Category Archives: Tax Advice

Are you an audit target? Here’s the latest scoop from them that (might) know.

Who’s most likely to get audited by the IRS this year? According to Debra Estrem, Managing Director of the scarily-named Tax Controversy Group at Deloitte Tax LLP, the service is going to be focusing more on the wealthiest taxpayers, but is also going to be focusing on people with unusually large deductions and business losses.

As Ben Steverman wrote for Bloomberg, Estrem sees the IRS including in its list of targets taxpayers with:

–large charitable contributions

–large mortgage interest deductions

–large losses from self-employment ventures

–large incomes

Look at this as the IRS trying to focus its limited resources on Going Where The Money Is. None of this means you cannot have significant mortgage interest deductions, or give a lot to charity, or lose money in a venture that you reasonably believe will eventually become profitable.

But as always–document, document, document.

Paying for college when you can’t pay for college

Every year I consult with clients who have children applying to college and who don’t have enough saved–or don’t have anything saved–to cover the costs of a higher education. In The New York Times, Ron Lieber has a good piece guiding parents–savers and non-savers alike–to figuring out how much a school might actually cost you… Continue Reading

Pay your taxes — or lose your driver’s license! NY State has a cool idea to convince reluctant tax-payers.

I regularly tell clients that cash-starved states have become very entrepreneurial and even aggressive in their tax collection efforts. If you earn money in a state, the tax department will probably be willing to go to court to collect income taxes even if you live hundreds of miles away. (I’m looking at you, New York… Continue Reading