Tax returns are audited for several reasons, but the methods by which the IRS flags a return for audit are more limited. There are essentially two main ways an audit is triggered – (1) selection based on a closely guarded IRS computer scoring system and (2) selection based on mismatched information filings (i.e., W-2’s and… Read more
The IRS recently announced changes to its lien process. The goal is to help individuals and small business owners who are struggling to pay back taxes. IRS Commissioner Doug Shulman stated that the changes “reflect a responsible approach for the tax system.”1 At this point I’m going to have to say I agree. What is a… Read more
A couple of weeks ago I received a call from a single mother who needed some help. This mother had no filing requirement, so she had decided to let the father of her child claim the child on his tax return. When the father went to file his taxes, however, the return was rejected. The… Read more
Due to a heavy case-load this week and with Thanksgiving tomorrow, this post will be more information than analysis, but hopefully useful for those looking for information on deductible business expenses. One might initially think it unfortunate that a comprehensive list detailing all the potential deductible expenses does not exist. Keep in mind, however, that businesses vary, so business expenses will vary as… Read more
For this week’s post, I would like to share some basic information on qualifying a home office as the principal place of business. The advantage to doing this comes in the form of allowable tax deductions for business use of the home. Before I begin, please note that there are other ways to qualify for business use of the home… Read more
The topic for this post comes courtesy of my mother-in-law who wanted to know how the new healthcare overhaul might affect sales of residential real estate. As I hope to explain in this post, the new healthcare law does not directly impose a tax on sales of residential real estate, but instead imposes a tax… Read more
