Tax Laws Archives - Page 2 of 3

Tax Attorney, A few reasons to hire one

10 September, 2013 | Tax Laws

Tax Attorney, A few reasons to hire one Based upon our experience, these are the most common reasons why our clients hired a tax attorney. 1. You are afraid to deal with the New York State Tax Department or the Internal Revenue Service about your tax issue and you want a tax attorney to handle the matter. Our clients have the peace of mind knowing their case is being handled by a licensed professional with a tax law firm that has a A+ BBB rating.... CONTINUE READING

Business Loss or a Hobby Loss for Taxes

25 August, 2013 | Tax Laws

NYC and Albany NY IRS Tax Attorney As Tax Attorney's located in New York, we often receive inquiries from clients who have a number of unfiled tax returns on whether a loss is a business loss or a Hobby loss when they contact us needing a IRS Attorney. If the loss is a Hobby loss, in general it can not be used to offset other forms of taxable income. In many cases, it is not a clear issue. The issue has also been a difficult one for the IRS to resolve, an... CONTINUE READING

The New IRS Home Office Deduction

2 August, 2013 | Tax Laws

The New IRS Home Office Deduction About four (4) million workers in the United States work from home. Starting with the 2013 tax year, the Internal Revenue Service is allowing a simplified home-office deduction. The rationale behind the new method of deducting these expenses is that it simplifies the record keeping that most people are not complying with currently which causes income tax audit issues. Therefore, this new method is good for people who do... CONTINUE READING

Tax Tips for U.S. Citizens Living Abroad: Foreign Earned Income Exclusion

13 June, 2013 | Tax Laws

Overview: U.S. Taxation of Worldwide Income The U.S. is one of the few countries that taxes its citizens and resident aliens on all income, regardless of where it is earned. Expatriates must declare earnings from wages, self-employment, investments, rental income, pensions, trusts, and any other sources, whether domestic or foreign. Failure to report all worldwide income can result in severe IRS penalties or criminal char... CONTINUE READING

Determining Filing Status

13 June, 2013 | Tax Laws

A Guide to Making the Right Choice for Your Income Tax Return Why Your Filing Status Matters Filing status is one of the key factors the IRS uses to determine: Your standard deduction amount Eligibility for tax credits and deductions Your tax bracket Whether you are required to file a tax return Choosing the wron... CONTINUE READING

IRS Calls Practitioners over EITC Claims

20 February, 2013 | Tax Laws

IRS Calls Practitioners over EITC Claims The Earned Income Tax Credit, often called the EITC, is a tax credit that can help taxpayers keep more of what they earn. It is a refundable federal income tax credit for individuals and families who earn low or moderate income. When the EITC exceeds the amount of tax owed, there is a refund for taxpayers who claim and qualify for the credit. In order to qualify, you must file a tax return and meet a set of r... CONTINUE READING

The IRS, Tax Preparers and the US Supreme Court

6 February, 2013 | Tax Laws

The IRS, Tax Preparers and the US Supreme Court On March 13, 2012, three tax preparers filed a lawsuit against the Internal Revenue Service in the U.S. District Court for the District of Columbia. They filed the suit because they believed that the IRS did not have the authority to license tax preparers. The plaintiffs claimed that Congress did not give the IRS authority to license tax preparers, and the IRS cannot give itself that power. Beginni... CONTINUE READING

Tax Court and S Corporation Wages

31 December, 2012 | Tax Laws

Tax Court and S Corporation Wages A recent tax court case, David E. Watson, P.C. v United States, has upheld the IRS re-characterization of S corporation distributions as wages. The individual shareholder-employee in the case, David Watson, CPA, was a partner in an accounting firm. Watson made a mistake in the level of compensation he was entitled to for his business. In 2002, Watson received a salary of $24,000, but was receiving $203,... CONTINUE READING

The Use of Mail Delivery Services to Timely File a Petition with Tax Court

21 December, 2012 | Tax Laws

The Use of Mail Delivery Services to Timely File a Petition with the U.S. Tax Court When a taxpayer disputes an IRS determination—such as a notice of deficiency or liability—the U.S. Tax Court provides a structured avenue for resolution. However, strict filing deadlines apply, and missing them can permanently forfeit a taxpayer’s right to challenge the IRS in court. Fortunately, the Internal Revenue Code offers a valuable safeguard known... CONTINUE READING

NYS and IRS POA Forms

4 December, 2012 | Tax Laws

Form 2848 and Its Significance in Managing IRS Representation Introduction The Internal Revenue Service (IRS) directs federal tax regulations and collecting taxes in the United States. Navigating IRS processes can be complex, especially for those facing tax-related issues. Among the tools designed to make this process easier is Form 2848, which allows taxpayers to designate an official representative to act on their be... CONTINUE READING

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