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?
Personal Tax
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
Back to School Tips for College Students and Parents
Whether you’re a recent high school graduate going to college for the first time or a returning college student, it will soon be time to get to campus—and payment deadlines for tuition and other fees are not far behind. Students or parents paying such expenses should keep receipts and be aware of some tax benefits that can help offset college costs. Typically, these … [Read more...] about Back to School Tips for College Students and Parents
Sales Tax on Home Sales Rumor
A rumor has been circulating for some time that home sales will be subject to a 3.8% federal sales tax beginning in 2013. Like most rumors, it has been initiated by someone who doesn’t have all the facts – in this case, someone who does not understand taxes. Unfortunately, the misinformation has been perpetuated through our modern means of communication. It is true that some … [Read more...] about Sales Tax on Home Sales Rumor