Tax Insights

Is it more advantageous for married couples to file income tax returns jointly or separately?  Unfortunately, the answer is not as simple as it may sound. 
When filing separately, some credits and deductions are not allowed.  These include earned income credit, credit for the elderly or disabled, child care credit and adoption credit (unless spouses lived [...]

You have likely heard the expression that only two things in life are certain, death and taxes.  Our practice combines the two as we prepare the returns for decedents for the year of death and often times, years thereafter.  Following is a brief discussion of what returns may be required when someone dies.
Final income tax [...]

You gather all your tax return information and give it to your tax advisor.  You think you are all done; just to get a phone call from your tax advisor asking you for your basis in the securities that you sold on your 1099-B.  As a result, you have to call your broker and spend [...]

My kids were always skilled at matching games…you know, those games where there are grids of cards with cartoon characters turned upside down and you need to match up the two hidden pictures of the same character.  Well, the IRS and Treasury have a game that works somewhat the same way.  Payors to service providers [...]

I have previously blogged about the penalties the IRS will impose on late filing Partnership income tax returns. To refresh your memory, the late filing penalty for a 2009 Partnership return is $89 for each month the return is late multiplied by the total number of partners in the Partnership. The penalty jumps to $195 [...]

Everyone knows that the IRS charges you a penalty if you file your income tax return late.  As most of us know, that the penalty is a percentage of the amount of taxes owed.  But what about Partnerships that pass-through their income to their partners, and pay no income tax?  Is there a penalty for [...]

The Internal Revenue Service has done it again.  And yes, sometimes, it does appear as if they are really out to get you.
The latest is the reporting of uncertain tax positions.  The IRS has released a draft schedule and instructions under which certain business taxpayers (currently this is aimed at entities formed as “C” corporations [...]

The April 15th deadline may have come and gone, but that does not mean you should put off filing if you haven’t already filed or extended your tax return. Unfortunately, if you did not file an extension and pay in your estimated tax due by April 15th, you will be liable for additional interest and [...]

To most Americans, filing an income tax return can be a daunting task.  Many people are willing to either pay a tax professional or purchase expensive software to make this task easier.  While paying for such services may be necessary for many individuals, for some, paying for tax assistance may be needless and/or unaffordable.  Fortunately, [...]

If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.  Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants.  Unearned income includes taxable interest, ordinary dividends, and capital gain distributions.  It can also include unemployment compensation, taxable social security [...]