Many people work out of their homes. Nationally, the number is quite high. The number of taxpayers who took the home-office deduction was over 3 million in 2010, according to the Internal Revenue Service. The IRS is aware, however, that in the past the calculations required to claim the deduction […]
The U.S. tax code is filled with detailed provisions whose origins are deep in the past. But the current application of such provisions is often alive and well – and the subject of tax litigation. To take just one example, consider the tax break for asset exchanges. When this provision […]
After several years of post-bubble struggles, the housing market is finally trending upward again. The waves of foreclosures have subsided somewhat, and traditional buyers and sellers are entering the market again. One potential wrinkle in this improving picture, however, is the possibility of federal gift tax gift consequences for relatives […]
Given the complexity of the federal tax code, professional tax preparers and other advisers play a very important role for many taxpayers. Many taxpayers rely on these preparers in order to file tax returns t hat are accurate and on time. The IRS is well aware of this and has […]
Tax evasion charges often come in connection with charges of other financial crimes. In a recent Texas case, authorities alleged that an electrician submitted fraudulent invoices to overbill the Beaumont school district. Prosecutors also charged the man with failing to pay federal income taxes. The overbilling accusations were for a […]
Marital harmony is never complete and betrayal takes many forms. Spouses often hide things from each other and let each other down in ways great and small. This inescapable reality is reflected a host of novels, movies and magazine articles – and even the federal tax code. The IRS recognizes […]
“Begin with the end in mind,” wrote Stephen F. Covey in his highly influential book, The Seven Habits of Highly Effective People. How would principle apply to small businesses seeking to minimize tax liability while avoiding IRS audits? For one thing, it’s important to consider how the IRS is likely to […]
Collecting sales tax from customers and making sales tax payments to the government can be a logistical challenge for many businesses. This is particularly true of small businesses, which do not always have the accounting personnel and other staff to handle sales taxes easily. The risk, of course, is that […]
It’s been two weeks after the election and it is only six weeks before the end of the year. But it still remains to be seen what tax changes Congress might make to address the combination of automatic spending cuts and tax increases included in the short-hand phrase “fiscal cliff.” […]
We’ve heard over and over that it’s coming: a “fiscal cliff.” The dramatic phrase has become so common in government circles that it’s become unavoidable. And no one doubts that the expiration of numerous tax cuts at the end of the year could profoundly affect individual income taxes. Taxpayers in […]