The IRS didn’t ask for the role of compliance monitor for the Affordable Care Act (ACA or Obamacare). In practice, however, that is what Congress has asked the IRS to do. It’s a role that comes with many responsibilities. In this two-part post, we will explore some of them. Let’s […]
David Bowie’s recent death has revived interest in his work, including the classic song “Changes.” “Ch-ch-ch-ch-changes / (Turn and face the strange),” the Thin White Duke crooned in 1971. He wasn’t singing about tax law, but U.S. taxpayers certainly face plenty of tax law changes every year. In this post, […]
Depreciation is a term of art in tax law. It doesn’t refer directly to something losing value. It refers rather to tax deductions for businesses to reflect the cost of wear and tear on their equipment. Since 2003, these deductions have become increasingly complex. Legislation enacted during the first administration […]
In the first part of this post, we noted the function of the W-2 form for reporting income from wages. With tax filing season now underway, now is the time to look for this form from your employer, if you have employee status. If you do not have employee status, […]
Filing season for federal taxes began this week. The IRS expects to receive more than 150 million returns by the April 18 filing deadline. Some early birds have already filed. But if you are still waiting for your W-2 or a 1099 (or multiple 1099s), you are not alone. In […]
Do you really have to report illegal income to the IRS? Yes, it’s counter-intuitive. But the answer is yes. Of course, compliance with this requirement is not common. But some taxpayers do choose to report income from illegal activities. As we will explain in this post, one reason for doing […]
If you owe taxes to the IRS, you may want to hold off on planning your next international trip. A new law just took effect that will revoke passports for Americans who owe $50,000 or more to the IRS. The most vocal critics of the law are American expatriates living […]
Following budget cuts in the recent spending bill approved by Congress, the Department of Justice has suspended its controversial asset forfeiture “equitable sharing” program. The program has made headlines in recent years due to accusations that law enforcement is motivated more by profit than by an actual desire to impede […]
In the first part of this post, we began discussing the issue of underreported income. We noted that the IRS has a program that automatically sends out notices to taxpayers when information from other sources indicates that income may be underreported on a tax return. In this part of the […]
We live in a society that tries hard to find technological solutions to problems. This attempt is not always successful, but it has deep roots in the culture. In tax compliance, one way in which the search for a technical solution is present is the Automated Underreporter Program (AUP). The […]