What Happens if You Don’t File an FBAR with Your Tax Return?

Some taxpayers may not know about the IRS’s FBAR requirement. It does not apply to all taxpayers, but the consequences of ignoring it could be horrific for those it does concern. FBAR, or the Report of Foreign Bank and Financial Accounts, is a form to report foreign bank accounts. It states that all U.S. taxpayers (whether citizen, resident, or entity) must disclose any foreign bank account or accounts they have that Read More

How To Tell if the IRS is Really Contacting You

For most taxpayers, taxes can be a somewhat obscure thing. They can be tough to wrap your head around or be certain you’ve done everything correctly down to the letter. You may not think you’ve done anything wrong, but if you see the IRS trying to communicate with you, you may question your tax returns. There may have been some box left unchecked. The problem is, many of these communications are not Read More

Using the Offer-in-Compromise

Taxpayers are not the only ones who have had to significantly adjust due to COVID-19 and the countless effects of that pandemic. IRS operations were severely hampered for several months. Now that many agencies seem to be getting back on their feet, the IRS is once again focused on collecting taxes owed by taxpayers. Though there have been myriad federal and state relief programs, many taxpayers will still have Read More

What is U.S. Tax Court?

Nearly 100 years ago, Congress recognized the need for an independent judicial forum that would oversee disputes between taxpayers and the Internal Revenue Service (IRS). The U.S. Tax Court is still around and travels to several dozen major U.S. cities each year (including Miami) to adjudicate IRS-related disputes. This blog will take a look at this unique civil court and provide a general overview of its underlying Read More

Considerations for Employers Regarding the Payroll Tax Deferral

Another pillar of the purported federal relief for employers due to the once-in-a-century pandemic was activated within President Trump’s executive action he signed on Aug. 8. Employers now have the option to withhold payroll taxes (Social Security and Medicare) from employees who make less than $4,000 per biweekly paycheck (around $104,000 per year). The deferral went into effect on Sept. 1 and is expected to last Read More

An Overview of the Trust Fund Recovery Penalty

There’s been much discussion lately about payroll taxes, deferral, and (possible) forgiveness, whether temporary or permanent. While the situation and conversation surrounding payroll taxes remains fluid in D.C., one of the two certain things outlined by prescient founding father Ben Franklin also remains: you must pay your due to the IRS.  In the context of payroll taxes required to be withheld from employee Read More

What is the Wealth Squad, and Why is It in the News?

Every few years, it seems, the IRS announces a renewed effort to focus on high-net-worth (HNW) individuals and various financial entities connected to them. 2020 is one of those years, it seems, with the announcement from representatives associated with the Large Business and International (LBI) Division that certain HNW individuals should expect audits through the late summer and going into early fall. Officially, Read More

The IRS Has the Power to Place Levies on Your Property

The most obvious way to stay on the IRS’ good side is to file your tax returns and pay your tax liabilities on time. You might be able to get away with not fulfilling these basic obligations for a while, but your luck will eventually run out. If you genuinely cannot pay what you owe to the IRS, the best thing to do is to be proactive and communicate to the agency what you are able to pay; usually, some sort of Read More

IRS Releases 2020 Final Regulations Related to GILTI

The IRS, nearly three years after the fact, continues to implement, clarify and regulate the Tax Cuts and Jobs Act of 2017 (TCJA), reflected by the issuance of the 2020 Final Regulations, which was released on July 20, 2020. While there is some welcome news in these regulations, it also makes the reporting of foreign income more complex for certain U.S. persons who gain income from foreign companies. This blog will Read More

3 Ways You Can Purposefully, or Accidentally, Commit Tax Fraud

It is next to impossible for the average U.S. person to fully understand every applicable IRS provision, regulations, or law when it comes to doing taxes. Many taxpayers with complex situations, of course, elect to enlist the help of accountants and other financial professionals to ensure they are, ultimately, in compliance. Still, things may slip through the cracks for tax professionals. Regardless of your position Read More