Being audited can be a stressful experience, especially if this is your first audit. Whether you're facing a personal or a business audit, you probably want to know what to expect and how you can prepare. So, in this article, we'll discuss the business and personal records the IRS may examine dur...
When the Internal Revenue Service (IRS) comes knocking on your door, your anxiety and stress levels may shoot through the roof. You may not even know what, if anything, you did to deserve a visit or a letter from the IRS, but you know that your financial freedom might be on the line. You may fin...
A common question from clients is whether you can face personal liability or criminal prosecution if your business does not comply with IRS rules. As an officer of a corporation, there are some situations where you might face personal liability for the actions of a business. These situations incl...
In today's 24/7 online world, it can be hard not to discuss major events happening in our lives on social media, by text, or via email with friends and family. But if you're involved in a complex IRS case, particularly if you are the subject of a criminal investigation, there are some important g...
Good news for those of us still feeling the effects of the global pandemic and the economic slowdown that came with it: as it did last year, the IRS has extended the deadline for filing federal individual income taxes. While the United States has been making great strides in tackling Covid-19 ove...
Before 2019, a tax judgment lien in Maryland never expired – but that changed last year when Maryland Governor Larry Hogan signed a law allowing certain tax liens on some real or personal property to terminate 20 years from the date of assessment. According to the IRS, a federal tax lien is the ...
When a person dies, there are a number of tax considerations that may exist. One is whether the person owes taxes or has tax debt. This tax debt can be federal or state debt. In general, this debt does not automatically go away at death. It is treated differently by state and federal governments....
If you are the subject of an audit by the Internal Revenue Service (IRS), your case might go from a civil to a criminal investigation without your knowing. The Criminal Investigation (CI) Division at the IRS pursues these investigations and recommends prosecution to the relevant authorities. How ...
The Coronavirus pandemic has been devastating to the economies of Maryland and the U.S. According to the Pew Research Center, about half of all lower-income Americans report household job or wage loss due to COVID-19 business closings. The virus is disproportionately affecting the small businesse...
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...
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.
