Maryland residents may recall the controversy surrounding conservative groups that may have received extra scrutiny from the IRS. However, other groups had also drawn scrutiny from the IRS as well. An audit revealed that groups seeking tax-exempt status with words...
Year: 2017
IRS stepping up enforcement of “nanny tax”
Maryland residents may not think much of paying a household worker in cash. However, it may be a mistake to not withhold payroll taxes for those who made more than $2,000 in either 2016 or 2017. While children and parents are exempt from this requirement, others such...
Sales tax burdens are higher in some states
Maryland residents may be used to paying sales tax on most purchases that they make. However, they do not pay as much as Hawaiians. Hawaii residents pay an average of $2,090 in sales taxes each year. North Dakota, Washington, Nevada and Wyoming are also in the top...
The basics of tax evasion
To understand tax evasion, Maryland residents should first know the tax process in more detail. When they file a return stating their yearly pay, the IRS will find their adjusted gross income by calculating deductions or expenses that cannot be taxed. Common...
Do you have to pay taxes on offshore gambling winnings?
You've been playing poker for years. You started when you were a teen, playing with your friends for fun. No money changed hands. You learned the ins and outs of the game, though, and found you were really good. Then poker blew up. It was all over the television. You...
When disaster strikes
People living in Maryland know the importance of being prepared for natural and man-made disasters. Despite one's best efforts, however, there is still often a flurry of activity as individuals and families attempt to reestablish their lives after life-changing...
Questions about new IRS rules for partnership audits
New rules for audits contained in the Bipartisan Budget Act of 2015 will become effective on Jan. 1, 2018, but officials at the Internal Revenue Service acknowledge that procedural questions still need to be settled. Business partnerships in Maryland therefore could...
Could the ‘Cohan Rule’ apply if you don’t have receipts?
If you ask any accountant or tax lawyer, accurate bookkeeping is essential to filing a complete and accurate income tax return. Keeping receipts is also important in defending oneself in the event of an audit or any other court action to collect on back taxes.Given...
Businesses should be aware of online tax software scams
There's an old saying about the two constants that everyone must deal with: death and taxes. With today's technological advancements, a third should be added...phishing scams.The term "phishing" refers to the act of a scam artist posing online as a legitimate company...
Accounting for gambling proceeds on a tax return
Maryland residents who gamble casually should report all of their winnings on their federal income tax return. Individuals should also report the fair market value of any prizes won such as a car or vacation. Examples of gambling include playing the lottery or betting...