Author Archives: Robert Weiss

Can the IRS put me in jail?

Yes, but never for owing taxes. The IRS can criminally prosecute you and possibly put you in jail if you voluntarily and deliberately violate a known legal duty in order to avoid paying taxes. That would be tax fraud (sometimes … Continue reading

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Unlimited above-the-line charitable deduction proposed

New legislation called the “Charitable Giving Tax Deduction Act,” was recently introduced by Rep. Chris Smith (R-NJ) and Rep. Henry Cuellar (D-TX). The bipartisan bill could make tax deductions for charity available to everybody, instead of just those who itemize. … Continue reading

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Did you know that the IRS generally has 10 years to collect taxes?

It is called the Collection Statute Expiration Date (CSED). That is the expiration of time period established by law that the IRS has to collect a given tax. Once a CSED expires the IRS will write it off. Assume that … Continue reading

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Did you know that the IRS has a first time automatic penalty abatement?

If you qualify, you can receive administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes – no questions asked. The most common IRS penalties are for failing to file (on time), … Continue reading

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Trust fund recovery penalty revisited

If an employer fails to properly pay its payroll taxes, the IRS can seek to collect a trust fund penalty equal to 100% of the unpaid taxes from any person who is considered a “responsible person,” (One who is responsible … Continue reading

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What if you missed the tax filing deadline?

There is no penalty for filing a form 1040 after the deadline so long as you are due a refund. Penalties and interest only accrue on unfiled returns if the taxes were not paid by April 18. Anybody who does … Continue reading

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IRS grants extra day to file

Because of problems yesterday with the IRS’ e-file systems, individuals and businesses whose tax returns and payments were due on April 17 now have until midnight tonight, April 18, 2018 to e-file and pay. Paper filers were not affected. There … Continue reading

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Taxes are due today

Today is the due date for your personal Federal tax return. If you can not file today, you should file an extension – and most important, if you owe taxes, you need to make a payment. All extensions are extensions … Continue reading

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New spending bill stops employers from using workers’ tips

The $1.3 trillion spending bill includes language that would forbid restaurants and other employers from keeping, or using employees’ tips to compensate non-tipped workers. The provision addresses worker advocates’ concerns that employers could steal tips under a Labor Department proposal … Continue reading

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April 1 Deadline For First-time Retirement Plan Distributions

April 1 is a deadline for those who turned 70 ½ during 2017 and have an IRA or employer type retirement plan. They have to take their required minimum distribution (RMD). A 50% penalty usually applies to any required amount … Continue reading

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