On 4/15 of every year, us tax practitioners are happy for two reasons. First, the tax season is basically over. But more importantly is the number two reason. Tax returns filed more than 3 years ago can generally be no longer changed by the IRS. Continue reading…
IRS Tax Audit Penalties
In a typical non-criminal IRS tax audit case, the IRS may assess accuracy related penalties or civil fraud penalties for tax adjustments not in your favor. The penalties can be significant causing you more pain with the whole audit process. What are these two penalties? Continue reading…
Testimonial
I helped this client resolve an IRS issue that has lingered for a couple of years after several attempts to correct it on their own.
Oh my Gosh!!!! A.J.!!!!!!!!!! I am almost in tears after reading your note!!! What a blessing you are for the company (and me too 🙂 )! Thank you!!
Blessings!
Katherine J.
First-Time Abatement Relief, IRS Failure
According to a report by the Treasury Inspector General for Tax Administration (TIGTA), 1.45 million taxpayers were not informed that they qualified for penalty relief under the First-Time Abatement Relief program. TIGTA estimated that the amount of penalties left unabated totaled more than $181 million. Continue reading…
Quote of the Month – January 2013
The basic difference between an ordinary man and a warrior is that a warrior takes everything as a challenge while an ordinary man takes everything either as a blessing or a curse.
Don Juan
IRS Audit Risk – Reclassifying S Corporation Distributions as Wages
In our previous blog, we discussed the issues with paying no officer wages. Your S Corporation is properly paying officer wages. Is the amount reasonable? The IRS is hitting small businesses for paying unreasonably low officer wages. Continue reading…
2nd Annual Brighton Area Success and Achievement Workshop Series
Chris Kostoff has been tremendous help to me! Due to his help, my business has done exceptionally well. I highly recommend anybody interested on improving themselves for the main purpose of growing a business to consider this workshop series. You will not be disappointed. Continue reading…
Questions on the New "fiscal cliff" Regulations
Questions: Please clarify the “new” “fiscal cliff” income tax regulations regarding:
Taxes on capital gains and dividends will also rise to 20 percent. Is the rise progressive. i.e. only applies to unearned income over $500,000 ?
Taxes will also rise by five percentage points for large estates, over what amount ?
Married couples who earn $300,000 or more will face caps on itemized deductions and exemptions. Please clarify Continue reading…
IRS Audit Risk – Reporting No Wages to S Corporation Officer
An S Corporation is a popular entity structure for small businesses. Many tax practitioners help small business set up S Corporations to reduce self-employment tax. This strategy can back fire if the corporation reports unreasonably low or no compensation to the officers/owners. This is an audit risk as the IRS is cracking down on business for not reporting officer wages.
Continue reading…
Tax Help Question – Dependant Exemption for Stillborn Child
Question: We lost our baby at birth. Can we claim any child deductions for the year? Continue reading…