland. Can we deduct the fees charged for his services?
There is some misconception in the words “head of household.” Yes, in the ordinary sense of the term you may be head of household, but when it comes to taxes...
Is this additional income from Social Security tax-free, or will it be added to my Gross Income for the year and be taxed as such?
The holidays have come and gone, footballs are filling the air as bowl games and playoffs are well underway, and it’s time to start thinking about…taxes?
What form do I file with the IRS for 2014 for a fraud case where I lost lots of money. The fraud case was adjudicated and the offender now sits in Fed Prison.
I retired from my main source of employment due to some health issues, but I am not ready for Social Security and I am not yet retirement age at 57.
You inherited a retirement account, and you opted to transfer the assets into a beneficiary or inherited IRA. What now? The “what now” depends on whether RMDs..
Is there a threshold as to when a married couple filing jointly would fall under the AMT? There is not a threshold, per se. AMT, or Alternative Minimum Tax...
Want to pay less taxes on inherited retirement accounts? Beneficiaries have options available that may result in increased benefits and less taxes due.
I use suits for work, and the dry cleaning expense is substantial. I don't use the suits outside of work. Can I deduct the dry cleaning as a business expense?
The holiday season is a time for giving, but if you don’t follow the carefully prescribed rules for charitable giving, the IRS may disallow your deduction.
I’ve never been married and I have no children. I’ve been successful in my career and have some money saved. I want to give my six nieces and nephews $20,000
I just had my home refinanced to a lower interest rate and to a 15-year fixed mortgage. What are some of the things that are associated with refinancing...
Did you retire this year or turn 70 prior to July 1st? You may have think about Required Minimum Distributions (RMDs).
When you reach a certain age the government requires that you withdraw money every year from many of your pre-tax retirement accounts, such as IRAs and 401ks.
We had solar put on our house this year. Is it tax deductible? A tax credit is available for qualified solar electric property costs and qualified solar water..
As the end of the year approaches, the holidays are probably more on your on your mind than saving on your taxes.
Inheriting money is kind of nice for people. You have usually done nothing to earn it but be born. You most likely have not worked for it.
received a phone call from IRS telling me that I owe them $2,500. They said they sent me a letter in January of 2014 that I signed for telling me the errors...
We heard about it all the way back in 2010, but the Individual Mandate − or Minimum Essential Coverage − did not go into effect until this year.
My husband passed in February of this 2104. We have always filed a joint return. What do I need to do this year?
The IRS is changing its interpretation of the way the one year limitation rule applies to rollovers to match the IRC and Tax Court’s interpretations.
We loaned our car to a missionary home for a visit and fundraising. Can we deduct the mileage as a charitable contribution?
This installment of Know Your Pro will introduce you to a different kind of Pro here at TaxAudit. With in-depth knowledge of all the services we offer...
I have a daughter who is eligible for the American Opportunity Tax Credit of $2,500.00. Can she also use the Lifetime Educational Tax Credit of $4,000.00?
Sunday during the fall is a huge day of the week for many Americans. Namely, the sporting fiends with professional football fever. The National Football...
I had a new roof put on the house. Is it tax deductible? A new roof is generally considered to be an improvement to the structure.
We have an off-shore account, set up in 1998 when they weren't reportable. But now under the Foreign Account Tax Compliance Act, the accounts are reportable.
A long time ago, before there were tax software programs, before our social welfare programs were written into the Internal Revenue code, and when Federal...
My wife is a nurse, but she does not have a degree. She is interested in taking classes to get a BSN degree - a bachelor of science in nursing.
I took care of my three nieces and a nephew (all under 17 years of age) up until the end of last month, August 28, 2014, to be exact. I claimed these kids...
If at this late date you still haven’t filed your tax return, here are some tips to help you avoid many of the most common tax return errors.
Uncle Sam expects to see that Fair Market Value (FMV) listed on your tax return for that tax year as income.
Can I claim the interest I pay on my RV on Schedule A as mortgage interest on a second home? As long as your RV loan is secured by the RV and the...
