Every year the IRS sends out its “Dirty Dozen” list.  This is a compilation of the most prevalent tax scams, with the intent to inform and warn taxpayers of tax related rip-offs. The very first on the list involves phone scams.  The IRS warning reads as follows: Phone Scams: Aggressive and threatening phone calls by criminals impersonating IRS agents remains an ongoing threat to taxpayers. The IRS has seen a surge of these…

It is a very common story for small businesses to get behind on paying employment taxes.  Federal employment taxes are largely made up of FICA and withholding taxes.  The IRS is especially keen on businesses who fail to pay these taxes.  Not only is the government out the money it should be receiving, but it also has to pay out refunds and provide benefits.  In many ways it is a double loss. The Department of Justice…

What can you do when the IRS is misbehaving and it directly affects you? You will have to fight them, but the law allows you to recover your litigation costs if you win. As many know, the IRS has had a very troubled recent past (i.e. Lois Lerner).  Those problems keep getting worse, especially with IRS budget cuts.  Anecdotal stories lead me to believe that IRS employee morale is at all time low. The new U.S. v. Baker case out of New…

All too often, people don’t keep adequate records to demonstrate they are entitled to deduct travel expenses. The general rule from the Supreme Court is that deductions are a matter of legislative grace, and taxpayers must maintain sufficient records to substantiate the amounts of their income and entitlement to any deductions or credits claimed. So how can you improve your chances of deducting your business expenses? To prove entitlement to travel expense deductions you need…