Nirvana is a Buddhist term for the state of consciousness that transcends desire and suffering. More figuratively, it is a blissful state of freedom from cares and concerns – a state, however, that may always remain just out of reach. By the second definition, no American state is a tax […]
Category: Audits
In a nation based on the values of liberty and equality, someone’s income level shouldn’t really affect their chances of an IRS tax audit. After all, equality before the law is such a key value for us as Americans. You’d think, then, that it shouldn’t matter whether you are rich, […]
Precision is important in any complicated activity. But the transaction costs involved in spending the time to dot every i and cross every t can be significant too. When it comes to adding up expenses for itemized deductions on a federal tax return, is it really necessary to calculate every […]
So what are the odds, overall, of the IRS targeting your return for a tax audit? The answer varies, of course, depending on certain factors. It’s important to minimize your risks of an audit by taking common sense steps to protect yourself. As we discussed in our January 29 post, […]
An IRS audit: To taxpayers, the words are usually about as welcome as the words “root canal” are to dental patients. They are not to be sought out, and so serve as a caution against an overly aggressive tax strategy. Keep in mind, however, that failing to take all of […]
Many people work out of their homes. Nationally, the number is quite high. The number of taxpayers who took the home-office deduction was over 3 million in 2010, according to the Internal Revenue Service. The IRS is aware, however, that in the past the calculations required to claim the deduction […]
Many people work out of their homes. Nationally, the number is quite high. The number of taxpayers who took the home-office deduction was over 3 million in 2010, according to the Internal Revenue Service. The IRS is aware, however, that in the past the calculations required to claim the deduction […]
After several years of post-bubble struggles, the housing market is finally trending upward again. The waves of foreclosures have subsided somewhat, and traditional buyers and sellers are entering the market again. One potential wrinkle in this improving picture, however, is the possibility of federal gift tax gift consequences for relatives […]
“Begin with the end in mind,” wrote Stephen F. Covey in his highly influential book, The Seven Habits of Highly Effective People. How would principle apply to small businesses seeking to minimize tax liability while avoiding IRS audits? For one thing, it’s important to consider how the IRS is likely to […]
Collecting sales tax from customers and making sales tax payments to the government can be a logistical challenge for many businesses. This is particularly true of small businesses, which do not always have the accounting personnel and other staff to handle sales taxes easily. The risk, of course, is that […]