If you’re like many Americans, you enjoy gambling. Perhaps you hit Atlantic City or even Vegas a few times a year, having fun while winning a few bucks. But how does your gambling affect your taxes? Gambling winnings are considered taxable income, which means that you must report them as such for purposes of both federal and state income taxes. To offset these winnings, you can list your annual gambling losses on Schedule A…

It can happen to anyone. Getting behind on your taxes is a far too common occurrence. Yet tax debt can often be overwhelming, threatening your financial security and making it hard to keep up with your other bills. If you owe money to the Internal Revenue Service (IRS), there are options. In some situations, the IRS may forgive part of your outstanding tax debt. Generally, if you owe more money than you can…

Each year, individuals in the United States who hold foreign financial accounts are required to file a Report of Foreign Bank and Financial Accounts (FBAR). A failure to file when required to do so can lead to serious penalties. This may include substantial monetary fines as well as possible criminal charges. FBAR penalties are among the most serious of all consequences imposed by the IRS. If you have a financial interest in a…

Tax problems can happen to almost anyone. Perhaps you got behind on your estimated payments as a self-employed individual, or you withheld too little from your paycheck, and now owe thousands of dollars to the IRS. Whatever the case may be, if you are having trouble paying off your tax debt, you may be able to make an offer in compromise. An offer in compromise is an agreement between a taxpayer and the IRS to…

There are few things that are more intimidating than getting a letter from the IRS. When you see that envelope, you may be worried about an impending audit or that something is wrong with your taxes. If you owe back taxes, then the letter that you receive may be a notice that your property will be seized. IRS Notice LT-11 informs taxpayers that the IRS will seize their property or assets if they do not…

The IRS isn’t the only government entity that audits your tax return. The New Jersey Division of Taxation could opt to audit your state return, and the process can be equally stressful and complicated.  The statute of limitations for a state tax audit is four years instead of the three years that the IRS typically observes (with the exception of gross income tax, which is also three years). However, the statute of limitations does…

Paycheck Protection Program If your business is in immediate need of cash, the federal government has rolled out several different programs to assist businesses, one of which is the Paycheck Protection Program. The Paycheck Protection Program (“PPP”) is a federally guaranteed loan to businesses to pay their payroll and certain other operating expenses. PPP has received the most attention since the passage of the CARE Act, mainly because the loan can be forgiven. What Type…