TaxAudit Blog

Tag: Tax

New Jersey flag over cash

If you estimate that you will owe more than $400 in New Jersey income tax at the end of the year, you are required to make estimated payments.

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Two model houses and stacks of money

An IRS levy is the actual seizure of property you own. An IRS lien is a public document that notifies any creditors that the IRS has a right to your property.

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Tax Returns, plant, and $100 bills laying on a desk

What happens if your spouse overstated the deductions claimed on the return or substantially understated the income?  Are you still liable for the tax due?

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Double Taxation written on notepad

Most states that have income taxes offer a credit for taxes paid to another state on the same income, although how that credit is calculated is not identical.

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Pennsylvania Flag on a pile of money

The PA Dept of Revenue expects you to make PA Estimated Tax payments if you make more than $9,500 of taxable income that has not had taxes withheld from it.

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toy car next to 3 small houses and stacks of quarters

When you give assets to family members, they are subject to the gift tax exclusion amount, currently $17,000 per year. If your gift exceeds this amount...

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Amended Return written on a notepad

In most circumstances, you must file an amended return within 3 years from the date you filed your original return or 2 years from the date you paid the tax.

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Direct Deposit written on a piece of paper

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.

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Man thinking

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.

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Tax Relief written on a Calculator

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.

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Woman thinking about Tax

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.

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Estimated Tax Payments

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.

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Internal Revenue Service Sign

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!

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File Tax Return! written on a sticky-note

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.

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Woman opening a letter

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.

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California License plate that says EST TAX

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.

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New York State EST TAX License Plate

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.

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Two children dressed as office workers reading finance documents and working on the computer

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.

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Hand Sanitizer on table with masks in background

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.

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Handcuffs laying on a 1040 form

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.

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Stroller with rolled up $100 bills

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.

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Social Security care with $100 bills

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?

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Refund check laying on top of a $100 bill

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.

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Man opening a letter

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?

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Woman reading a letter and holding her phone

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?

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Man on phone while looking at a letter

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.

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Debt Relief Just Ahead sign

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.

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Man reading a letter

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.

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Man reading a letter and laptop computer

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.

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Amended Return written with man at computer and sheets of paper of graphs on them

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.

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IRS displayed by gold blocks

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? 

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Money background with one 100 dollar rolled up as a heart

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?

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Picture of

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.

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Sales Tax written on a sign

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.

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Man at desk with calculator and interest rate graphic

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%.

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Graphic of arrows going one way and then reversing

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.

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Federal Tax written on a sticky note

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.

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Man reading a letter - distressed

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.

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Need Help? and Taxes written on sticky notes on top of tax forms

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.

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Woman and Man drinking coffee

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.

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Woman Reading Letter

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.

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Man reading a letter

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.

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Handcuffs laying on a 1040 form

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.

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Tax Refund button on a keyboard

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.

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Window Installer

Yes, you can indeed receive a tax benefit for installing new energy efficient windows on your house – provided that certain conditions are met.

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New York Tax title on a black book

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.

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House with money stacks next to it

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

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Woman Shopping for Over the Counter Medications

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.

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April 2023 Calendar with Tax Day written on April 18th

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.

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House with a Sold For Sale Sign in Front of it

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?

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pay check stub

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.

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Taxes Due written on a note

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.

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Payroll Taxes written on paper with office supplies in background

Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties.

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Puzzle with missing piece - money shown where piece is missing

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.

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College add daughter moving out of parent's house

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.

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Payroll Taxes written on 2 wooden blocks

Fortunately, the short answer to the original question is yes, Illinois state payroll tax debt can quite possibly be reduced.

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Payroll Taxes written on notepad with green background

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.

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California Taxes written on a notepad

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.

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Payment Plan

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.

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Clock concept of never ending time

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!

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IRS check with money surrounding it and 1040 form

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.

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Woman Reading Letter

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.

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Installment Agreement on a Clipboard

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.

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Wage Garnishment written on Paper and Gavel

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.

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Woman Doing Financial Paperwork

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.

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Payroll Taxes

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.

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Tax Refund and Stack of Money Drawing in a Notebook

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.

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House sitting on money

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.

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Woman Driving New Car

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.

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Auditor writing on paper with binders on his desk

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.

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Amended Tax Return

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!

