What can I do to avoid being audited?
- May 27th, 2021
- David Greene
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I often get this question during tax season. There is nothing you can do to guarantee that you will never be audited. However, by following three simple rules, you can minimize your chances of being audited and, if you are…
Is the Offer In Compromise program a tax scam?
- May 25th, 2021
- David Greene
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The Offer in Compromise program is not a scam. However, scammers use the promise of an Offer to scam you. There are a lot of scams being run today, one of which states that the promoter can settle your back…
In light of COVID, does one going off to college need any estate planning documents?
- May 18th, 2021
- David Greene
- Comments Off on In light of COVID, does one going off to college need any estate planning documents?
As more colleges return to having full time students, many fear that COVID cases will greatly increase among the young. In light of that you are wise to prepare your child as much as possible. There are two primary documents…
Does working from home change tax implications for businesses and employees?
- May 11th, 2021
- David Greene
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An employee’s work from home status will change certain tax implications for both employer and employee. While home office expenses have not been allowed as a deduction for employees since 2018, this year employers can help employees by buying equipment…
Will my severance pay from my employer be taxed?
- May 4th, 2021
- David Greene
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Severance pay is generally treated the same as ordinary income, i.e. wages or salary. This is because the IRS treats it as final payment of income due to the employee or sometimes unused vacation day or sick day pay. However,…
I would like to set up an Installment Agreement to pay my delinquent taxes. Does the IRS have to accept my Agreement at whatever amount I am willing to pay per month?
- April 28th, 2021
- David Greene
- Comments Off on I would like to set up an Installment Agreement to pay my delinquent taxes. Does the IRS have to accept my Agreement at whatever amount I am willing to pay per month?
The IRS will accept your Installment Agreement request without your furnishing your financial information only if the following conditions are met: 1) the total owed is less than $50,000.00; 2) the taxpayer has filed all required returns for the past…
What are the most common mistakes made on a tax return?
- April 20th, 2021
- David Greene
- Comments Off on What are the most common mistakes made on a tax return?
Here are the most common mistakes the IRS sees from self-prepared returns: (1) Math errors – be sure to check your math twice; (2) Misspelled name or changed name not updated (be sure the name on the return matches the…
Can one go to jail for not filing returns and can he receive refunds when filing delinquent returns?
- April 13th, 2021
- David Greene
- Comments Off on Can one go to jail for not filing returns and can he receive refunds when filing delinquent returns?
Let me answer your last question first. You will not go to jail for not filing under the situation you have described. You only go to jail for a criminal offense, such as fraudulently evading your tax obligation. If you…
Are stimulus checks taxable? What if you don’t receive it?
- April 8th, 2021
- David Greene
- Comments Off on Are stimulus checks taxable? What if you don’t receive it?
If you have not received your check, first be sure you are eligible. Eligibility is based on your earnings as shown on your 2019 return. For a single person, if your Adjusted Gross Income is more than $87,000, you are…
What are the IRA contribution and withdrawal rules for 2020?
- April 6th, 2021
- David Greene
- Comments Off on What are the IRA contribution and withdrawal rules for 2020?
First I want to let everyone know that the 2020 tax return filing deadline has been extended until May 17. The CARES Act changed many rules related to IRAs for 2020. First one can withdraw up to $100,000 without incurring…