Tax Strategies and Schemes to Avoid Taxes at IRS Forefront
On 4/11/24, the IRS wrapped up its 2024 Dirty Dozen List with a “warning to taxpayers regarding promoters selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether”. Tax strategies and schemes to avoid taxes remain a high priority for the IRS. “Taxpayers should be wary of anything that seeks […]
Social Media Tax Advice Can Lead to Trouble
On 4/8/24, the IRS continued updating the Dirty Dozen list for 2024 including how social media tax advice can lead taxpayers to trouble as inaccurate or misleading tax information is circulating. IRS is re-issuing a warning, just like they did in 2023, regarding trusting social media tax advice that can lure taxpayers and tax professionals […]
Can You Appeal the IRS?
Taxpayers have the right to appeal the IRS. Understanding how to appeal the IRS is critical and Taxpayers ought to consider retaining representation in order to diminish the risks of litigation. Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals. An appeals office is the only level of […]
High Net Worth Individuals get Warning from IRS
On 4/10/24, as part of its Dirty Dozen Campaign for 2024, the IRS issued a warning to High Net Worth Individuals regarding three tax traps designed for them by dishonest promoters and shady tax practitioners. High Net Worth individuals continue to be targets of tax schemes and aggressive tax strategies designed to reduce taxes. Examples […]
Is it a Hobby or Business?
Taxpayers may be faced with the question: “Is it a hobby or business?” The IRS states that: “sometimes the line between having a hobby and running a business can be confusing, but knowing the difference is important because hobbies and businesses are treated differently when it’s time to file a tax return. The biggest difference […]
Passport Revocation or Denial continues
On 1/1/24, the IRS updated its Passport Revocation or Denial Page in cases of certain unpaid taxes. Section 7345 of the Internal Revenue Code requires the U.S. Department of the Treasury to notify the U.S. Department of State if a certification is made that an individual has a “seriously delinquent tax debt.” The Internal Revenue […]
All Sources of Income Must be Reported on Tax Return
On 3/6/24, the IRS released a reminder to all taxpayers that all sources of income must be reported on their tax return. The IRS is paying close attention to all sources of income derived from digital asset transactions, the gig economy and service industry as well as income from foreign sources. IRS is keen on […]
Corporate Jets and the IRS
On 2/21/24, the IRS announced that it will begin auditing corporate jet usage as part of its larger effort to ensure high-income groups “don’t fly under the radar” on tax responsibilities. IRS Commissioner Danny Werfel stated that: “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a […]
Fraud is the Number One Crime in Money Laundering
On February 2024, the U.S. Treasury released the 2024 National Money Laundering Risk Assessment (NMLRA) which examines the current money laundering environment and identifies the ways in which criminals and other actors seek to launder funds. The Assessment aims to: inform the understanding of illicit finance risk by governmental and private sector actors, strengthen risk […]
High-Income Taxpayers Beware that IRS Actions Escalate if Tax Returns Aren’t Filed
On 2/29/24, the IRS announced a new effort focused on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017. The mailings include more than 25,000 to those with more than $1 million in income, and over 100,000 to people with incomes between $400,000 and $1 million […]
Form 1099-K 2023 IRS Clarification
On 2/6/24, the IRS released new and updated FAQs regarding Form 1099-K 2023 given that on November 21, 2023 (via Notice 2023-74) the IRS announced that calendar year 2023 would also be a transition year for third party settlement organizations (TPSOs). This means that the IRS again delayed the effective date of the $600 threshold […]
Is Your 2023 Tax Preparer Asking You the Right Questions?
Tax season is here and on 2/1/24, the IRS reminded Taxpayers to choose a 2023 Tax Preparer carefully when preparing their 2023 Taxes. Taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it. A tax preparer can have different levels of skills, education and expertise and […]
