The ultimate purpose in filing bankruptcy is to obtain a discharge of most, if not all, of your debts. A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts, i.e., the debtor is no longer legally required to pay those debts that are discharged. The discharge is a permanent order which prohibits the creditors from engaging in any and all forms of collection activity on such debts.
IRS Audits – What Are My Chances?
It’s considered by many taxpayers to be one of the most frightening events that could happen related to their everyday business affairs. What is this frightening event? An IRS audit, of course. But is a tax audit really that scary in real life? The numbers reveal that only 1% of all taxpayers experience an audit, and of this one percent, about one in five result in a meeting with the IRS.
Presently, the IRS audits half as many taxpayers as it did five years ago. However, the amount of tax recovered per audit has increased. The IRS uses an elaborate computer selection process, auditing only those returns which will almost certainly yield some adjustment.
Renouncing Your US Citizenship to save Taxes? Think Again.
Unlike most countries, the U.S. taxes its citizens on all income, no matter where they live and where their income is earned. The current United States tax laws, because of requirements for reporting income, filing tax documentation, as well as the ensuing tax obligations, have made many Americans renounce their citizenship. Section 349(a)(5) of the Immigration and Nationality Act details a U.S. citizen’s right to voluntarily renounce his or her citizenship. Signing an oath of renunciation is an irrevocable act unless the individual is under the age of 18.
You’ve filed your tax return, how long does the IRS have to audit you?
You’ve filed all of your tax returns, and because of your level of income you find yourself in the class of taxpayers whose return is more likely to trigger an IRS audit. So you wonder, how long does the IRS now have to audit you?
Due to disclosure requirements, the IRS makes contact with a taxpayer selected for an audit by telephone or mail only. When returns are filed, they are compared against norms for similar returns. These norms are developed from audits of a statistically valid random sample of returns, selected as part of the National Research Program conducted by the IRS to update return selection information.
Uber drivers – employees or independent contractors? (What’s the significance anyway?)
By now everyone is familiar with Uber. And in case you’re not, Uber is an online taxi dispatch company that uses its own mobile app that allows its customers to submit a trip request on their smartphones for drivers who then pick up riders using driver-owned vehicles.
Uber’s business is built on an independent contractor (IC) model, which in Uber’s case means that ideally, Uber drivers receive no benefits, use their own vehicles, and pay all expenses for gas, maintenance, and insurance. Twenty to twenty-five (20 to 25) percent of driver earnings are paid to Uber as a fee to use its service. Some estimate that this contractor model can save businesses up to 30% on labor costs.
New Highway Bill Gives IRS New Collection Tools
In December 2015, Congress passed the Fixing America’s Surface Transportation Act (FAST). Provisions included in this bill authorize the State Department to deny or revoke passports for individuals with delinquent tax debt of more than $50,000. The bill also resurrects the IRS private debt collection program and requires the IRS to use third-party entities to collect tax debt under limited circumstances. The IRS contracted with private debt collection agencies from 2006 to 2009, but then at the end of this period insisted it could more efficiently collect the debt itself, thus ending the private program.
Tax Benefits Of MyRAs and ABLEs
In 2015, taxpayers were introduced to two new tax-friendly savings accounts that are designed for individuals who don’t earn an abundance of income, including low-income families which have members that are both young and disabled. ABLE (Achieving a Better Life Experience), and myRA (my Retirement Account) savings accounts were made available in January and November 2015, respectively. Let’s look at the benefits of the myRA first.
myRA
Should Donald J. Trump Release His Tax Returns?
In this most interesting presidential election primary season, many different issues have dominated the news. Perhaps no candidate has dominated the airwaves more than Donald J. Trump, the leading candidate in the Republican primaries. Unsurprisingly, Mr. Trump has made a number of controversial statements, antagonizing a variety of groups and countries alike. It is no surprise then that Trump is again in the center of the latest controversy – the release of his tax returns.
SOCIAL SECURITY TAXES DEDUCTIONS
Is There A Right To A Refund Of, Or A Deduction For, Social Security Taxes Paid Based On The Fact That A Taxpayer Has Waived The Right To Receive Social Security Benefits Or Has Donated Social Security Taxes Or Benefits To The Government?
As long as they are taxes, there will be taxpayers that consider any and all arguments, schemes, and angles to avoid paying them. The 21st century has seen a rise in situations where some taxpayers are filing claims for refund of their Social Security taxes using meritless arguments which have consistently failed in the past and which will consistently fail in the future.
TAX IDENTITY THEFT VICTIMS MAY OBTAIN COPIES OF FRAUDULENT RETURNS
A victim of identity theft or a person authorized to obtain the identity theft victim’s tax information may request a redacted copy (one with some information blacked-out) of a fraudulent return that was filed and accepted by the IRS using the identity theft victim’s name and Social Security Number.
Due to federal privacy laws, the victim’s name and SSN must be listed as either the primary or secondary taxpayer on the fraudulent return or otherwise the IRS cannot disclose the return information. For this same reason, the IRS cannot disclose information about any tax return to any person listed only as a dependent. Partial or full redaction will protect additional possible victims on the return. However, there will be enough data provided for the taxpayer to determine how his or her personal information was fraudulently used.