When can the 60 day rollover limit for IRAs be waived?
- January 14th, 2023
- David Greene
- Comments Off on When can the 60 day rollover limit for IRAs be waived?
The general rule is that if you take a distribution, it must be rolled over into another qualified plan within 60 days to avoid taxation and the 10% penalty. There has always been a “hardship” waiver for certain events causing…
What is the likelihood of being audited?
- October 26th, 2022
- David Greene
- Comments Off on What is the likelihood of being audited?
This is a difficult question to answer. The IRS computers use several criteria to target returns for audit, including if the current return shows much less income than the past year, an extremely high amount in deductions, or if the…
Does the IRS ever forgive interest and penalties?
- August 2nd, 2022
- David Greene
- Comments Off on Does the IRS ever forgive interest and penalties?
Many people who owe taxes more than five or six years old find that the interest and penalties are more than the original tax. This is because penalties keep being added for several years. In fact, there are more than…
Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
- July 15th, 2022
- David Greene
- Comments Off on Can one who withdrew funds from his retirement account in 2020 due to COVID pay the money back without paying taxes?
Section 2202 of the CARES Act, enacted on March 27, 2020, provided for some special rules for paying back distributions from retirement plans and IRAs if the withdrawal was related to COVID. One new provision is that the amount withdrawn…
Can criminal charges result from the Trust Fund Penalty?
- April 29th, 2022
- David Greene
- Comments Off on Can criminal charges result from the Trust Fund Penalty?
A business owner who has not paid the payroll taxes of his employees will have the trust fund penalty assessed against him. Most trust fund cases are not criminal because the IRS recognizes that the employer failed to pay the…
What to do if you owe on your return but cannot pay.
- April 13th, 2022
- David Greene
- Comments Off on What to do if you owe on your return but cannot pay.
First let me remind everyone that Tax Day is getting very close. The deadline to file is April 18 this year due to a Washington, DC holiday. Also, let me make it clear that you always need to file your…
Are offshore credit cards illegal?
- July 29th, 2021
- David Greene
- Comments Off on Are offshore credit cards illegal?
Americans can do business in any country as long as such business is allowed by that country. Therefore, having an offshore credit card is not illegal. However, most of these cards are designed to evade income tax and that is…
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…
Will IRS taxes follow you if you move to another state?
- December 22nd, 2020
- David Greene
- Comments Off on Will IRS taxes follow you if you move to another state?
I have been asked this question before. First there is no question that your federal tax liability will follow you when you move to another state. The IRS can easily find you by several means, such as your W-2, so…
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…