The distinction between a business activity and a hobby is not a black-and-white issue but instead comes in various shades of grey, which makes it a frequent topic in tax court. What is at stake? - At issue with the business or hobby determination is the treatment of the activity’s expenses. A for-profit business is able to deduct all of its business expenses even if the net … [Read more...] about Is It a Business or a Hobby?
How Long Are You on the Hook for a Tax Assessment?
A frequent question from taxpayers is: how long does the IRS have to question and assess additional tax on my tax returns? For most taxpayers who reported all their income, the IRS has three years from the date of filing the returns to examine them. This period is termed the statute of limitations. But wait – as in all things taxes, it is not that clean cut. Here are some … [Read more...] about How Long Are You on the Hook for a Tax Assessment?
Don’t Overlook the Small Employer Health Insurance Credit
If you are an eligible small employer or a tax-exempt eligible small employer, you may qualify for the small employer health insurance premium credit. This credit is one of the first health care reform provision to take effect as a result of the Health Care Act that was enacted in 2010. The credit reduces a small employer’s tax liability and is claimed on the employer’s income … [Read more...] about Don’t Overlook the Small Employer Health Insurance Credit
Do You Owe the IRS Money?
While the majority of Americans get a tax refund each year, there are many who owe tax and some who can’t pay what they owe all at once. If you find yourself in the position of owing taxes, there are a number of ways to deal with the issue: 1. Get a Loan to Pay the Balance – If you owe the IRS and don’t pay on time, they will assess interest and penalties. If you work out an … [Read more...] about Do You Owe the IRS Money?
Increased Tax Compliance Enforcement and the US Budget Deficit
Until recently, many of us seldom heard of Tax enforcement arrests and the failure of reporting obligations by well-known transnational companies and high net worth individual tax payers. Ever wondered why this has become a hot topic these days? Does this have anything to do with the economy, the recession, the US budget deficits or the humongous debt? Absolutely! Internal … [Read more...] about Increased Tax Compliance Enforcement and the US Budget Deficit