Blog posts from: 2017
How to save taxes if you have residences in more than one state
Being domiciled in a state for tax purposes requires some planning, but can save a great deal of taxes. Each state has mechanisms to protect its residents from another state's income tax. Some planning and attention to the rules can...
IRS.gov now shows tax balances
Instead of taxpayers and their tax professionals being forced to call the IRS to ask for a payoff amount, taxpayers who authenticate their identities can use an online system to look up their outstanding tax balances. If they owe less...
IRS tests faster processing for certain installment agreements
Last year, the IRS piloted a test to provide streamlined processing of installment agreements for tax balances between $50,000 and $100,000. The test allowed people who these amounts to establish an installment agreement with payments terms of 84 months without...
IRS Collection Financial Standards expense limits increase
In late March/early April of each year, the IRS updates a set of standards it uses to help determine a taxpayers’ ability to pay a delinquent tax debt. These expense standards set budget limits for taxpayers’ maximum payment amounts for...
Stricter guidelines for IRS offer in compromise program
The IRS has traditionally allowed taxpayers some extra time to file all their required returns during the application process for an offer in compromise. However, a recent change requires taxpayers to file all their required returns before applying for this...
Most suspicious IRS audit triggers
The Minnesota Society of CPAs has compiled a list of red flags that could trigger an audit from the IRS. 1. Misreporting Your Income Always make sure your income on your Form W-2 and Form 1099 matches the reported income...
Charitable deductions on donations of inventory
If you're a business owner who holds inventory, did you know you can get a charitable deduction if you donate it? When you donate inventory, you can receive a charitable deduction of the lesser of: Basis plus 50% of the...
Understanding tax rules for employee travel expenses
If you’re an employer, you often pay for your employees’ business-related travel expenses. Here, we take a look at how to apply complex tax rules to figure out whether the payment is taxable to an employee and how employers can...
Is your tax-free IRA really tax-free?
According to a recent article in The Wall Street Journal, taxpayers should beware that as IRAs grow in size, so does the potential for taxes on these accounts if they have investments in alternative assets such as hedge funds, private-equity...
Understanding related party debt forgiveness
Many times a debt between related parties is reduced or forgiven. This raises many questions: Are there tax consequences as a result of this? Does the lender have a tax loss to report? Does the borrower have a gain on...