Taxes are complicated when it comes to Native American tribes and their members because of the complexities in the Indian law and the federal tax law. The treaties between the tribes and the U.S., some of which go back centuries, add to the confusion. If you are a Native American tribe or tribe member, it…

An audit is never pleasant, but you can make it simpler and smoother by preparing for it. Essentially, audits are conducted to ensure compliance and in no way indicate that you did something illegal. The IRS doesn’t come to you with proof of any ill-doing. They may have seen a discrepancy in your reporting and…

Authors don’t usually think of themselves as entrepreneurs; however, the IRS treats them the same as a small business. Whether you are selling the occasional eBook on Kindle or have bestsellers to your name, the IRS expects you to treat your writing as a business if you earn income from it. You are required to…

Unlike in an employer-employee relationship where the employer withholds taxes from the employee’s paycheck and forwards it to the IRS, independent contractors are required to determine taxes on their own and pay them. Many times, independent contractors are not aware that they are in tax debt until they receive an IRS notice/letter regarding it. Since…

It is not always that taxpayers get into tax debt because they do not pay their full tax liability. Sometimes, claiming false tax credits can cause a tax debt. Though credits reduce the overall tax liability of a taxpayer, each credit has qualifying criteria that need to be met. Claiming false credits on a return…

The IRS conducts examinations of certain tax returns in order to ascertain compliance with tax laws. Usually, only a small percentage of tax returns are audited. In 2020, the agency audited only 0.3% of individual returns. Even though most taxpayers are unlikely to get audited, it helps to know what triggers an IRS audit just…

The IRS’ Criminal Investigation (CI) has been asked to provide expertise and intelligence in order to assist efforts to enforce sanctions on Russia. The IRS will be working alongside other law enforcement agencies in order to investigate cybercriminals, Russian oligarchs and those who facilitate illegal movement of money/assets on their behalf.   “CI has been called…

The IRS made an announcement in February this year that the interest the agency charges on tax debt will increase beginning April 1, 2022. This directly impacts taxpayers that pay less than what they owe in taxes this tax season, as they will be paying more in back taxes. Along with an increase in interest…

Tax scammers are not limited to anonymous entities operating from far. Many times, they can be somebody you hire the services of, such as a return preparer, owner of a company, or in this case, the founder of a tax return preparation service.  Instant Tax Service Scam  Fessum Ogbazion of Cincinnati was the founder of…

Payment platforms such as Venmo, PayPal, CashApp etc. are legally required to report certain financial transactions to the IRS and taxpayers. If financial transactions using a third party payment network exceeds a certain limit, the payer and the receiver of the pay may receive Form 1099-K.    What is Form 1099-K?  Form 1099-K, Payment Card…

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