This is topic no one really wants to discuss because most people dislike paying the IRS on a quarterly basis. Who wants to take money from their earnings to pay Uncle Sam? To date, we have not found anyone that enjoys this process. But it is a necessary evil. Failing to pay estimates can lead to large tax bill at the end of the year including a significant amount of penalties. This blog reviews the basic rules for paying estimated taxes.
The charitable contribution deduction is one of the main deductions most individuals claim on his or her personal tax return. It is also an deduction some taxpayers and practitioners claim without supporting documentation. What are the proper record keeping rules for the charitable contribution deduction?
Your tax return was selected for audit. The auditor reviewed your information and disallowed some of your deductions. As a result, you owe additional taxes including penalties and interest. How could this happen? You been using a trusted CPA for years to prepare your tax returns.
On 4/15 of every year, us tax practitioners are happy for two reasons. First, the tax season is basically over. But more importantly is the number two reason. Tax returns filed more than 3 years ago can generally be no longer changed by the IRS.
If the business does make a profit three out of five consecutive years (two out of seven for training, showing, breeding, or racing horses), then the facts and circumstances will be evaluated to determine if the business is “For-Profit” or hobby. There are 9 factors that are evaluated. In the previous blog we evaluated Factors 1 - 4 of the 9 factors. This blog reviews Factors 5 – 9.