Income Tax All businesses except partnerships must file an annual income tax return. Partnerships file an information return. The form you use depends on how your business is organized — whether it is an LLC, a corporation, a partnership, a limited partnership, or a sole proprietorship.  An employee usually has income tax withheld from his...Read More

It is not always necessary to pay an attorney hundreds of dollars to write a letter. This letter is a sample of how to deal with a collection agency who is claiming you owe money but has yet to validate the debt as accurate and has possibly violated your rights. This letter should not be...Read More

Use this letter to demand that a collection agency stop calling or writing you. The cease and desist is one of your rights under the FDCPA- Fair Debt Collection Practices Act. Name Of CreditorAddressCity, State, Zip Re: Account Number Date Dear creditor/collector, This letter is to formally advise you that I am requesting you to...Read More

The people you’re most likely to deal with are ordinary people, probably a lot like people you talk to every day. I have a friend who works for the IRS who is totally in love with her grandson and is one of the best cooks who’s ever invited me to share the fruits of their...Read More

Keeping Your Money and Peace of Mind Step 2 – Your Rights The Tax Code includes a Taxpayer Bill of Rights The right to be informed You have the right to be informed about the amount of tax you owe and any interest and penalties you owe. The IRS must also explain why you owe...Read More

Keeping Your Money and Peace of Mind Step 1 – Understanding Burden of Proof It’s important throughout the process of dealing with the IRS to know everyone’s rights and duties. The Restructuring and Reform Act of 1998 shifted the burden of proof from the taxpayer to the IRS in civil tax disputes. The “burden of...Read More

Bookkeeping is a technology that allows you to trace the flow of money through your business. Money enters your business through sales and exits via purchases of inventory and equipment, payment of wages and other expenses, and finally into your hands as your net profit. Even a very small all-cash business benefits from bookkeeping at...Read More

The sale of rental property may trigger capital gains tax or may generate a loss. Your taxable gain or loss is determined by subtracting the property’s adjusted basis on the date of sale from the net sales price. The net sales price is your sales price less commissions, closing costs, and fix-up expenses. Your adjusted...Read More

You can successfully deal with many  IRS notices yourself.  Many require only a simple response, such as sending the IRS additional information or paying taxes on Form 1099 income you forgot to include on your tax return. The following tips apply whenever you deal with an IRS employee in his or her official capacity. Read...Read More

“Why me???  Why is the IRS auditing me?” The IRS has limited resources. IRS management doesn’t want to spend $10,000 of their employees’ time to get $2,000 of additional tax.  Their performance is monitored by the Treasury Inspector General for Tax Administration and the IRS Oversight Board, and their budget must be approved by Congress....Read More