Archive for the ‘Blog’ Category

Taxpayers are often worried about receiving correspondence from the IRS. Many taxpayers expect the worst, an audit. Usually, the IRS is simply mailing the taxpayer to inform them or update them on their taxes. One typical notice is the IRS Notice CP19. The notice is sent to

Taxpayers should acknowledge the upcoming October 15th tax deadline that is fast approaching for any individual who requested a tax-filing extension on their 2012 income tax returns. There are an estimated 12 million taxpayers who submitted an automatic extension request for filing their IRS Form 1040. Taxpayers

Dionne Warwick, famed singer of “I Say a Little Prayer” and “Walk On By” has filed for bankruptcy to eliminate her IRS tax debt. Warwick owes $10.2 million to the IRS and state of California after her former business manager was negligent. The singer has been paying

Facebook CEO and founder Mark Zuckerberg could owe the IRS money totaling over a billion dollars this year. The Facebook creator used stock options to buy 60 million shares of the site during the public offering. Stock options are treated as income by the federal government. This

Esteemed tax lawyer Gerald Feffer died at the age of 70 last month. Feffer was the Washington tax lawyer with IRS experience that lasted over four years. He was an assistant U.S. attorney as well and worked in the Justice Department during the Carter administration Feffer is

It sounds strange, but one of the rules in the IRS tax code is that criminals must declare income gained illegally. Line 21 of IRS Form 1040 is for illegal income gained throughout the tax year. The line is dedicated to drug money, stolen assets, and even

Former Chicago lawyer Donna Guerin was sentenced this month to eight years in prison. Guerin was part of the largest tax fraud case in U.S. history, helping wealthy clients avoid millions of dollars in taxes every year. United States District Judge William H. Pauley III called the

Criminals should take heed that the IRS requires any and ALL income to be claimed on their income tax returns. That includes income from illegal dealings. Criminals who have made extra income through illegal activities are expected to claim the earnings on IRS Form 1040, line 21,