Casualty losses can happen to taxpayers, such as a fire caused by a faulty heater. Do you have copies of your important documents in a safe place?
If I'm going to do home repairs, such as a roof and heating, which will cost about $15,000, would it be better to take out a home equity loan to pay for it or..
When it comes to proving deductions taken on a tax return, the burden of proof is on the taxpayer, according to the Internal Revenue Code (IRC).
I had bariatric surgery and must take a number of vitamins daily. These vitamins are purchased over the counter without a prescription.
If you made an mistake on your taxes or omitted required information, such as a late-received W-2 or K-1, you can file an amended return on Form 1040X.
It’s still not too late to make adjustments to your withholding or estimates to make sure your 2014 taxes will be done correctly and you will not be surprised..
We live in Florida, and we are thinking about buying a second home in Maine for the summer months. Will we be able to deduct the mortgage interest on our taxes?
Businesses subject to backup withholding can rectify the problem by contacting their payment card processor or third party settlement organization.
We bought our home in 2009, in Arkansas, did major improvements, and then leased it out from 2010 though 2014. We now have the place up for sale...
The overall percentage of individual tax returns examined in 2013, published by IRS, is about 1%; however, this number only takes into account “examinations”
My brother is in assisted living; what part of his expenses can be deducted? He needs assistance with getting dressed and all daily hygiene activities.
Let’s talk about business deductions for members of the military. The same rules apply for active duty personnel and reservists.
My personal residence cost basis is higher than the expected sale price. Is there a way to get a tax benefit from a loss on this property?
If you are a member of the U.S. Armed Forces, there are tax breaks written just for you. Merchant Mariners and American Red Cross employees do not qualify...
We have been asked to build some basic boxes to be used as a stage for a company. They plan to pay us but are not placing us on their payroll as employees.
If you like to gamble, you probably already know that your gambling winnings are considered income, especially if you gamble within the United States.
The IRS and National Taxpayer Advocate Nina Olson announced the adoption of a new Taxpayer Bill of Rights.
I completed a short sale in 2014 and was wondering if it’s possible to avoid taxes on the difference. I sold it for $142,000, the bank got $127,000, and the...
Years ago, I was just like most people when it came to taxes. Just the thought of doing my tax return gave me hives. I had been burned twice at tax time...
My house got water in it this past month. I needed to clean up the mess, replace the carpet, pad and doors. My insurance would not cover the loss.
1. Taxes Might Be Your Biggest Expenditure 2. Many Major Life Decisions Have Tax Consequences 3. Knowing About the Latest Tax Breaks Could Save Money 4. Taxes..
Now that the furor, for the most part, over the Affordable Care Act has subsided a bit, let's take a quick look at the PENALTY for not abiding by this law?
I live in Georgia but work in the oilfields of Alaska as a Form 1099-MISC contractor. Am I allowed to deduct my airfare and hotel and meal expenses for travel?
This decision is likely to impact many taxpayers, particularly anyone expecting to inherit an IRA from a parent or someone else.
I would like to know if I need to declare my Roth IRA and traditional IRA accounts on my tax return even if I haven't contributed to them in the last 4 years.
Could you advise on how the value of items is determined for charitable contributions? I am about to donate several of my designer suits to charity.
Yes, Uncle Sam loves lawsuit settlements just like plaintiffs do. Before you start spending the money, there are some things you need to know.
Form 1023-EZ is a more streamlined process is available to small charitable organizations applying for 501(c)(3) tax exempt status.
Tired of feeling like the government is taking your last penny? Having trouble making ends meet? There is a solution – provided you are willing to move.
We adopted our grandson three years ago - he is now a freshman in high school. When he goes to college, will his tuition be tax deductible?
I bet you all do not want to even see the word TAX right now! I know what you are doing. Lying in your hammock or lounging by the pool drinking a lemonade.
For several years, National Taxpayer Advocate Nina Olson has been arguing for the simplification and codification of taxpayer rights and responsibilities.
