In the 2014-2015 period, the Governor’s Office of Business and Economic Development (GO-Biz) is authorized to award more than $151 million to taxpayers through the California Competes Tax Credits. Over two separate application periods, nearly 350 taxpayers applied and received awards—some received $20,000, and others received as much as $3… [Read more]
The Process of Appealing an IRS Audit
Finding out that you are facing an IRS tax audit can be overwhelming and frightening, even if you are confident that you have nothing to hide. Knowing the IRS may blow the smallest of mistakes out of proportion can instantly leave your stomach in a knot. You may start to… [Read more]
IRS Assesses Penalty 40% Greater than the Account Balance
An 87 year old man who has a secret Swiss bank account with $1.5M faces penalties of $2.2M for failure to disclose his bank account to the IRS. This is the first case made public where an individual’s penalties associated with failing to report a foreign bank account exceeded the… [Read more]
Can the IRS Give Your Information To Collection Agencies?
The new bill, S. 2260 (Senate Bill), would require IRS to turn over delinquent accounts of taxpayers to private collection agencies. This provision was inserted into the tax extenders bill currently being considered in Congress. The bill, if passed, would allow the IRS to turn over private taxpayer data to… [Read more]
Are You Liable for Your Employer’s Past Due Payroll Tax?
If an employer fails to collect and pay employment taxes, the owners and executives (generally the CEO, CFO, and Secretary) who are responsible for paying and withholding wages and employment taxes may be personally liable for their company’s uncollected taxes both under federal law and California law. IRC §6672; CUIC… [Read more]
IRS May Not Let You Exclude Gains from Selling A Home
Under federal tax laws, homeowners are generally entitled to exclude some of the gains from the sale or exchange of their home if the property has been owned and used as their principal residence for periods totaling two or more years over the five-year period before the sale. IRC §121…. [Read more]
What You Need to Know Before Filing Your Tax Return
Our San Diego tax attorney explains what you need to know before you file your tax return. Simplified home office deduction: Beginning in 2014, taxpayers can use the simplified home office deduction to write off $5 per square foot of your home office space, up to $1,500 for 300 square… [Read more]
Are You Affected by President Obama’s 2015 Tax Proposals?
President Obama recently released his 2015 budget proposal and included revisions to the tax laws that, in some instances, changes laws that have been on the books for sixty years. Keep in mind these changes are currently only proposals; however, they do provide insight into the administration’s planning and intentions… [Read more]
Nine Tax Tips for Preparing Your Income Tax Return
When it comes to running your business, there are various rules to follow to ensure you accurately report your business income and take proper deductions, determine whether you can pay workers as employees or independent contractors, and whether you qualify for one or more credits. However, we have compiled a… [Read more]
Is This The End Of 1031 Like-Kind Exchanges Of Real Estate?
Obama’s 2015 budget proposes a $1M cap on section 1031 like-kind exchanges of real estate. Currently, when a capital asset is sold or exchanged, a capital gain or loss is generally recognized. Internal Revenue Code Section 1031 provides an exception to defer recognition of capital gains when business or investment… [Read more]