IRS Tax Audit Penalties

In a typical non-criminal IRS tax audit case, the IRS may assess accuracy related penalties or civil fraud penalties for tax adjustments not in your favor.  The penalties can be significant causing you more pain with the whole audit process.  What are these two penalties? Continue reading…


Questions on the New "fiscal cliff" Regulations

Questions: Please clarify the “new” “fiscal cliff”  income tax regulations regarding:
Taxes on capital gains and dividends will also rise to 20 percent. Is the rise progressive. i.e. only applies to unearned income over $500,000 ?

Taxes will also rise by five percentage points for large estates, over what amount ?

Married couples who earn $300,000 or more will face caps on itemized deductions and exemptions. Please clarify Continue reading…


Tax Help Question on Volunteering

Question:  My father is retired and volunteers about 40 hours per week at the church doing maintenance. He was told my a business owner to open an LLC and get a letter from the church for his work to used as a tax deduction. Is this really plausable since they LLC wouldn’t be generating income? How would this effect his personal taxes? Is there a way to actually do this? Thank you. Continue reading…