Taxpayers in Maryland who receive tips as compensation for their services should be aware of the Internal Revenue Service Chief Counsel Memorandum regarding cash payments issued from tip boxes. According to the IRS, the company in question had people on its premises...
Year: 2018
What to know about sales and use taxes in Maryland
In the state of Maryland, there are several scenarios in which a business must collect and pay sales and use taxes. Even if a company does not have any taxable sales in a given quarter, it must still file a report by the 21st of the month following the end of that...
Landmark Supreme Court decision legalizes sports betting
For years, people have told you that sports betting is illegal. Unless you go to Las Vegas, Nevada, you can't wager money on the outcome of games.That has not stopped people from doing it. Even that office pool regarding who wins the Super Bowl could have breached...
If you profit from trading cryptocurrency, you must pay tax
In the last six months, cultural awareness of cryptocurrency has become a powerful cultural and economic force. What was once only used to fund untraceable purchases of items on the dark web is now used by some to purchase homes or even fund new business operations....
How to reduce the odds of a tax audit
Maryland residents and Americans across the country have an average odds of 1 in 160 of having their tax returns audited. The number increases to 1 in 23 for those who make over $1 million a year. Those who make less than $200,000 have a lower than average chance of...
The effects of declining IRS audit rates
Many taxpayers in Maryland are perpetually concerned about the potential of an IRS audit, even when they've taken care to file everything correctly. Statistics show that the overall audit rate of the tax agency is continuing to decline and that this decrease is...
Filing taxes for money in foreign banks
The United States Internal Revenue Service applies special tax reporting standards to assets held in foreign financial institutions. These tax reporting rules require some individuals with foreign assets to file a specific tax form.Tax laws pertaining to foreign...
How to prepare for an IRS audit
Due to the recent tax reform legislation, companies in Maryland and throughout the country could face a greater IRS audit risk. Some businesses will have had a greater incentive to accelerate deductions in 2017 and defer income to 2018. This could be seen by the IRS...
What to do after hearing from the IRS
When Maryland residents have their tax returns accepted by the IRS, it doesn't mean that there weren't any errors. In a given year, millions of people will receive a notice from the IRS, and mistakes could lead to an individual paying more to the government. However,...
Understanding the concept of choate
The word choate is one that Maryland residents might not be familiar with. If something is choate, it is considered to be justifiable against other claims. This concept generally comes into play when the IRS puts a lien on a person's property for failing to pay an...