How to Remove an IRS Tax Lien

The tax lien is one of the Internal Revenue Service’s most effective collection methods. When the government places a legal claim on your property to secure payment for a tax debt, it can significantly impact your finances, assets, and even your credit. While the routine way to remove an IRS tax debt is to pay the amount owed, there are other options if you can’t afford to do so or don’t believe the lien is Read More

Selling on eBay? You’ll Get a 1099-K Next Year!

While many eBay sellers use the platform to occasionally offload old collectibles or merchandise, others treat it like a full-time job. According to Small Business Trends, the average seller makes about $35,000 per year, with top earners making as much as $70,000. Starting in 2023, the IRS will be paying closer attention. Welcome to the 1099-K! The 1099-K from eBay reports the gross sales you made on the Read More

Filing Someone Else’s Taxes as Power of Attorney

Although most of us associate the term ‘power of attorney’ with making financial or medical decisions on someone else’s behalf, there is a wide range of actions that such an arrangement can authorize. One of them is the ability to file someone else’s taxes if they’re unable to do it themselves, either due to advanced age or incapacity. The IRS permits various types of third-party authorizations, each with a Read More

The biggest IRS cases from 2021

Tax law is a highly complex and ever-changing field, with new changes happening all the time. As such, plenty of people find themselves in trouble with the IRS - either through malicious intent, or an honest mistake. Today, we're taking a look at a couple of cases from the IRS Criminal Investigation list of the top cases of 2021, and providing some tips on how you can ensure you stay out of trouble next year. A Read More

IRS Gains New Funding to Expand Operations and Audits

The Internal Revenue Service (IRS) will receive a significant increase in funding with the passing of the Inflation Reduction Act, potentially leading to an increase in its compliance and enforcement capabilities. Although the IRS has continuously been criticized by both Congress and American citizens for mismanagement and poor customer service, the increase should help alleviate some of these concerns by allowing Read More

Abatement could save you from tough tax penalties

If you've been late in filing your taxes or paying them, there may be a chance for an abatement, which would reduce or eliminate the penalties you may have incurred. If you have a good record of submitting and paying taxes on time in the past, you may be eligible to be granted an abatement of your late filing and/or late payment penalty. However, you must meet specific qualifications in order to be eligible for a Read More

When Tax Issues Turn Criminal: A Case involving Philly Cheesesteaks

Individuals and businesses face plenty of civil tax issues every year. These often range from simple mistakes in reporting to intentional fraud. However, some civil tax issues can turn into criminal investigations. If you have been contacted by an IRS Special Agent regarding a matter involving your IRS taxes, it is important to take steps to protect your legal rights and your financial stability. Police and federal Read More

Gambling Winnings and Losses — What Is Reportable and What Is Deductible?

In 2021, individuals in the United States gambled an estimated $53 billion in legal gambling activities. In the United States, gambling winnings are taxable at the federal level and most states where gambling is legal also impose a tax on lottery winnings. Before paying taxes on gambling winnings, you should make sure you’re aware of the differences between deductible expenses and reportable income.  There are two Read More

When and How Can the Attorney-Client Privilege Include Your Accountant

When it comes to litigating cases involving your tax information, the knowledge of your accountant could be just as important to your defense as that of your attorney. Your communications with your attorney are generally protected by attorney-client privilege, meaning that their knowledge cannot be used against you in your case. Accountants, however, don’t have the benefit of such a privilege - not by default, at Read More

When Do I Need a Tax Attorney Instead of a CPA?

CPAs are a great resource for ensuring that you’re properly and accurately reporting all of your necessary tax information, as well as simplifying the filing process for you. When it comes to serious tax issues, however, CPAs may not be able to help. While CPAs are knowledgeable on tax law and can be a great resource during an IRS audit, they’re not prepared to handle serious tax litigation issues. As such, the Read More