IRS Tax Collections Archives

March 10, 2021 By Tax Attorney

2021 Tax Changes in Review

Columbia SC tax attorney Joseph Arndt is dedicated to helping taxpayers steer clear of IRS trouble. He’s been doing that for over 30 years. A large part of that effort is keeping abreast of the annual changes in the tax code, large and small. Let’s a take a very basic look at some of the most important 2021 tax changes.

Marginal Tax Rates: Here is a look at your Marginal Rates for 2021, as provided by the IRS:

For tax year 2021, the top tax rate remains 37% for individual single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are:

35%, for incomes over $209,425 ($418,850 for married couples filing jointly);
32% for incomes over $164,925 ($329,850 for married couples filing jointly);
24% for incomes over $86,375 ($172,750 for married couples filing jointly);
22% for incomes over $40,525 ($81,050 for married couples filing jointly);
12% for incomes over $9,950 ($19,900 for married couples filing jointly).
The lowest rate is 10% for incomes of single individuals with incomes of $9,950 or less ($19,900 for married couples filing jointly).

Standard Deductions: The standard deduction is just easier than itemizing, and many folks take advantage of it. These have increased ever-so-slightly, up $150 for single and $300 for married filing jointly. [Read more…]

February 20, 2020 By Tax Attorney

Failed to Pay Your Taxes? The IRS May Pay You a Visit

from Bloomberg News by Laura Davison
February 19, 2020, 12:34 PM EST

Excerpt:

There’s a new incentive to file a tax return this year: an Internal Revenue Service agent may be making a house call if you don’t.

The IRS is increasing efforts to reach high-income individuals who have failed to file at least one or more tax returns in recent years as a last-ditch attempt to encourage compliance, the agency said on Wednesday. This would be the final step before the agency would pursue more severe procedures, including civil or criminal action against that individual, the IRS said.

The IRS is concentrating efforts on individuals who received at least $100,000 in income during a year and didn’t file tax returns. The agency knows the incomes of many taxpayers from third-party reporting from employers or financial institutions, even if they don’t file a return.

Read the full story at Bloomberg

March 16, 2018 By Michael

Steer Clear of These IRS Audit Red Flags!

A while back, we discussed some IRS audit triggers called the IRS Dirty Dozen list. This is a collection of filing no-no’s to avoid when you, or a tax preparer, is filing your tax return. They say the two most serious IRS audit red flags are falsifying income and using fake forms. And the bottom line is that ignorance is no defense – whoever dreamed up the scheme, YOU are on the hook when the IRS discovers the problem.

Now, let’s look at some other IRS audit triggers on the list.

Fraudulent Charities

The biggest offender here are those charities whose names sound like ones that are legitimate – but aren’t. These fake charities actually pull a double scam – they steal your well-intentioned gifts, and keep them away from the actual legitimate charities. So, steer clear of IRS audit trouble by doing your homework. The internet can help; in fact, the IRS has a helpful list to identify the known offenders.

Inflating Your Refund

If a tax preparer “guarantees” you a bigger tax refund before he even takes a look at your records – beware. Also be wary if your guy bases his fees on the size of your tax refund. And if he asks you to sign a blank return before he gets started – walk away.

Frivolous Tax Arguments

Got a beef with the Federal government? Save it for your blog, and NOT your tax return. If you want tax audit trouble, use your tax return as a forum for protest to avoid tax responsibility. Trust us, the IRS has heard it all, and they aren’t amused. Check out this IRS rundown of frivolous tax arguments.

Improperly Padding Your Deductions

In the midst of a tax panic, Homer Simpson once declared that “Lisa is now a clergyman, Maggie is seven people and Bart was wounded in Vietnam.” Avoid IRS tax problems – don’t be like Homer! Also, check out these IRS FAQs on proper Earned Income Tax Credits and child tax credits.

IRS Audit? Contact IRS Away Today

We’ll say it again: if you commit tax fraud knowingly, or an unscrupulous tax preparer leads you astray, YOU are ultimately responsible. The time to address your IRS tax problems is NOW. But you don’t have to go it alone. The IRS Away team offers you the peace of mind knowing that your tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.

Put Your IRS Tax Problems Behind you - NOW!