Delinquent Taxes - What Happens if I Don’t Pay the IRS?

Depending on how much time has past, an individual will see hundreds; even of thousands of dollars owed in back taxes that were not originally assessed when first receiving a letter from IRS. Similar to a credit card company, penalties and interest can and will be applied. Delinquent Income Tax Return Defined - A delinquent income tax return is defined, in the eyes of the IRS and federal government as: Income tax return having a US mail postmark after April 15th, if an extension was not granted.... Read more »

How About Avoiding IRS Penalties?

Taxation is a very important aspect of the functioning of civilized society. In that sense, the IRS performs a very significant duty. However, not every taxpayer is perfect in paying their taxes. There are several faults that occur - accidentally, intentionally or out of ignorance - when people file their returns. When this happens, the IRS has no other option but to impose penalties on errant taxpayers. It is important for taxpayers to know about these IRS penalties, because some of them can be... Read more »

Tax Benefits of Student Loans

When considering options for financing all or part of your college education, scholarships and grants are good choices. However, these are only available in limited quantities and not every student qualifies. If you need to pay for college but simply don’t have the money, student loans can be the answer. One major advantage of student loans is the tax benefits available to loan borrowers, even if the loan was taken out by a parent for a child. Interest Deduction Your taxable income may be... Read more »

Donating A Car - What IRS Want You To Know

When donating your car to your favorite charity, the Internal Revenue Service (IRS) wants you to be aware of certain pitfalls. After December 31, 2004, taxpayers planning their charitable giving, donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes. When the claimed value of the donated motor vehicle exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to... Read more »

Selling Your Business - A Tool To Reduce Capital Gains Taxes

“I would rather expire at my desk than to sell my business and pay Uncle Sam one dime in taxes.” How many owners that have paid their fair share of taxes for twenty years of building their business feel this way? The tax bite is the single biggest factor in an owner’s reluctance to sell his/her company. I have previously written articles discussing various aspects of transaction structures to minimize taxes. As a result, I am often contacted by a panicked seller that is a week... Read more »

Selling Your Business- Deal Structure and Taxes

The purpose of this article is to demonstrate the importance of the tax impact in the sale of your business. As an M&A intermediary and member of the IBBA, International Business Brokers Association, we recognize our responsibility to recommend that our clients use attorneys and tax accountants for independent advice on transactions. As a general rule, buyers of businesses have already completed several transactions. They have a process and are surrounded by a team of experienced mergers and... Read more »

Business Sellers - Beware of Potential Changes in the Capital Gains Tax

Thinking of selling your business? If you have planned it correctly, most of your transaction proceeds should be long term capital gains. Given the current political climate and the upcoming change in the White House, capital gains taxes will come under attack. If you are a business owner and are thinking of selling your business within the next 5 years, you may want to move up your exit timeframe says Dave Kauppi, President of MidMarket Capital, a Merger and Acquisition Advisor. The reduced 15%... Read more »

Five Essential Ways To Manage Your Taxes

Tax management may not rank high on your list of favorite phrases, but the truth is, staying on top of your taxes now is the only way to prevent IRS headaches later. Here are five essential ways to manage your taxes, and avoid potential trouble: Organize. This means not only gathering your bills, records, receipts, etc, but also ensuring that you have the tax forms that the IRS demands. These forms are available online from the IRS website and many other sites as well. Keep Smart Records. You... Read more »

Tax Tips For 2007

Most of us have just finished getting over the stress received from our Christmas expenses. Now, it is the taxman is tugging at your coat tails and you feel another financial hangover in the horizon. These great tax tips for 2007 will help keep that hard-earned money in your pocket. 1. File your tax returns on time to avoid penalties for being late. 2. If you are a trade’s person you may be able to write off certain expenses relating to your trade. Make sure that your records are always... Read more »

Benefits Of Using Professional Tax Software

There are many benefits of using professional tax software to complete your taxes. We’re going to look at some of those reasons but convenience is certainly one great reason to use it. 1. Save Money - Using professional tax software can save you a bundle of money. Because the software is able to make you aware of deductions you might able to take advantage of you are more likely to take every opportunity available to you and that means you can land up saving a bundle of money. 2. Save Time... Read more »