Goodwill clothing donation deduction rules are stricter than most taxpayers realize. In Besaw v. Commissioner, the Tax Court disallowed a $6,760 noncash charitable contribution deduction even though the court appeared to accept that the donations were real. The problem was substantiation. John Besaw claimed the deduction on his 2019 return and attached Form 8283. But […]
USPS postmark rules for IRS filings used to feel simple: if it’s postmarked by the deadline, the IRS treats it as filed on time. It used to be that you could drop off your tax return at the post office on April 15 and you were safe. That’s no longer true thanks to newer U.S. […]
What to Do About Incorrect 1099-NEC Reporting and How to Avoid Overpaying Taxes When the IRS sends you letters, pay attention! Especially if you receive something called a “1099-NEC” form. It might mean you're being taxed on money you never actually received in that year. ❌ And you will NOT overpay the IRS - not […]
If you use independent contractors to perform services for your business, for each one that you pay $600 or more for the year, you are needed to release the worker and the IRS a Form 1099-NEC no later than January 31, 2022, for 2021 payments.
The majority of taxpayers do not deliberately sustain tax penalties, however lots of who are penalized are merely not aware of the penalties or the possible damage they can do to their finances. As tax season approaches, let's take a look at several of the more frequently experienced penalties and how they might be prevented.