Is a mistake on a tax return criminal?
- June 8th, 2022
- David Greene
- Comments Off on Is a mistake on a tax return criminal?
If you make a mistake on your tax return, that is not criminal. However, filing a wilfully fraudulent return is criminal and can land you in jail. Here are some things you do not want to do that, if done,…
How likely is it for an S-Corporatoin to be audited?
- April 6th, 2022
- David Greene
- Comments Off on How likely is it for an S-Corporatoin to be audited?
It is true that an S-corp or partnership is less likely to be audited than a sole proprietorship. However, the IRS is increasing pass-through entity audits as their computers become more powerefu. Also, several years ago the IRS was directed…
A recent question was: How many different ways can the IRS try to collect taxes I owe?
- December 30th, 2021
- David Greene
- Comments Off on A recent question was: How many different ways can the IRS try to collect taxes I owe?
First, let me say that I hope all my readers had a wonderful Christmas. Two weeks ago I mentioned several collection methods. This week I will discuss seizure of property in more detail. If the taxpayer still does not pay…
Headed for divorce? Here are some tax tips.
- November 17th, 2021
- David Greene
- Comments Off on Headed for divorce? Here are some tax tips.
There are several things I recommend you do if you think you might find yourself going through a divorce, both for future tax audit sake and to make sure all assets are revealed. First, copy all of your financial records…
How long should one keep tax documents?
- November 5th, 2021
- David Greene
- Comments Off on How long should one keep tax documents?
The answer is not as simple as you might think. If you have the room, it would be wise to keep those records for at least ten years. In these days it is easy to scan paper documents and store…
What can I do to avoid being audited?
- May 27th, 2021
- David Greene
- Comments Off on What can I do to avoid being audited?
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…
Are there any exceptions to the rule that canceled debt is counted as income?
- December 10th, 2020
- David Greene
- Comments Off on Are there any exceptions to the rule that canceled debt is counted as income?
When a taxpayer is unable to pay all of a debt and the creditor cancels the unpaid part, the amount of the canceled debt is generally treated as income to the taxpayer under federal tax law. The creditor reports this…
Are foreign bank accounts illegal for American citizens?
- October 8th, 2020
- David Greene
- Comments Off on Are foreign bank accounts illegal for American citizens?
It’s amazing the rumors that abound about the IRS. You will not get in trouble for merely having a foreign bank account, so long as you report it properly on your tax return. Many people and businesses have such accounts…
Are offshore bank accounts illegal?
- September 24th, 2020
- David Greene
- Comments Off on Are offshore bank accounts illegal?
As I have mentioned previously in this column, the IRS has launched an aggressive offensive campaign against people who have offshore bank accounts. It is certainly not illegal to have an offshore account or credit card and there are many…
What should a taxpayer do after receiving a threatening letter from the IRS?
- July 7th, 2020
- David Greene
- Comments Off on What should a taxpayer do after receiving a threatening letter from the IRS?
Even though most IRS offices are still closed due to COVID-19, some letters, computer generated and otherwise, are still being sent. When a person receives any Notice from the IRS, here are several things he can do: (1) Don’t panic. …