Frivolous Tax Returns The IRS can charge penalties of $5,000 for Frivolous Tax Returns and other Frivolous submissions made to the IRS. The US Tax Court may impose penalties of up to $25,000 when a Taxpayer makes frivolous arguments in Tax Court. A list of some of the frivolous arguments that can lead to penalties
Tax Preparer Penalties – When Your Accountant Makes an Error
Tax Preparer Penalties The IRS (and other taxing authorities such as the Franchise Tax Board) may assess accuracy related penalties against taxpayers when taxpayers tax returns contain errors like understated income and disallowed deductions. At times, taxpayers who hired a CPA, accountant, or other tax advisor may find themselves being audited because the return their
Are Court Settlements Taxed in California?
Are Court Settlements Taxed Often, personal injury settlements only come after an extended period of physical and emotional suffering. The first question people usually want answered when considering a lawsuit is, “Are Court Settlements Taxed in California? Here are answers . . .Once a personal injury case settles, plaintiffs understandably want to collect their rightful
Small Businesses and Contractors Affected By The American Rescue Plan Act of 2021
Small Businesses and Contractors Affected By The American Rescue Plan Act of 2021 Welcome to the new year of 2022. As so often happens, a new year means new changes to federal tax laws and this year is no different. There is a small change buried in the American Rescue Plan Act of 2021, passed
The Tax Gap: What It Means To You
Tax Gap The tax gap is a topic that has found its way into the news recently. Pundits are looking to how the Biden Administration’s ambitious (yet costly) infrastructure and COVID 19 relief bills will get funded. Although the latest revision of the infrastructure bill no longer contains increased funding for the IRS to close
What Is A Tax Lien?
What Is A Tax Lien? Lien on me Tax Liens are a powerful weapon in the arsenal of the IRS and other taxing agencies including the Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA), and Employment Development Department (EDD). A Notice of Federal Tax Lien (or notice of State Tax Lien)
Bankruptcy and Taxes
Bankruptcy and Taxes As a tax attorney, I am often asked if taxes can be discharged in bankruptcy. The answer to that question is . . . sometimes. Even when bankruptcy is available for a tax debt, bankruptcy may not be the best option for a person with a tax debt. Some tax debts are
WHERE’S THE MONEY, LEBOWSKI? CALIFORNIA PROPOSITION 19
THE GOOD THE BAD AND THE UGLY California Proposition 19 Proposition 19, formally titled The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or National Disasters Act (Prop 19) was narrowly passed by California voters on November 3, 2020, with 51.1% of the total vote. Despite Prop 19’s heartwarming title, its primary
What Happens to My Tax Liens and Tax debts When I Die?
Tax Debts Oh no! You just discovered you owe back taxes, penalties, and interest for the past three years! You are just about ready to retire and hoping to keep all your money to enjoy your golden years. That vintage Mustang you have had your eye on is calling your name. Maybe if you just
COVID-19 Employee Retention Credit
COVID-19 Employee Retention Credit COVID-19 continues to have detrimental effects across the globe in many ways uncovering the need for a COVID-19 Employee Retention Credit. In the United States, many states have enacted stay-at-home orders. These measures to prevent its spread. Although necessary, these measures have devastated entire industries. This leads employers to wonder if