Tax Matters - The Top Tax Defenders Blog

Not filing taxes for several years could have serious repercussions. Not only can the IRS stop you from applying for a passport or a mortgage, but they can also create a Substitute for Return against you, charge you for failure to pay, or charge you for failure to file.

As it turns out, non-profits must follow more than the tax law when it comes to being an exempt entity. If they hire employees, they also have the responsibility for payroll taxes, just like any business.

The Tax Cuts and Jobs Act of 2017 created significant changes in exemptions, deductions, and credits for your federal taxes. One change you may not have noticed is the way alimony is treated.

If you weren’t one of the taxpayers caught off-guard by a smaller than expected tax refund last spring, or worse, received an unexpected tax bill, the IRS has a tool for you.

It seems as though the IRS doesn’t let a day go by without making announcements sure to put fear into the American taxpayer. Including the ones in this post, the IRS has launched 59 campaigns to date. 

As easy as technology has made it to file taxes quickly and get that all-important rebate deposited right into your bank account, it has also made it easier for thieves to steal your identity to commit tax fraud. Tax professionals are on the hook as well. They must follow scrupulous security procedures to ensure their clients’ data isn’t exposed.

Did you file for a tax extension for your S-corporation last March? Guess what. September 15, the deadline for filing your taxes after an extension is almost here. You have been getting your stuff together for this, right?

Uh oh. You have a letter from the Internal Revenue Service. Why, oh, why? What did you do, or not do (as the case may be)?

In the case of Letter 6174-A, it just means that the IRS believes you may have messed up your taxes because you didn't correctly report cryptocurrency transactions. That's all it means. If you did everything correctly, you don't even need to respond. 

Still, what is all this about?

Identity theft is a serious disruption to the life of anyone it touches. Your credit score, bank account, and more are at risk. What you may not realize is that someone could file a fraudulent tax return using your information. 

Receiving mail from the Internal Revenue Service is enough to make anyone’s knees quiver. It almost always means you owe more money to Uncle Sam for one reason or another. In the case of a Notice of Deficiency, formally known as CP3219A, it means that the information you provided with a tax return does not match up with the information a third party sent, like a bank for an employer.