Disclosing offshore accounts to the IRS is increasingly necessary for individuals and companies. As the IRS becomes more aggressive in pursuing owed taxes, disclosures of foreign accounts and ensuring proper payment are a necessity. However, many choose to address this issue that doesn’t make waves. These “quiet disclosures” work by […]
Constructive dividends are how the IRS classifies a common practice of a company officer, using company assets for personal gains for tax purposes. A typical scenario – in small businesses – may be the use of a company credit card to purchase groceries. In larger corporations, it could be using […]
When you hire someone to handle your taxes, you expect them to handle them correctly. Tax filings are among the most sensitive and risky propositions, and despite any help you’ve had, the IRS will hold you accountable for mistakes. Below are some of the most common types of mistakes that […]
Having an offshore account is a commonly used method of protecting liquid assets from taxation. Additionally, international business is more straightforward if you maintain an account in the country you do business. While having an offshore account is not necessarily illegal can lead to many additional risks, listed below. Extra […]
Congress created Opportunity Zones through the 2017 Tax Cuts and Jobs Act as a way to encourage taxpayers to invest in economically distressed areas. As a significant tax incentive, Opportunity Zones give investors the ability to defer – or in some cases, significantly reduce – capital gains taxes on certain […]
Getting investigated by the IRS is every taxpayer’s – and tax preparer’s – nightmare. When the Criminal Investigation Division (CID) of the IRS gets involved, you know it’s serious. An investigation could lead to federal criminal charges for fraud, tax evasion, or other crimes. How do these investigations happen? Put […]
Tax preparers have a weighty responsibility to not only understand tax rules but also apply them correctly. That means ensuring you have an adequate basis of information for claiming certain credits and statuses on behalf of a taxpayer. Failing to do so could result in stiff penalties against you in […]
The earned income tax credit (EITC) is one of the federal government’s largest anti-poverty programs. It can also be a source of headaches and possible penalties for professional tax preparers. Geared toward the working poor, the EITC program offers credits totaling nearly $60 billion each year. The program helps nearly […]
Many Texas residents may feel the urge to leave the state or even the country for an extended time. Some people prefer to live abroad for a year or two to gain a new experience while retaining their United States citizenship. However, even if a person is working in another […]
Though tax season only officially lasts for a few months out of the year for Texas taxpayers and those across the country, tax obligations are in effect all year long. Additionally, the Internal Revenue Service is continually on the lookout for instances of potential tax fraud. As a result, even after tax […]