As the year ends, many clients consider donating clothing and household items to give back while potentially maximizing charitable tax deductions. These items must be in good condition (or working order for electronics and appliances). I recommend that clients take… Read More »Property Donations
Dogs, cats, and other household pets are expensive. Owners spend an average of $1,270 to $2,800 to own a dog. The expenses for a family pet that provides you only with love and companionship are never deductible. They are purely… Read More »Deducting Pet Expenses
A number of taxpayers own personal property which they rent to their own business. The rental property typically includes equipment, vehicles, and furniture. As an example, a photographer may own various types of cameras and other photographic equipment that… Read More »Personal Property Rentals
The Beneficial Ownership Information Report (BOIR) is a new requirement under the Corporate Transparency Act (CTA) for U.S. businesses. It’s designed to increase transparency in business ownership and help combat financial crimes. Most U.S. business (except sole proprietorships) are covered… Read More »Beneficial Ownership Reporting Update
I discussed the IRS use of private collection agencies in an earlier post. However, there has been an increase in the number of scams involving alleged collection agency contacts. So, I want to focus on this topic in more depth.… Read More »Scam IRS collection agency contacts
Given this lousy economy and the financial pressures many taxpayers are facing, it may be that some of those retirement funds are needed just to survive. Early withdrawals from a traditional IRA before age 59½ generally incur a 10 percent… Read More »Avoiding IRA Withdrawal Penalty
The Internal Revenue Service (IRS) plays a crucial role in the U.S. government’s functioning, responsible for collecting taxes and enforcing tax laws. One significant aspect of its operations is issuing collection notices to taxpayers who owe taxes. These notices serve… Read More »IRS Collection Notices
I’ve noticed a rise in the number of notices where my clients with outstanding tax liabilities are having their cases assigned to private collection agencies. This process has been around for several years and helps the IRS manage its limited… Read More »Notices of Tax Case Assigned to Private Collection Agency
The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through… Read More »Estimated tax penalties skyrocket!!
There has been a lot of attention given to the new FinCEN Beneficial Ownership Information (BOI) reporting and the horrific penalties for failing to comply. The entities with the filing requirement (discussed below) are those that were in existence on… Read More »FinCEN BOI Reporting – Important!
