It appears the old "location, location, location" adage for real estate holds true in the world of taxes as well. A recent study by professors out of two prestigious universities in the great state of Texas, the University of Texas at Austin and Texas A&M University, have found that the location of a business can impact the likelihood of a tax audit.
In general, the Internal Revenue Service treats a cancellation or discharge of debt as income. You may wonder how you are to pay tax on the cancelled portion of a loan, if you did not have the money to pay the debt in the first place.
Tax audits are not all of the same type.
Part of mature thinking is being able to weigh the odds.
It’s an annual ritual in recent years, one that reflects the dysfunctional, deficit-driven dance of an overly contentious Congress.
Tax audits are one of our most frequent themes in this blog. Most recently, in a two-part post on October 29 and November 4, we discussed how errors by the IRS in scanning and cataloging documents from taxpayers have affected the correspondence audit process.
In the first part of this post, we noted that problems with accurately scanning documents have been hindering the ability of the IRS to conduct correspondence audits effectively.
In the hit TV series "Mad Men," set in the early 1960s, it is a very big deal when the advertising office -- in state-of-the-art New York City -- gets its first copy machine. The bulky machine operates as both a cultural curiosity and a not-so-subtle sign that things are changing.
The partial shutdown of the federal government is now in its second day. The shutdown is "partial" in that some services remain operative while others do not. In Texas and across the nation, people are therefore asking themselves what is open and what is not.
We live in a high-performance culture. Year after year, in school and in the workplace, we are taught to build on our strengths, minimize weaknesses and strive for success.