When it comes to running a business, one of the key goals is to minimize expenses and maximize profits. One often overlooked avenue for achieving this is by taking advantage of tax deductions. Section 179 of the Internal Revenue Code offers a powerful tool for business owners to significantly reduce their tax liability while investing […]
Live Here, Work There. Where Do I Pay State Income Taxes?
After weeks or months of job seeking, you land your dream job — but it’s in a different state. The location of the job is close enough so that you can commute every day rather than move. However, you are still faced with the dilemma of where and how to pay state income taxes. Understanding […]
The IRS is Auditing My Crypto. Now What?
The rise of cryptocurrency has brought unique challenges to the tax filing process. As digital currencies like Bitcoin, Ethereum, and others gain mainstream acceptance, they have also attracted the attention of the IRS. Cryptocurrency transactions are taxable events in the United States, and failure to report them accurately can result in an IRS audit. If […]
IRS Notice CP2000: Underreporting Income to the IRS
Did you receive a surprise tax bill after underreporting income? CEO David King and Lead Tax Attorney Philip Hwang provide insight on what your tax bill could mean and steps you could take to resolve your tax burden with the IRS. If You Need Tax Help, Contact Us Today for a Free Consultation
What To Do If You Receive IRS Notice CP49
Receiving an IRS notice can be unsettling, especially when it concerns your tax refund. IRS Notice CP49 informs taxpayers that their federal tax refund has been applied to a prior year’s outstanding tax debt. While it may come as a surprise, understanding what to do if you receive IRS notice CP49 can help you address […]
How Does a Home Foreclosure Affect Your Taxes?
Home foreclosure is a difficult and often overwhelming experience. Beyond the emotional and financial strain of losing your home, a foreclosure can also come with significant tax implications that many homeowners may not be prepared for. Understanding these tax consequences is crucial to navigating this challenging time and avoiding surprises when filing your tax return. […]
Is Overtime Pay Taxed?
Overtime pay is an integral part of many workers’ compensation packages, offering earnings for putting in extra hours beyond the standard workweek. While employees may appreciate the boost to their paychecks, questions often arise about how overtime earnings are taxed. Understanding the tax treatment of overtime pay is essential for managing your finances and avoiding […]
What is a Trust Fund Recovery Penalty?
The Trust Fund Recovery Penalty (TFRP) is an enforcement tool used by the IRS to ensure the proper handling of trust fund taxes. It particularly pertains to payroll taxes withheld from employee wages. For business owners and individuals involved in financial decision-making, understanding the TFRP is vital to avoid severe financial and legal repercussions. This […]
Can the IRS Suspend Your Licenses?
The IRS holds significant power when it comes to enforcing tax compliance. From wage garnishments to levies on property, the IRS has a variety of tools to collect unpaid taxes. But can the IRS suspend your professional, business, or driver’s licenses? This article explores the extent of the IRS’s authority, its collaboration with other agencies, […]
How to File Taxes If Your Spouse or Dependent is Incarcerated
Filing taxes can be a complex process, and it becomes even more challenging when your spouse or dependent is incarcerated. In such situations, various considerations and adjustments must be made to ensure accurate and lawful tax filings. This article will guide you through the process, providing valuable information and tips on how to file taxes […]