Category: Taxation


Why Are My Wages Being Garnished?

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on Why Are My Wages Being Garnished?

Have you been having problems with the IRS? Have you noticed that you are consistently taking home a smaller paycheck? If your answer to both of those questions is “yes”, there is a good chance that the IRS is garnishing your wages. Further, it probably does not come as much surprise to you, as the  … Read more

The Pitfalls of Tax Forgiveness

  • Robert S. Thomas,
  •   Taxation
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The Pitfalls of Tax Forgiveness

Do you owe the IRS more money than you can pay? Are you at risk of a tax lien? Would a fresh start sound nice? Well, the IRS literally offers a “Fresh Start program” to settle your IRS debt through a tax forgiveness program. If this sounds too good to be true, your instincts may  … Read more

Is a Tax Appeal Right for Me?

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on Is a Tax Appeal Right for Me?
Is a Tax Appeal Right for Me

Tax season is well underway, which means that you are in the process of preparing your taxes, if you haven’t already filed. Unfortunately, it also means that a new audit season has opened for the IRS. If you or your business is being audited and you ultimately receive a higher tax bill, I highly recommend  … Read more

Birth Of A Child Could Allow A Taxpayer To Receive Proceeds From The Sale Of Their Residence Not Subject To Taxation

  • Robert S. Thomas,
  •   Taxation
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The IRS determined that a taxpayer was entitled to a partial gain exclusion even though the taxpayer used the property for less than two years. The taxpayer did not meet the requirements of the IRS code, however, they sold the residence due to an unforeseen circumstance which allowed them to qualify for the partial exclusion  … Read more

Are There Tax Consequences If A Creditor Forgives Or Discharges My Debt?

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on Are There Tax Consequences If A Creditor Forgives Or Discharges My Debt?

I have a credit card and I have negotiated with the credit card company to have the balance reduced. Are there any tax consequences? I am filing for bankruptcy and my debts will be discharged. Will there be tax consequences on the discharge of debt if ordered by the bankruptcy court? Yes, there may be  … Read more

What If I Know Someone With Underpaid Taxes?

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on What If I Know Someone With Underpaid Taxes?

The Internal Revenue Service (IRS) has a Whistle-Blower Office that allows the IRS to pay awards to whistle-blowers for information leading to detecting underpayments of tax and punishing persons guilty of violating the IRS tax laws.* According to the IRS, $2 billion was collected by the IRS because of information provided by whistle-blowers. Awards paid to  … Read more

What Will Be The Consequences of Failing to Repay a Loan Against My 401(K) or 403(B) Retirement Account?

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on What Will Be The Consequences of Failing to Repay a Loan Against My 401(K) or 403(B) Retirement Account?

Recently the court ruled on this issue. A teacher for a public school borrowed money from her 403(b) retirement account as a means of avoiding bankruptcy on her residence. A 403(b) account is a retirement plan (similar to a 401(k) retirement account) but only available to specific employees of public schools, tax exempt organizations, and  … Read more

The IRS Audit Process

  • Robert S. Thomas,
  •   Taxation
  •   Comments Off on The IRS Audit Process

In 2015 the IRS audited a total of almost 1.4 million tax returns, approximately 0.7 percent of all returns filed in calendar year 2014. 0.8 percent of all individual income tax returns filed were audited and 1.3 percent of corporation income tax returns filed were audited (Source: 2015 Internal Revenue Service Book October 1, 2014  … Read more

Deducting Mortgage Interest Payments Made By A Third Person

  • Robert S. Thomas,
  •   Taxation
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The United States Tax Court ruled that paying a siblings mortgage may not be deductible by the party making the payment unless the payor can establish that the payor has assumed the benefits and burdens of ownership of the property (equitable interest). In this case, brother and sister lived together. The brother was the legal  … Read more