As expats begin the task of gathering documents for their U.S. tax return preparation, here are some important updates to keep in mind. Foreign Earned Income Exclusion (“FEIE”) The Foreign Earned Income Exclusion is a valuable tax benefit that adjusts for inflation each year. For tax year 2013 the FEIE was $95,100 and for tax […]
From time to time the IRS issues consumer warnings on the fraudulent use of the IRS name or logo by scammers trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet,it is called phishing. Suspicious e-Mail/Phishing Phishing (as in “fishing for […]
Topics Covered: 1. Protect yourself: Scammers targeting taxpayers, including recent immigrants, throughout the country. 2. Types of audits that the IRS conducts and deadline to finish an audit. 3. Top 10 “red flags” that could increase the chance you’ll be targeted for an audit. 4. Will the IRS punish me if I hire a tax […]
The IRS randomly selects tax returns for audit each year. What sets off alarms at the IRS? Well for one thing it pays to keep in mind these 10 “red flags” that could increase the chance you’ll be targeted for an audit. 1. High income. The audit rate for 2011 tax returns, which was about […]
Many people have approached me with questions on IRS audits and so I have taken the most popular questions and laid them out in this blog with my response. 1. I received an IRS Notice informing you that your return has been selected for examination. What should I do? The fact that your return has […]
Before adjustments from an audit can be finally assessed, a taxpayer must be given the right to appeal to the United States Tax Court if the taxpayer should disagree with the findings of the IRS audit. The Appeals Office (or in certain cases the IRS agent) will issue a “90-day Letter” to a taxpayer, which […]
When taxpayers disagree with the findings of their IRS audits, they may usually appeal to the IRS Office Of Appeals. The IRS agent will issue a “30-day Letter” to a taxpayer, which essentially provides the taxpayer with up to 30 days to file a Tax Protest requesting his or her case be heard by an […]
We all dread the thought of an IRS audit or examination. Tax audits can be stressful and complicated as you must be prepared to explain the nature of your income and substantiate the expenses and deductions claimed on your tax return. If the IRS assesses additional taxes and interest, the adjustments are generally matched by […]
The IRS randomly selects tax returns for audit each year. Depending on what deductions you’ve taken and other characteristics of your tax return, your tax return can have a higher probability of being selected for an audit. Here’s what you need to know about IRS tax audits. There are three types of audits: Correspondence Audit: […]
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes. On September 30, 2013, FinCEN posted on their internet site, a notice stating that the […]
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