The IRS took on Microsoft eight years ago for tax evasion, as the tax agency discovered that the multinational giant was avoiding paying billions in taxes in the U.S. by moving its profits to its Puerto Rico subsidiary. The IRS challenged them in court while Microsoft aggressively pursued their stance that they did nothing wrong….
Earning extra money from a side gig is rewarding, but it also comes with its own unique tax burden. If you work outside of your regular job as a freelancer, a waitress, a cab driver or a delivery driver; you need to think about your taxes. If your net earnings are $400 or more from…
Is your state tax-friendly? This is what retirees who are planning a move need to ask. California is famously known as a high-tax state, but it’s a surprise that it doesn’t come in the top 10 least tax-friendly states. If you are planning a move to a different state or buying property in another state,…
To help taxpayers cope with the coronavirus outbreak, the IRS has started sending Coronavirus stimulus payments, also called Economic Impact Payment. These payments are automatic for most taxpayers, including those who filed their tax returns in 2018 and 2019, and for most seniors and retirees. Others may need to provide additional information to the IRS…
Nobody enjoys tax filing, but it can be made easier if you make a few changes in how you prepare and file. Some of these changes can include how you organize your tax records, which platform you use to file your return, and switching to electronic mediums to file and receive your refund. Just a…
Tax reforms and the 35-day government shutdown multiplied problems for an already overburdened IRS. The agency had to deal with massive workload in preparing new tax forms and educating taxpayers with the tax changes post tax reforms. But that is only the tip of the iceberg. The IRS has been struggling with tax scammers who…
The IRS has been coping with the aftermath of budget cuts and government shutdowns, which has greatly reduced its ability to conduct audits, respond to taxpayer queries, and curtail fraudulent returns scams. This could potentially change in the coming years. The U.S. government could raise more than $1 trillion in additional taxes over the next…
It’s not an uncommon tax practice for multinational companies to open subsidiaries in low-tax countries to avoid paying higher taxes in the United States. Facebook has got into trouble with the IRS for exactly that. The IRS claims that Facebook used its Irish subsidiary to avoid paying taxes at the higher tax rate in the…
Phishing is the number one tax scam on IRS’ ‘Dirty Dozen’. Using fake emails or websites, scammers try to steal personal and financial information of taxpayers. With this stolen information, they file a fraudulent tax return to receive a refund, or conduct financial crimes. To avoid falling into the trap of scammers, it’s important to…
Most taxpayers dread an IRS audit. They picture an IRS agent at their doorstep, ready with a penalty or prosecution, but that isn’t the case. In most tax cases, the IRS does not conduct a field audit; instead, they use mail to communicate with the taxpayer. In fiscal year 2018, the IRS conducted 74.8% audits…
