1. How Was Rep. Mel Reynolds Convicted for Tax?

    Melvin Reynolds Many of you may remember Melvin Reynolds who represented the Chicago area in the U.S. House of Representatives from 1993 to 1995. We often see tax news about congressmen. He resigned from his position due to his conviction on criminal sexual abuse involving a 16-year-old campaign staffer. Mr. Reynold’s has also, since then, spent several years in jail for federal bank and campaig…Read More

  2. Tax Help Due to Hurricane Irma

    Tax Help Due to Hurricane Irma Extensions and Removal of Penalties - Help for Hurricane Victims This article is a little different than those we usually publish. But millions throughout the country were affected by this year’s Hurricanes Harvey and Irma. This time, the Internal Revenue Service took notice. The IRS announced that it would provide an extension to victims of Hurricanes Irma and Har…Read More

  3. IRS Prosecution for Not Filing Income Tax Return

    Regardless of what you may have heard, it is Constitutional to pay taxes. Unless you make less than the federal exemption amount, everyone is required to file a tax return with the federal government. If you are found guilty of intentionally failing to file your tax return, you can end up with harsh penalties that include prison time and around $100,000 in fines—and that doesn’t even include t…Read More

  4. What are the Simplified Rules for a Tax-Free, Like-Kind Exchange?

    If you could sell your property for a gain, the Internal Revenue Code Section 1031 allows you to postpone paying tax on that gain. The requirement: you have to be willing to reinvest the proceeds into a similar property. If you meet all the rules under §1031, this transaction would qualify as a like-kind exchange. Even though the requirements under IRC §1031 (actually, 26 United States Code §10…Read More

  5. Sell Your Property, Pay Zero Tax

    This is a real thing. See, we defend against IRS challenges to all sorts of transactions. Maybe here, by our explaining some of the IRS rules, we might just help someone avoid an IRS audit. This particular article is about tax-free exchanges. Again, this is a real thing outlined in the Tax Code. What is Meaning of “Tax-Free Exchange” of Property? The easiest way to explain is by a real example…Read More

  6. Reporting Taxes for Self-Employment Part 2

    In our previous blog post, we discussed the top three sections of your Schedule C form. If you are a sole proprietor, then you will need to prepare and file a Schedule C every year that you are in business. This is to show the IRS whether you had taxable profit or deductible loss during the past year. While this form may not seem that important, even the smallest mistakes can lead to the IRS knock…Read More

  7. Reporting Taxes for Self-Employment

    Schedule C If you are a sole proprietor, then you know that each year, you need to prepare and file a Schedule C with your 1040 in order to show the IRS whether your business has had taxable profit or deductible loss. While this can seem like an overwhelming task, filing will be simpler than you expect as long as you plan ahead and keep thorough records of your finances through the year. Today, we…Read More

  8. What Happens if the IRS Classifies Your Business as a Hobby?

    The IRS assumes that you have started your own business in order to be profitable. So if your business is claiming a net loss for years and years in a row, or your business doesn’t meet other requirements, the IRS may decide that your business is a hobby. This can get messy if you want to claim your deductions—you’ll have to prove that you had a valid profit motive. Earning Profit If you are…Read More

  9. Quick Tax Tips for Small-Business Owners!

    When it comes time to file taxes for your small business, you probably already know the basics. However, how can you make the most of this tax season and your tax returns? You probably know the simple tips, like keeping every receipt. They can add up to quite a few deductions! Also, keep track of everything in a log that you can consult when tax season comes. Carry Your Health Credit The health ca…Read More