Why You Should File Past Due Tax Returns, Now!

January 19, 2017 Shamsey Oloko Leave a comment Income Tax Return, Late Returns

Taxpayers that have failed to file tax returns for some extended period of time should strongly consider doing so immediately. Even if taxpayers have filed for an extension, time is of the essence to avoid costly penalties as the IRS assesses failure to file (FTF) and failure to pay (FTP) penalties in this situation.

The failure to file penalty is assessed at a rate of 5% per month or partial month up to a maximum rate of 25%. The failure to pay penalty is assessed at a rate of 0.5% per month or partial month up to a maximum rate of 25%. If the IRS assesses both the FTF and FTP penalties, the FTF penalty is reduced by the amount of the FTP penalty.

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The (Trump’s) Net Operating Loss (NOL), Explained

January 17, 2017 Shamsey Oloko Leave a comment Deductions, Income, Income Exclusions, Income Tax, Profits & Losses, Taxable Gain, Taxable Income, THORGOOD Law Firm

At the beginning of October, the New York Times released pages from Donald Trump’s Connecticut, New Jersey and New York 1995 tax returns, apparently reflecting that the Donald declared “other income” of negative $916 million and was prepared to forego any federal income tax liability for up to 18 years by carrying forward this “net operating loss” (NOL). So what is a net operating loss?

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Seven Deadly Tax Sins

January 10, 2017 Shamsey Oloko Leave a comment Audit, Business Expense, Business Expenses, Charitable Contributions, Child and Dependent Care Credit, Child Tax Credit, Civil Liabilities, Civil Penalties, Collection Activities, Criminal Liabilities, Delinquent Taxes, Dependents, Expenses Deductions, Filing Status, Fraudulent Return, Income Tax, Itemized Deductions, Late Returns, News, Qualified Expenses, Tax Evasion, Tax Fraud, Tax fraud & evasion

7 Deadly Tax Sins

When it comes to the IRS, some bad acts are worse than others. We have compiled below the top ones to avoid at all costs. However, if you should find yourself in the middle of one, you should certainly call tax attorneys to get you out of the bad situation (yes, it is a bad situation).

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Can Your Non-Profit Foundation Pay $10,000 For Your Self-Portrait, Like Trump?

January 9, 2017 Shamsey Oloko Leave a comment Non-profits, Tax Fraud

In September, one of Donald Trump’s advisers offered an explanation regarding a portrait of Trump which was placed on display at a Florida golf resort owned by Trump. The Donald purchased the painting at a charity auction for $10,000 in 2014. The painting was paid for with a check from the Donald J. Trump Foundation, the tax records of which show no personal donations from Trump since 2008.

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Another country, Singapore, is automatically exchanging your Information with the IRS.

January 6, 2017 Shamsey Oloko Leave a comment FATCA, Tax Evasion, Tax Fraud, Tax fraud & evasion, Tax Information Exchange Agreement

In an effort to combat offshore tax evasion, the United States and Singapore have pledged to negotiate and sign by the end of 2016 a tax information exchange agreement (TIEA) and a FATCA intergovernmental agreement (IGA) that provides for the reciprocal automatic exchange of financial account tax information.

The U.S. and Singapore governments issued a joint statement promising cooperation on tax issues affecting both nations. The intergovernmental agreement would provide for the reciprocal automatic exchange of information with respect to certain financial accounts under the Foreign Account Tax Compliance Act (FATCA). The two countries are to complete negotiations and sign the agreements by the end of 2017.

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Tax Benefits of Supporting Your Parents

January 4, 2017 Shamsey Oloko Leave a comment Child and Dependent Care Credit, Child and Dependent Care Creidt, Civil Liabilities, Civil Penalties, Criminal Liabilities, Deductions, Expenses Deductions, Filing Status, Income, Income Tax, Income Tax Return, Medical Expenses

Did you know you could be responsible for your parents’ unpaid bills? Ever heard of Filial Responsibility Laws? Well, these are laws obligating you to provide financial support for your indigent parents. Yes, obligated under law. According to the National Center for Policy Analysis, 21 states across the country (including states like Connecticut, New Jersey and Massachusetts) allow for a civil action to obtain financial support for indigent parents. At least 12 states may impose criminal penalties on children who refuse to support their parents. Though rarely enforced, these laws may be dusted off by states looking to save money on Medicaid bills.

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Your Business Loses Money; Tax Benefits or Concerns?

December 28, 2016 Shamsey Oloko Leave a comment Business Expenses, Deductions

I’m often asked by nervous new business owners if they can recover a tax refund for a business loss. Receiving a tax benefit from a business loss depends on the type of entity formed and whether the investment in the business is “at risk” in whole or in part. It also depends on the presence of other income.

Owners of a corporation are not taxed directly on business profits and losses because the corporation’s taxes are taxed separately. For other types of enterprises, business income and loss passes through to the owner’s personal tax return. These business types are:

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IRS Is Outsourcing Tax Debt Collection: Good News Or Bad News?

December 26, 2016 Shamsey Oloko Leave a comment Bad Debt, Private Tax Debt Collection

In September of 2016, the Internal Revenue Service announced that it plans to begin outsourcing the collection of some overdue federal tax debts in the spring of 2017 to private contractors, and has contracted with four collection outfits to implement this new program.

Authorized under a federal law enacted by Congress last December, the new program enables the following designated contractors to collect, on the government’s behalf, outstanding inactive tax receivables. As a condition of receiving this contract, these agencies must respect taxpayer rights, which includes observing the consumer protection provisions of the Fair Debt Collection Practices Act.

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Can You Claim Your Child As A Dependent On Your Tax Return?

December 23, 2016 Shamsey Oloko Leave a comment Dependents

If you support children, relatives, or even non-relatives, you may be able to claim them as dependents on your tax return. Specifically, if someone qualifies as a dependent, you may claim them on your tax return unless you or your spouse qualifies as a dependent for another individual. It is important to remember that if someone else may claim you (or your spouse, if filing jointly) as a dependent, whether or not they actually claim you, then you may not claim any dependents nor take any tax exemptions, even for yourself.

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