My wife has her own business as a psychotherapist and is the only person involved, i.e., she has no employees. She frequently has to submit claims to insurers..
There are so many ways that taxpayers have tried to do an end run on the tax system that the IRS issues an updated consumer alert each year titled...
Taxpayers who must pay alimony to a former spouse may deduct it from his/her tax return as an adjustment to income.
How do you know if you have spent substantially full time repairing and maintaining a rental property when you stay in it so it doesn't count as a personal day?
The IRS generally won’t look for you unless you owe them money. If you don’t file for a refund within 3 years of the original due date of the return...
All paid tax return preparers are required to have an IRS PTIN (Preparer Tax Identification Number) which they must enter on the tax returns they prepare.
If you have a dedicated credit card for your business, can you use the statement as the receipt for your business entertainment, meals, travel, etc.?
Do feel motivated to give money to an organization after the last hurricane/tornado/flood/fire? Did you get a phone call, email, personal appeal by someone?
Tax returns are due on June 16th for U.S. taxpayers living abroad who qualify for and are taking advantage of the automatic two-month extension.
While we call it the “Jock Tax,” it really is a tax that does affect a variety of people, but we are focusing on the NBA because of the extensive travel habits.
I hate allowing the government an interest free loan. This year I had a penalty for owing too much at the end of the year. So my question is: how…
First job ever? What do you do about those pesky tax forms they gave you at the job? How do you fill them out? Why are they taking all that money out!?
We took out a home equity loan to redo our basement. The contractor did not perform the work as agreed and what was performed had to be torn out...
My son was arrested in December of 2012 and spent the entire year of 2013 in jail awaiting trial. During that year I paid his attorney fees, car payments...
You may have heard that if you are self-employed, or you are expected to entertain clients as part of your job, you can deduct the costs of those meals...
I have a good friend who owns two rental homes here in California. The tales he tells regarding these “assets” are not for the faint of heart.
Is there a tax benefit to making a charitable contribution to my church directly from my IRA rather than writing a check and deducting it from my tax return?
Continuing on with Scams 8-12, let’s look at the third set of scams in The Dirty Dozen. False Income, Expenses or Exemptions: Another set of scams...
Continuing on with Scams 5-7, let’s look at the second set of scams in The Dirty Dozen: Return Preparer Fraud: Most preparers are honest, and want the best...
There could be a number of reasons for a delayed refund. The IRS may be eliminating the possibility of identity theft, or it is possible a tax audit is pending.
I bought a house in Arizona in 1996 for $95,000. I did two cash-out refi’s totaling about $30,000 through 2004. I sold the house in 2014 for $165,000, and..
Every year during awards season, the IRS announces its list of the Top Twelve Scams of the Year, or, The Dirty Dozen. Watch for these scams and report them...
You got your return filed on time and you’ve got a nice big refund coming. But the funds don’t show up in your bank account when you expected them to. Now what?
My two children live with my ex. He is the custodial parent but we have joint custody. I pay child support and they come over to my house almost every weekend.
I recently filled out an online tool on a financial advisor website. It had some catchy feel good name like Dream Catcher or something of the like.
If you are a 20 or 30 something - people in this age group should have saving for retirement at the top of their list of things to do.
I took out a medical loan for $36,000 dollars for full mouth restoration by two dentists due to infections. My insurance only covered $890. Can I deduct it?
You owe money to the IRS – now what? Don’t faint, don’t freak out, and don’t worry! There are simple ways to take care of that balance due.
The April 15th deadline is approaching. Taxpayers are most likely to make errors on returns when they are rushing to finish their returns before the deadline.
I travel for a living and my company knows I have pets. I have to have them kenneled when I am traveling for work. Can I expense the cost of the kennel stay?
Under 59½? Need some extra cash? Don’t use your retirement! It isn’t a savings account or a piggy bank to be used to buy an extra pizza on Saturday night
If you are upset about the national debt, you can make a deductible charitable contribution to the Bureau of the Public Debt to help out.
