Money earned abroad by American corporations is free from U.S. taxes until it is returned to the United States. However, once these foreign earnings are repatriated, they are taxed at a rate of 35%. The current tax code allows multinational companies to avoid this tax, but only if they invest in certain domestic assets such… Continue reading →
Preparation
IRS Tax Debt – Don’t Just Ignore It – Resolve Tax Debt Before the IRS Collects
Most people who have IRS debt do not find themselves in that situation due to an unwillingness to pay their fair share of taxes. It is much more common that taxpayers find themselves owing the IRS either due to a mistake on a previously filed income tax return or some unavoidable circumstance such as a… Continue reading →
IRS Tax Tips for the Unemployed – What to Know When Money is Tight
If you are unemployed you are probably worried about many other things but there are some tax consequences and conversely some tax breaks that result from being unemployed. Here are some facts that unemployed taxpayers will need to know when filing a 2011 tax return on April 15 2012. 1. Severance packages, Accumulated sick leave, Vacation, and Holiday pay are… Continue reading →
If You Have Unreported Income You May Get a Letter from the IRS
Understanding The IRS “Soft Notice” Pilot Program to Encourage Income Reporting Compliance In 2007, the IRS launched a pilot program designed to decrease the tax gap by identifying unreported income. Under this pilot program, which is still in effect, IRS notices are issued to taxpayers when there is a discrepancy between the income reported on their tax… Continue reading →
IRS Tax Debt – Avoid a Tax Liability When Helping Friends or Relatives
With credit so tight and banks unwilling to loan to small businesses and individuals, more and more family members are faced with the difficult decision of how or when to help out. Once you decide to lend a hand, you have to consider the potential tax implications. You ask yourself would it be better to… Continue reading →
Tax Preparation is Key in Claiming Your Adoption Credit; Thousands Have Yet to Receive Refund.
Thousands of Americans are still waiting on large refunds from the IRS due to their adoption credit. This is partly due to the fact that this is the first year the credit is refundable. This means the money goes directly to the taxpayer, and not applied to future taxes owed. This would be especially helpful… Continue reading →
