| Abusive Tax Return Preparers |
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| Return preparer fraud usually involves the intentional preparation and filing of false income tax returns by unscrupulous preparers who may claim inflated business or personal expenses, false deductions, unallowable credits, or excessive exemptions. Specifically, the IRS has found that dishonest preparers often fill out fraudulent schedules showing false supplemental losses or expenses from a business that have not been paid by a taxpayer in order to offset certain items of income. Another area of abuse is the claim of false or inflated itemized deductions for charitable contributions or medical and dental expenses, along with false claims for earned income credits. The taxpayer may or may not have knowledge of the false items shown on the tax returns; however, it is the taxpayer who has the ultimate responsibility for all the information on the return, no matter who prepared it. More... |
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| If You Cannot Pay Your Taxes - An Overview |
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| You prepare your tax return, and you discover that you did not have enough taxes withheld from your wages. You owe a substantial amount to the Internal Revenue Service, and you cannot make the required payment. What happens? You should file your return in a timely manner even if you cannot make the full payment. This action will prevent the imposition of late filing penalties. The IRS will send you a bill, which the formal start of the collections process. The bill will include information about the reason for the liability, the added penalties and interest, and the total amount due. More... |
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| Section 527 Political Groups |
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| A political organization subject to Section 527 of the Internal Revenue Code (usually called a 527 organization) is a party, committee, association, fund, or any other type of organization run primarily to directly or indirectly accept contributions and/or make expenditures for an exempt function. The exempt function of a political organization is influencing or attempting to influence the nomination, election, or any other type of selection of an individual to any public office or to an office in a political organization. More... |
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| Liability of Members of Limited Liability Company for Employment Taxes |
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| Limited liability companies (LLCs), like all other employers, are required to withhold and pay over employment taxes to the federal government. States that authorize the creation of limited liability companies (LLCs) generally provide that the members (owners) of the LLC are not personally liable for the debts of the business in their capacity as members. The question then arises as to whether the Internal Revenue Service is allowed to collect any unpaid federal employment taxes owed by a LLC from the LLC members as if they were general partners of a partnership. More... |
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| Enrolled Actuaries |
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| An enrolled actuary is an individual who has satisfied established standards and qualifications and who has been approved to perform the actuarial services required under the Employee Retirement Income Security Act of 1974 (ERISA). These services include the application of the principles of probability and compound interest to determine the present value of payments to be made after certain specified conditions are fulfilled or certain specified events have occurred. More... |
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