The IRS has recently issued a warning to taxpayers, cautioning them to be vigilant about scams promising tax refunds or claiming to "fix" tax-related issues. The IRS emphasizes that it never initiates contact with taxpayers through email, text, or social media regarding tax refunds or bills. They caution against clicking on links from questionable sources and encourage individuals to remain vigilant. These scams often focus on misleading promises regarding a third round of economic impact payments. The IRS has been inundated with complaints, receiving hundreds daily and thousands since the July 4th holiday, directed to their
Client worked for an international oil and gas company based in Europe, where the employees had the equivalent of a European 401k. The client was given erroneous advice and never reported this foreign account when filing their tax returns. Before coming to The Wilson Firm, the client was looking at paying approximately $100k with the combined amounts of tax and penalties owed. This amount could have been increased by an additional $70k if the client’s actions were determined to be "willful," and they were assessed penalties for this. Instead, with the help of our firm, our client paid less than 13%...
For business owners, navigating the world of tax compliance can be extremely complicated. On top of the business itself, tax compliance represents a world of confusion for most business owners. The following tips are meant to provide simple, yet highly effective tips on how a business owner can make tax compliance easier. These tips are by no means all-inclusive; they are simply designed to point your business in the right direction. Work as you go. Every year the IRS selects random returns for audits, and those operating small businesses are at a greater risk of being picked up for these random...
The Wilson Firm recently achieved a significant victory for its client, a subsidiary of a Fortune 100 company. The case involved a dispute with Montgomery Central Appraisal District over the value of approximately 30 acres of commercial property located in The Woodlands, Texas. The Wilson Firm sued Montgomery Central Appraisal District in September 2019 over the appraised value of the client’s property after attempting to resolve the matter with the Montgomery County Appraisal Review Board. While the lawsuit was pending, the Appraisal District continued to over-appraise the value of the property in successive years, expanding the lawsuit to include 2020, 2021,...
If you are reading this, I first want to wish you good luck because you are reading this article means you are either running a business or at least thinking of starting a business. When it comes to new business, you may find yourself involved in a variety of different industries, from freight to plumbing or even the restaurant business. However, most entrepreneurs don't realize that they also entered into the tax "industry." Starting a business comes with infinite tax rules to understand and comply with. Because tax is so certain, I think the Bible has a typo: it should say...
If there is one word that strikes fear in the hearts of every taxpayer, that word is “audit.” Most people don’t truly understand what an audit actually entails, why they would be the victim of an audit, and what to do in case they find themselves on the wrong side (implying that there is a right side) of an IRS audit. An IRS audit is an examination of an organization's or individual's accounts and financial information to ensure that information is reported correctly according to tax laws and to verify the reported amount of tax is correct. Many people have the...
Yesterday The Wilson Firm organized the Spring Tax Mixer event at Del Frisco's Grille in The Woodlands. More than 20 tax professionals attended this fun networking event, where they were able to connect and exchange ideas, experiences, and opportunities. We had the pleasure of meeting new people, discussing interesting topics, and relaxing after a busy tax season. We thank every attendee for carving out time for us and stopping by at the event. The Wilson Firm also extends its gratitude to the local businesses that provided generous gifts for door prizes: VillaSport Athletic Club and Spa, Black Rock Coffee Bar, Del...
Don’t Ignore your Tax Preparer’s Red Flags. Tax season is either the best of times or the worst of times. Either you’re eagerly waiting for the Internal Revenue Service (“IRS”) to issue you a juicy refund, or you’re searching and scraping for any deduction or tax strategy that can minimize your tax liability. As the April 18, 2023 deadline is approaching, people might find themselves in “panic mode” and susceptible to making poor decisions this tax season. While there is a temptation to rush your taxes or take “extra” deductions, it is important to understand that when dealing with the IRS,...
A wise man once said, “Fool me once, shame on you; fool me twice, shame on me.” Whoever this so-called wise man was, he had never encountered the IRS. If he had, the corrected quote would be something like this: “Fool the IRS once, go straight to jail.” When it comes to trying to defraud the Internal Revenue Service, just don’t. At worse you end up in prison, at best, you end up looking over your shoulder for the rest of your life. As we get closer to the April 18, 2023 filing deadline, and the economy gets worse, it can...
An Introduction to Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations Purpose of Form Form 5471 is used to satisfy the reporting requirements of Internal Revenue Code (“IRC”) §§ 6038 (information reporting with respect to certain foreign corporations and partnerships) and 6046 (returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock). Likewise, Form 5471 is used to report amounts related to IRC § 965 (treatment of deferred foreign income upon transition to participation exemption system of taxation). Certain U.S. persons who are officers, directors, or shareholders in...
The Wilson Firm is pleased to announce that we recently awarded a $1000 scholarship to a deserving student, J.D. Candidate Nga Tran-Medina, at the Thurgood Marshall School of Law. As a leading law firm specializing in tax law, we are committed to supporting the next generation of legal professionals and helping to shape the future of the legal field. Our very own tax attorney, Jay Poynter, had the honor of presenting the scholarship at the Corporate and Tax Law Society Panel. During the panel, Jay spoke about the exciting opportunities and challenges that come with a career in tax controversy. We're...
The IRS started sending out letters mid-July to taxpayers who have participated in virtual currency transactions. The letters consist of three different versions: Letter 6174, Letter 6174-A, and Letter 6173. Each letter's intention, according to the IRS, is to "strive to help taxpayers understand their tax and filing obligations and how to correct ...
The Woodlands, Texas - Lee Wilson, Managing Attorney of The Wilson Firm, PLLC, was selected to Super Lawyers' Rising Stars again this year, making it three consecutive years that he has been honored accordingly. The Rising Stars designation is reserved for the top two-percent (2%) of attorneys in Texas. The Wilson Firm is a boutique tax law f...
The Woodlands, Texas Below is a link to a new podcast created by myself and Rik Thakrar, a fellow tax lawyer in Orlando, Florida. The weekly podcast focuses on practice in the U.S. Tax Court from our perspective as practicing attorneys. The really great part about the podcast is we focus on the history leading up to certain cases, the law to come o...