As most of our readers already know, the Fifth Amendment to the Constitution protects us from being forced to incriminate ourselves. This is why police must tell people they arrest that they have “the right to remain silent.” In other words, nobody has to say anything...
Under state and federal tax laws, a debt that the creditor forgives the debtor generally is considered taxable income for the debtor. The thinking is that having the debt obligation removed is a financial benefit, even though there is no direct increase in...
With April 15 behind us, many persons are feeling relieved, knowing that their returns have been filed. However, for a certain group of persons, their business with the IRS has only begun. For a few, a tax audit may be in store, which is something that most people...
Maryland Gov. Larry Hogan has a message for residents hoping for a lower income tax bill: wait ‘til next year.The state General Assembly closed its 2016 session last month without passing an income tax cut. The Baltimore Sun reported that the state Senate and the...
In 1992, the U.S. Supreme Court ruled that states can only impose sales taxes on businesses that have a physical presence in those states. Of course, that ruling came down years before internet retailing became possible. Now that doing business online is ubiquitous,...
You have probably heard of this scam before: a con artist calls up potential victims, claiming to be an IRS agent and demanding immediate payment of a supposed tax bill. Perhaps you have even received one of these scam calls yourself.As we said in this blog recently,...
Among other things, having the IRS after you for a tax bill can affect your ability to use funds awarded to you in a lawsuit verdict or settlement. Such money is meant to compensate you for some wrong done to you by another party, not enrich you. Being deprived of...
If you are facing tax problems, there are generally two types of professionals you can turn to for help: certified public accountants (CPAs) and tax attorneys. Although both professionals can potentially help with a given tax issue, if the issue involves a legal issue...
Back on March 8, we shared some potential red flags on your federal income tax return that raise your chances of having the IRS audit you. There is a lot of advice about how to avoid an audit out there, some of it accurate, some of it false. Today, we will share seven...
It’s the 11th hour: income taxes are due Apr. 18. That’s just four days from the date we wrote this post.People who have yet to file may be dreading having to spend the weekend filling out their tax return to avoid late penalties. But there is another option. The IRS...
