To close the year 2024, we bring to your attention a case on the news (NYTimes) a mind blowing case where a tax preparer through a network of franchises ATAX stole more than $145 million from the IRS. Back in April 2024, the IRS make the case public and issued a press release (see link
Since the pandemic, there is a higher mobility on the working force and even companies switching headquarters to more tax friendly environments. As a member of the Philadelphia Tax Reform Commission, we considered extremely relevant the comparison of State and Local taxes in different territories. Taxes is one of the factors for business and individual
You need to be extremely careful on how you get in business with. You might end up being liable for ghost income, funds stolen from your partners and many other issues. In the Maggard v. Commissioner, (TC Memo 2024-77), James Maggard co-founded an engineering consulting partnership, the initial co-partner left buying him out, and then,
First, what is this harvesting? – no, you do not need to live in a farm. Tax loss harvesting is selling investment with a loss (take that capital loss) and apply against the capital gain of profitable investments. Example 1: Sold share of X Inc with a $5k loss (purchased at $7k and sold at
At this point, our readers should be aware that there are certain industries that are more subject to examinations like restaurants and retail industries, especially if cash intensive and low controls in place. You can see numerous tax evasion schemes related to restaurants in the news, United States Attorney's Office of each State and the
In the IRS IR-2024-262, the IRS estimated that there is a tax gap of around $696 billion for 2022. Even if the IRS mentioned in their communication that 85% of taxpayers are compliant, the 15% remaining is broken down in the following three areas (extracted directly from IRS communications): "... Non-filing, which means tax not
In the recent IR-2024-299 released at the end of November, the IRS indicated that the 1099-K threshold is delayed again. The 1099-K form is used by Third Party Settlement Organizations (TPSOs) like Venmo and similar cash apps and credit card processing vendors. The thresholds will be: 2024 - $5,000 2025 - $2,500 2026 - $600
If you are a reader of our posts, you are aware that the IRS has increased significantly its funding (billions of dollars). As part of this inflow of money, the IRS has focused on two fundamental areas: 1) Customer services and 2) Enforcement. The IRS keeps publishing the data in an example of transparency and
Over the past twelve months, we’ve noticed a concerning rise in IRS deficiency notices (CP3219N) sent to taxpayers. In most cases, these letters result from discrepancies between filed tax returns and the IRS's records from third-party sources. When the IRS identifies a difference, they send a notice with the following options: File a Tax Return
You might have hear derogatory terms to refer to the IRS agents or to the entity in general, like "in my audit, I just threw them a bone to leave me away". However, this is nothing farther from the truth as in the recent years, the funding has been increased and the IRS employees has
