Category: Tax Compliance

Willful and Non-Willful Failure to File FBAR Penalties

8 April, 2024 | FBAR Tax Audits Tax Compliance

FBAR Penalties: What to Expect If You Don't Report Foreign Bank Accounts Nothing’s quite as alarming as finding out you’re in violation of a law that you didn’t know existed. If you have foreign bank or financial accounts, you may be required to file an FBAR every year. Failing to do so could mean paying tens of thousands of dollars in penalties. However, you do have options. Depending on your circumstances, how far behind you are in your filings, and whether or not you paid a... CONTINUE READING

Decoding IRS & NYS Tax Complexity: A Blueprint for Small Business’ Success

4 February, 2024 | Tax Compliance

Introduction: In the intricate landscape of business operations, small business owners face a daunting challenge – navigating the complexities of IRS and NYS tax obligations. It's not merely a puzzle; it's a dynamic challenge that requires constant attention and strategic navigation. The ever-evolving nuances of tax laws, regulations, and compliance requirements create a landscape where the missteps of noncompliance can have profound financial and legal consequences. I... CONTINUE READING

Navigating ERC Repayment, Correcting Errors, and Understanding Consequences: A Comprehensive Guide

12 January, 2024 | ERC Tax Compliance

The Internal Revenue Service (IRS) has recently introduced significant measures aimed at addressing potential issues related to the Employee Retention Credit (ERC), a vital pandemic-relief tax credit. This comprehensive guide explores the IRS's new voluntary repayment option, delves into the consequences associated with incorrect ERC claims, and outlines proactive steps businesses can take to rectify errors and ensure compl... CONTINUE READING

Guide to Navigating IRS Voluntary Disclosure & Form 14457

7 November, 2023 | FBAR Tax Compliance

IRS Criminal Investigation Voluntary Disclosure Practice and Form 14457 If you suspect you may be investigated for a criminal tax matter, the best thing to do may be to come clean with a voluntary disclosure. The IRS's Voluntary Disclosure Practice may be able to help you prevent or reduce criminal prosecution for past actions related to IRS code violations. However, you should never take this step without consulting with an attorney — to get help now, contact us today at the Timothy... CONTINUE READING

How Far Back Can the IRS Go for Unfiled Taxes?

8 September, 2023 | Tax Compliance Tax Relief

How Far Back Can the IRS Go for Unfiled Taxes? Meta description: The IRS can go back an unlimited amount of time for unfiled tax returns. Don't wait for the agency to find you. Be proactive about dealing with back taxes. How Far Back Can the IRS Go for Unfiled Taxes? There is no limit to how far the IRS can go back for unfiled taxes. If you haven't filed for years and you're worried that the agency may come after you, that's a valid concern. Legal... CONTINUE READING

Recordkeeping for Individual Taxpayers

20 May, 2023 | Tax Compliance

Recordkeeping for Individual Taxpayers Every month I am contacted by a new client who has a tax issue from the 1990's, or early or late 2000's. That makes having a tax records retention policy a very important issue since the tax issue can be very old.  You may wonder if it is even possible to have a tax issue going back that far in time. The answer is Yes. I hate to say this since if you did not a tax return, the IRS will not start the statute of limita... CONTINUE READING

What Happens If You Can’t Afford to Pay Taxes?

8 September, 2022 | Tax Compliance

The goal of IRS and state tax agencies is to get the tax money that is owed to them. Toward this end, they offer programs to make it easier for people who can’t afford to pay their taxes in a single lump sum to be able to pay what they owe. If this describes your situation, you may qualify for such a program that will allow you to pay your full tax debt off over time or to pay less than you owe in taxes. Keep in mind, though, that even if you don’t have the money to pay your taxes, you... CONTINUE READING

Can You Go to Jail for Not Paying Taxes?

4 May, 2022 | Tax Compliance Tax Debt Tax Fraud Tax Penalties

The short answer to the question of whether you can go to jail for not paying taxes is “yes.” Whether a person would actually go to jail for not paying their taxes depends upon all the details of their individual tax circumstances. Sometimes people make errors on their tax returns or are negligent in filing, but they are not intentionally trying to avoid paying taxes. It is a long-standing policy of the Internal Revenue Service (IRS) not to pursue prosecution of individuals who fail to fi... CONTINUE READING

Form 1040X: The Amended Tax Return

6 June, 2013 | Tax Compliance

Form 1040X: The Amended Tax Return Having your tax lawyer revising your Form 1040, U.S. Individual Income Tax Return, is done if information reported on the form is incorrect and changes the tax calculation.  Filing an amended return is the correct action to take if your original return is incorrect in the amount of income, filing status, number of dependents, deductions, or credits.  Taxpayers should also file an amended return to remove deductions and... CONTINUE READING

Itemizing vs. Standard Deduction

1 April, 2013 | Tax Compliance

Itemizing vs. Standard Deduction Each tax season taxpayers have to choose to between standard and itemized deductions. It is smart to compare the two methods, and pick the one that gives you the largest tax benefit. The following are some tax tips to help you choose. Know what the standard deduction is. If you choose not to itemize, you will automatically be given the standard deduction. The standard deduction amount is determined by your filing s... CONTINUE READING