Tax Tips

When someone provides the IRS with information that leads to collection of unpaid taxes, the tipster could receive money from the IRS Whistleblower Office. In one case, the whistleblower was a former attorney for the taxpayer and reported that the individual engaged in tax evasion using offshore entities. But the IRS found the information provided was subject to attorney/client privilege, …

What are your chances of being audited by the IRS? Not very high, according to the recently issued IRS Data Book. The annual publication contains statistical tables, IRS organizational information, and the rate at which the IRS audits tax returns. In 2017, the audit rate dropped to 0.6%, the lowest rate since 2002. In addition, the business taxes collected were …

The IRS is warning taxpayers against scam groups masquerading as charitable organizations. The phony charities attempt to attract donations from unsuspecting taxpayers, using a charitable reason and the promise of a tax deduction as bait. The fraudsters often use names similar to those of nationally known organizations. Fake charities are one of the IRS’s “Dirty Dozen” tax scams for the …

The IRS means business. If employers withhold tax from employee paychecks but fail to pay that amount over to the IRS, the penalty (called the Trust Fund Recovery Penalty) is 100% of the unpaid tax, and can be assessed personally against responsible persons. When one law firm’s three equal shareholders failed to pay the tax, they argued that the president/shareholder …

The release of certain 2018 federal withholding tables is likely to be delayed. The IRS said that several forms and publications affecting payroll, including the 2018 federal withholding tables, will probably be issued later than in recent years due to the likely enactment of the Tax Cuts and Jobs Act before year end. It’s likely that the new version of …

New tax law is getting closer. Republican leaders say they have the votes needed for passage of the Tax Cuts and Jobs Act and it’s expected that the measure will be approved in both the House and Senate this week without any Democratic support. It will then be sent to President Trump for his anticipated signature. Among the many changes …

The IRS announces standard mileage rates for 2018. The optional mileage allowance for owned or leased vehicles (including autos, vans or pickups) will climb 1 cent to 54.5 cents per mile for business travel. Employers also can use this rate for reimbursements to employees who supply their own autos for business use, and to value personal use of certain low-cost …