The Internal Revenue Service (IRS) has had to cut down significantly on the size of its workforce. Due to the reduced workforce, the agency has stated it struggles to keep up with investigations. As a result, the agency has needed to take steps towards increased efficiency. One example: use of social media to gather datacontinue reading…
Audits
Does the earned income tax credit increase audit risk?
Taxpayers who claim the Earned Income Tax Credit (EITC) are at an increased risk of an audit compared to those who do not. The reason: it is a tax credit often claimed in error. Last year alone the Internal Revenue Service (IRS) audited 381,000 taxpayers that claimed the EITC. This translates to over one-third ofcontinue reading…
Four tax deductions for 2018
Recent tax reform has changed the way taxpayers will do taxes for the 2018 tax year. The new law increased the standardized deduction, meaning many taxpayers will prefer to use the standardized deduction instead of the itemized approach. Before you decide which is best for your family, take a minute to review some of thecontinue reading…
Minnesota businessman accused of almost $1M in tax evasion
Business owners must navigate a wide range of tax obligations. A failure to properly abide by these obligations can lead to an audit and, depending on the findings of the audit, allegations of criminal wrongdoing. A local Minnesota businessman provides a current example. The government has accused the business owner of failing to pay $918,000continue reading…
One tip to reduce your tax bill and save you money
There are many tax strategies that can help reduce your tax bill, some more complex than others. But putting aside money into a retirement account is one relatively easy step that can save everyone money. The step is like a one-two punch — not only are you taking money out of your taxable income butcontinue reading…
