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…
Tax Articles
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…
A Look at Tax Legislation: What’s On the Table
Tax laws play a crucial role in shaping the economic landscape of a country, and the United States is no exception. Currently, there are several tax laws being considered by Congress, each with the potential to impact millions of Americans. From addressing the taxation of cryptocurrency to implementing new tax credits, these measures can range…
Tax on Insurance Agent’s Repayment of Advanced Commissions
As a service provider, you might receive an advance payment from a party who pays for your services, which could be considered income subject to taxation. But what if you might have to repay those funds later? Are you still taxed on the advance payment in year one? The answer to this question can have…
Truck Driver Not Entitled to Deductions When Records Destroyed
The IRS has a long history of going after truck drivers. There are a number of reasons for this, but, largely it is because of the nature of the expenses that truckers incur. Most truck drivers are small business owners, as they own and operate their own rigs. These small businesses travel, so their expenses…
Defining “Home” for Tax Purposes: It’s Not Always Where You Live
Typically the common definition of terms is used. This helps those who are not lawyers to understand and follow the law. But there are instances where the legal definition of a common term differs from the common understanding of what the term means. The tax law has several of these. When it comes to taxes,…