Happy Tax Day! If that statement caused heart palpitations and frustration because you forgot to file and pay your tax obligations, take a deep breath and know that you are not alone. It is not uncommon for taxpayers to miss the tax deadline, add in the confusion that was running rampant in 2020 and it is possible that we have a higher than usual rate of missed deadlines.
Taxpayers take note: 3 hurdles to upcoming July 15 deadline
The Internal Revenue Service (IRS) made some changes to reflect the impact of the current coronavirus pandemic. One example is the extended tax deadline. Instead of expecting taxpayers to file their taxes in April, the agency pushed the deadline back. At the time of this post, the deadline remained set for July 15, 2020.
Texas family faces prison time for tax evasion
The Department of Justice (DOJ) recently accused a Texas family of running an elaborate and illegal gambling business. They claim the family would funnel the money used for to run the gambling business through two legitimate businesses: the family car dealership and a holding company for the family car dealership. The prosecution claimed the family used this process to launder the allegedly ill-gotten gains.
New report shows IRS may shift focus during upcoming audit push
The Internal Revenue Service (IRS) may have a new focus during its next set of audits: the wealthy. The agency recently announced an initiative that focuses on taxpayers with high wealth.
Who will the IRS focus on during these audits?
Government tells IRS to increase audits of tax preparers
The Treasury Inspector General for Tax Administration (TIGTA) recently released a report that led to some negative publicity for the Internal Revenue Service (IRS). The report shows the IRS failed to hold over 30,000 tax return professionals accountable for their own tax bills.
What was this report?
Celebrity model pleads guilty to tax evasion
Israeli model and television personality Bar Refaeli recently agreed to sign a plea bargain agreement to settle a long-standing tax dispute against the top model and her family. The terms of the agreement include 16 months imprisonment for the celebrity’s mother and nine months of community service for the model. The agreement also resulted in the model and her mother paying $1.5 million in fines and back taxes.
Texas tax return professional accused of tax crimes
Federal prosecutors recently announced criminal charges against a tax preparation professional from San Antonio, Texas. The prosecutors have charged the man with two counts of assisting in the preparation of false tax returns and one count of filing false or fraudulent returns for his own, personal tax returns.
Cryptocurrency owners: 2 tips for upcoming tax filing deadline.
July 15, the upcoming tax filing deadline, is fast approaching. Those who own cryptocurrency through Coinbase, Bitcoin or another platform may have questions about reporting requirements. Two tips that will help to reduce the risk of issues with the Internal Revenue Service (IRS) regarding this asset include taking time to organize relevant records and get a basic understanding of the tax forms that go with cryptocurrency.
3 ways the coronavirus pandemic impacts tax preparers
Tax return professionals, like many throughout the country, have been forced to adapt their practices to navigate the current coronavirus pandemic. Three examples that are specific to this practice include a changed workplace, amplified focus and the need for continual change. What does this mean for the future of the business? The following provides some guidance.
Four things to know about IRS guidance on estates and trusts
The Internal Revenue Service (IRS) recently issued some tips for estates and trusts that claim tax deductions. The proposed regulations focus on how estates and trusts determine adjusted gross income.
Why is this important?
