Getting a Tax Penalty Abatement

Taxpayers in many situations are receiving notices of tax due from the Internal Revenue Service after filing a tax return, when they did not file, when they did not pay, or when they fail to deposit employment tax (TFR- Trust Fund Recovery). Unfortunately, many...

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Abused Taxpayer Gets Tax Debt Relief

In Gans v. Commissioner, the taxpayer prevailed over the Internal Revenue Service by establishing that she was abused by her husband, among others, and consequently qualified for relief from joint tax liability. Married taxpayers are jointly and severally liable for...

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Innocent Spouse Tax Relief

Marriage could bring heavy tax consequences that could be alleviated through careful tax planning strategies. Marriage planning should include discussion about tax. The subject of tax is even more important if you plan to execute a prenuptial or premarital agreement....

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The Tax Audit Procedure

The Internal Revenue Service would, in some cases, audit tax returns to ensure that taxpayers adequately pay their tax. Knowing what the IRS will look for during an audit and getting prepared in case of an audit save taxpayers time and money. A tax audit can go on for...

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The Expanded Home Energy Tax Credits

Taxpayers can save in tax by making certain energy efficient upgrades to their homes. The Inflation Reduction Act of 2022 expanded the credit amounts and types of qualifying expenses. Taxpayers can claim the Residential Clean Energy Credit  and the ...

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Understanding Offer in Compromise (OIC)

There are many ways to resolve a tax debt. We discussed several of them in previous tips. on this tip, we turn to Offer in Compromise (OIC). Taxpayers could consider applying for an Offer in Compromise when paying the full tax due could cause financial hardship. An...

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How is your Lawsuit Settlement Taxed?

Lawsuit settlements are not all taxed similarly. Taxpayers may receive a substantial amount of money resulting from a lawsuit. There are some tax consequences of which you should be aware. The money you receive may be taxable and, in many cases, the attorney fees that...

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An Overview of the IRS Audit Process

Taxpayers, in general, are in a partnership with the Internal Revenue Service. However, unlike in the case of traditional partnerships where two or more individuals mutually agree on the terms of the partnership, in this partnership with the IRS, the IRS sets the...

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How to Resolve a Tax Issue

Taxpayers should explore their tax resolution options available. Million of taxpayers could not pay their taxes or failed to file their tax returns. The number gets higher every year. Some taxpayers incorrectly filed their return. Unfortunately, many taxpayers ignore...

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A Lesson for New Business Owners

New business owners could learn from Gregg M. Kellett’s court experience (Gregg M. Kellett, T.C. Memo. 2022-62). In 2013, while working for the Bloomberg Industry Group, Kellett purchased the vizala.com domain name and formed Vizala, LLC of which he was the sole...

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The Foreign Tax Credit

Your tax filing obligations follow you worldwide. However, there are several tax rules to avoid double taxation and to lower your tax liabilities. Taxpayers should keep track of their worldwide financial transactions. There are 7 categories of income: 1- Section 951A...

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The Education Tax Credits

There are two (2) types of education related tax credit that taxpayers may claim for qualified tuition and related expenses paid or incurred during the tax year: The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The Protecting...

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The Earned Income Tax Credit (EITC)

The earned income tax credit (EITC) is not for every taxpayer. As your income increases, the credit is reduced and it is phased out at an income level. Taxpayers should be more alert by looking for any schedule A and schedule C on their tax return if they are not...

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Your Tax Filing Status

Taxpayers tax filing status is extremely important. They are 1) Single, 2) Married Filing Jointly, 3) Married Filing Separately, 4) Head of Household, and 5) Qualifying surviving spouse. Your filing status determines your filing requirements, your tax rates,...

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Getting Ready to File 2022 Tax Return

Taxpayers should only prepare their tax return when they have all their required tax documents. The IRS has not yet published the beginning and the end of the 2023 tax season. The returns cannot be sent to the IRS before the official start date of the tax season....

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