In a recent blog, National Taxpayer Advocate Nina Olson explained why taxpayers can’t rely on answers to Frequently Asked Questions (FAQs) and Answers and other forms of “unofficial” guidance that are posted on the IRS website. While tax professionals already knew this, many taxpayers may find it to be a disturbing revelation. [Read more…]
Federal tax law allows deductions for many items, such as legitimate business expenses and charitable donations. But, if you claim deductions on your tax return, you also must maintain adequate records to support them. If your tax return is audited, missing or incomplete records could lead to additional taxes, interest and penalties, as these three recent U.S. Tax Court cases demonstrate. [Read more…]
We’re in the midst of hurricane season now, but the eastern and southern shores aren’t the only parts of the country at risk for catastrophic events. Mudslides, earthquakes and wildfires often plague the West Coast, tornadoes may touch down across the Great Plains and Midwest, and low-lying areas near rivers and tributaries across the country are prone to flooding. [Read more…]
When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information.
When you buy shares of stock for your portfolio, you probably pay the broker in full. But you can also purchase investments on margin, or by borrowing the stock from the brokerage firm. The interest rates charged by brokerage firms are typically lower than what you can get by borrowing elsewhere. [Read more…]