Recent legislation may prove to be a challenge for individuals working in the federal sector who owe back taxes. Under the Tax Accountability Act, the federal government may deny such individuals eligibility for federal grants, contracts and even federal employment. Under this proposal, such individuals would need to certify their tax status prior to eligibility for these items.
Taxpayers often are subject to tax audits and other agency actions taken by the IRS. The notice of an audit can cause understandable concern. Mistakes and findings of wrongdoing can lead to tax penalties and criminal charges. However, even the IRS recognizes that taxpayers have rights under the law.
When you think of Tax Day, you probably think of April 15. And, in most years, you'd be correct. But 2017 has a different deadline due to some scheduling quirks caused by holidays, so Tax Day actually falls later this year.
Florida has more IRS offices than all but four other states, and many of these offices are in South Florida. That alone makes it more likely that Florida residents and Florida businesses will be selected for an in-person IRS audit (called field audits) or face other issues with the IRS.
Whistleblowers receive financial awards for reporting on alleged violations of the federal tax code. This may be good news to whistleblowers, but it can be bad news for those wrongly accused of tax evasion.
Many U.S. citizens, including Michigan residents, put their offshore savings into deferred compensation plans. Taxpayers may do this in an attempt to defer otherwise taxable income to avoid paying at current tax rates. In fact, many individuals with offshore accounts have been doing this since the 1990s.
While there are advantages in being self-employed, taxes can be more complicated for self-employed individuals than those who work for someone else. Additional tax forms will require filing to meet IRS guidelines. And due to such complications, there is a greater increase of mistakes made during filing that could lead to a higher chance of audits and criminal penalties.
As a general rule, we do not hold people accountable for the wrongdoing of someone else. This is true even if you happen to be married to the wrongdoer and you filed taxes jointly with that individual.