What factors trigger a business audit?
- June 6th, 2017
- David Greene
- Comments Off on What factors trigger a business audit?
There are two basic ways the IRS chooses a Form 941 Employment tax return to audit: 1. A computer program detects a return that has incorrect amounts or 2. Information from compliance projects (news media, public records, etc.) suggests the…
What Document Support Is Needed for Charitable Contributions
- May 23rd, 2017
- David Greene
- Comments Off on What Document Support Is Needed for Charitable Contributions
Here are the rules for deducting charitable contributions and the supporting documents needed. Any contribution of $250.00 or more must be substantiated by a contemporaneous written receipt by the donee organization. This receipt must state whether or not the donee…
Will a taxpayer be in criminal trouble because he has a very large tax debt?
- May 17th, 2017
- David Greene
- Comments Off on Will a taxpayer be in criminal trouble because he has a very large tax debt?
As I’ve stated many times before, a taxpayer is not going to jail for non-payment of taxes. There has to be some kind of fraud or deliberate attempt to avoid tax involved to be referred to the criminal division. By…
Changes in IRS collection methods for 2017 that make it harder to resolve a delinquent taxpayer’s debt.
- May 9th, 2017
- David Greene
- Comments Off on Changes in IRS collection methods for 2017 that make it harder to resolve a delinquent taxpayer’s debt.
Here are five new changes in IRS collections techniques. 1. The IRS is using private debt collectors for the third time. They sometimes can be easier to deal with than a revenue officer, but usually they have less leeway in…
All tax returns must be filed to submit an Offer in Compromise
- April 25th, 2017
- David Greene
- Comments Off on All tax returns must be filed to submit an Offer in Compromise
In order to be considered for an Offer in Compromise, the taxpayer must be current with all income tax return filings. If the taxpayer is a company, this requirement includes payroll tax and federal unemployment tax filings as well as…
Can a taxpayer file more than one Offer in Compromise?
- April 18th, 2017
- David Greene
- Comments Off on Can a taxpayer file more than one Offer in Compromise?
Yes a taxpayer can certainly file a second Offer, especially when there is a change in his financial circumstances. However, we should look at another possibility first. When an Offer is rejected, the taxpayer has 30 days from the date of the official rejection…
What if you can’t pay what you owe on your tax return?
- April 11th, 2017
- David Greene
- Comments Off on What if you can’t pay what you owe on your tax return?
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…
What steps can you take to avoid an audit?
- April 4th, 2017
- David Greene
- Comments Off on What steps can you take to avoid an audit?
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 audited, minimize your chances of having to pay…
How is a tax levy different from a lien?
- March 28th, 2017
- David Greene
- Comments Off on How is a tax levy different from a lien?
This week I want to discuss how a levy differs from a lien. While a lien is simply recorded at the courthouse and is therefore a “passive” collection action (nothing happens until the taxpayer sells property), a levy is an…
Can a tax lien be used to seize your home?
- March 21st, 2017
- David Greene
- Comments Off on Can a tax lien be used to seize your home?
No, the IRS will not seize your home as a result of this Lien. They would have to start a legal proceeding to reduce the lien to a judgment. However, this lien does affect your property. You can think of…