In 2015, 10 million people were hit with failure to pay estimated tax penalties in Georgia and across the nation. This was an increase from 7.2 million in 2010. While penalties differ for each taxpayer, it could add hundreds of dollars to a tax bill. Those who derive...
Year: 2017
Is it true that tax debt can be discharged in bankruptcy?
Chapter 7 of the bankruptcy code offers full discharge for your allowable debts. In Chapter 13, you can repay some debts through a court-approved payment plan, and the remaining obligations will be eligible for discharge. Chapters 7 and 13 manage tax debt in the same...
Remember that you have rights if you are facing an audit
When you prepare your tax return, you should be aware of key tax issues that might raise red flags with the Internal Revenue Service and lead to an examination of your business practices. IRS agents do not tell you everything about their mindset, agenda or procedures...
Why 401(k) contribution increases benefit workers
In 2018, Georgia employees and others in America will be able to contribute up to $18,500 into their 401(k) accounts. This is an increase of $500 from 2017 limits. Although an extra $500 per year may not seem like much, it could result in an extra $70,000 in a...
IRS won’t accept silent returns
Georgia residents and other taxpayers didn't have to disclose whether they had health coverage when filing their returns in 2017. However, the IRS says that it will not process electronically filed returns that don't address health care status in 2018. If a filer...
Forest Whitaker loses in his lawsuit against the IRS
Georgians who have trouble paying their taxes might want to take heed of actor Forest Whitaker's case. The actor sued the IRS because it refused to grant him an installment plan and instead demanded that he pay all of the taxes that he owed in a lump sum payment....
The IRS view on severance pay
Some workers receive severance pay from their employer. It may be as the result of being terminated, being laid off or leaving a position. Regardless of why a person received such pay, the IRS views it as wage income subject to tax. Therefore, that payment may be...
Using trusts to get the most from business assets
Georgia residents might like to know about legitimate ways to minimize or eliminate gift and estate taxes. Those who own a successful business may wish to freeze the value of a company to avoid taxes due to future appreciation of the company. This strategy to reduce...
Think tax and liability consequences in a business startup
If you are thinking of starting a new business, what form will it take? There are several choices ranging from a sole proprietorship to an S corporation, and much will depend on the kind of product or service you plan to offer. When considering the kind of entity that...
IRS may be unreliable for tax advice
According to a national advocate for taxpayers, people in Georgia and across the U.S. should not rely on much of the information provided on the Internal Revenue Service website. Specifically, the Frequently Asked Questions page and other guidance on the site listed...