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Floyd Mayweather’s Tax Problems, What Can We Learn from Them? (Part 1)

The tax woes of Floyd “Money” Mayweather made their way into the spotlight earlier this summer, as ESPN reported that the undefeated professional boxer has a lien from the IRS in the amount of $7.2 million for taxes owed from 2010—in addition to $22.2 million he allegedly still owed in taxes for 2015, for the […]

Documents to Gather Once the IRS Has Said You’re Being Audited

The IRS can request an audit up to six years after you file your business tax return. During your audit, you must prove that you filed an accurate tax return. Gather these supporting documents to prepare for acing your audit. Proof Of Income Start with Form 1099s, contracts and paid invoices, but then include more— […]

The New IRS Partnership Audit and You

As of January 1, 2018, the IRS changed how it audits partnerships and limited liability companies. Intended to make partnership audits easier and more efficient for the IRS, the changes apply to any entity that chooses to be identified as a partnership when filing taxes. Let’s look at some key changes and how they might […]

What it’s Actually Like to be Audited by the IRS–in the Words of Small Business Owners

Just thinking about an IRS audit makes most small business owners feel their pulse accelerate. Horror stories abound, and many of them are true. The legal drama, headaches, anxiety, and stress owed to dealing with the IRS are ordeals all their own. Couple these factors with financial losses potentially incurred by the audit, time lost […]

4 Common Triggers for IRS Audits

As a self-employed business owner, you can deduct advertising costs, office supplies and entertainment expenses on your tax return. These and other deductions can trigger an IRS audit, though, and here’s why. Disproportionate Deductions The IRS calculates normal deductions based on your income. High deductions with low income indicate possibly inaccurate record keepings, which could […]

IRS Scam Report— 2017 Year End Edition

In recent months, the IRS has issued a number of alerts to make taxpayers aware of a constantly evolving array of scams designed to impersonate the IRS. Whether by email, phone or text, these scams usually have a single goal in mind: To impersonate the IRS for the purpose of stealing your information, money or […]

The IRS May Have Paid $24B in Improper Refunds

Last summer, the Washington Times reported that the IRS paid out more than $24 billion dollars in refunds for 2016 based on potentially incorrect or fraudulent tax credits. According to the audit, the biggest misused tax credit was the Earned Income Tax Credit—which accounted for almost $17 billion in improper payouts. This figure also includes […]

How DMX Racked Up $1.7 Million In IRS Tax Debt And What Happens Next

“Every time I turn around, cats got they hands out wanting something from me. I ain’t got it, so you can’t get it.” These lyrics from rapper DMX’s 2003 hit “X Gon’ Give It to Ya” describe his scrappy rise to fame, but earlier this year, New York’s acting U.S. district attorney Joon Kim connected […]

A List of Common IRS Penalties and Fees, and How to Avoid Them

A sizeable tax bill to the IRS is bad enough on its own, but if you’re late in paying it, fail to file or make a mistake, your bill could be compounded by a number of IRS penalties, fees and interest—all of which could make a huge bill even more difficult to pay. Some penalties […]

Steps To Take After An IRS Wage Garnishment

It’s payday, and you eagerly check your bank account balance. Imagine your surprise when you see that it’s way smaller than you expected. What happened? Maybe the IRS garnished your wages. They can take this aggressive step if you owe back taxes and haven’t responded to numerous collection attempts. However, even if you missed these […]