It is not uncommon for the Internal Revenue Service (IRS) to reach out to taxpayers. This contact itself may seem like a nightmare, but taxpayers can make the situation even worse if they do not act appropriately. What is the worst thing a taxpayer could do when contacted by the IRS? The worst response is […]

On July 19, 2019, the IRS Large Business and International Division (LB&I) announced six newly approved compliance campaigns. In the Announcement, the IRS clarified that it identified the campaigns “through LB&I data analysis and suggestions from IRS employees.” One of these campaigns, Post OVDP Compliance, targets taxpayers who previously went through the Offshore Voluntary Disclosure […]

Cryptocurrency, or digital currency, is a fairly new way to conduct financial transactions. Although relatively novel, taxpayers have used digital currency like Bitcoins to purchase real estate and other tangible items, and the Internal Revenue Service (IRS) has taken notice. In response to the growing rate of these transactions, the IRS recently announced it is […]

On July 26, 2019, the IRS released IR-2019-132, stating that it has started sending out warning letters to taxpayers suspected of incorrectly reporting virtual currency transactions. The IRS noted that by the end of August, more than 10,000 taxpayers will receive these letters. The IRS clarified that these are “educational letters” which come in three […]

Going through an inheritance after a loved one dies is a difficult and emotional time. In addition to the emotional turmoil, those who are left behind must also deal with the logistics that come with the estate. In some cases, these logistics can come with unexpected legal questions. Difficult legal question: Report or follow in […]

Whenever a relatively large financial transaction occurs, it is very likely that the Internal Revenue Service (IRS) will be involved. Getting divorced? The IRS will look over the property division determination and check for errors. If so, the agency may apply applicable taxes. Win the lottery? The IRS will expect a share of the winnings? […]

The Internal Revenue Service (IRS) recently released a publication that encourages taxpayers to make the most of common summertime activities. How, you may ask, can an agency that collects money encourage summer fun? The answer: by highlighting how popular forms of summer fun can translate to tax savings. #1: Saying “I do” with summertime nuptials […]

The Internal Revenue Service (IRS) has called on taxpayers to review their withholding status. Although the agency encourages all taxpayers to conduct a “paycheck checkup,” it states those who were surprised with a tax bill for their 2018 tax filings likely have the most to gain. Why conduct a paycheck checkup? A paycheck checkup involves […]

On June 18, 2019, Virginia Governor Northam and the Virginia Department of Taxation released an important reminder to taxpayers, who still haven’t filed individual income taxes, that returns must filed by midnight on July 1, 2019, to qualify for the Tax Relief Refund. Virginia implemented the Tax Relief Refund in response to the federal Tax […]

The United States tax code requires those who pay tax obligations to report all assets, including those held overseas. The government has passed recent laws that are intended to encourage foreign financial institutions to aid in finding U.S. taxpayers that are attempting to avoid reporting these assets. Like any reporting requirement, these institutions can get […]