1. Do not boast about how you got away with undeclared income. Ever heard of whistleblowers? They earn rewards of 15% to 30% of your assessments. 2. Do not hide…

YOU have just received an invitation to the offices of the Internal Revenue Service. They want to examine your return. Don’t panic. All these years, you have stashed funds for…

YES, I know, audits are serious stuff. But they do funny stuff to people like you when you are under audit, under stress. I have seen clients pretend to be…

YOU have one shot in asking the IRS to abate (forgive) penalties that have been assessed for late filing, late payment, or audit adjustments. Make this opportunity count. Submit a…

IT’S bad enough to receive a tax bill from the IRS. It gets worse when penalties and interest are added. Malo. 1. If the penalty is minimal, do it yourself….

1. THE failure-to-file penalty is generally more than the failure-to-pay penalty. If you cannot pay all the taxes you owe, file anyway to prevent the more costly failure-to-file penalty. 2….

AS our tax laws become more complex, we find it more difficult to comply. The COVID-19 pandemic makes compliance even more challenging. As we fail to comply in filing or…

IRS penalties have been consolidated into two groups: A uniform accuracy-related penalty and a fraud penalty. 1. Accuracy-related penalties are computed at 20% of underpayments attributable to any of the…

YOUR penalties may be abated (forgiven) if you can prove Reasonable Cause. Here are some tips for you: • You don’t have a background in finance or taxation • You…

IS the 2020 tax deadline extended again? No. 1. Requests for more time to file your taxes have been denied. IRS will stick with the July 15 deadline for 2019…

IRS extended the federal income tax deadline from April 15, 2020 to July 15, 2020. This new due date applies to both filings and payments due April 15, 2020. This…

WE discussed the benefits of divorce last week. Let’s discuss drawbacks this week. Medical insurance: It’s typical for one working spouse to carry medical insurance for the whole household. One…

WOULD you fake a divorce to save income taxes? I don’t advise it but let’s discuss it anyway – benefits this week and drawbacks next week. Medicaid for nursing home:…

1. You can amend to correct a previously filed tax return Form 1040, 1040A or 1040EZ. 2. Amend your return if you discover errors such as filing status, dependents, total…

HERE are 10 tips to avoid residency audits when you move to a tax-free state: • Get a driver’s license in your new state. • Register to vote in your…

I would, especially if I’m retired. Would you consider moving from high-tax California or New York to tax-free Nevada or Florida? You could. But then, there are other considerations; but…

PENNSYLVANIA • Retirement income: No state tax on your 401(k), IRA or pension income except if you retire early. • Social security benefits: No state income tax on your Social…

ALASKA •Retirement income: No state tax on your 401(k), IRA or pension income. • Social security benefits: No state income tax on your Social Security benefits. • Income tax: No…

THE IRS will never: • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not…

THE following groups won’t get stimulus payments: • Children who are 17 or 18 years old (those claimed as dependents by another). • Many college students between the ages of…

YOU probably wonder if you will receive stimulus checks. Me too. Here’s a simplified piece on the Economic Impact Payments for seniors. Please read Q&A Questions and Answers on prior…

WHAT should I do to receive the stimulus check? None. You don’t need to do anything. The IRS will calculate and automatically send your economic impact payment. How will the…

THIS article is lovingly dedicated to our fellow taxpayers who like to wait and wait and wait until the very last minute, then get excited on the very last day…

PRESIDENT Trump signed the Families First Coronavirus Response Act on March 18 to provide paid leave for workers and tax credits for small and midsize businesses to recover the cost…

PRESIDENT Trump signed the Families First Coronavirus Response Act on March 18 to bring much needed relief to employees and small to midsize businesses. Small and midsize employers can begin…

IRS extends the Federal income tax deadline from April 15, 2020 to July 15, 2020. This new due date applies to both filings and payments due April 15, 2020. This…

HERE is a welcome new for seniors like me. Probably you too. We hate filling out tax forms with small words crammed into small boxes. Fear not, support is on…

1. One big change this year is a reduction of Form1040 schedules from six in 2018 down to three in 2019. Some schedules will be merged while some will revert…

You fail to report investment income from interest and dividends: You must report interest and dividends from banks and brokers. If you fail to disclose such accounts to your spouse……

You deposited or withdrew over $10,000 in cash: Depositing or withdrawing over $10,000 in cash attracts attention. Banks are required to notify the IRS. Depositing or withdrawing $9,950 or $5,000…