Tax Matters - The Top Tax Defenders Blog

Many people consider an IRS tax audit to be among their worst nightmares. Even as they make nervous jokes about being audited, people understand the grave legal and financial consequences that can come from being quizzed about their prior years' returns. However, you may be surprised to learn that the IRS does not always have the advantage when it comes to your audit. In fact, this organization routinely asks people to grant it an extension. You may at first be tempted to refuse this request. However, before you turn down their offer, you should consider some of the key reasons for granting the IRS an extension on your audit. 

Most people generally accept the inevitability of paying taxes on their income each year. They view this annual requirement as a civic duty and something that should not be avoided. However, a smaller number of would-be taxpayers go out of their way, either legally or illegally, to avoid declaring their incomes and paying taxes on it. Cases of tax evasion and tax avoidance keep the IRS busy as it investigates people who purposely withhold money from the government. With that, you would be well advised to appreciate the differences between tax avoidance and tax evasion, as well as understand the possible penalties involved with both. 

Under normal circumstances, you probably assume that the primary goal of the IRS is to collect tax money owed to the government. While tax collection remains an important duty of this entity, it also makes it a priority to reward people who have information about tax cheats. In fact, you may directly or indirectly know of someone who purposely cheats on paying taxes each year, whether it be by claiming false expenses, deliberately withholding income or fraudulently claiming on their tax return. Before you call the IRS to report this individual, however, you should understand the process of taking part in the Whistleblower program and what criteria must be met before you can claim a reward.

If you have recently purchased a home, you may qualify for a tax credit. This is a credit that is typically awarded to help you pay off part of your home. However, not everyone qualifies for this tax credit, nor may they be benefited by it, so it is important to understand exactly how the credit works and how it will positively or negatively affect you in the long run. Let’s take a look at some of the key things to consider in regard to the homebuyer tax credit:

With tax laws continuously changing, business owners may find it difficult to know what expenses they can claim at the end of the year. Even more, they may not remember what funds they are supposed to claim to avoid incurring penalties and fines. One of the most confusing aspects of filing taxes as a small business owner involves knowing whether or not to claim bonuses as a business expense. They can appreciate why it may be necessary for them to declare the bonuses they pay to employees and what qualifications call for them to include these funds on their returns. 

No doubt by now we have all come across Bitcoins in one realm or another. While many Bitcoin progenitors may have seemingly made out like bandits, that all looks to soon change. Once the tax man comes calling; everyone and everything is up for scrutiny. Here is what you need to know about Bitcoins as they stand for tax burdens.

axpayers may be eligible for several tax deductions and credits that could substantially increase their tax refunds this year. If you are a single mom or a single dad, read these tax tips for single parents to see how you could boost your tax refund!

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f you missed the April 15th filing deadline and are getting ready to prepare for the October 15th extension cutoff date, you may be feeling quite stressed out. You cannot procrastinate any longer. Nevertheless, there are some useful tips to help you get through this all-too stressful time and maybe even come out on top!

When you're planning for retirement, it can be a bit confusing to decide exactly how to invest your money. Many employers offer 401(k) plans for their workers, but some may wonder if an IRA would offer a better investment return. Here's a look at the differences between a 401(k) plan and an IRA. Comparing both forms of investment can help you decide which one is better for you.