The Internal Revenue Service (IRS) recently announced it will take a closer look at tax returns for those who earn over $100,000. The agency’s efforts will focus on those who the agency believes has wrongly failed to file a tax return. The agency stated those in this...
Tax Audits
Did New Yorkers leave the state to avoid tax increases in 2019?
After the Tax Cuts and Jobs Act (TCJA) became a reality, financial experts throughout the country predicted New Yorkers and others from high tax states would flee the state in search of a more tax friendly alternative. Well, 2019 has come to a close and there has been...
IRS to crypto holders: 10,000 letters were “just the start”
The Internal Revenue Service (IRS) sent a message last year when it sent out 10,000 letters to those who own cryptocurrency. The letters provided information on how to come into compliance with tax laws for this asset. Although the directions may have been confusing,...
Online state sales tax: New York authorities provide guidance
Last June, the Supreme Court of the United States (SCOTUS) extended the ability of state governments to collect sales and use taxes. In South Dakota v. Wayfair, an online vendor asked SCOTUS to review whether or not South Dakota could collect a sales tax on businesses...
Centralized Partnership Audit Regime: To elect or not to elect?
The Centralized Partnership Audit Regime (CPAR) is, essentially, a new take on how the Internal Revenue Service (IRS) conducts audits of partnerships. Lawmakers designed the process to make it easier for the IRS to audit partnerships and collect any resulting tax....
How far back can the IRS go when they conduct an audit?
A federal tax audit can involve a thorough review of one’s tax filings. The exact period of time the Internal Revenue Service (IRS) can “look back” through tax records is generally three years. But, like everything with taxes, the answer is not always as clear as we...
Audit breakdown: Myth or fact?
The end of the year is approaching, which means tax season is also on the horizon. As taxpayers make end-of-year tax preparations, they may find themselves questioning the audit process. What leads to an audit? Why do some tax filings move forward without question,...
Three lessons from a tax audit gone wrong
It all began when the Internal Revenue Service (IRS) notified a relatively small, local business that it would be subject to a federal tax audit. The business cooperated, and the auditor returned findings of serious tax errors. Errors that could result in substantial...
Has the new tax law impacted NY real estate deals?
New Yorkers have voiced concern the new tax law would have a negative effect on real estate transactions within the state. More specifically, a provision within the Tax Cuts and Jobs Act (TCJA) capped the amount of state and local taxes taxpayers could deduct on their...
CT residents sue NY for double taxation
New York state tax auditors are coming down hard on those who may owe state taxes, even if they reside in another state. Why? In part, because changes to federal tax law have tempted NY residents to leave the state, at least for tax purposes. The Tax Cuts and Jobs Act...