Answers to Common Question on the Corporate Transparency Act
The Corporate Transparency Act (CTA) is effective. It takes effect on January 1, 2024, and imposes a new federal filing requirement for most corporations, limited liability companies (LLCs), and other business entities. Corporations, LLCs, and other entities subject...
How Long Can the IRS Audit your Tax Return?
There is a time period that the Internal Revenue Service can audit tax returns. There is is a statute of limitations on IRS audits and tax assessments. The time period is called Assessment Expiration Date (ASED). Once the limitations period expires, the IRS cannot...
Strategies to Take Advantage of the Main Home Sale Gain Exclusion
The principal residence gain exclusion is very valuable when an appreciated home is sold. Taxpayers should keep evidence of home repairs and improvements that increase their basis in the property to determine their gain on the sale. IRS Publication 523 has a long list...
Know your Tax Return to Save Money
Some tax returns could be very complicated for taxpayers. However, regardless of the level of complication, all taxpayers could greatly benefit by partially reviewing their tax return and by asking a few questions. Hiring a tax preparer to prepare a tax return does...
Requesting First Time Penalty Abatement
Many taxpayers are receiving notices of tax due from the Internal Revenue Service even years after filing their tax return, when they did not file, when they did not pay, or when they fail to deposit employment tax (TFRP- Trust Fund Recovery Penalty). Unfortunately,...
Is your Tax Preparer Liable for Incorrectly Prepared your Tax Return?
The 2024 tax season is underway. The IRS is constantly advising taxpayers to choose their tax preparers wisely by researching their credentials and qualifications. However, many taxpayers choose the tax preparers who will give them a refund or more refund. Many times,...
Understanding you 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,...
Claiming Injured Spouse Relief When Filing your Tax Return
Married taxpayers who are injured spouses could still receive a refund when they jointly file their tax return even when the refund or part of the refund was applied or will be applied to pay a past due obligation of one spouse. You are an injured spouse if you...
Are you Eligible for the Education Tax Credits?
There are two types of education related tax credits that taxpayers may claim for qualified tuition and related education expenses paid or incurred during the tax year: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). For...