Frost & Associates, Attorneys at Law
Call Today 202-618-1873

Are educational deductions contributing to tax controversies?

With another academic year in full swing, readers may have questions about the tax implications of college expenses. The Internal Revenue Service offers some guidance in IRS Publication 970. However, taxpayers who itemize their deductions rather than claiming the standard deduction may appreciate the clarity that a tax attorney can bring to the table. 

For example, tax laws frequently change. A taxpayer who took a deduction in 2014 for qualified tuition and fee expenses will not be able to do so in 2015. Even unchanged features, such as the lifetime learning credit or student loan interest deduction, can be difficult to correctly claim.

Additional complications may arise for taxpayers who dipped into their retirement savings in order to defray the cost of college tuition. In the case of an early distribution from an IRA account, defined as a withdrawal before the age of 59 and ½ years, there is a 10 percent additional tax. 

We live in a do-it-yourself society. Many taxpayers may prefer to prepare their own taxes or take a false sense of security from online preparation programs, such as TurboTax. Yet even those programs are not infallible, especially if a user enters incorrect information or misunderstands the online instructions. Is it any wonder that tax mistakes may arise? 

Unfortunately, ignorance of tax laws is generally not a defense to tax penalties and late fees, at least from the IRS’s perspective. Yet when a tax mistake was not intentional, a taxpayer may have an opportunity to administratively negotiate with the IRS. As an attorney who is also a CPA, I have the background to understand the IRS’s negotiation parameters, as well as when a taxpayer has a strong case for reaching a favorable settlement. My motto is that every tax problem has a solution. Visit my website to learn more.

Source: Accounting Today, “A Back-to-School Tax Break Refresher,” Michael Sonnenblick, Sept. 22, 2015

No Comments

Leave a comment
Comment Information
Every Tax Problem Has A Solution

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact us today!

Frost & Associates, Attorneys at Law
1629 K Street NW
Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway
Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-621-7169
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Map & Directions

Google+
Find us on...
  • Facebook
  • Twitter
  • Linked In