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The IRS is a few months away from launching new look and feel to the IRS’s website (IRS.gov) and you have an opportunity to review the new Homepage about its look, content, and how easily you can find content to answer your tax questions. You can do this through June 30, 2017 by accessing IRS.gov, navigating […]

Which Type of Mortgage Loan Meets Your Needs? Few purchases during your lifetime will be as expensive as buying a home. Whether it’s your primary residence, a vacation home or an investment property, how you choose to pay for it can have a significant impact on your financial situation over time. If you’re considering a […]

I have written a lot about my concerns regarding Appeals’ independence over the years. Most recently, in my 2016 Annual Report to Congress, I discussed Appeals’ reluctance to collaborate with taxpayers to design a “Future State” that takes taxpayers’ and tax practitioners’ concerns into account. Now, there is another development in the continuing erosion of […]

Which Type of Mortgage Loan Meets Your Needs? Few purchases during your lifetime will be as expensive as buying a home. Whether it’s your primary residence, a vacation home or an investment property, how you choose to pay for it can have a significant impact on your financial situation over time. If you’re considering a […]

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer issues. All personal details are removed to protect the privacy of the taxpayer. A taxpayer came to Taxpayer Advocate Service (TAS) in April 2016 for help getting […]

In my first blog on passport issues, I discussed the importance of providing notice to taxpayers prior to certifying their seriously delinquent tax debts to the Department of State (DOS). Once the IRS makes the certification, the DOS must deny the person’s passport application and it may revoke their passport, except in certain emergency and […]

The National Taxpayer Advocate reviewed the Taxpayer Bill of Rights with the four private collection agencies selected for the Private Debt Collection program under the Fixing America’s Surface Transportation Act (FAST Act). The National taxpayer Advocate recorded a training video for all employees of the four Private Debt Collection agencies on protecting taxpayer rights under […]

“[You] ask people, okay, if you had the choice between trying to find the answer to a government question online, yourself, or just picking up the phone and calling somebody…

In 2015, I wrote a blog post analyzing IRS collection performance, looking at the effects of different drivers of collection such as notices, installment agreements, liens, levies, and refund offsets. Today, I’d like to pick this topic back up, but focus on a collection issue associated with new legislation. In late 2015, Congress passed the […]

National Taxpayer Advocate Nina E. Olson testified before the House Ways and Means Subcommittee on Oversight today at a hearing entitled, “IRS Reform: Lessons Learned from the National Taxpayer Advocate.” Olson cited data showing that building trust with taxpayers correlates with increased voluntary tax compliance and said respecting taxpayer rights is critical to building trust.  […]

Many taxpayers work or engage in services that are considered to be a part of the gig or shared economy services. These services often originate through peer-to-peer interactions such as ride-share programs, room rentals, and other freelance work. Following the May 2016 hearing, Taxpayer Advocate Service worked with the IRS to create the information contained […]

“[You] ask people, okay, if you had the choice between trying to find the answer to a government question online, yourself, or just picking up the phone and calling somebody, which would you prefer? Sixty percent of people say they prefer to pick up the phone, including half of millennials.” — Rick Parrish, Senior Analyst […]

Every year the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer issues. All personal details are removed to protect the privacy of the taxpayer. The director of a large Volunteer Income Tax Assistance (VITA) site contacted TAS with […]

In 2015, I wrote a blog post analyzing IRS collection performance, looking at the effects of different drivers of collection such as notices, installment agreements, liens, levies, and refund offsets…

Watch Out for IRD Issues When Inheriting Money Once a relatively obscure concept, income in respect of a decedent (IRD) can create a surprisingly high tax bill for those who inherit certain types of property, such as IRAs or other retirement plans. Fortunately, there are ways to minimize or even eliminate the IRD tax bite. […]

ABLE Accounts Can Help Support the Disabled The Achieving a Better Life Experience (ABLE) Act of 2014 created a tax-advantaged savings account for people who have a qualifying disability (or are blind) before age 26. Modeled after the well-known Section 529 college savings plan, ABLE accounts offer many benefits. But it’s important to understand their […]

The National Taxpayer Advocate reviewed the Taxpayer Bill of Rights with the four private collection agencies selected for the Private Debt Collection program under the Fixing America’s…

Got Nexus? Find Out Before Operating In Multiple States For many years, business owners had to ask themselves one question when it came to facing taxation in another state: Do we have “nexus”? This term indicates a business presence in a given state that’s substantial enough to trigger the state’s tax rules and obligations. Well, […]

