FBAR Reporting Requirements and Risk of Civil and Criminal Penalties U.S. taxpayers with financial interests in foreign bank accounts or offshore entities may be required to file Foreign Bank Account Reports, known as FBARs, with the U.S. Treasury Department. These reporting requirements apply when the total value of foreign accounts exceeds certai...
Overview The Texas Voluntary Disclosure Program (VDP), administered by the Texas Comptroller of Public Accounts, allows businesses and individuals to report and pay previously unpaid or underpaid taxes voluntarily. This program incentivizes compliance by offering significant benefits, such as penalty waivers and, in most cases, interest waivers, fo...
Everything to Know About Service Sales Tax in Texas Navigating Texas sales tax on services is vital for businesses to stay compliant and avoid penalties. The Wilson Firm specializes in guiding clients through Texas tax regulations. Texas collects approximately $47 billion in sales tax annually, with services accounting for about 20% of taxable reve...
Learn Everything About Tax Treatise Navigating the world of tax law can feel overwhelming, with its intricate codes, regulations, and constant updates. Whether you're a business owner, an individual taxpayer, or a professional seeking clarity, having reliable resources is crucial. At The Wilson Firm, we understand the importance of accessible, auth...
Everything to Know about Texas Sales and Use Tax Audits Facing a Texas sales and use tax audit can be daunting, but understanding the process can help your business prepare and navigate it with confidence. At The Wilson Firm, we specialize in guiding businesses through tax audits to ensure compliance and minimize risks. The Texas Comptroller of Pub...
Everything to Know About the VDP If you've ever worried about unreported income, offshore accounts, or other tax issues that might lead to serious consequences, the Voluntary Disclosure Program (VDP) could be a lifeline. As a federal tax program administered by the Internal Revenue Service (IRS), the VDP allows taxpayers to come forward voluntarily...
Everything to Know About Tax Permits in Texas If you're launching a new business in Texas or expanding your existing operations, understanding how to apply for a Texas sales tax permit is a critical step toward ensuring legal compliance and seamless business operations. A sales tax permit is not just a regulatory requirement; it’s a cornerstone of ...
IRS Worker Classification Audits and Payroll Tax Risk for Businesses Businesses that rely on independent contractors may face IRS scrutiny over whether those workers should be classified as employees. Worker classification directly affects payroll tax obligations, including federal income tax withholding, Social Security, and Medicare taxes. If the...
Strategic Victory: The Wilson Firm's Expert Negotiation Reduces ESRP Penalty from $465,000 to $9,000
Understanding ESRP Penalties Under the Affordable Care Act The Employer Shared Responsibility Payment, or ESRP, is a penalty imposed under the Affordable Care Act on certain employers that fail to meet health coverage requirements for their employees. These penalties are governed by Internal Revenue Code Section 4980H. There are two primary types o...
Offshore Tax Reporting Requirements for Foreign Accounts and Retirement Plans U.S. taxpayers with financial interests in foreign bank accounts or foreign retirement plans are subject to strict reporting requirements under U.S. tax law. These obligations may include disclosing foreign financial accounts and certain retirement plans on annual tax ret...
How Property Tax Appeals Work for Commercial Real Estate Local appraisal districts determine the taxable value of commercial real estate for property tax purposes. When a property owner believes the appraisal district has overvalued their property, they can challenge the valuation through administrative protest procedures and, if necessary, litigat...
Choosing the Best IRS Payment Plan for Your Tax Debt Two of the most common payment options for delinquent tax debts are installment agreements and offers in compromise. Let’s discuss theses options below, along with the key considerations for choosing which route might be best in a taxpayer’s particular case. If you owe the IRS, and are considerin...
Understanding the IRS Collection Statute Expiration Date (CSED) and Your Rights The Collection Statute Expiration Date, often referred to as the “CSED”, is the maximum time period the IRS will look back to collect unpaid taxes. Similar to a statute of limitation, where anything beyond that date is off-limits, the CSED is 10 years from the date the ...
How Innocent Spouse Relief Can Protect You from Tax Liability When filing a joint tax return, married taxpayers are often privy to certain tax benefits. Generally, married taxpayers take advantage of a higher standard deduction and a lower tax rate when filing their taxes together. However, as a result of a joint filing, both taxpayers are equally ...
Understanding IRS Debt and Community Property Laws in Texas Are you engaged to someone with significant IRS debt? Learn how community property laws in Texas might affect your earnings and property, and explore options to protect your financial interests. When Your Fiancé/Fiancée Owes Money to the IRS. Assume that A is engaged to marry B. They live ...
IRS Ends Automatic Penalties for Late Form 3520 Filings The IRS recently implemented an important change affecting taxpayers required to report foreign gifts, inheritances, and certain foreign trust transactions using Form 3520. Previously, when taxpayers filed Form 3520 late, the IRS automatically assessed penalties even when a reasonable cause ex...
Written by Jack Naranjo Understanding IRS Penalties for Late or Unfiled Foreign Asset Reports At the urging of the Taxpayer Advocate Service and practitioners, the IRS has ended its practice of automatically assessing penalties at the time of filing for late-filed Forms 3520 to report foreign gifts and inheritances. Also, by the end of the year, th...
Overview The purpose of the Streamlined Foreign Offshore Procedures (“SFOP”) is to bring foreign or non-U.S. resident taxpayers into compliance for reporting foreign financial assets. In other words, SFOP provides taxpayers, who comply with the eligibility criteria outlined below, with amnesty from penalties such as failure-to-file and failure-to-p...
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 r...
The Risks of Fraudulent Employee Retention Credit Claims 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 ...
