Taxes are due every year on April 15th, and if you fail to meet the deadline, you could face interest and penalties of up to 25%. Both the U.S. Internal Revenue Service and the Maryland Comptroller use the threat of interest and penalties to ensure that taxpayers meet deadlines. But each year,...
If you are behind on state tax filings or filed taxes incorrectly, but the state of Maryland hasn't contacted you yet, you may have an opportunity to fix it. You may be able to participate in Maryland's Voluntary Disclosure Agreement (VDA) Programs. The VDA program allows taxpayers who might face...
When a business has employees, the employer is responsible for withholding employees' Medicare and Social Security contributions from their checks. In many cases, a business will also withhold some federal and state income taxes. These withheld amounts are called trust fund taxes, and businesses ...
Businesses can be set up as either an S corp or a C corp. Understanding the difference can have a big impact on your business structure, so it's important to weigh the pros and cons of each option. Here are a few things to know: Similarities Shared by S Corps and C Corps The C corporation is th...
In May, Maryland became the seventh state to implement a new business tax option to help Maryland business owners avoid new limits on state and local tax (SALT) deductions. Before 2018, tax law permitted individual taxpayers to deduct taxes paid to states and municipalities on federal income tax ...
The COVID-19 viral infection has devastated economies across the world and the United States. Maryland predicts a $2.8 billion loss in state revenue, including a $1 billion loss in income tax revenue due to the pandemic. Congress's passage of the CARES Act and the Paycheck Protection Program have...
The Coronavirus pandemic and the subsequent lockdowns have financially devastated many Maryland families. If you've faced a job loss and are struggling to pay bills, you may be wondering if you can access your retirement savings to get through this rough period. While you may be able to access yo...
The Coronavirus COVID-19 pandemic has uprooted so many of our daily and yearly routines. While federal income tax deadlines typically fall on April 15, 2020, you may be wondering how the pandemic is affecting deadlines for taxes in 2020. Can you delay filing your yearly or quarterly taxes? Treas...
According to a report from the Government Finance Officers Association (GFOA), in 2014, Maryland had the highest rate of taxpayers that benefited from the SALT deductions, with 45% of tax units using the SALT deduction. The average SALT deduction in 2014 for Maryland was $5,604. One of the big ...
Millions of Americans have filed for unemployment benefits since the coronavirus pandemic. For those who cannot work from home, the stay-at-home orders have closed up a lot of businesses and left a lot of people without work. From March 15 through April 3, 2020, more than 234,000 people filed for...
On March 25, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the “CARES Act.” As part of the CARES Act, many middle and lower income individuals will get a direct payment to help financially deal with the COVID-19 outbreak. The Act will also extend and ...
Tax filings opened on January 27 for individual taxpayers. The filing deadline was Wednesday, April 15, 2020. However, due to the COVID-19 outbreak, the IRS has pushed back the filing and payment deadline until July 15, 2020. If you do not need additional time to file your taxes and are expecting...
Many taxpayers feel like they have a good grasp of the tax filing process right after filing their taxes. Unfortunately, over the course of the next year, much of that knowledge goes out the window. Either through not thinking about it anymore, updates to the tax code, or a change in financial si...
In response to the coronavirus or COVID-19, the IRS will defer 2020 tax payments by 90 days. This will likely come as welcome relief for the many taxpayers stressing about the financial implications of the coronavirus pandemic. However, many taxpayers who are expecting a refund may still want to ...
After years of saving in an IRA or other retirement plan account, workers are used to the idea that their retirement savings should be untouched until retirement. However, at a certain point, the government requires individuals to start taking withdrawals or subject their savings to a penalty. ...
According to the IRS, “virtual currency” is “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” Virtual currency is becoming more common as a source of investment and for privacy. However, virtual currency in video games is givin...
The likelihood of individual tax audits by the IRS continues to fall. In 2019, the IRS examined 0.45% of individual tax forms. This number is lower than the year before and less than half of the rate of tax examinations performed in 2010. One aspect of lower audits is a lot of uncollected tax r...
After a divorce, individuals will likely see significant changes in their tax filings. This includes single filing and deciding who claims children for tax purposes. When a spouse is awarded alimony or spousal support, the supporting spouse may wonder whether those payments are deductible and the...
Divorce can be a financially difficult time for a separating couple. In addition to the costs of divorce lawyers and litigation, each spouse will likely deal with changes in assets and debt, property changes, and relocation. To make the divorce even more painful, a spouse may get a tax notice in ...
The Internal Revenue Service (IRS) has released tax gap estimates for tax years 2011-2013. According to those estimates, the nation's tax compliance rate has changed little from prior years. The majority of taxes owed are paid and paid on time. When they are late, unpaid, or there is an underpaym...
The 2018 filing deadline for most taxpayers was April 15, 2019. However, many taxpayers needed a little more time and filed for an extension. The extension allowed these individuals a little more time to get their taxes in order. However, that extended deadline is fast approaching and taxpayers w...
Scammers are using the threat of tax penalties or arrest to trick taxpayers by pretending to be from the IRS. There have been reports of telephone scams, email scams, and even fake letters. The problem for many taxpayers is that they may be unsure whether a notice from the Internal Revenue Servic...
Many people have been making money on Bitcoin and other cryptocurrencies. This includes buying, selling, and trading digital currency, as well as mining Bitcoins. However, any income made from dealing in Bitcoins is not immune from taxation in the U.S. The IRS has sent letters to more than 10,000...
So the IRS decided to still allow 50% deduction for meals and entertainment, but there are new guidelines under the 2018 tax reform. The new law generally eliminated the deduction for any expenses related to activities generally considered entertainment, amusement or recreation. However, under t...
When dealing with the IRS, taxpayers have the right to confidentiality. As with all ten rights outlined in the Taxpayer Bill of Rights, the IRS is supposed to take these rights very seriously. Taxpayers should expect that any information they provide to the IRS will not be disclosed to outside p...
Time is of the essence when it comes to tax-related issues. If you are uncertain as to what your next step should be, contact the reliable tax attorneys at Gabaie & Associates, LLC today.
