There are few things as disconcerting as receiving the notice that the IRS will be conducting a tax audit on your return. Such a notice can be very upsetting and understandably so when it is totally unexpected. However, instead of panicking or believing the worst, it is important to remember that the IRS will often conduct random audits every year which mean that your filing may actually be fine.
IRS Fast Track Settlement Program
Yesterday, November 6, 2013, the IRS expanded nationwide, its streamlined Fast Track Settlement program (FTS), which aims to help small businesses and self-employed individuals under audit settle their differences with the IRS over their tax debts more quickly. The Fast Track Settlement program is designed to help small businesses and self-employed individuals who are under examination by the IRS.
The FTS program uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, your New York Tax Lawyer can resolve audit issues within 60 days, rather than months or years that it otherwise may take. Taxpayers nonetheless retain all of their rights to appeal even if they take advantage of the FTS program and they are not pleased with the outcome.
How Can A New York Tax Lawyer Help You?
Just recently, an entertainment company in New York that is in the business of distributing TV shows throughout the state and the country was involved in a tax case before the state’s highest court. This stemmed from the said company’s charging of sales tax from its customers who lease their satellite dish, which is needed to receive signals for TV shows, for a monthly fee. After four years of operating the business, state auditors found out that the company have committed violations of the state’s tax laws. State auditors argued that the company’s parent company should have paid sales tax for acquiring the satellite dishes, but it did not and instead passed the sales tax payment to its customers. The case is still pending with the state’s Court of Appeals.
Getting Help from A Tax Lawyer in New York
Ascertaining taxes that are due to be paid is not a simple job. This is especially true if the taxpayer concerned has multiple sources of income at hand. The fact is that having multiple sources of income is the current trend in our economy, and this in turn can be attributed to the revolutionizing effect of technology to the society in general and the economy in particular.
Tips to Start Planning Next Year’s Returns
Tips
to Start Planning Next Year’s Tax Return
It’s certainly not too early to begin planning for next year’s tax return. Though, for most taxpayers, the deadline for this year has just recently passed, the countdown for next year has already begun. Planning for next year should start now. The
earlier you begin preparing for the next tax filing season, the better prepared you will be, maximizing your deductions and tax credits. Being organized and planning ahead also will save time and money in 2014. Here are six things you can do now to make next April 15 easier.
Top Ten Biggest Tax Breaks
A lot of speeches have been given of late about tax cuts, tax breaks, deductions, etc. So, who gets the biggest tax breaks? According to New York Tax Attorney at Thorgood Law Firm, the Top Ten tax breaks are:
- $181 billion – Employer contributions towards workers’ medical insurance premiums and medical care
- $165 billion – Various retirement plan contributions and earning not taxed
- $101 billion – Mortgage Interest deduction
- $84 billion – Lower tax rates on long-term capital gains and qualified dividends
- $69 billion – Deduction for state and local taxes
- $46 billion – Deduction for charitable contributions
BUSINESS OR HOBBY? Will the IRS allow you to deduct losses?
At one time or the other, most of us get involved in one kind of venture or another, sort of trying your hand at something different. Sometimes we make money in these ventures and the IRS can be counted on to expect its share of the profits. But what if you lose money in the venture, will you be entitled to a deduction on your return for the loss?
TOP TEN WAYS TO GET YOUR RETURN AUDITED
1. Unreported 1099 Income – This is perhaps the easiest way IRS can track down non-complying taxpayers. Every single Form 1099 issued to a taxpayer is only but a copy of the one in IRS records – IRS is aware of the income as it is also reported to them by the third party payer of compensation, interests, dividends, etc. Failure to report this income is one of the easiest flags for further review of tax returns.