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

Tax Reporting Requirements for Gifts

For gifts over $16,000, or multiple gifts totaling at least $16,000, the IRS requires the transaction(s) to be reported in tax filings each calendar year. Depending on the circumstances of the donor, this obligation may fall upon you. The penalties for failing to file can be steep, so ensuring that the gift is properly reported is always in your best interest. Who Has to Report the Gift? The reporting Read More

The Aftermath of a Federal Search Warrant – How Do I Get My Stuff Back?

On a normal quiet early morning there’s suddenly a bang at your door, and the next thing you know, there are fifteen federal law enforcement agents searching every nook and cranny of your home. They take computers, documents, and some items that shouldn’t be relevant to an investigation even by the furthest stretch of the imagination. You’re likely stressed, and left wondering what to do next. Thankfully, you’re on Read More

The Crime-Fraud Exception May Pose Trouble for Your Case (And Your Lawyer)

In 2018, the crime-fraud exception to attorney-client privilege was brought into the spotlight when former president Donald Trump tweeted “Attorney-client privilege is dead!” after the FBI conducted a search of the office of his attorney, Michael Cohen. Regardless of the details of the Cohen case, the crime-fraud exception has become a more pervasive issue in recent years posing a threat to attorney-client privilege Read More

What Happens if I Underpay My Taxes?

As we’re all well aware, the IRS isn’t very lenient when it comes to the collection of taxes. If you underpay, you will find yourself paying off a growing debt, as the IRS adds interest and penalties to your already outstanding debt. If you’re facing IRS tax liabilities, you’re likely not alone - in 2018, it was estimated that over 30 million taxpayers would owe taxes due to under-withholding and the United States’ Read More