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Tax Avoidance vs Tax Evasion Which One is Legal The IRS Said So, SFS Tax and Accounting, Raining Money, Umbrella, Woman with Umbrella

Tax Avoidance vs. Tax Evasion…Which One is Legal? (The IRS Said So)

Everyone knows you’re supposed to pay your taxes. If you don’t, that’s illegal. It’s called tax evasion. But what about avoiding taxes? Believe it or not, it’s not quite the same thing. The IRS defines tax avoidance as “an action taken to less tax liability and maximize after-tax income.” This is perfectly legal. Tax evasion is the “failure to pay or a deliberate underpayment of taxes.” It’s what can land you in hot water with the IRS. It could also land you in [...]

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All About Tips, the Kind You Give at Restaurants, SFS Tax, Waiter Serving Food

All About Tips (the Kind You Give at Restaurants)

All About Tips (The Kind You Give at Restaurants). An SFS Tax & Accounting Services Blog.  This shouldn’t be news to anyone, but who are we to judge? It’s worth repeating: The money that you receive in tips is taxable. If you receive $20 or more a month in tips, you need to report them. You must pay tips on all income received during the year, including tips given to you from customers, tips written in on credit card slips, and the tips [...]

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New Twist on an Old Scam, IRS Warns of Crooks Directing Taxpayers to IRS website to verify calls, SFS Tax, smartphone, world map, hands

New Twist on an Old Scam: IRS Warns of Crooks Directing Taxpayers to IRS.gov to “Verify” Calls

IRS scams are like cockroaches. You kill all you find, but there are more hiding somewhere else. These cockroaches, though, keep evolving to outsmart even the wiliest taxpayer. What the Scammers Are Doing Now The latest phone scam still operates the same way as in the past. Criminals call you, claiming to be from a local IRS office. They demand immediate payment for a tax bill… a tax bill that doesn’t exist. Sound familiar? We thought so. Why You Can No Longer Trust Caller ID: Criminals [...]

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Why do we pay taxes anyway, SFS Tax, elderly man

Why do We Pay Taxes Anyway?

Why do We Pay Taxes Anyway? An SFS Tax Problem Solutions Blog.  No one likes paying taxes. It’s easy to focus on that check you write to the IRS each year or quarter. Or complain about the amount withheld from your paycheck. Or kvetch about the tax bite on the sale of our house, our stocks, or our inheritances. There are a lot of benefits to paying taxes though. Let’s face it… the government needs money to run. We could probably argue all day [...]

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Always a Deadline It's Not Just About April 17, SFS Tax and Accounting

It’s Not Just About April 17th: IRS Tax Deadlines Happen All Year Long

A lot of focus and attention is paid to April 15th (17th this year) as the big tax deadline. What many people don’t realize – and tax preparers are painfully aware of – is that there are tax deadlines all throughout the year. Individual Tax Deadlines The IRS expected 15 million people to file for an extension this year as reported by the New York Times on April 17. Are you one of them? If so, your 2017 tax return is due October [...]

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Certain People Will Get Extra Time to File Their 2017 Tax Returns, SFS Tax

Personas con circunstancias especiales reciben tiempo adicional para presentar impuestos de 2017

IR-2018-96SP, 16 de abril de 2018 WASHINGTON — El Servicio de Impuestos Internos les recordó hoy a los contribuyentes que una prórroga para presentar la declaración de impuestos está disponible por solicitud, pero ciertos contribuyentes obtienen tiempo adicional sin que tengan que solicitarlo. Cualquier persona puede recibir una extensión de seis meses para presentar su declaración de impuestos mediante el Formulario 4868(SP), Solicitud de Prórroga Automática para Presentar la Declaración del Impuesto sobre el Ingreso Personal de los Estados Unidos. Incluso [...]

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Certain People Will Get Extra Time to File Their 2017 Tax Returns, SFS Tax

Certain Taxpayers Get Extra Time to File Their 2017 Tax Return

Para ver este mensaje en Español, Click Aquí Everyone knows to file an extension if they need more time to prepare their tax returns. (Of course, you don’t get an extension on paying your taxes – it’s only for preparing and filing the return). This year, certain taxpayers don’t have to ask for more time. Who are they? Victims of Natural Disasters Receive an Extension Those affected by devastating Hurricane Maria in the Commonwealth of Puerto Rico and the U.S. Virgin Islands receive more [...]

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Wirker clocking out at the end of a shift

Do a Paycheck Check and See If You Are Taking Home Too Much Money

The Tax Cuts and Jobs Act made major changes to the tax law. Because of this, you should do a paycheck checkup and see if you are taking home too much money using the Withholding Calculator on IRS.gov and, if necessary, complete a new W-4 form. The calculator will help determine the right amount of withholding and can help prevent having too little (or too much) tax withheld. Recent changes affecting withholding include: Reduced tax rates Elimination of personal exemptions  Increased standard deductions: $12,000 for singles, $18,000 for heads of [...]

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Watch out for ghost tax preparers, SFS Tax and Accounting, SFS Tax

Watch Out for Ghosts… Ghost Tax Preparers, That Is!

The IRS has issued a warning against “ghost” tax return preparers. These phantom preparers do exist… and they get paid to prepare tax returns . When it comes time to sign the return, however, they won’t (and don’t) do it. They will not acknowledge their participation either in writing or electronically when they file the return. That’s a huge red flag. Ghost tax preparers can be pulling a scam on you. By law, anyone who receives money to prepare your return must first have [...]

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Top Five Tax Myths – and the Truth!

It doesn’t matter what your friend’s cousin’s co-worker said. When it comes to taxes, it’s best to get the word from a credible source. In 2016 the Washington Examiner reported there were 74,608 pages in the federal tax code. Some of these pages are the tax code itself. Some are written about the tax code and case law that are important to be aware of as well. Two years later, you can bet there are even more pages to contend with. So it’s [...]

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