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Tax Filing Deadline
The tax deadline of Tuesday, April 18, is later this year due to several factors. The usual April 15 deadline falls on Saturday this year, which would give taxpayers until the following Monday to file. However, Emancipation Day, a holiday in the District of Columbia, is observed on Monday, April 17, giving taxpayers nationwide an…
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Making Estimated Tax Payments
Taxpayers usually will have taxes withheld from their pay if they are an employee. However, if a person doesn’t have taxes withheld, or they don’t have enough tax withheld, they may need to make estimated tax payments. Taxpayers that are self-employed normally have to pay their taxes this way. Taxpayers should pay estimated taxes if…
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Here We Go Again! Private Collection of Federal Taxes Starts in April
They tried this once before and it was a total disaster. Why Congress would allow this I do not know. Private collection companies should never be involved in collecting taxes, in my opinion. The private collectors will be able to identify themselves as contractors of the IRS collecting taxes. Employees of these collection agencies must…
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Criminal Investigation Enforced Structuring Laws Primarily Against Legal Source Funds and Compromised the Rights of Some Individuals and Businesses
The Currency and Foreign Transactions Reporting Act of 1970, referred to as the Bank Secrecy Act, requires U.S. financial institutions to file reports of currency transactions exceeding $10,000. Title 31 of U.S. Code Section 5324(a) states that no person shall, for the purpose of evading the reporting requirements, cause or attempt to cause a U.S.…
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Convenience Store Owner Indicted for Tax Evasion
A Mobile County grand jury returned an indictment on March 24 charging a Mobile County convenience store owner with 28 counts of failure to collect, report and pay sales tax, and eight counts of willful failure to file corporate and individual income tax returns. Anil Patel was arrested on March 30 by the Mobile County…
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IRS Audited 1 out of every 143 Tax Returns in 2016
The number of people audited in 2016 was just over 1 million. The IRS claims that for every $1 spent conducting an audit returns $4 in previously unpaid taxes (source: IRS). We prepared 2,651 federal tax returns in 2014 (the IRS is 2 years behind, if you get an examination notice it will be for…
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IRS Overpaid more than 600 Employees by $4.2 million
The Treasury Inspector General for Tax Administration (TIGTA) audited the IRS pay system and found major problems. The pay system for managers at the IRS differs from the pay system used for nonmanagerial employees. Errors in calculating pay when moving between the two pay systems can cause improper overpayments or underpayments, which in turn result…
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Don’t let this be You!
I met with a potential new client last Thursday. He is the son of a long-time friend and client. This young man went through a difficult divorce last year and the outcome had terrible tax consequences for him. If only we had met last year during the divorce process, I could have saved him more…
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Please Remember the Office Rule
No April Fools Pranks! Everyone’s nerves are too frazzled and fragile for that stuff. Ten weeks of 14 and 16 hour work days, 6 days per week is tough on all of the staff. My long hours started in December.