Facing the Tax Challenges of Self-Employment Today’s technology makes self-employment easier than ever. But if you work for yourself, you’ll face some distinctive challenges when it comes to your taxes. Here are some important steps to take: Learn your liability. Self-employed individuals are liable for self-employment tax, which means they must pay both the employee […]

It’s not too late to enhance your knowledge of taxpayer rights on a global scale. Experience conversations held during panel discussions among leaders in their fields throughout…

DAFs Bring an Investment Angle to Charitable Giving If you’re planning to make significant charitable donations in the coming year, consider a donor-advised fund (DAF). These accounts allow you to take a charitable income tax deduction immediately, while deferring decisions about how much to give — and to whom — until the time is right. […]

7 Last-Minute Tax-Saving Tips Where did the time go? The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2016 tax liability. Here are seven last-minute tax-saving tips to consider — you just must act by December 31: 1. Pay your 2016 property tax bill that’s due […]

Donating Appreciated Stock Offers Tax Advantages When many people think about charitable giving, they picture writing a check or dropping off a cardboard box of nonperishable food items at a designated location. But giving to charity can take many different forms. One that you may not be aware of is a gift of appreciated stock. […]

Take The Worry Out Of Business Valuations Appraisals can inspire anxiety for many business owners. And it’s understandable why. You’re obviously not short on things to do, and valuations cost time and money. Nonetheless, there are some legitimate reasons to obtain an appraisal regularly or, at the very least, to familiarize yourself with the process […]

AMT Awareness: Be Ready For Anything When it comes to tax planning, you’ve got to be ready for anything. For example, do you know whether you’re likely to be subject to the alternative minimum tax (AMT) when you file your 2016 return? If not, you need to find out now so that you can consider […]

Are You Sure You Want To Take That 401(K) Loan? With summer headed toward its inevitable close, you may be tempted to splurge on a pricey “last hurrah” trip. Or perhaps you’d like to buy a brand new convertible to feel the warm breeze in your hair. Whatever the temptation may be, if you’ve pondered […]

Getting Comfortable With The Home Office Deduction One of the great things about setting up a home office is that you can make it as comfy as possible. Assuming you’ve done that, another good idea is getting comfortable with the home office deduction. To qualify for the deduction, you generally must maintain a specific area […]

Organizing Your Financial Records For Best Results With tax time long over and midyear officially here, it’s a great time to organize your financial records. And the key word here is indeed “organize.” Throwing all your important documents into a drawer won’t help much when an emergency occurs and you (or a family member) need […]

Organizing Your Financial Records For Best Results With tax time long over and midyear officially here, it’s a great time to organize your financial records. And the key word here is indeed “organize.” Throwing all your important documents into a drawer won’t help much when an emergency occurs and you (or a family member) need […]

Juggling Family Wealth Management Is No Trick Preserving and managing family wealth requires addressing a number of major issues. These include saving for your children’s education and funding your own retirement. Juggling these competing demands is no trick. Rather, it requires a carefully devised and maintained family wealth management plan. Start with the basics First, […]

Go, Save Green with Sustainable Tax Breaks Many people want to do something, however small, to contribute to a healthier environment. There are many ways to do so and, for some of them, you can even save a few tax dollars for your efforts. Indeed, with the passage of the Protecting Americans from Tax Hikes […]

Walk the Path to Tax Savings for 2015 Like many taxpayers, you may have been expecting to encounter a few roadblocks while traversing your preferred tax-saving avenues. If so, tax extenders legislation signed into law this past December may make your journey a little easier. Let’s walk through a few highlights of the Protecting Americans […]

Reacquainting Yourself With The Roth IRA If you’ve looked into retirement planning, you’ve probably heard about the Roth IRA. Maybe in the past you decided against one of these arrangements, or perhaps you just decided to sleep on it. Whatever the case may be, now’s a good time to reacquaint yourself with the Roth IRA […]

How You Can Help Prevent Tax-related Identity Theft Tax-related fraud isn’t a new crime, but tax preparation software, e-filing and increased availability of personal data have made tax-related identity theft increasingly easy to perpetrate. The IRS is taking steps to reduce such fraud, but taxpayers must play their part, too. How they do it Criminals […]

What You Should Know About Capital Gains and Losses When you sell a capital asset, the sale results in a capital gain or loss. A capital asset includes most property you own for personal use (such as your home or car) or own as an investment (such as stocks and bonds). Here are some facts […]

