IRS Uses Stricter Tests for U.S. Territory Residency Claiming bona fide residency in a U.S. territory can offer significant tax benefits, but qualifying is no longer based on a broad facts-and-circumstances analysis alone. Current IRS rules require taxpayers to satisfy specific statutory tests before they are treated as bona fide residents of a U.S....
IRS Clarifies OID Rules for Certain Debt Instruments: Key Tax Considerations for 2026 Original Issue Discount (OID) rules remain one of the more technical areas of federal tax law, affecting both investors and issuers of debt instruments. As financial products continue to evolve, the IRS has emphasized the importance of properly applying OID rules to...
The best protection in an IRS audit is accuracy before the audit ever begins. For federal tax purposes, accuracy means more than avoiding math errors. It means reporting income correctly, classifying deductions properly, maintaining records that support each return position, and taking positions that satisfy the standards in the Internal Revenue Code and Treasury Regulations....
Most tax returns are accepted as filed. But some returns are selected for examination based on mismatches, risk scoring, related-party issues, or specific compliance priorities. If you want to reduce audit risk, the key is not guessing at “secret red flags.” It is understanding the IRS’s legal authority, how returns are selected, and which reporting...
For many taxpayers, retirement accounts are supposed to be long-term savings for basic living expenses later in life. But under federal tax collection law, retirement accounts are not automatically protected from IRS levy. The IRS’s levy power under Internal Revenue Code is broad and generally reaches all property and rights to property unless a specific...
Being self-employed offers flexibility, but it also brings added tax scrutiny. The IRS expects sole proprietors and independent contractors to report all business income, claim only allowable deductions, and properly calculate self-employment tax. Many audit issues arise not from fraud, but from misunderstanding the rules. Under, gross income includes all income from whatever source...
Running a successful business doesn’t excuse ignoring payroll tax obligations. An Oregon business owner recently learned that lesson the hard way. For several years, she withheld Social Security, Medicare, and federal income taxes from her employees’ paychecks—but failed to send those funds to the IRS. Instead, the money was used for other expenses, including major real estate purchases. The...
How Accurate Records Protect You in an IRS Audit: A Tax Law Perspective When it comes to IRS audits, the importance of accurate and comprehensive recordkeeping cannot be overstated. Whether you are a small business owner, a self-employed professional, or a corporate executive, maintaining proper records is not just good business practice—it is a...
IRS OIC vs. Installment Agreement: Which Wins? When Tax Debt Looms: Comparing IRS Offers in Compromise and Installment Agreements If you’re facing an IRS tax bill you can’t pay in full, you’re not alone. Millions of taxpayers struggle with unpaid tax debt each year. The good news is that the IRS offers legitimate...
IRS Audit Triggers: What Puts Your Return at Risk Filing a tax return can feel stressful, especially with the fear of an IRS audit looming in the background. While most tax returns are processed without issue, certain IRS audit triggers can increase the likelihood that your return will be reviewed. Understanding these red flags—and how...
Copyright by Accu-Tax, Inc. All Rights Reserved.
Copyright by Accu-Tax, Inc. All Rights Reserved.
