On first blush, it seems to be more evidence the IRS is taking a sterner stance on collections. A new announcement from the agency makes it tougher for some individuals seeking to get out from under tax liabilities starting next week. Specifically, anyone in Minnesota considering the route of seeking to use the Offer in Compromise programcontinue reading…
Beware: Too-good-to-be-true tax avoidance plans often are
There is tax evasion and then there is tax avoidance. The former isn’t something anyone with experience in tax law would recommend. The latter is legal, but the caveat is that there are limits to what is possible. The IRS has its own notions about what those limits are. And those with experience in taxcontinue reading…
What to know about cancelled mortgage debt
Minnesota residents may be aware that canceled debt is generally considered as income that must be reported to the IRS. However, there are some exceptions to that rule. For instance, some homeowners who had their mortgage debt canceled in 2015 and 2016 may not have to count it as income. This exemption may apply tocontinue reading…
The effect of constructive receipt on income taxes
Minnesota residents know that they have to report wage income on their tax returns. Typically, income is reported on a W-2 or a Form 1099. However, there are other forms of income that may need to be reported even if no cash is involved. The concept of constructive receipt says that an individual must reportcontinue reading…
Mistakes that could increase audit exposure
Minnesota residents may believe that the IRS can only audit their returns for three years after they are filed. While this is true in many cases, there are also scenarios in which the IRS has six years to audit a return. For instance, if an individual understates his or her income by more than 25continue reading…