Online Scams That Impersonate The IRS

Beware of emails or tweets claiming to be from the IRS—it may be a scam! Scammers who impersonate the IRS often use the name and logo of the IRS or U.S. Department of the Treasury to mislead you into believing the communication is legitimate. Generally, the IRS does not send unsolicited e-mails to acquire financial and personal information from taxpayers. Some scammers even set up
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Categories: SCAMS & SCHEMES.

IRS Audits of Employee Business Expenses

The IRS is auditing more people who deduct employee business expenses.  If you work for someone and deduct work expenses, then this report is for you.   If you are called in for an audit, do you know how to defend yourself?  Many people go into an IRS audit with confidence, believing that their receipts will allow their tax deductions.  But when the auditor is
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Categories: IRS PROBLEMS and SACRAMENTO PERSONAL TAXES.

Home Based Business Tax Schemes

Beware of promoters who claim that you can take tax deductions for personal expenses by setting up a home-based business.  These promoters aggressively market and sell “tax reduction packages” which consist of a mangled interpretation of the Tax Code having no merit. The promoters may sound legit by advising you to maintain detailed records of the expenses.  However, detailed records won’t convert personal expenses into
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Categories: SCAMS & SCHEMES and SMALL BUSINESS ADVISORY.

Sham Trusts

“Sham trusts” are names given to certain trusts that the IRS claims are illegal. They can be either domestic or foreign trusts or both. The promoters of these trusts claim that they reduce or eliminate income taxes, but the IRS and the courts disagree and are aggressively pursuing taxpayers who own them and their promoters. The promoters charge high fees to set them up, but
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Categories: SCAMS & SCHEMES, SMALL BUSINESS ADVISORY, and TRUSTS, ESTATES & FIDUCIARIES.

Why The IRS Audits More Small Businesses Than Big Corporations

Why the IRS Audits more Small Businesses than Big Corporations   Many small business owners believe that they are too small for the IRS to audit. After all, wouldn’t the IRS collect more money for the government by auditing larger businesses?   The answer is: no. The IRS brings in more dollars per hour auditing small mom and pop businesses, than they do auditing medium
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Categories: IRS PROBLEMS and SMALL BUSINESS ADVISORY.

The New IRS Model to Take More From You

The IRS’ Passive-Aggressive Model to take MORE from You   The IRS may have become the most cost-efficient government agency of all. That may sound like good news, but there is a dark side to that efficiency. Unfortunately the IRS is no longer interested in collecting the correct amount of taxes, but instead is using a passive-aggressive model to take more from you, even if
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Categories: IRS PROBLEMS.

Simpler Tax Reporting – Is It Right For You?

The Simpler Tax System—is it Right for You?    Many people are frustrated with the complexity of the Tax Code and want it to be simpler. Their reasoning goes something like this: “I am a business owner, not a junior accountant, why do I have to keep all of these records. Why can’t it be simpler?”   Well, the government understands your frustration and is
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Categories: SACRAMENTO PERSONAL TAXES and SMALL BUSINESS ADVISORY.

Obamacare & Personal Taxes

Obamacare and Your Personal Tax Return   Although the Obama administration delayed the employer mandate to 2015 (firms with 50 or more full-time employees must provide affordable health insurance to workers or pay a stiff fine) the individual mandate’s start date wasn’t deferred.   Beginning January 1, everyone without health insurance for themselves and their dependents will owe a tax penalty if they fail to
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Categories: SACRAMENTO PERSONAL TAXES.

Did You Get an IRS Letter?

What to do if you get an IRS audit letter   You should immediately open any mail from the IRS, because it usually requires some sort of action within a very narrow time-frame under the threat of additional taxes, interest and penalties. Be sure to have us review it BEFORE you make any contact with the IRS to explain the issues involved and the best
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Categories: IRS PROBLEMS.