For Employers: COVID-19 and Employment Taxes

Weisberg Kainen Mark applauds all employers and business owners who are doing everything they can to retain employees and keep their companies afloat. To that end, we want to pass on some information on certain tax credits and benefits Congress has made available with recent laws.  Wages Paid for Emergency Sick Leave and Emergency Family and Medical Leave As part of the Families First Coronavirus Response Act Read More

Updated Foreign Bank and Financial Accounts Report (FBAR) Penalties

Any U.S. person who has an interest in or some type of authority over a foreign financial account or accounts worth $10,000 or more at any point during a calendar year must submit an FBAR to the U.S. Treasury Department. Specifically, you must send it to the department’s Financial Crimes Enforcement Network (FinCEN). This program is aimed at reducing tax evasion and includes foreign accounts owned by non-citizens and Read More

What Taxpayers Need to Know About COVID-19

As with nearly everything else, the COVID-19 pandemic has affected taxpayers and their upcoming obligations with the IRS. A few federal bills have been passed that aim to help U.S. citizens stay financially afloat the next few months, and some parts of those laws affect what is already a busy season for filing taxes. To help clear up some of the confusion surrounding coronavirus and its effect on tax programs, we Read More

Understanding Quiet Disclosure

While the IRS has promulgated many options for taxpayers to become compliant with their IRS tax and reporting requirements, including Voluntary Disclosure and Streamlined Procedures, another option that may, in certain cases, be a reasonable alternative is “filing quietly” or a “quiet disclosure.”  Although the IRS officially looks down on a quiet disclosure, there are certain instances where it may make sense for a Read More

Understanding Voluntary Disclosure

The IRS relies on taxpayers self-reporting their income, offshore bank accounts, real estate holdings, and other reportable assets. Because taxpayers have a voluntary relationship with the IRS, they can often find a way to get back in the agency’s good graces when they find themselves in non-compliance with some provision of tax law. One way the IRS extends mercy to taxpayers who admit wrongdoing is through Voluntary Read More

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

5 Items on Tax Returns the IRS Will Notice

The good news for taxpayers is that the risk of being audited is historically low. While just over one percent of taxpayers were audited in 2010, that number dipped to 0.45 percent for 2019. Still, a significant number of American taxpayers faced audits last year for a variety of reasons. Some of the causes are outside of their control, but many can be avoided. Below is a list of deductions and other actions taken on 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