If you deliberately evade taxes by underreporting your income, you cannot always blame your accountant for the discrepancy. Underreporting income to skimp paying taxes is criminal and the penalties can be financially debilitating depending on the amount you owe.
Recently, an individual was convicted for tax evasion because he did not provide sufficient proof that he was unaware of the discrepancy between his reported income and his actual income. CCH (http://tax.cchgroup.com)
[Read More]

Keeping a consistent and clear record of your business expenditures is not only good business practice; it will also ensure you to receive the full amount of tax deductibles to which you are entitled. If you use your car for your business, it is extremely crucial for you to keep a clear record of the mileages you drive for your business each time you use it.
Recently, a self-employed individual was
[Read More]

While Geithner has told Congress that there will be no income tax increases until 2011, his recent proposal to Congress requested additional funding for improved IRS collection operations and increased scrutiny of tax returns.
We’re already seeing the IRS cracking down on both small businessess and individuals with increased tax audits and aggressive collection tactics including bank levies.
Anyone who owes back taxes in this down economy will need to know how
[Read More]

While Benrie Madoff was jailed last week after pleading guilty to charges surrounding his $65 billion Ponzi scheme, the IRS is busy issuing new guidelines for filing tax theft loss deductions.
Internal Revenue Service Commissioner Doug Shulman reached out to thousands of Ponzi victims to provide “safe harbor” procedures for taxpayers who sustained investment losses discovered to be criminally fraudulent.
In addition to simplifying and clarifying the filing process for those seeking
[Read More]

The IRS says the 60% of taxpayers file a return signed by a preparer. I was recently interviewed by Consumer Report’s Money Adviser for an article about the importance of hiring a good tax preparer. These days, having a good number cruncher can help you not only minimize your tax liability, but also keep you out of trouble with the IRS as they are stepping up enforcement.
Some things all taxpayers
[Read More]

Listen to my interview with Mind Your Bizness Show host Danielle Hampson. On “Talk to the Tax Expert,” we discuss what to do if you find yourself in financial difficulty and can’t afford to pay your tax bill this year.
In 2009, we can expect more tax audits and IRS actions against tax cheats. It’s a remarkable statistic, but 50% of the American tax paying public either haven’t filed appropriate
[Read More]

The IRS is implementing tax-related provisions of this new program as quickly as possible. I recently blogged about how this new economic stimulus law could affect your tax bill, and how heightened tax compliance efforts could impact small businesses.
The IRS has outlined key highlights of the plan as follows:

COBRA: Health Insurance Continuation Subsidy. The IRS has extensive guidance for employers, including an updated Form 941, as well as information for qualifying
[Read More]

I’ve blogged about ways to save on your taxes in 2008.  But is there anything you can do to trim last year’s IRS bill now that 2009 is here?
The following tax saving tips for 2008 include a second go at the economic stimulus rebates, new property tax deductions, and new personal loss casualty write offs.
If you are a new home owner, someone who missed out on the last round of
[Read More]

I recently appeared on the KVEC Morning New as a guest tax expert to share some insider advice for filing your 2008 taxes.
In addition to year end tax tips, deduction opportunities that help make the most of slow economy, and advice on taking advantage of extended tax breaks,  I talked about how the IRS will continue to aggressively pursue tax cheats at every level in 2009.
Tracking down the non-filers, tax
[Read More]

Last week I appeared as a guest tax expert on New Mexico’s KSVP with Mike Jaxson. We talked about important year-end tax tips for reducing your IRS tax bill.
Check out the videos below to find out more about:

Self-employment deductions including business vehicles, equipment and furniture expenses
Tips on accelerating deductions, like paying your 2009 property taxes and estimated tax payments before the end of the year so you can take those
[Read More]

I’ve been talking about how we’re sure to see another surge in IRS enforcement with the growing government deficit.  With audits on the rise, the most important thing to remember this year is to make sure your tax return is accurate because you don’t want to take any chances with the IRS.
A recent article on bloomberg.com talked about how the IRS will be looking for every dime it can get
[Read More]

Furqan Mian Mehmood, 39, of Boise, Idaho failed to report income from two corporations on his tax returns.According to the indictment, Mehmood is a native of Pakistan who worked as a real estate broker and agent in Boise and formed two corporations through which he conducted his real estate transactionsToo bad he didn’t think “I need tax help”, because then maybe he would have not been charged with two counts
[Read More]

      Donald Louis Hymes, 73, a resident of Fairbanks, Alaska, was sentenced to five months in prison for violating conditions of supervised release. His violation: failing and refusing to file individual income tax returns and pay incomes taxes for numerous past years. According to information presented to the court, Hymes violated the conditions of his supervised release after having served a prison sentence for his 2003 conviction in federal
[Read More]

Self-proclaimed priest Earl R. Wolfe, 59, was convicted on charges of conspiring to defraud the United States and six counts of filing a false tax return. According to court documents, from 1999 to 2004, Wolfe reported $600 of income on tax returns. However, he in fact earned more than $750,000 as an unlicensed architect. Wolfe attempted to conceal his income by cashing more than $600,000 at a local check-cashing store and
[Read More]

Steven R. Kreps, 57, from Muncie, Ind., was indicted on 12 counts of making or assisting in the making of false federal income tax returns. The indictment alleges Kreps prepared false W-2 forms. The false W-2s reported wages and income tax withholdings that were not actually paid and withheld. The indictment also alleges that Kreps underreported his own income. The resulting tax debt was $221,009. He faces up
[Read More]