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Tax Audit written in blocks placed on $20 bills

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.

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Offer in Compromise

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.

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Property Taxes Sign next to wooden house, key, pen, and calculator

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.

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Woman looking at debt letter

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.

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Amended Tax Return

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?

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Payroll Tax

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.

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We Will Win written on blocks

"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!

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Payroll Tax written in blocks

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.

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Man looking at computer with a worried look on his face

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.

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Person looking over paperwork

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.

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gavel, money, seized house

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.

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Paper Stacks with calculator

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.

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blank check and a pen

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. 

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IRS Examiner

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?

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Group of Volunteers

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.

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refund written with blocks

If the IRS is taking your refund, sometimes you need a qualified tax professional who understands IRS collection procedures to intercede on your behalf.

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tax written in blocks with money bags in the background

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.

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Levy written on the calculator

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.

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Sold Sign

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?

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Tax Relief Professionals at TaxAudit

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.

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Two Preschoolers Reading

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.

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TaxAudit's Tax Debt Relief Team

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.

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House with person doing paperwork in the background

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.

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Business Owner Looking at Receipts

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.

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Child Tax Credit

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.

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Tax Refund Ahead Sign

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.

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Happy woman looking at her laptop

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!

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Child Tax Credit

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!

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Tax Resolution Specialist

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.

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Tax Relief Professional

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.

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Fresh Start Ahead

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.

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Back Taxes

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.

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Estimated Taxes

Estimated tax payments are additional payments that taxpayers may make on a quarterly basis to cover any additional taxes that may be due.

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Tax Deductions

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.

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Cash, IRS check, and Social Security Card

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.

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Back Taxes

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.

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Pencil Pointing to

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.

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Worried Woman

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.

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House with for sale sign that has sold

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?

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Inheritance Tax

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.

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Concerned couple looking over finances

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.

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Five Star

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.

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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.

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calculator

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?

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Back Taxes sign with a money background

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.

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2021 Tax Laws

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.

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AUDIT spelled out with small blocks

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.

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tax return in an envelope

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.

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Payroll Taxes Sign on top of dollar bills

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.

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Request Denied

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?

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Solar Panels on Roof

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.

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Vacant Land For Sale

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.

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Stimulus Payment

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.

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File Folders with one labeled Taxes

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?

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Pay your tax bill

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.

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Paying Taxes Online

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!

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Tax Return Help

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.

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State and Local Taxes

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.

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Question Mark

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.

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Man holding sign saying HELP!

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.

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IRS Audit Written on a Paper

The length of an audit depends heavily on the issues being addressed, the level of documentation required, and the Examination Division doing the audit.

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Baby with bottle

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.

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Jar with coins in it that says Tax Pay

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.

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Probate puzzle piece on wooden house

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.

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Mailing a Letter

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.

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lady working with 3 binders

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.

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Tax Gap written on a Note

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.

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Tax Refund Check

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.

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Man distressed with tax bill

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.

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woman distressed about tax bill

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.

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Percentage sign with dollar bill in the background

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.

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Debt Burden Cartoon

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.

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Customer Service Representative

TaxAudit is the exclusive provider of TurboTax® Audit Defense. The phone number for TaxAudit’s customer service department is 877.829.9695.

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Wage Garnishment written on paper next to calculator

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.

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Hand with pen writing Tax Deduction

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.

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Tax Deadline written on July 15th

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

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House prices going up

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.

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Garnishment of Wages written on a notepad

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.

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Wage Garnishment Button on a Keyboard

When you enter into a payment plan with the IRS, known as an Installment Agreement, the IRS will release an active wage garnish order.

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email symbol on smart phone

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.

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Notary

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?

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new plant growing out of coal

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.

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Warning tax scam sign laying on a keyboard

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.

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IRS Scam

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.

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Man holding sign saying Stimulus Checks

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.

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woman distressed about tax bill

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.

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Wage Garnishment

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.

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Four jars with money and plants growning

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.

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Back Taxes written on a computer screen

If you owe back taxes, there are options to resolve your back taxes, and TaxAudit can help. Here are a few possible options:

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Calendar with April 15th marked as Tax Day

On March 20, 2020, U.S. Treasury Secretary Steven Mnuchin announced that the Treasury Department is extending the filing deadline for 2019 tax returns.

