What is a Tax Lien? The Internal Revenue Service frequently files tax liens (federal) against taxpayers with unpaid tax obligations. Federal tax liens are documents that are filed with county governments (often where the relevant taxpayer lives or conducts business) informing the public that the taxpayer owes money to the IRS. Liens are attached to a taxpayer’s property (both… [Read More]
Important Notice: Consumer Alert from the Attorney General on “Tax Relief” ScamsWhy You Need a Tax Attorney to Represent You in an Audit
Reasons why you Should Have a Tax Attorney Present During an Audit The IRS is no joke. The moment they knock on your door, chances are you will end up in a state of frenzy. This mostly happens when you were not prepared. Those who have all their records and tax affairs in order will… [Read More]
What Does Trading Cryptocurrency Daily Mean for my Taxes?
Cryptocurrency and Taxes From a technical perspective cryptocurrency is very easy to trade. Sign up to an exchange, deposit some fiat currency, and with just a couple of clicks one can become the new owner of some Bitcoin, Ethereum, or another coin that has taken the world of digital investments by storm. But while cryptocurrency… [Read More]
New Tax Law Changes: No More Miscellaneous Itemized Deductions
The New Tax Cuts and Jobs Act (TCJA) and Itemized Deductions The list of miscellaneous itemized deductions is an odd mixture of various deductions that didn’t fit anywhere else in the tax code. It includes items such as losses from Ponzi-type investment schemes, tax preparation fees, and certain safety deposit box fees. There does not… [Read More]
New Tax Law Changes: Taxpayers Have More Time to Get Back Levied Property
The Tax Cuts and Jobs Act (TCJA) and Wrongfully Levied Property The Tax Cuts and Jobs Act (TCJA) has extended the time period taxpayers have to file a claim for wrongfully levied property. Taxpayers previously had nine months to file certain wrongful levy claims. Now, the period is two years. There’s more good news… [Read More]
New Tax Law Changes: Alimony is No Longer Deductible by Payer
New Tax Litigation for Alimony Payments The alimony deduction used to be a rare exception to the general rule that all income is taxable. A provision in the Tax Cuts and Jobs Act (TCJA) eliminates that exception. Under previous law, a spouse who made alimony payments received a deduction for these amounts. The payee spouse… [Read More]
Delinquent Tax Debt May Cause a Passport Revocation or Denial
Get a Grip on your Tax Debt….or Risk Losing your Passport Failing to pay off your tax debt could now cost you your passport. Beginning in 2018, the IRS began sending certifications of seriously delinquent tax debt to the State Department. If the IRS certifies your tax debt, the State Department will generally deny your… [Read More]
Common Reasons The IRS May Audit You
Who Gets Audited? Contrary to popular belief, there is nothing inherently threatening or sinister about an IRS audit. During the audit, the agency will simply double-check your numbers to ensure that there are no discrepancies in your tax returns. Therefore, if you are truthful and conscientious, you do not have to worry. At times audits… [Read More]
The Three Types of Innocent Spouse Relief
Typically, taxpayers who file joint returns are both responsible for the entire tax, interest, and penalties associated with that return. Innocent spouse relief can provide one spouse with an exception to the general rule of joint and several liability. For example, say your spouse earned all of the income and claimed all the deductions and… [Read More]
What you need to know when under a tax audit
Are you under a tax audit? Nothing is as gruesome as receiving a notice or letter from the IRS let alone being under a tax audit. Although most people envisage a tax audit as being approached by some scary government agents who are there to cause you anguish, you probably have no cause for alarm… [Read More]