What Does the IRS Believe is ‘Reasonable Cause’?

Though taxpayers, in theory, voluntarily file and pay federal income tax returns to the Internal Revenue Service each year, failure to timely and accurately volunteer your income tax returns and payment to the IRS means you will be facing monetary penalties. The agency commonly assesses penalties against taxpayers for failure to file, failure to pay, failure to make estimated quarterly payments, negligence, and other Read More

Small Businesses Should Expect a Ramp-Up in Audits in 2021

At a time when a large number of small businesses are already experiencing difficult economic circumstances, representatives from the Internal Revenue Service have signaled that audits of partnerships and pass-through entities will increase in 2021. More granularly, the IRS has hired 50 new specialized auditors who are expected to be installed sometime in February 2021.  If you currently own or operate a small Read More

Preparing for a Possible PPP Audit

The low-interest, forgivable loans available through the Paycheck Protection Program have been lifelines for millions of small and mid-sized businesses across the U.S. The statistics underscore that statement; more than five million PPP loans have been distributed since the program was established in late March 2020. The original funding quickly dried up, leading to multiple rounds of funding.  There’s no denying, Read More

Recent Actions on Telemedicine Fraud Provide a Glimpse into the Future

The COVID-19 pandemic has accelerated countless big-picture trends across the world. One important area that showed significant change is the telemedicine universe. To illustrate the explosive growth in telemedicine visits, consider that, by April 2020, around 44 percent of doctor’s visits by Medicare recipients were conducted virtually. Just two months earlier, that figure hovered around 0.1 percent.  In Read More

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