Independent Contractor or Employee

It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid

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Posted in Employment Tax, Independent Contractor

Medical expenses for dependent elderly relatives

With regard to medical expenses, long-term care expenses are deductible if an individual is a chronically ill individual under the cognitive impairment trigger and are provided pursuant to a plan of care prescribed by a licensed health care practitioner. In

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Posted in Dependent, Medical Expenses

Tax Incentives for Ethanol

Biofuels have been embraced by supporters from President George W. Bush to the Natural Resources Defense Council. Before 1930, the U.S. Treasury focused on shutting down small alcohol producers. After 1978, U.S. energy policy sought to encourage ethanol production to

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Posted in Tax Credit

Help for Victims of Ponzi Schemes – Revenue Rule

The IRS provides two items of guidance to help taxpayers who are victims of losses from Ponzi-type investment schemes. Revenue Ruling 2009-9 provides guidance on determining the amount and timing of losses from these schemes, which is difficult and dependent

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Posted in Tax Fraud, Tax Guidance & Preparation, Theft Loss

Is a tax levy on your wages creating hardship?

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy

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Posted in Intent To Levy, Intent To Lien, IRS Appeal, IRS Audit, IRS Centralized Insolvency, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

Unemployed Tax Ramifications

The loss of a job may create new tax issues. Severance pay and unemployment compensation are taxable. Payments for any accumulated vacation or sick time also are taxable. You should ensure that enough taxes are withheld from these payments or

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Posted in Unemployment

IRS Voluntary Disclosure Practice

IRS Voluntary Disclosure Practice TAX CRIMES - GENERALIRM Voluntary Disclosure Practice (1) It is currently the practice of the IRS that a voluntary disclosure will be considered along with all other factors in the investigation in determining whether criminal

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

Deducting Theft Losses From "Ponzi" Schemes

The IRS released Rev. Rul. 2009-9 addressing the tax treatment of "Ponzi" scheme losses, and Rev. Proc. 2009-20 which provides safe harbor options for deducting these losses. The guidance is welcome relief to the thousands of investors who have lost

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Posted in Tax Fraud, Tax Guidance & Preparation, Tax Problems & Requests, Theft Loss

Tax Preparer Standard of Conduct – realistic possibility vs. more likely than not

The Small Business and Work Opportunity Tax Act of 2007 heightened the standards of conduct that must be met by tax preparers from 'nonfrivolous' to 'reasonable' basis for disclosed positions and from 'realistic possibility of success on the merits (33%chance

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Posted in Tax Guidance & Preparation, Tax Preparer

Pitfalls of itemizing deductions

These days, pretty much the only taxpayers who can itemize are those who have mortgages with high balances, those whose incomes are in the high six figures or above, with a heavy state tax burden, or the very ill, with

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Posted in Deductible Expense
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