Tax law is a difficult area of law for many reasons. The law is often changing and, as highlighted in a recent decision by the Tax Court; unexpected interpretations of the law are not uncommon.
Competing laws can make for confusing situations. For many people in the Washington, D.C., area, trying to find the balance becomes something of a way of life. This may be particularly true for green card holders who have financial ties that reach around the globe.
A tax audit is essentially an accounting procedure that examines your financial records to ensure you filed your tax return accurately. If the IRS finds errors or purposeful mis-reportings, you'll have to pay the recalculated return amount and any interest. The IRS can choose to audit your tax return for a number of reasons, including:
Being a business owner may involve time warps. When business is good the days fly and there is never enough time to complete everything. When a busy season coincides with tax season, the filing deadline can slip by without you having a chance to get your personal or business return completed.
If you get behind on your taxes, the IRS could try to go after your paycheck to collect the debt.
Tax-filing season is officially underway. It’s an annual rite of passage that stretches to mid-April or (with a six-month extension) beyond.
Christmas is still a couple of weeks away, with plenty of presents not yet purchased, much less placed under the tree or chimney with care.
A few weeks ago, we concluded a two-part post on collection due process rights. At that time, we promised you an update on the upcoming IRS program to use private debt collectors to go after tax debt under certain circumstances.
In part one of this post, we began discussing the challenges you can face as a business owner if you fall behind on your payroll taxes.
If you can't pay your taxes, you still have options.