One of the prominent areas of my legal practice is taxpayer representation—and one component involves representing clients in tax examinations (audits) by the IRS and state departments of revenue. Fortunately, most taxpayers have never had a tax return examined by the IRS. But because IRS activity is picking up, I thought it might be useful… [Read More].
Because the vast majority of small businesses operate on the cash basis of accounting (meaning that expenses are deducted when paid), it can be critical from a tax standpoint whether a transaction occurs on December 31 versus January 1. Generally, a transaction that occurs on December 31 (i.e. before the calendar year closes) is reportable… [Read More].
Each year I provide a tax organizer document for each of my tax preparation clients to complete. It requests demographic information and answers to several questions about the client’s tax situation. These questions ask about the client’s income and deductions and seek information to determine the client’s tax reporting obligations. One question that appears on… [Read More].
Year-end can be one of the most stressful times of year for small business owners. Most people experience some amount of stress during the holiday season, but for small business owners, there are additional bookkeeping, accounting, and tax planning concerns. Much of this stress is caused by the fact that options decrease when the year… [Read More].
If you are among the approximately 126 million taxpayers who expect to receive a tax refund, you may be anxiously awaiting those funds to be deposited into your bank account or to receive that check in the mail. However, an increased number of taxpayers are finding that their 2020 tax refunds are taking significantly longer… [Read More].
Most of you probably know by now that the IRS has extended the 2020 individual tax deadline to May 17, 2021, due to the pandemic. However, several of my clients that got early starts have already filed their individual tax returns, with many more to follow now that a sole deadline remains. It is a… [Read More].
If you have ever thought about leaving the U.S., this article is for you! Perhaps you are like me and do not particularly enjoy cold weather. When you glance out the window and see a mound of snow or ice, you may think to yourself, “I wish I was lying on a beach in Puerto… [Read More].
The IRS can collect tax that may be owed only after an assessment is made. That assessment of tax can be based on one of two events: 1) the taxpayer can voluntarily file his return as required or 2) the IRS can issue a Substitute for Return (SFR) based on information that has been reported… [Read More].
Hiring a quality tax professional is becoming increasingly important. Most informed taxpayers are aware that the Tax Cuts & Jobs Act, which went into effect in 2018 cut Treasury’s revenue by billions of dollars. Given that over 90% of the federal government’s revenue is generated by the IRS, and that government expenditures only appear to… [Read More].
It’s that time of year again! Time to get your documents to your CPA for tax preparation. Here are a few helpful tips to ensure things go smoothly with your tax preparation engagement this season. Start as Early in the Season as Possible There is no better tip than to start early! Starting early in… [Read More].