If you are a foreign business or person that does business with the U.S., then you are subject to U.S. income taxes. Some examples would be if your business has an office that generates income located in the U.S. or if a company owns rental property in the U.S. from which it derives income.
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An Update on California’s Proposals to Tax the Rich
During the summer of 2020, California’s political machinery continued to whine and hum. As its populace sheltered in place with COVID-19, two tax bills were introduced on the state’s Assembly floor.
How Does the FTB Handle Business Tax Collections?
The people who administer state tax laws generally show up in the news only when a newsworthy case is reported, typically one involving tax evasion, a “big fish” going to jail for not paying taxes.
How to Process Employee Withholding Orders for Taxes
In an earlier chapter, we touched on wage garnishment as a means for the FTB to collect unpaid taxes. However, the other side of the fence can be if you are an employer and are called upon by the FTB to garnish wages of any of your employees.
What Is EDD Offer In Compromise?
There are certain types of people that will go to great lengths to save money. I’m not talking about eating a strict diet of ramen noodles and taking the bus when you could afford to drive – I’m talking about tax avoidance.
What Should I Expect After Being Charged With A Tax Crime?
Oftentimes, individuals being charged with a tax crime will be arrested and brought into custody by a federal agent. This can be an intimidating and confusing procedure, and it is important to have an attorney present at this stage. However, if you are arrested at this point, this does not necessarily mean you will have to sit in jail until the resolution of the case.
How Do Tax Crimes Get Prosecuted?
There is a section on the IRS website titled “The Truth About Frivolous Tax Arguments.” Not paying your taxes because they’re “voluntary,” or deciding for yourself how much your taxes should be has been tried many times. These tax dodging attempts have been much abused – so much so that the IRS has addressed them in particular.
What Conditions Are Required to Get an Offer in Compromise from the IRS?
If you are in debt up to your eyeballs with the IRS with no end in sight, then you might want to consider an Offer in Compromise (OIC). An OIC is a repayment plan with the IRS where the taxpayer can propose paying a lesser amount and the IRS will forgive the remainder.
How Are Transfers of Property Taxed in a Divorce?
Timing of the Transfer
Under 26 U.S. Code §1041, you typically have a 6-year window of time from the date your divorce is finalized to make a transfer that is not subject to taxation. Once you go beyond 6 years, you are looking at two individuals that are divorced, transfer assets between each other could be considered a gift subject to different rules. Unless there is a valid reason that is beyond your control, the sooner you complete the transfer the better off you will be. Because the code specifies that the tax-free transfer must be incident to divorce, it may also help to include what the other spouse will receive under the divorce agreement.
How to Pre-Audit Yourself in Advance of Your EDD Payroll Tax Audit
Internally, we have developed the following list of issues based on our experience in past EDD payroll tax audits. Although not an exhaustive list, it will give you an idea of some of the mistakes that we have seen in preparing for audits and things to generally look out for.