Each year households throughout Maryland prepare and file tax returns. While some individuals choose to file separate and apart from their spouses, others elect to file jointly. The responsibility of filing annual tax returns can often fall to one spouse when the...
What is the difference between tax avoidance and tax evasion?
As we gear up for the tax filing deadline coming up on July 15, 2020, just a few days away, some taxpayers may find themselves wondering whether moves they are taking in their tax filings are legal. What is the difference is between tax avoidance and tax evasion? One...
Beware of these audit triggers as tax deadline approaches
The Internal Revenue Service (IRS) pushed back the tax deadline to July 15, 2020. The deadline is fast approaching, and as taxpayers finalize their returns, they may find themselves wondering “what triggers a tax return?”Although invasive audits have declined, audits...
Do you owe the IRS if you win the lottery?
It was a big payday for a lottery ticket buyer from Arizona. The patron entered a local store, purchased a Mega Millions ticket, and left to soon become a millionaire. Later that evening, the ticket holder won the $410 million jackpot.The winner will not,...
IRS takes taxpayer to court for FBAR violation
The courts may be operating a bit differently in light of the current coronavirus pandemic, but they are still pursuing cases. In a recent example, the court issued a decision in a recent tax case involving a Foreign Bank Account Report (FBAR) violations.United States...
High-income non-filers owe billions, but for how long will the IRS leaves them alone?
Once January rolls around every year, people shift gears from talking about the holidays and New Year's resolutions to planning for the inevitable tax season. The vast majority of Americans pay their taxes in full and on-time.It might surprise most people to learn,...
Can I lose my passport if I do not pay my taxes?
Paying your tax bill is not just a suggestion, but a requirement. A failure to do so can lead to all sorts of problems. This can include financial penalties, interest payments, jail time and even loss of one’s passport.How can the government take away my passport if I...
Impact of COVID-19 on federal payroll taxes
Payroll taxes make up about 2/3 of the IRS' annual revenue. With the COVID-19 pandemic sweeping the globe and unemployment at an all-time high, the IRS is expecting a significant decline in this revenue, meaning after the panic has ended, they will need to replenish...
The IRS will need to recoup lost revenue from somewhere
In recent months, the United States has come up with a number of solutions to help taxpayers and corporations keep their heads above water. With tens of millions of families losing their stream of income and businesses shut down, the revenue stream is at a critical...
Owe taxes from 2019? Tips to reduce penalties.
Generally, taxpayers who owe from previous tax years can file an amended return and send a check to cover the missed bill. The harm that taxpayer faces depends on the details, but generally equates to a relatively small interest penalty. Unfortunately, in light of...