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IRS Scam sign on a Telephone

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.

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IRS Installment Payment Plan

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.

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Cash with a metal chain and lock wrapped around it

Two words: almost anything. Wages, retirement accounts, bank accounts, vehicles, houses, furniture, and even passports are all fair game.

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Dollar symbol written on chalk board

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.

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Owe Taxes

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.

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Book with California Taxes written on the cover

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.

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Man with tax burden

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.

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wooden house and gavel

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.

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Tax Audit written on financial paper

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.

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1040 tax return with Passport and $100 bill

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.

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Amended Tax Return on a keyboard button

Generally, amending an already filed tax return will not extend the time the IRS has to audit the return, which is normally three years.

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Receipts

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.

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Five Stars

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:

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Couple receiving keys from salesman to their new car

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.

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Tax Deduction written on a sticky-note

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.

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Tax Debt Relief

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.

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Tax Refund Check and 1040

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.

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Money, United States Treasury Check, 1040 Tax Form

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.

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irs agent examining a tax return

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.

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Tax Credits

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.

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Yellow house with white fence

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.

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1040 tax return with handcuffs laying on top

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.

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Woman reading letter

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

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Wedding cake split with the groom on one side and the bride on the other

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.

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Top half of a clock drawn on a chalkboard with the word 'TAX' written above it.

The IRS’s  “Where’s My Refund” app should be your first your first destination to find out the status of your refund.

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Gift box wrapped in a five dollar bill with a red ribbon and bow on top

A bonus is considered a supplemental wage payment and is therefore subject to slightly different withholding guidelines under federal rules.  

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Tax Return Preparation Sticky Note

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!

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Boy standing in front of chalkboard with a finger on his chin

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.

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Tax Filing

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.

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Money being handed over

While increasing allowances leaves you with more available funds throughout the year, it will have a rippling effect and your tax refund will decrease.

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Victory

Here is a list of some of the taxpayers who will generally benefit from the new tax law.

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tablet with tax words displayed on it

Many people will likely owe extra money as a result of inadequate withholding because the new withholding tables were not accurate.

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1040 with happy clips

Taking these few steps today will save you time and hassle come time to file your 2018 tax returns in 2019.

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Tax forms and a calculator that says Tax Help?

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.

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1095-A Form

The Tax Cuts and Job Act presents many substantial changes to filing requirements; however, the reporting of healthcare coverage remains consistent. 

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Four Ice Cream Cones

So, what happens if you miss an Installment Agreement payment and/or can no longer make the agreed upon payments?

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Tax Extension

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.

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Colorful balls with numbers

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.

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Tax Credits written on a Sticky Note

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.

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Tax Bracket

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.

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Danger Tax Scam Sign

The IRS recently issued a warning that tax-related scams are still on the rise and are urging taxpayers to take caution!

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tax records

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.

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Passport with Denied stamped across it

The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.

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Scam Alert Signs

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.

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tax preperation

One of the most frequent scams we see during tax season is that of the crooked tax preparer.

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Person backpacking in mountains

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

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Armed Forces member writing on a notepad

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!

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Person walking down steps with arrows going different directions

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.

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Tax Time

The IRS has some quick and helpful tips for those who are anxious to get their yearly tax filing out of the way.

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Tax Transcript

The IRS recently announced that their "Get Transcript Online" feature is now available for taxpayers who would like to obtain their tax transcripts.

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Handcuffs laying on a 1040 form

I got a phone call from the IRS last week.

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Man in swimming pool holding up trophy and Gold Medal

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.

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Charity Scam Sign

Scammers, despite their many flaws, tend to be clever, and often create fake charities that have names strikingly close to vetted non-profit organizations.

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Tax Return with $100 bills, calculator, and pin

If you missed the tax filing date, you are certainly not alone; there are thousands of taxpayers who miss the filing cutoff every year.

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glasses and pen laying on top of tax form

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).

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Tax Scam written on red paper over tax return

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.

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Woman in white sweater

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…

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Taxpayer Advocate written on a blue piece of paper

The TAS is an independent organization within the IRS, created with the intention of identifying and resolving problem areas within the tax system.

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IRS Scam written on a sitcky-note

As this year’s tax season shifts into full gear, tax scammers are at hard at work.

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Stock Chart

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.

