Complex divorces often involve a range of assets including investments, business holdings and real estate. Spouses may have enjoyed a comfortable standard of living throughout the marriage, which can impact expectations for both parties during the divorce process. More complex marital estates can also inspire secondary complications, such as unusual tax issues. Those preparing for complex divorces may need to address certain tax issues while strategizing with their attorneys and while negotiating with their spouses. Some tax issues have to do with liability Divorce can potentially trigger a ho ..read more

Taxes are an unavoidable obligation for most individuals. People generally pay taxes on their income and their personal holdings, including real estate. Some of those taxes are federal, and some of them are due to the state of Connecticut or local municipal authorities. Certain factors influence how much someone pays in taxes. The total amount of someone’s income, the sources of their income and even the size of their family can influence their federal income tax obligations. In many situations, there are appellate processes that can help people fight inappropriate tax obligations or attempts ..read more

Those who owe back taxes to the Internal Revenue Service (IRS) are often anxious to resolve the matter. The IRS can take action against a taxpayer’s personal property or their income. Other times, the IRS can convince federal authorities to pursue criminal charges against individuals with significant unpaid tax obligations. The longer someone’s taxes remain in arrears, the more the IRS may demand in interest and penalties. Those who have accumulated a significant tax debt may owe far more than they can reasonably pay at one time. One of the tactics for resolving a sizable tax debt is to propos ..read more

Working adults in Connecticut have to file a tax return each year with both the federal government and the state. The Internal Revenue Service (IRS) receives and analyzes federal tax returns, while the Connecticut State Department of Revenue Services reviews state income tax returns. Those required to pay taxes often do their best to minimize the total amount they must submit to the government each year. Certain practices, like making strategic charitable contributions and claiming credits for dependents, are completely legal. Other common practices, like exaggerating the number of dependents ..read more

The Internal Revenue Service (IRS) largely depends on taxpayers to report their own income accurately. People are generally expected to report their income to the IRS, make accurate personal statements regarding their family circumstances and pay what they believe they owe based on their personal financial situation as reflected by the expectations of the Tax Code. However, the IRS does not automatically assume that every taxpayer filing a return tells the whole truth. Instead, the IRS compares the information reported by individual taxpayers with information reported by other individuals and ..read more

Income tax audits can seem intimidating. They involve a thorough review of financial information and tax returns by a tax authority to ensure that all the reported income, expenses and credits are accurate and comply with tax laws. It’s a topic that many people dread, but understanding what an audit entails can dispel much of the fear and uncertainty. Knowing what triggers an audit, how the process works and how to respond can significantly reduce the stress associated with an audit. Consider these key points every individual should understand about income tax audits. Triggers for an audit: Kn ..read more

Once you put the emotions of a divorce aside, a lot of what’s left to handle is purely financial. If you don’t have any real assets or investments, it might be fairly easy. If you do, however, the divorce process can get exceedingly complex. Couples sometimes forget about taxes when they’re dividing up the marital estate, and that’s a serious mistake. Here are some of the issues that can arise: Capital gains on the liquidation of long-term investments Couples often need to divide long-term investments such as stocks, bonds, and real estate. If these assets have appreciated in value since they ..read more

You may have outstanding tax debt with the Internal Revenue Service (IRS). If you’re struggling to resolve it, then the IRS may pursue collective activities. The IRS will formally notify you about what collective activity they intend to take if you have unpaid tax debt. There are two kinds of letters you may receive: IRS Letter 3172: Notice of Federal Tax Lien Filing and Your Right to a Hearing IRS Letter 1058: Notice of Intent to Levy and Notice of Your Right to a Hearing However, if you believe the amount you owe the IRS is wrong and you shouldn’t be suffering from a lien, levy or wage garni ..read more

Most successful professionals and small business owners want to minimize their tax obligations. The appropriate use of write-offs and exemptions can significantly reduce someone’s state and federal income tax obligations. However, the creative accounting that people sometimes use when preparing their tax returns may cross the line and become tax evasion or tax fraud. When either the Internal Revenue Service (IRS) notifies you of suspected tax fraud or you receive similar notice from Connecticut state authorities, what penalties might you face? The federal tax fraud penalties The IRS is notorio ..read more

Sometimes, you find out because you get a letter in the mail. The Internal Revenue Service (IRS) is often very forthright about its intention to investigate a taxpayer. They may send you a letter advising you of the investigation and possibly even asking for your assistance by requesting that you send certain documentation to help the IRS complete its investigation. Other times, you may learn from someone in the human resources department at work that there were requests for your internal tax documents and payroll records. You may have heard something from your accountant that made you realize ..read more