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IRS
IRS to Ramp Up Audits with New $80 Billion Funding: What Taxpayers Need to Know

The IRS is set to intensify its audit activities thanks to an $80 billion boost from the Inflation Reduction Act. This funding aims to revitalize the agency, which has faced years of underfunding, resulting in customer service issues and decreased audit rates. Wealthy individuals and large corporations will be the primary focus of these increased audits.

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Tax Implications of Disasters
Navigating the Tax Implications of Shutting Down Your Sole Proprietorship

Closing your sole proprietorship involves more than just shutting the doors. Understanding the tax implications is crucial. In our latest blog post, we break down the key considerations when shutting down your business, from asset sales to tax strategies.

Home Office Deduction
Save on Taxes with a Home Office as a Corporate Owner

You can leverage your home office into a tax benefit for both you and your corporation by following these steps. Remember, careful documentation is key to proving your home office meets the IRS requirements.

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Innocent Spouse
Innocent Spouse DENIED by Tax Court

When taxpayers file a joint tax return, both spouses are jointly and severally liable for the entire tax due. However, there’s an exception if fraud is involved, allowing tax liability to be appropriately allocated. In a recent case, a husband sought Innocent Spouse Relief after his ex-wife filed their 2016 tax return without his knowledge, deducting significant unreimbursed employee business expenses. Despite meeting several conditions for relief, the tax court denied his request, emphasizing the importance of reviewing tax returns before filing. This case highlights that ignorance of return contents cannot shield one from liability.

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Tax Relief Insights & IRS Help Articles
Mistakes on Your Tax Return? Here’s What to Do

As tax season comes to a close, many taxpayers can finally relax after filing their returns. However, some may realize they made errors or omissions that need correcting. If you find yourself in this situation, don’t panic – there are steps you can take to fix your mistakes and potentially avoid costly penalties.

Tax Relief Insights & IRS Help Articles
The IRS Money Pit: Where Did All That Cash Go?

The Internal Revenue Service is back with its hand out, pleading for over $100 billion in new funding from Congress. This comes despite the agency receiving a massive $60 billion cash infusion just last year from the Inflation Reduction Act.

Business
Shutting Down a Sole Proprietorship: What You Need to Know About Taxes

Closing your sole proprietorship or single-member LLC? Understanding the tax implications is crucial. Selling your business assets triggers various tax considerations, including special rules for real estate, different tax treatment for various assets, and non-compete agreement payments taxed as ordinary income. Navigating these tax implications requires careful planning. We’re here to help at IRSProb.com

Back Taxes
Avoid the IRS’s 25% Late Filing Penalty with This Simple Tip

Did you know the IRS can charge you up to a 25% penalty for filing your tax return late? Many people don’t realize that you can avoid this hefty penalty by filing on time, even if you can’t pay the full amount you owe. At IRSProb.com, we’ve seen countless individuals save thousands by simply filing on time.