Just a few weeks ago, the Treasury Department released a publication stating it did not require taxpayers to report cryptocurrency. Now the IRS says differently.
IRS seizure is something that no small business owner wants to deal with. That being said, if the IRS suspected owners were skirting the laws about financial transactions, the possibility of having their assets seized was all too real.
If you’re a business owner, there are few things more frustrating than a notice you’re being audited. You have enough to worry about already without the detailed requirements an audit presents.
Here in California, that audit notice will often come from the state’s Employment Development Department. The EDD, as it is often referred to, oversees compliance with employment tax requirements. While an audit notice may be nerve-wracking, it does not mean you have done anything wrong. Here are a few things you should know about EDD audits.
Many settlement winners do not know that they will be taxed on the settlement. Tax costs have recently increased thanks to the new tax reform law. Plaintiffs may be taxed on attorney fees too if the attorney receives part of the settlement amount. Settlement taxes are often hefty, unforeseen expenses.
What you need to know about settlement taxes:
It’s no secret that student loan debt creates a financial strain for many Americans. It’s believed that the total amount of student loan debt triples the amount of credit card debt in the United States.
Few people are more encumbered by this trend than millennials. The Federal Reserve revealed that overall debt for people between 19 and 29 years old has reached its highest level since the Great Recession. Between student loans, stagnant working wages, and a rising cost of living, young Americans often find themselves in a difficult financial place.
Business owners and executives often look to CPAs and other experts when they need help classifying their employees. They know the IRS and state governments have been paying more attention to employee misclassification, and they rely on your advice to stay clear of legal problems. But what happens if you make a mistake?
Under the Trust Fund Recovery Penalty (TFRP), the IRS can hold individuals personally responsible for actions that shortchange certain taxes. These include the payroll taxes a business might avoid by paying its workers as independent contractors rather than employees.
One of the greatest displays of strengths in a human is the ability to ask for help. This is no less true when managing your personal debt. Bankruptcy is a way for you to ask for help in getting your debt under control. While medical bills and job loss are two common reasons people file for bankruptcy, back taxes are another reason you may wish to file for bankruptcy.
This is because you may be able to have your past-due taxes erased, or discharged, in a Chapter 13 bankruptcy. Filing for Chapter 13 bankruptcy allows you to reorganize your debt into more palatable payments and stop harassment from your creditors.
It's the season for the IRS to start identifying scammers as they emerge from hiding to make life more difficult for both tax preparers and taxpayers alike. While it is true that tax scams can pop up almost anytime of the year, the time directly following tax filings is the most prevalent time for these scammers to appear. Check out some of the worst tax scams that have been sweeping the country.
Although both the federal District Courts and the U.S. Tax Court are judicial forums for resolving tax disputes, there are many opportunities for reaching a favorable resolution before this stage. Specifically, the Internal Revenue Service offers administrative options, such as appeal filed with the Office of Appeals.
Tax season may have passed for this year, but it’s never too late to start thinking about next year. If you’re like most people, you probably prefer not to think about your taxes until you’re required. Yet, taxes are important, and this is especially true for independent contractors.
Sometimes it’s hard to know whether you’re an employee or an independent contractor. If you wonder if you’re self-employed, the IRS considers you an independent contractor if you have only have control over the process of your work but not the end result of the work itself. The IRS will likely consider you an employee of the company paying you if it dictates what work you do and how you do it.