In the previous post, we laid out the central tax compliance challenge for businesses that outsource payroll services.
The U.S. tax system is based on the premise of voluntary compliance. It is up to each taxpayer to keep track of her or his own tax liability and pay accordingly. Tax penalties are a means used by the IRS toward the end of compliance.
The Internet has allowed businesses to expand in ways that were not previously possible. In fact, the Internet has allowed businesses to form in ways that were not previously possible. In the past, if an individual or individuals wanted to start a business, startup money had to be found by individual means, by loan or by soliciting funds from investors, family members or other businesses through face-to-face interactions, letter campaigns or telephone calls. The Internet has seemingly changed forever the ways in which businesses can obtain startup and expansion money through its unique capacity for crowdfunding.
If you own a small business, you may provide uniforms for your employees. You may even wear one yourself. These uniforms may be integral to the operation of your business or they may simply enhance your customers' experience and your employees' sense of cohesion and focus. Whatever the purpose of your work uniforms is, you likely view them as a business expense. But just because you view them as a business expense does not necessarily mean that you may deduct their cost from your business taxes.
What To Do If You Are Audited by the IRS?
On behalf of Kundra & Associates, P.C. posted in Tax Controversy
The threat of a massive tax bill is causing some U.S. citizens who live abroad to renounce their citizenship. Many of these expatriates are middle-income earners, but because of increased enforcement of a four-decade old tax law, which they may have failed to comply with, they could face owing tax penalties and interest that could potentially drain much of their assets.
For many small businesses, taxes are a distraction. You run your business; you deal with your customers, vendors, suppliers and employees. Taxes, while a necessary evil, are not something you want to spend too much time thinking about, as that is why you hire an accountant and/or a tax attorney. Maybe tax payments become something akin to wallpaper; they are there, but you often do not pay much attention to them.
U.S. Taxpayers with financial interest in unreported foreign financial accounts have been under scrutiny by the Internal Revenue Service. This is a reminder that the Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts ("FBAR") for the 2013 tax year is due on June 30, 2014. Taxpayers with interest in foreign financial accounts whose aggregate balance exceeds $10,000 are required under the Bank Secrecy Act to report such accounts to FinCEN on a yearly basis.
Of the tools the Internal Revenue Service (IRS) possesses, few can be more troubling to taxpayers than that of an audit. There is both the element of digging back through past years records that is always a bother, and the fear, even if you believe your income tax filings are scrupulously accurate, that there is a mistake or error.