Washington D.C. Tax Law Blog
Earned Income Tax Credit Helps Many Families Save Money
No matter your attitude toward paying taxes to fund government programs, few people want to pay more in income taxes than they have to. With the proper advice and attention to the law, the average taxpayer should be able to find deductions to which they are entitled, and avoid an IRS audit. As ABC News […]
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What to do When the IRS Puts a Tax Lien on Your Property
A claim by the IRS that you owe it back taxes puts more than your bank account at risk. The agency may also take your home or other property through what is known as a “tax lien.” As readers may know, a lien is a legal claim against another party’s property. A federal tax lien […]
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Woman Fails to Pay Income Tax on $500,000
A 42-year-old Connecticut woman pleaded guilty to tax evasion this week. Over the past six years, she had failed to pay income tax on more than half a million dollars. No, she did not forget to file her taxes, nor did she make a simple mathematical error on her federal tax returns. According to the […]
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IRS Commissioner: We’re Using Technology From the ’60s
We recently discussed how the IRS is dealing with strict budget cuts. Our blog post on the subject mentioned that the agency is reducing its workforce and expects to perform thousands fewer audits this year than in 2014. Besides having to tighten its belt, the IRS is also dealing with an old-fashioned computer system that […]
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3 Reasons for the IRS to Make Offers in Compromise to Taxpayers
In the law, most things can be negotiated. This applies to criminal law as well as civil lawsuits. It also applies to many tax controversies involving the IRS. Taxpayers dealing with an audit may have an option to settle the matter through a process called an offer in compromise. As the name implies, an offer […]
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IRS Commissioner Says to Expect 46K Fewer Audits in 2015
Budget cuts have hit the IRS, and the agency expects to perform 46,000 fewer audits this year, according to Commissioner John Koskinen. Reduced staff is one way the agency is dealing with $346 million in cuts made by Congress last year. Congress approved a $10.9 billion budget, about $346 million less than the previous year’s […]
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Avoiding Employee Tax Problems in Maryland
A business owner must make decisions that improve the bottom line as much as possible. One of these decisions is in the way he or she hires people. Whether a worker is an employee or an independent contractor has many legal implications, not the least of which is what taxes you must pay on their […]
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What Deductions does the IRS Consider Automatically Suspicious?
It is 2015, which means that the deadline to file your federal income tax return in about three and a half months away. Some people may plan on filing soon, to get it out of the way early. Nobody should pay more in taxes than they actually owe. One way to reduce your tax bill […]
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IRS to Auction Off Darryl Strawberry’s Baseball Annuity
Though former baseball star Darryl Strawberry has not played in the Major Leagues since 1999, he is still being paid for his services. That will come to an end when the IRS auctions off the annuity he receives from the New York Mets to help pay off a tax debt. Strawberry was a star outfielder […]
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Is a Big Federal Income Tax Refund Really Good News?
Every year, the IRS issues income tax refunds to taxpayers throughout the U.S., including in the Washington, D.C. area. Everyone likes to get a check in the mail, but is getting a big income tax refund good news or bad news? According to a Gallup poll, 45 percent of taxpayers prefer receiving a large refund […]
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