James Maule tells the story of a tax preparation company called Mo’ Money Taxes: One of my readers alerted me to a story of which I had been unaware. It involves a tax return preparation enterprise that has created nightmares for its clients. The story involves a business called Mo’ Money Taxes, which is based [...]
Tags: News · Regulation of Tax Preparers · Tax Crimes · Tax Tips
Joe Kristan reminds us once again of why you should not use the sole proprietor form of business: A scary headline: “Freelance? An IRS audit may be in your future.” A Tax Court case yesterday shows why a Schedule C on your return might interest the tax man. A New York City taxpayer filed a [...]
Tags: LLC's · S Corporations · Tax Tips
Tony Nitti has published a great piece over at The Tax Adviser which explains the current state of affairs on the issue of compensation of S Corporation shareholders. Here is the Executive Summary, but read the whole thing. S corporation shareholders generally prefer dividend distributions of their S corporations’ profits over compensation payments from the [...]
Tags: S Corporations · Tax Tips
In the wake of the Roni Deutch tax resolution scam fiasco, here is some excellent advice from Russ Fox: As for the firms that still advertise and promise you that they’ll stop the IRS, and you will qualify to pay “pennies on the dollar,” remember that: Only about 15% of Offers in Compromise successfully make it [...]
Tags: Tax Tips
The IRS graciously gives taxpayers the following tips for how to choose a tax preparer: If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully [...]
Tags: Individual Taxation · Tax Tips
Eva Rosenberg of SmartMoney has an excellent article today about why you should avoid tax relief firms like Roni Deutch, Tax Masters and J.K. Harris: Let’s look at recent court cases filed against television and radio advertisers, preying on your fears, your insecurities, and your tax terrors. All cases involve national tax resolution firms who have [...]
Tags: Tax Collections · Tax Tips
Laura Sanders of the Wall Street Journal gives a rundown of some of the important tax changes for 2010 in Taxes – April 18 (Yes, that’s right) Is Coming Up: Here are [some major] changes affecting 2010 returns. First-time homebuyer tax credit: There have been several versions of this credit, but most taxpayers who claimed it for [...]
Tags: Individual Taxation · Tax Tips
