The Internal Revenue Service may sometimes seem like an all-powerful and all-knowing entity to taxpayers. However, like any organization made up of humans, this agency is more than capable of making mistakes. For example, the IRS sometimes makes mistakes in the tax bills it issues to taxpayers.
When a person is engaged in a business endeavor, one thing that can prove to be very important is what disclosures they make to the Internal Revenue Service. Inadvertently failing to disclose certain things to the IRS could expose a business owner to some very unpleasant surprises indeed. An upcoming change in IRS rules and practices is expected to add some big consequences to one particular type of missed disclosure: failing to disclose a partnership.
It is one of the big fears a taxpayer may have, that they will one day receive a big bill from the IRS that they don’t have the money to pay. Some people’s gut reaction to getting bad news might be to ignore it and delay taking any action regarding it, so they don’t have to think about it. Also, some individuals might make the incorrect assumption that if they have a tax bill that they currently are unable to pay in full, they have no real options and thus it really doesn’t matter how they respond to the bill.
A budget deal was recently reached regarding the funding of the federal government for the period going up to the end of this September. Among the many provisions in the spending bill are provisions touching on the Internal Revenue Service.
Business owners struggling with debt may be more concerned with keeping their business afloat than paying all of their creditors. This may even be the case if the IRS is one of the creditors demanding payment. Indeed, the IRS’ power to collect taxes is legendary, but business owners may not realize this until the IRS closes their doors.
There are various times when making incorrect assumptions can wreak considerable havoc on a person’s life. One of these times is tax filing time. Making incorrect assumptions when it comes to one’s taxes could result in a person making critical mistakes in their tax filings. Such mistakes could put a taxpayer under significant IRS scrutiny, and subject them to the many impactful things that can go along with such scrutiny.
For a small business owner, there are many mistakes that could have serious ramifications for their business. Tax mistakes certainly fall into this category. Allegations of having made such mistakes could expose a business to intense Internal Revenue Service scrutiny, audits, a big tax bill or tax penalties.
Divorces can impact all manner of areas of a person’s life. This includes an individual’s tax situation. For one, a divorce impacts a person’s tax filing status. And this is just the tip of the iceberg of the tax implications of divorces. Examples of things a divorce and what happened in the divorce can affect for a person tax-wise include:
Tax season is upon us. Among the things this means is that taxpayers are seeing a lot of tax documents. Sometimes, changes are made to such documents. Recently, some changes were made to a tax form that regards something many people here in the U.S. claim deductions in relation to: mortgage loan interest payments. We discussed deduction issues related to mortgages in a previous post.
Many people view interactions with the Internal Revenue Service negatively and as something to dread. There are various reasons for this. One is that such interactions sometimes happen in very stressful and high-stakes situations, such as situations in which a taxpayer is accused of having done something wrong on their taxes or told they owe more in the way of taxes than they thought they did. Another is that there is a certain degree of intimidation a person can feel when dealing with a major federal agency that can take enforcement actions that could have major impacts on a person’s life.