Employee Tool and Equipment Plans have become increasingly prevalent in industries where employees require specialized tools and equipment to perform their job effectively. These plans benefit both employers and employees by providing access to necessary resources and reducing the cost burden on employees. There are tax implications to consider, and mistakes can be made if…
Tax Articles
The Private Trust Company
Private trust companies are becoming increasingly popular among high-net-worth families who want greater control and flexibility over their trust administration. Unlike traditional corporate trustees, private trust companies are owned and operated by a family or group of individuals. This allows for more personalized service and a deeper understanding of the family’s unique needs. One of…
The Disqualified Employment Tax Levy
Taxpayers generally know that an IRS levy is not a good thing. Most have some sense that it can affect their financial well-being. If they have not been subject to an IRS levy, this may be all they really know about it. The term “levy” is a verb that, in the context of the IRS,…
Getting Interest Abated: Challenges & Solutions
The Internal Revenue Service is notorious for being slow in doing its work, and its delay often results in taxpayers being charged with interest on their tax liabilities. While the IRS has the authority to abate or remove interest on tax liabilities, the process for getting the IRS to exercise this discretion can be challenging.…
If a Trustee Owes Taxes, Can the IRS Seize Trust Assets to Satisfy the Tax?
The IRS has broad powers when it comes to collecting unpaid tax debts, but its authority is not without limits. For example, there are limits on what property the IRS can seize if the property is held by a third party. This can include property held in trust. Consider the situation where a father creates…
U.S. International Tax Withholding & Reporting (Explained)
International tax law is a complex and ever-evolving area of law that governs the taxation of income earned by individuals and businesses across different countries. As globalization continues to increase, cross-border transactions become more prevalent, and more individuals and businesses work across borders, understanding international tax law has become increasingly important. One key area of…
The New Tax Return Preparer Penalty
The tax return preparer penalty is a tool used by the IRS to encourage compliance with tax laws and ethical behavior among tax return preparers. The penalty is imposed when a tax preparer engages in conduct that results in the understatement of a taxpayer’s liability due to fraudulent, reckless, or intentional misconduct. The penalty amount…
Navigating IRS Collections During an Economic Downturn
The financial downturn has left many taxpayers struggling with unpaid tax debts just as IRS collection efforts ramped up. Though a challenging time, the economic turmoil also created opportunities to negotiate with the IRS from a position of strength. Negotiating with the IRS is always challenging. But with proper diligence and records, taxpayers can use…
Tax Issues Faced by Pilots & Transportation Employees
The U.S. tax system applies to U.S. citizens no matter where they are in the world. Our tax laws also provide various limitations, exclusions and other benefits based on where the person is when the income is received or expense is incurred. If the assumptions of a static taxpayer who doesn’t travel or move around…
Innocent Spouse Relief for Ex-Spouse’s Income
Divorce is a stressful situation. It is one where people do not always act as they should. This includes taking actions that caused or led up to the divorce. Right or wrong, the shared finances of marriage often come into play. This results in additional marital disputes. Innocent spouse relief can provide a much-needed remedy…