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…
Preparing your tax return is a good time to consider any changes you might need to make in your tax planning. Every time we pay taxes, we notice small lapses such as disorganized receipts, unclear investment planning, and so forth which makes filing a lot more stressful, and it also has an impact on our…
With the coronavirus pandemic and the tax filing season going on, the IRS has to once again manage more with less. The coming months will become even more challenging for the IRS if recession sets in. How does a recession impact taxes? It has been observed that during recessions, the tax gap increases, which means…
The Earned Income Tax Credit (EITC) is one of the major tax credits designed for low and moderate-income groups. About 25 million eligible workers and families received about $63 billion in EITC nationwide as of December 2019. The average amount of EITC received was about $2,476. With the tax season on, this a good time…
The IRS and the Treasury in a notice announced an extension of time to pay federal income tax for taxpayers who have been adversely affected by the COVID-19 emergency. The due date for payment of tax has been extended from April 15, 2020, to July 15, 2020. Individuals can defer up to $1 million, and…
Some people misinterpret the law, but some go a little further and make up fictional laws. They contest the IRS using these frivolous arguments and even go to court. The result of using fictional legal bases can only be disastrous. Using such arguments before the courts can not only hurt your case, but even lead…
The IRS is contested by taxpayers for a number of reasons; sometimes rightly, sometimes wrongly. Though it is the right of taxpayers to disagree with the IRS and seek clarification, there are certain arguments the IRS and the courts regard as frivolous. These arguments have no legal basis and they have been proved wrong by the courts again and…
There are certain arguments that the IRS terms as “frivolous”. These are arguments that the IRS and the courts have dismissed many times because they are not based on the correct interpretation of the law. Misinterpreting the meaning of income and wages is a ploy used by some to avoid paying income tax. When in…
Along with the misinterpretation of the Internal Revenue Code, many people use their own interpretation of the amendments to the constitution of the United States to prove their point. When such arguments are brought before the courts or the IRS, they do not stand a chance because they have been dismissed by the courts many times…
Some taxpayers make inaccurate interpretations of the Internal Revenue Code, which do not sit well with the IRS and the courts. These are called frivolous arguments by the IRS, unfounded arguments that many have tried to prove correct, but failed. Prior to putting forth your case before the IRS or the court, know about these 4…