Why your health insurance company may ask for your Social Security Number Your health insurance company may request that you provide the Social Security Numbers (SSNs) for you, your spouse, and your children covered by your policy. This is because the Affordable Care Act requires every provider of minimum essential coverage to report that coverage […]

Time to Start Year-End Tax Planning The federal income tax rates for 2015 are the same as last year: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. However, the rate bracket beginning and ending points are increased slightly to account for inflation. For 2015, the maximum 39.6% bracket affects singles with taxable income above $413,200, […]

Planning to Avoid or Minimize the 3.8% Net Investment Income Tax The net investment income tax, or NIIT, is a 3.8% surtax on investment income collected from higher-income individuals. It first took effect in 2013. After filing your 2014 return, you may have been hit with this extra tax for two years, and you may […]

The importance of updating beneficiary designations Most of us have more than enough to do. We’re on the go from early in the morning until well into the evening — six or seven days a week. Thus, it’s no surprise that we may let some important things slide. We know we need to get to […]

Summer time is a good time to start planning and organizing your taxes You may be tempted to forget all about your taxes once you’ve filed your tax return, but that’s not a good idea. If you start your tax planning now, you may avoid a tax surprise when you file next year. Also, now […]

What you should do with an identity verification letter from the IRS In its efforts to combat identity theft, the IRS is stopping suspicious tax returns that have indications of being identity theft, but contain a real taxpayer’s name and/or Social Security number, and sending out Letter 5071C to request that the taxpayer verify his […]

Filing 2014 foreign bank and financial account reports If you have a financial interest in or signature authority over a foreign financial account exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the IRS by filing a Financial Crimes Enforcement Network (FinCEN) Form 114 (“Report of Foreign Bank […]

Tax Calendar Q2 2015 April 15 Besides being the last day to file (or extend) your 2014 personal return and pay any tax that is due, 2015 first quarter estimated tax payments for individuals, trusts, and calendar-year corporations are due today. So are 2014 returns for trusts and calendar-year estates, partnerships, and LLCs, plus any […]

Tax Increase Prevention Act of 2014 (TIPA) The Tax Increase Prevention Act of 2014 (TIPA) was signed into law on December 19, 2014. Thankfully, TIPA retroactively extends most of the federal income tax breaks that would have affected many individuals and businesses through 2014. So, these provisions may have a positive impact on your 2014 […]

Standard Mileage Rates for 2015 Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. Likewise, standard mileage rates are available for computing the deduction when a vehicle is used for charitable, […]

Tax Calendar Q1 2015 January 15 • Individual taxpayers’ final 2014 estimated tax payment is due unless Form 1040 is filed by February 2, 2015, and any tax due is paid with the return. February 2 • Most employers must file Form 941 (“Employer’s Quarterly Federal Tax Return”) to report Medicare, Social Security, and income […]

Seniors age 70 1/2+: Take your required retirement distribution The tax laws generally require individuals with retirement accounts to take annual withdrawals based on the size of their account and their age beginning with the year they reach age 70½. Failure to take a required withdrawal can result in a penalty of 50% of the […]

Seniors age 70 1/2+: Take your required retirement distribution The tax laws generally require individuals with retirement accounts to take annual withdrawals based on the size of their account and their age beginning with the year they reach age 70½. Failure to take a required withdrawal can result in a penalty of 50% of the […]

Individual Year End Tax Planning Ideas As we approach year end, it’s time again to focus on last-minute moves you can make to save taxes — both on your 2014 return and in future years. Here are a few ideas. Maximize the benefit of the standard deduction. For 2014, the standard deduction is $12,400 for […]

Tax Calendar October 15 Personal returns that received an automatic six-month extension must be filed today and any tax, interest and penalties due must be paid. Electing large partnerships that received an additional six-month extension must file their Forms 1065-B today. If the monthly deposit rule applies, employers must deposit the tax for payments in […]

Weddings Mean Tax Changes It may not be as high on the wedding plan checklist as the venue, invitations and attire, but there are important tax issues created by a marriage that warrant some prompt attention following the wedding. Name change. Anytime names are changed, it should be reported to the Social Security Administration (SSA). […]

What you need to know about required health insurance coverage for 2014 Beginning in 2014, the individual shared responsibility provision of the Affordable Care Act (ACA) requires you and each member of your family to have qualifying health insurance (called minimum essential coverage), have an exemption, or pay a shared responsibility penalty with your 2014 […]

Do you need to adjust your federal income tax withholding amount? With over half the year already gone, now is a good time to check to see if you are on track to have about the right amount of federal income tax withheld from your paychecks for 2014. The problem with not having the correct […]