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Four glasses

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>.

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Tax Break written on a note

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.

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Lite Christmas tree on the floating barge

January is right around the corner, so let’s make a tax list - and check it twice - for last minute tax saving opportunities!

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Wrapped gift

"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..."

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Tax Planning

Here are 3 tips to help make the upcoming tax filing season just a little bit easier.

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Pencil on Monthly Expense Guidelines paper

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?

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Healthcare Blocks

The Cadillac tax has zero to do with automobiles and everything to do with health care.

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Crime scene tape and magnifying glass over 1040 tax forms

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.

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$20 bill, American Flag, and Capital Building

In essence, the flat tax is a system of taxation where one tax rate is applied to some types of income with no deductions.

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hat

What do “Scarface” Capone and a tax audit have to do with each other? Scarface went to prison for - of all things - tax evasion!

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Stock Chart

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...

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books

We wanted to let you know that, yes, there are some tax benefits to hitting the books.

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diamond ring

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...

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house on top of a green hill

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?

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Glass globe on financial statements

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? 

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hot cup of coffee

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...

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businessman in wheelchair

Are disability payments taxable? This is a good question, but there is no correct general "yes" or "no" answer. 

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Woman

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?

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path going through forest

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?

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1040 Pie Chart

Should I include notary feeds on my tax return? 

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Rx bottle that says Affordable Care Act

I received a 1095-A form for health insurance after I had already filed my taxes.

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Pen, calculator, and blocks that spell out TAX on financial papers

I would really appreciate some advice on filing estimated taxes. Please let me know if you provide this service.

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Person on computer attempting ID theft

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…

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inside of church

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?

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Old orange truck

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? 

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houses

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?

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Roof on brick 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?

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Tax scammer

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...

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Yellow sign that says Retirement Ahead

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...

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young toddler girl in a swing

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.

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Block with Tax words on it

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...

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Calculator and pen on top of 1040 tax forms

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...

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Green sign that says Retirement Next Exit

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...

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Working Abroad?

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.

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Rx bottle that says Affordable Care Act

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.

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woman on the phone holding baby

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?

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Couple sitting in chairs relaxing on the beach

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.

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keyboard that says Crowd Funding

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.

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man and woman getting married

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...

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E-Filling

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.

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Doctors and nurses walking down hospital hallway

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...

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Internal Revenue Service building with traffic signal in front displaying a red light

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.

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W-2 Wage Statement

 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? 

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Earned Income Credit

The Earned Income Tax Credit is available to workers who earn $52,427 or less from wages or self–employment.

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books, diploma, and graduation hat

If you have started a family, you know there are many things to take into consideration, including planning for your child’s education. 

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house on top of a green hill

My wife and I bought a townhouse in 2014. What tax deductions can we take?

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Scam Warning

With the tax filing season in full swing, the IRS has reissued warnings to all taxpayers to be on alert for tax scams.

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two people looking over financial charts

My wife has an IRA under professional management with a financial advisor here in Portland. Can we deduct the fees charged for his services?

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bacon

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...

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$100 bill

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?

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Tax scammer

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.

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Woman looking at receipts with calculator and 1040 tax forms on desk

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...

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TAX spelled out with tiles

Want to pay less taxes on inherited retirement accounts? Beneficiaries have options available that  may result in increased benefits and less taxes due.

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Dress Shirts

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?

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The Grinch

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.

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Gift wrapped in five dollar bill

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

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houses

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..

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identity theft

 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...

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Rx bottle that says Affordable Care Act

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.

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Block with Tax words on it

My husband passed in February of this 2104. We have always filed a joint return. What do I need to do this year?

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Hands holding a heart

We loaned our car to a missionary home for a visit and fundraising. Can we deduct the mileage as a charitable contribution?

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Man using a calculator

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...

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Student desk with books and apple on it

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?

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Roof on brick house

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.

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Calculator that says Tax Help? on top of 1040 tax forms

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...

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Nurse helping woman

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.

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Little boy blowing bubbles

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...

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October 15

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.

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Blender

Uncle Sam expects to see that Fair Market Value (FMV) listed on your tax return for that tax year as income.

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RV driving on the road

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...

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Flood

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? 

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House on top of stack of money

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..

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Woman filling out a tax form

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). 

