It’s tax time. No, I really won’t be talking about the rules this time. Just about who does your taxes.
Tag Archives: Audit
3? 6? 7?
When the IRS comes knocking- either in person or via a correspondence audit- you should be prepared to answer their questions- fully, completely, and truthfully.
Many happy returns?
You now that old adage, “the bigger they are, the harder they fall”? Well, you can bet that the IRS believes that is true. Because, with their cuts in funding, the IRS has decided that the rich and the small business owner are the best targets for their audits.
Taxes? Now? It’s only August!
Another installment in the changes coming about- or, why I am discussing taxes in August.
First- if you filed an extension, the clock is ticking- much louder now. 15 October is the absolute drop dead date for individuals (15 September for corporations). And, that is only for the filing. Your taxes IN FULL were due way back in April (or March for corporations). Filing an extension really only helps if you don’t owe money. If you do owe money, you can expect to pay penalties and interest, too. Someone is going to pay that deficit down.
Tax Tips in June? Yes- you need to know!
It’s June. I know. But, it’s not smart to wait until December to consider what tax rules or practices have changed. Both of these two changes I will discuss today affect my clients; I am sure they will affect many of you.
We know that filing jointly typically saves couples money. For example, you can’t deduct child care expenses, should you file separately. (Of course, if you are in the top 2% of earners in the US, you won’t be able to deduct those costs whether you file jointly or separately.) That’s but one savings. There are many others. But, that’s not really the topic for today. I want to remind you all that filing jointly means that both parties are responsible for the tax filing, the tax debt, and any omissions or errors- regardless of who made the money, who computed the tax return, or who got to make the decisions demonstrated on the form. Typically, the problems start due to one of two circumstances- the couples are separating or the IRS has decided that the tax return is questionable. There may be relief. There is a document, the Request for Innocent Spouse Relief, Form 8857, that can relieve one party from these joint obligations. However, there are considerations to its use. Some of these considerations include: Continue reading Tax Tips in June? Yes- you need to know!