by Leif Jensen | Aug 10, 2021 | Taxes |
The IRS sends out millions of letters every year, typically looking for more money. Many taxpayers try to assert a reasonable-cause defense to avoid a penalty and interest from those letters. In doing so, they have to prove their position was based on reasonable cause...
by Leif Jensen | Aug 9, 2021 | Investing, Taxes |
Long-term capital gains have favorable rates, over ordinary income. Profits from the sale or exchange of capital assets held over a year are generally taxed at 0%, 15% or 20%. There’s also the 3.8% surtax on net investment income of single filers with modified...
by Leif Jensen | Aug 4, 2021 | Taxes |
The fine for willfully failing to report foreign accounts are not capped, according to an appeals court decision. Under the statute, the penalty for willful failures is the greater of $100,000 or 50% of the highest balance in the overseas account. The IRS regulations...
by Leif Jensen | Aug 3, 2021 | Taxes |
IRS and the Justice Department continue to be on the prowl for undisclosed foreign accounts, devoting resources to get U.S. owners of the accounts to timely report them each year if the aggregate value exceeded $10,000 at any time during the prior year. Penalties for...
by Leif Jensen | Jul 13, 2021 | Taxes |
What are the federal income tax consequences from selling a timeshare? Losses from the sale of timeshares held for personal use are nondeductible. If you are one of the lucky few that sells a timeshare at a profit, you have capital gain. Different tax rules apply to...
by Leif Jensen | Jul 7, 2021 | Taxes |
Cases involving passport revocations are now coming before the Tax Court. A federal statute allows the Department of State to deny or revoke U.S. passports of individuals with federal tax debts of $54,000 or more on whom a tax lien or levy has been filed. The IRS...