If your employer allows you to borrow money against your 401(k), you are essentially using the 401(k) balance as collateral for the loan and you usually make...
I use my car in my business. How much of it is tax deductible, and what type of travel is deductible? Are my trips going back and forth to work deductible?
Filing for a tax return extension does NOT give you an extension of time to pay your tax bill.
A refund is NOT a bonus and a balance due is NOT a penalty. When you began working, you filled out a W-4 stating how many exemptions you wanted.
Household employers: Did you hire someone to care for your children in your home? Do you have a gardener, a handyman, or a chauffeur?
I gave my daughter $10,000.00 for a down payment on her house. It was earmarked in our trust to be paid to her on our death. I inherited the money from her...
They say that happy employees make for happy customers, and at TaxAudit those happy employees start with managers like Eric.
Enter Dave Du Val! Dave is our Vice President of Customer Advocacy and among many other things, a tax expert. He sat down with me and set my head straight.
We recently bought our 1st home via FHA mortgage, which included monthly mortgage insurance premium (MIP). In addition, an "up-front" MIP amount (UFMIP)...
Feeling sick? Broke a foot? Broke a tooth? Kids in braces? Are these deductible on your taxes? Well – maybe. Medical, dental, and even alternative health care..
The fastest way to get your money without paying additional fees is to e-file your return and have the money Direct Deposited to your bank account.
I was an owner contractor on the restoration of my house. I bought some used construction equipment to do the work, items like gas powered pressure washer...
Michael Jackson stirs up many good memories for me. I mean he is the Elvis of my generation. I vividly remember getting his Thriller record for Christmas...
In a recent case of tax evasion, Ty Warner, the creator of “Beanie Babies” was hit with $53.6 million in penalties for hiding money offshore.
Our adult Sunday School class had a Christmas project of supplying Christmas clothes and toys for a needy family with several children and a disabled father.
Tax scams increase exponentially during the income tax filing season. If you want to avoid being a victim, be aware that when someone offers you a “chance of...
I lived with my younger cousins, ages 11 and 4, in 2013 except for about 2 months when I stayed with my father while he was sick. I provided more than...
Phone Scams: There are numerous phone and internet scams claiming to be the IRS (or other government agencies). Do not give personal information to anyone...
In order to qualify for an Earned Income Tax Credit (EITC) of up to $6,044, you must first meet these two qualifications: You must have earned income...
As for an individual with a business, it is beneficial to research what is on the market in regards to business accounting software. There are numerous...
I’m sure you remember when Susan Boyle became an overnight web sensation. Since then, thousands of hopeful musicians, writers, artists, and dancers...
It’s a long story that begins long before the arrival of the first Form 1040 Income Tax Return of Annual Net Income of Individuals...
The IRS just announced a new version of their mobile app, IRS2Go. You can use the app to track your refund status and more.
Introducing Carolyn Richardson! Our highly effective and experienced tax audit professional from Hawaii! With her three decades of tax experience,…
You cleaned out your closets, attic and garage this year and took all of those piles down to your local charity drop-off location. (I bet that felt good.)
Here are some simple tips to help you reduce your audit risk: Proofread your tax return A mistake on just one figure or item can present IRS audit flags…
Taxes! Usually, this word creates a strong emotive reaction. We older people tend to not remember the days back when we first filed our very first 1040 EZ.
It’s that time of year when taxpayers begin to get massive headaches. If you feel your head pounding, following these simple tips could save you more pain.
Have you ever thought about New Year’s Tax Resolutions? What can I do better when it comes to my personal and business taxes?
When your tax return is audited, the IRS will ask to see records and documents that show how you came up with the dollar amounts reported on your tax return.
If you are a U.S. citizen living and working overseas, the IRS expects you to report the money you earn just as if you were residing on U.S. soil.
There’s a new wave of “phishing” scams involving phony emails from tax software companies such as TurboTax.
If you had a debt forgiven and you were personally liable for the debt, you will likely receive a Form 1099–C, Cancellation of Debt.
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