Background WHEN is your return free from IRS audit? From your point of view, statute of limitations prevents the IRS from collecting a deficiency in tax or beginning a civil…

YES, you can be. Terrible, but it happens. In a landmark case, the Supreme Court held that a conviction for willfully filing a false tax return is a deportable offense…

1. YOUR legal marital status is determined as of December 31 of each year.  Even if you were married for the previous 364 days if you were divorced on the…

IT started with a dreaded letter from the IRS. Your tax return has been selected for examination. Lately, the agent has been asking about cash transactions, safety deposit box, foreign…

IF you fail to file on time or pay on time, penalties kick in. Here are 10 reasonable causes to abate (forgive) penalties for late filing or late paying: 1….

Surely as April 15 comes along, some of you will procrastinate in filing tax returns. It can be habit forming as I see the same taxpayers come after April 15…

IF you have not filed your income tax returns by the end of March, chances are you do not expect a refund, your tax records are a mess, or you…

MOST of us take medical expenses for granted because we have to spend more than 10% of our gross income before we can deduct medical expenses. However, changes in health…

FOR those of you who itemize, the table below should be of interest. For those of you who play the odds (you know what I mean), this table should be…

• YOU may deduct donations to qualified organizations.  Qualified organizations have tax-exempt status from the IRS. These include corporations or foundations organized in the U.S. for religious, charitable, educational, scientific,…

YES, of course. Direct deposit is the fastest and safest way to receive your tax refund. Here are reasons why you should use direct deposit of your refund: 1. Speed:…

IF you paid someone to care for your child, spouse, or dependent, you may be able to claim the Child and Dependent Care Credit on your federal income tax return….

1. DO not boast about how you got away with undeclared income or manufactured deductions. Ever heard of whistleblowers? They earn rewards of 15% to 30% of your assessments. If…

HERE are the top 10 things the Internal Revenue Service wants you to know about this valuable credit: 1. EITC not only reduces the federal tax you owe, but could…

OF course not. Why should I pay taxes based on the highest tax rates? The lowest rates belong to joint filers and widows, followed by heads of household and single…

PAY attention to your filing status because it determines your standard deduction, tax due, or refund. Here are 12 tips to help you choose your correct filing status: 1. There…

1. DON’T go to your appointment unprepared. 2. Don’t be late for your appointment with the auditor. 3. Don’t volunteer information. 4. Don’t be condescending of education, experience, age, or…

CHILD Tax Credit allows you to reduce your federal income tax by a maximum amount of $1,000 for each qualifying child through age 16. A qualifying child is someone who…

IF you lose an audit to the IRS, you have two choices: pay or appeal. If you are happy with the results (or don’t want to extend the agony of…

“  Be careful when having your residence deeded to a living trust. Upon death, if the A/B trust splits into a trust (Survivor’s Trust A) and an irrevocable trust (Bypass…

• Gambling winnings are always taxable and must be reported on your tax return – with or without form W-2G. • Gambling income includes winnings from lotteries, raffles, horse and…

(Frequently-Asked Questions on Gift Tax) IF I receive a gift, do I have to pay a gift tax? No. The donee (recipient) is not responsible for paying the gift tax….

LET’S discuss reasons why you should consider filing, even you are not required to: • You expect a refund. You have credits that can generate a refund – from taxes…

“ If you file for bankruptcy, timing is critical. The IRS cannot and will not entertain your OIC after you file bankruptcy.” AN offer in compromise (OIC) allows you to…

YOU plan to sell an apartment building that you purchased 10 years ago at $300,000. It is now worth $800,000. You want to sell but are worried about potential taxes….

SHORT sale occurs when a property sells for less than the remaining amount of indebtedness. Banks can go after homeowners for the deficiency – the difference between a low sales…

TOUGH times may necessitate dipping into your retirement funds before retirement. Look at the tax impact of such a move. You may be shocked to find out what you are…

IF YOU earned income in the last few years but didn’t file a tax return because your wages were below the filing requirement, the Internal Revenue Service may have some…

1. IRS wants you to keep good records to document your income and support your expenses. It does not require you to keep records in any specific manner, but there…

“Taxpayers who are hit with the 20 percent penalty for negligence or disregard of rules may try to establish reasonable cause for underpayment and show that you acted in good…