It sounded so good…The promise of a large tax refund can be very seductive. But like anything that seems too good there is usually a catch. During my time with the IRS we would look for large tax returns that could be audited. So what can you do to make sure your tax refund doesn’t [...]
This article will explore business in a very general term. For tax purposes of are engaged in a trade or business if your activity is entered into with the expectation of making a profit, and if you devote a substantial amount of your time to the activity. Also if you operate through an agent or [...]
If one could have a favorite fraud issue, mine would have to be the one pulled on an entire population of African Americans in the late 90’s. It reoccurs every year and is known as the ‘Reparations Credit’. The story behind it is that Congress passed the law that gave all African Americans a credit [...]
The Internal Revenue Service has recently been auditing 412(i) defined-benefit pension plans.
They are seeking substantial taxes and penalties from what they characterize as “abusive plans,” but they do not regard all 412(i) plans as necessarily abusive. A properly structured and administered 412(i) plan can be an invaluable tax reduction tool for a business, but care [...]