A Breakdown of the CARES Act

The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a recently passed assistance package. INDIVIDUAL PROVISIONS Recovery Rebates (Refundable Tax Credit) – The CARES Act provides direct rebates of up to $1,200 for each qualified adult ($2,400 for married couples) and $500 per child. The full rebate amount is available if you have income at or below $75,000 per adult ($150,000 for married couples), Read More

IRS – Coronavirus Update

The IRS hasn’t yet extended the deadline to file your taxes, but you do have a lot more time to pay them. Treasury Secretary Steven Mnuchin, speaking at a coronavirus news conference Tuesday, said the government is deferring $300 billion in IRS payments by 90 days, penalty-free. “If you owe a payment to the IRS, you can defer up to $1 million as an individual,” Mnuchin said. Businesses can defer up to $10 million in Read More

4 Common Mistakes the IRS Makes

Every tax season, you take great care to file everything you need to file and report everything you need to report. After you are satisfied you have completed everything truthfully, you finally send your return to the IRS and the task is off your plate – or so you thought. Months later, you get a letter in the mail informing you that your tax burden is several times what you thought you owed. Or, that refund you Read More

Are You Eligible for IRS Installment Agreements?

When the IRS has determined that you have an outstanding balance, they will sometimes accommodate your situation by offering installment agreements, or payment plans, in order to collect. These payment plans are exactly what they sound like – agreements for you to pay down your tax liability through regular payments. These plans are not for everyone, though; there are eligibility requirements for these payment Read More

Currency Transaction Reports and Associated Violations

Wondering if a certain amount of money that is deposited or withdrawn in one transaction will pique the interest of the IRS or any federal law enforcement agency? The answer is yes, and the magic number here is more than $10,000. Customers of banks or other financial institutions will automatically trigger a Currency Transaction Report (CTR) for transactions that go above this threshold. A report will be sent to the Read More

An Overview of Innocent Spouse Relief

When the IRS begins pursuing unpaid taxes and imposes penalties on an individual or business, it will not let up easily. There are, however, exceptions filers may use to avoid paying back taxes, interest, and penalties, and one of those ways is by applying for Innocent Spouse Relief. You may be eligible for this form of tax relief if you and your spouse (or ex-spouse) filed a joint tax return.  Four-Part Read More

What is a First Time Tax Penalty Abatement?

If the IRS has assessed penalties for your failure to file or failure to pay taxes, you might be eligible for a first-time tax abatement (FTA) waiver. You may request a waiver for penalties related to your personal taxes, or you may also apply for an FTA for penalties related to your business. In addition to the failure-to-pay and failure-to-file penalties, you may request an FTA for your business for penalties Read More

Explaining Entrapment

Many people are at least somewhat familiar with the entrapment defense, which entails an admission that a criminal defendant engaged in a crime but was essentially forced to by a police officer or other government agent. Sting operations, popularized by certain T.V. true-crime programs, have also pushed the concept of entrapment more into mainstream legal discussions. At its core, entrapment is a recognized, Read More

Understanding the Difference Between Tax Avoidance and Tax Evasion

The Internal Revenue Service maintains the country’s tax system, which functions based on voluntary compliance from taxpayers. No one from the IRS will come to your house and arrest you on April 16 if you did not file your taxes by the previous day’s deadline. If you continue that pattern of not complying with the tax law, and the government is able to prove that such conduct was willful, then it is a criminal Read More

Making a Deal: 3 Types of Plea Bargains

If you’ve decided to enter into a plea bargain with your criminal case, you have hopefully arrived at your decision after carefully scrutinizing the situation with an experienced attorney. Depending on your situation, you will want to consider all types of plea bargains in order to arrive at the optimal outcome for your case.  There is a fundamental difference between plea agreements in state and federal court. The Read More