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Spoon full of vitamins

I had bariatric surgery and must take a number of vitamins daily. These vitamins are purchased over the counter without a prescription.

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Dictionary with the focus on the word Taxpayer

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.

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Woman filling out a tax form

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..

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Wooden walkway towards beach with palm trees

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?

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Woman holding house keys

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...

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Clock pointing the time hands towards the word TAX

The overall percentage of individual tax returns examined in 2013, published by IRS, is about 1%; however, this number only takes into account “examinations”

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Nurse helping woman

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.

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Soldier Saluting the American Flag

Let’s talk about business deductions for members of the military. The same rules apply for active duty personnel and reservists.

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houses

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?

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3 Armed Forces Members

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...

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Ocean

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.

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Dice

If you like to gamble, you probably already know that your gambling winnings are considered income, especially if you gamble within the United States.

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US Flag background with money

The IRS and National Taxpayer Advocate Nina Olson announced the adoption of a new Taxpayer Bill of Rights.

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Yellow house with white fence

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...

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Man asleep at desk

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...

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Flooded street with sign that says High Water

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.

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boy with glasses thinking

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..

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Application for Health Coverage form

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?

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Supreme Court

This decision is likely to impact many taxpayers, particularly anyone expecting to inherit an IRA from a parent or someone else.

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Retirement Ahead Sign

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.

Read More ›

Dress Shirts

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. 

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Gavel

Yes, Uncle Sam loves lawsuit settlements just like plaintiffs do. Before you start spending the money, there are some things you need to know.

Read More ›

Man with ball and chain attached to leg

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.

Read More ›

stacked books, diploma, and graduation hat

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? 

Read More ›

Woman in white hat in a swimming pool

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.

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glasses and pen laying on top of tax form

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...

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Divided wedding cake with groom on one side and the bride on the other

Taxpayers who must pay alimony to a former spouse may deduct it from his/her tax return as an adjustment to income.

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Room partially painted

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?

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Tax Return Preparer Credentials

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.

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Rolled up receipt

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.?

Read More ›

drive through window

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!?

Read More ›

Handcuffs laying on a 1040 form

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...

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Handcuffs laying on a 1040 form

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...

Read More ›

man laying on grass relaxed

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...

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Woman until holding up key by model of house

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.

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church

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? 

Read More ›

Piggy bank with handcuffs hanging on it

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...

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Handcuffs laying on a 1040 form

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...

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Refund Check

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.

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Homes surrounded by mountains

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..

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Crime scene tape and magnifying glass over 1040 tax forms

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...

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Clock pointing the time hands towards the word TAX

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?

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Woman at the Dentist

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?

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TAX DAY written with blocks

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.

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Tax Day and April 15th stamps by stack of papers

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.

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dog sitting on green chair

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? 

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Money

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.

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Man and Woman riding in a red car

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?

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Tax Extension

Filing for a tax return extension does NOT give you an extension of time to pay your tax bill.

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Cube with Tax words on written on it

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.

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Woman blowing bubbles on couch with child

Household employers: Did you hire someone to care for your children in your home? Do you have a gardener, a handyman, or a chauffeur?

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Yellow house with white fence

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...

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TAX spelled out with tiles

They say that happy employees make for happy customers, and at TaxAudit those happy employees start with managers like Eric.

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Calculator and Stethoscope

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..

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Key in locked box

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.

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Partially painted room

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...

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Silhouette of Micheal Jackson

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...

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city

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.

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Money wrapped in a bow

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. 

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identity theft

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...

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Family in swimming pool on a raft

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...

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Scammer

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...

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Hand holding stack of 100 dollar bills giving it to another hand

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...

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ipad

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...

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Gold Record

I’m sure you remember when Susan Boyle became an overnight web sensation. Since then, thousands of hopeful musicians, writers, artists, and dancers...

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stack of large books

 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...

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expert highlighted

Introducing Carolyn Richardson! Our highly effective and experienced tax audit professional from Hawaii! With her three decades of tax experience,…

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Tips

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…

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1040EZ

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.

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Woman filling out a tax form

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.

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Tax Time written out on a calculator

Have you ever thought about New Year’s Tax Resolutions? What can I do better when it comes to my personal and business taxes?

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Audit Stamped on 1040

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.

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woman working on a calculator

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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This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.