The IRS has persuaded U.S. taxpayers to disclose hidden offshore bank accounts but then sometimes failed to cap the penalties, as promised, an agency watchdog has said, accusing the government of “bait and switch.” The Taxpayer Advocate Service, an oversight arm of the IRS, wrote in its annual report to Congress that a series of [...]
Read More bait and switch, hidden accounts, Income Tax Planning, Income Tax Preparation, IRS Penalty, IRS requirements, IRS voluntary disclosure programs, offshore bank account, reduced penalties, Swiss Bank, Tallahassee Tax Service, Tally Tax Man, TallyTaxMan, Tax EvasionThe IRS audit rate for individual returns filed in fiscal year 2010 was 1.1 percent, according to statistics released by the agency in 2011 (IR-2011-27). This represented approximately 1.6 million returns out of the approximately 143 million returns filed by individuals. The audit rate for individual returns with positive income of $1 million or more [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS requirements, Tallahassee Tax Service, TallyTaxManThe IRS has announced it holds $153 million in undelivered refund checks owed to nearly 100,000 taxpayers, representing an average of $1,547 per taxpayer (IRS News Release IR-2011-113). The IRS has been unable to deliver the refunds due to mailing address errors. Taxpayers who wish to check the status of their refund and/or resolve an [...]
Read More Income Tax Planning, Income Tax Preparation, Income Tax Refunds, IRS requirements, Tallahassee Tax Service, TallyTaxMan, Undelivered RefundsMark D. Leitner was sentenced to 30 months in prison after pleading guilty in July to filing false liens against federal law enforcement employees and corruptly endeavoring to impede and impair the Internal Revenue Service (IRS), the Justice Department announced. Northern District of Florida Senior District Court Judge Lacey A. Collier presided over the hearing [...]
Read More Income Tax Preparation, IRS Penalty, IRS requirements, IRS Small Business, Tallahassee Tax Service, TallyTaxManA covenant not to compete or other agreement with a employer will mean the personal relationships with clients become property of the employer. In 1972 Dr. Howard began practicing dentistry, and by 1980 he incorporated his practice. In 1980, Dr. Howard, the sole shareholder, entered into an employment agreement and a covenant not to compete [...]
Read More C Corporation Shareholder Dividents, Double taxation, Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Letters, IRS Penalty, IRS requirements, Non Compete AgreementThe IRS may consider a debt written off or settled as taxable income. Form 1099-C is used to report income from real estate, business debts, or personal debts. Any financial institution that forgives or writes off $600 or more of a debt’s principal must send the taxpayer and the IRS a form 1099-C at the [...]
Read More Cancellation of Deby, Form 1099-C, Imputed Income, Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Help, IRS Letters, IRS Penalty, IRS requirements, Tallahassee Tax Service, TallyTaxManRichard Rocchio and his siblings inherited their mother’s half of the outstanding corporate stock in their New York S-Corporation. Their father was the other 50 percent shareholder. After several years, the father remarried, and bickering ensued. The father and his wife were using all of the corporation’s funds to support a life of luxury, not [...]
Read More Income Tax Planning, Income Tax Preparation, IRS Audit, IRS Help, IRS Letters, IRS Penalty, IRS requirements, IRS Small Business, IRS tax savings, S Corporation, Shareholders, Small Business Tax, Tallahassee Tax Service, TallyTaxMan