Posts

Be Careful Claiming Your Charitable Deduction for 2014

The IRS loves to audit people who claim charitable deductions.  The reason is that there are very strict record-keeping rules when it comes to charitable deductions and most people are not aware of them so the IRS usually finds a way to disallow the deduction, which of course triggers increased taxes, penalties and interest.  Do not let this happen to you.

 Generally, to claim a charitable contribution deduction for gifts of $250 or more in cash or property to charity, donors must get a written acknowledgment from the charity.  This is usually not a big deal.  For donations of property, the acknowledgment must include, among other things, a description of the items contributed.  Typically the place you donate the property gives you a blank receipt.  So you need to fill it out and make sure you list all the items donate.  You also need to determine the value of the property contributed if it is not cash, which sometimes can cause problems if the amount determined is incorrect.

 The law a…

Be Careful Claiming Your Charitable Deduction for 2014

The IRS loves to audit people who claim charitable deductions.  The reason is that there are very strict record-keeping rules when it comes to charitable deductions and most people are not aware of them so the IRS usually finds a way to disallow the deduction, which of course triggers increased taxes, penalties and interest.  Do not let this happen to you.

 Generally, to claim a charitable contribution deduction for gifts of $250 or more in cash or property to charity, donors must get a written acknowledgment from the charity.  This is usually not a big deal.  For donations of property, the acknowledgment must include, among other things, a description of the items contributed.  Typically the place you donate the property gives you a blank receipt.  So you need to fill it out and make sure you list all the items donate.  You also need to determine the value of the property contributed if it is not cash, which sometimes can cause problems if the amount determined is incorrect.

 The la…

IRS Blasted for Seizing Assets of People who Deposit Cash Under $10,000

On February 11 Congress blasted the IRS Commissioner John Koskinen on the Service’s use of civil-asset forfeiture laws, demanding to know why innocent small business owners are being target when they have committed no crime. 

This issue is two fold: 1) whether IRS collection officers are under pressure to fill quotas on assets seizures, which is prohibited by law to reward these people based on the amount they have collected; and 2) the IRS practice of seizing the bank accounts of people suspected of "structuring," that is, of making cash deposits worth less than $10,000 to avoid reporting requirements, when in fact small business owners may make several deposits under $10,000 for a variety of reasons and none of them are illegal.
I can say with personal experience this is a real problem.  In fact, I was involved in case where the IRS/DOJ seized the funds of a small business owner from his bank account and prosecuted him for "structuring" when in fact that person pa…

IRS Blasted for Seizing Assets of People who Deposit Cash Under $10,000

On February 11 Congress blasted the IRS Commissioner John Koskinen on the Service’s use of civil-asset forfeiture laws, demanding to know why innocent small business owners are being target when they have committed no crime. 

This issue is two fold: 1) whether IRS collection officers are under pressure to fill quotas on assets seizures, which is prohibited by law to reward these people based on the amount they have collected; and 2) the IRS practice of seizing the bank accounts of people suspected of "structuring," that is, of making cash deposits worth less than $10,000 to avoid reporting requirements, when in fact small business owners may make several deposits under $10,000 for a variety of reasons and none of them are illegal.
I can say with personal experience this is a real problem.  In fact, I was involved in case where the IRS/DOJ seized the funds of a small business owner from his bank account and prosecuted him for "structuring" when in fact that person p…

2015 Dirty Dozen Tax Scams

Each year the IRS posts the worst tax scams across America.   The IRS works with the Department of Justice and its criminal division to shut down these tax scams, but it’s a never ending saga and scammers steal billions of dollars each year of public funds.  Let’s take a look at this year's dirty dozen tax scam list:
Aggressive and threatening phone calls by criminals impersonating IRS agents. I have had numerous clients call me who received these phone calls.Hang up on these people and let them know you are sending their information to the FBI.
Fake emails or websites looking to steal personal information (phishing). If you get an email from what appears to be the IRS delete it and do not open it.Call a tax attorney or the IRS for assistance to determine if you have a real tax issue.
Identity theft continues to be a problem especially around tax time. File your tax return early, the IRS typically accepts the first return filed.So if you f…

2015 Dirty Dozen Tax Scams

Each year the IRS posts the worst tax scams across America.   The IRS works with the Department of Justice and its criminal division to shut down these tax scams, but it’s a never ending saga and scammers steal billions of dollars each year of public funds.  Let’s take a look at this year's dirty dozen tax scam list:
Aggressive and threatening phone calls by criminals impersonating IRS agents. I have had numerous clients call me who received these phone calls.Hang up on these people and let them know you are sending their information to the FBI.
Fake emails or websites looking to steal personal information (phishing). If you get an email from what appears to be the IRS delete it and do not open it.Call a tax attorney or the IRS for assistance to determine if you have a real tax issue.
Identity theft continues to be a problem especially around tax time. File your tax return early, the IRS typically accepts the first return filed.So if you f…

Groping Chiropractor Sentenced for Bribing IRS Agent

The United States Attorney's Office in MA announced that a Chiropractor, Stephen Jacobs, has been sentenced to 9 months in prison for bribing an IRS agent.  Before this happened, however, he kissed a woman's feet while he was treating her and admitted to other inappropriate contact when he was giving a second woman a massage.   So he paid them $5,000 each because he was concerned that they would report him to the police or to the chiropractic board.  Then when the IRS audited him and quested him about the two payments to these women that he had deducted as a business expenses, he paid the IRS auditor $5,000 to issue him a favorable audit letter showing no additional tax for one year and a refund for another year.  The IRS auditor was wearing a wire when he paid him $5,000.  That was the end game for this guy.  Not the brightest bulb in the room.

Contact Joseph Wilson at 714-463-4430 or at Wilson Tax Law Group at www.wilsontaxlaw.com. SEE PRESS RELEASE BELOW Department of Justice …