Did you get your letter yet? No, not the announcement that you have won a million dollar sweepstakes. The Internal Revenue Service plans to send letters soon notifying certain taxpayers that the agency has certified their delinquent debt. If you are seriously behind on your taxes, this may not be a surprise to you. However, you may not realize that a recently passed law allows the IRS to take drastic measures to claim the money it says you owe.
Most people deal with the IRS once a year when they file their tax returns. However, if you are like many taxpayers here in New York, you continue to deal with the IRS because the agency claims you owe more money than you believe you do. The IRS launches an investigation into your financial life looking for sources of payment, and you disagree with its assessment. So what do you do next?
Getting mail from the Internal Revenue Service (IRS) is enough to give anyone heart palpitations. If this letter is sent to inform the recipient of a potential audit, those heart palpitations can turn serious.
Think you don't need to report that offshore account to the IRS? Think again. A recent article in Forbes reports that the Internal Revenue Service (IRS) is hardly done with searching for unreported offshore accounts.
Legislation quietly passed last year in Congress may prevent you from traveling abroad if you owe a significant amount of tax debt. The law, initially proposed in 2012, did not gain overwhelming support from Congress and the President until 2015. The enactment, part of H.R.22, adds "Revocation or Denial of Passports In Case of Certain Tax Delinquencies" (Section 7345) to the tax code. It grants the State Department the power to revoke, limit, or deny a passport to anyone with a considerably delinquent tax debt exceeding $50,000. That amount includes penalties and interest, which add up quickly. The IRS compiles the list of offenders and gives the State Department the green light to cancel or deny passports.
Doing business abroad can be beneficial, but entrepreneurs that are considering expanding abroad or who currently do so should be aware of tax implications. The Internal Revenue Service (IRS) has increased efforts to find and prosecute those who use foreign markets as a means of avoiding tax obligations.
Generally getting a knock on the door, phone call or letter in the mail is a pleasant experience. Maybe a friend or family member is checking in to say hello, or that pizza you ordered is getting delivered. However, this pleasant feeling quickly fades when you open the door, pick up the phone or open that letter and find the Internal Revenue Service (IRS) is asking questions about your taxes.
The Internal Revenue Service (IRS) has some pretty strict rules. Some of the more severe revolve around foreign accounts and reporting requirements, such as the FBAR.
The deadline for the Foreign Bank and Financial Account Report (FBAR) is fast approaching. The FBAR, referred to in some financial circles as the "F" word, is the form required by the Internal Revenue Service (IRS) to claim certain foreign accounts. The form is due by June 15, 2016, for expatriates and June 30 for taxpayers.
The Internal Revenue Service (IRS) is holding foreign financial account holders responsible for not reporting their accounts. Those who need to report accounts are encouraged to do so proactively. A failure to properly report can lead to both civil and criminal prosecution.