The Taxpayer Advocate confirms it was a tough year at the IRS

This is not news to many of us. Especially if you are a tax practitioner or a taxpayer that tried to contact IRS in the past year or so. And it’s been widely publicized. It was a tough year at IRS. But a new report from the National Taxpayer Advocate (NTA) gives us some insight …

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IRS’s ‘Dirty Dozen’ tax scams for 2021

The IRS has recently released their “Dirty Dozen” list of the 12 most common tax scams to be on the lookout for. They are categorized as pandemic-related scams, personal information cons, ruses focusing on unsuspecting victims and schemes that persuade taxpayers into unscrupulous actions. Don’t miss: Closing a California business Phishing – Taxpayers should be …

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Closing a California business

During these challenging times, some business owners have had, or may face the difficult situation, to decide whether to close their business or continue operation. Closing a California business means a domestic corporation may legally dissolve, foreign corporations may legally surrender, and limited liability companies (LLC) and Partnerships (domestic and foreign) may legally cancel. Don’t …

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What happens to your tax return before its accepted?

Have you ever wondered what happens to your return once it has been sent to the IRS? Once the return has been filed, it goes through a series of review before it will be posted to the IRS system and a refund issued if applicable. This review process is a combination of automated systems and …

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Can executors be held personally liable?

Executors are sometimes pressured by beneficiaries to “wrap up” the estate quickly and make distributions of estate assets. Often this is because beneficiaries want their money and don’t understand the liability executors can face for distributing the funds before it is advisable. I’ve written before about how this can have significant, adverse consequences when the …

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Can a trust or trustee plead the fifth?

The Fifth Amendment of the Constitution allows a person to refuse to answer questions or give testimony that would go against his or her interest in a criminal proceeding. It also allows someone to refuse to produce incriminating documents. However, this protection does not extend to document requests directed at a person acting in a …

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Is a cattle ranch with no cattle a hobby or a business?

Generally, a taxpayer can deduct all ordinary and necessary expenses paid or incurred to carry on a valid trade or business, even if this would create an overall loss on the income tax return. However, if the taxpayer’s activity is considered a hobby, rather than a business, deductions are limited to the gross income earned …

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How does selling my house impact my taxes?

Congratulations! You sold your house! And in this market, no doubt made a mint. So now you’re probably wondering how does selling my house impact my taxes? A gain on the sale of a home is the result of when the home sells for more than what was paid for it. When it comes to …

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IRS lays out steps to protect against identity theft

It’s no secret identity theft is a major problem. And if you fall victim, a major headache. It would be great if identity thieves steal your tax information to pay your tax bill, but no. They’re stealing your refunds. Here are some steps to protect against identity theft the IRS suggests to keep your identity …

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Where’s my refund? Check your tax return status.

Did you know you don’t have to call the IRS to see when your tax refund will be in your bank account? In fact, the IRS recently updates their FAQs on the status of non-amended and amended returns and say you should refer to those rather than calling them. Due to COVID-19, there are still …

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