Few circumstances in life are dreaded as much as an IRS tax audit. Thankfully, these are far from common. In 2016, for example, the IRS audited just 0.6 percent of all tax returns. Still, the hassle and potentially harsh consequences make these preventative efforts worthwhile: Check — And Double-Check — Your Math The most common […]
Americans are terrified of tax audits, and for good reason; these ordeals involve a whole lot of paperwork and, in some cases, can lead to increased tax payments. That being said, a variety of misconceptions surround the auditing process, which might not prove as terrifying as you suspect. Below, we clarify a few common audit […]
The IRS has a way of initiating audits at the worst possible times — during family emergencies, for example. Unfortunately, procrastination is never an option when the IRS comes calling. It may seem impossible to work through both personal crises and audit nightmares, but you can and will make it through the storm if you […]
Paperwork nightmares strike the best of us. Unfortunately, those messy or missing records can prove a real liability when the IRS comes calling. If your records are in shambles, you may struggle to prove to the IRS that any deductions you made or credits you took advantage of are valid. All hope is not lost, […]
A dreaded audit has come your way, and naturally, you’re freaking out. Panic is normal but will do you little good as you attempt to restore order to your life. Follow these suggestions to minimize the emotional burden of this ordeal: Determine Your Options Sometimes, the bulk of your IRS-induced anxiety involves a pure lack […]
You face a challenging financial situation. You want a reprieve—a clean slate. Both streamlined programs and the Offshore Voluntary Disclosure Program (OVDP) may be able to help. What are these options? How do they compare to one another? Which should you choose? The Pros and Cons of OVDP Are you worried about criminal prosecution because […]
Do you understand the differences between the Financial Crimes Enforcement Network (FinCEN) and the IRS? If not, you’re not alone. Let’s clear up your confusion about these two very closely associated components of the U.S. Department of the Treasury. FinCEN The primary function of FinCEN is to protect the U.S. financial system from any improper […]
Is the Offshore Voluntary Disclosure Program (OVDP) right for you? Here’s a crash course to help you make sense of your options. Purpose The OVDP offers a reprieve for taxpayers with foreign financial accounts who have been willfully noncompliant in reporting. Those who qualify can avoid criminal prosecution and civil penalties. Eligibility According to the […]
Do you have overseas financial interest or assets worth $10,000 or more? If the answer is yes, you probably need to file an annual report of Foreign Bank and Financial Accounts (FBAR). Fail to do this, and you may face serious civil and even criminal penalties. The late filing doesn’t mean the IRS will immediately […]
Tax season beckons. Like too many Americans, you’re worried and confused. Do you need to file an FBAR in addition to your standard state and federal income taxes? Let’s clear this up, so you can relax and avoid trouble. According to the IRS, the United States “persons” are obligated to file an FBAR if: You […]