The IRS has released a new tool in the fight against felonious filing: the Identity Protection Personal Identification Number (IP PIN) system. Taxpayers can now enroll in the IP PIN program and will receive a unique number only known by themselves and the IRS....
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Month: October 2024
Federal Bill S.5158 Pending; Aims to “Define Solicitation of Orders”
Public Law 86-272 has long been used to protect out-of-state businesses from being taxed on net income earned in other states if the only business activity of the company within the other states consists of the solicitation of orders for sales of tangible personal...
FTB Issues “Review Your State Tax Return” Letters
The FTB has once again issued letters to targeted taxpayers with large Schedule A itemized deductions or large Schedule C expenses, this time for tax year 2021. The FTB successfully used this strategy two years ago for tax returns filed for 2019. The benefit to...
California Tax Preparer Sentenced to Six Years – Cost the IRS at Least $28 Million in Unpaid Taxes
A California tax preparer was sentenced to six years in federal prison and to pay nearly $500,000 in restitution for costing the IRS over $28 million in taxes by filing false tax returns for his clients. Salvador Gonzalez operated Grace’s Lighthouse Resource Center,...
The Tax Gap is Nearly $700 Billion Despite 85% Taxpayer Compliance
The estimated tax gap calculates the difference between the amount of taxes collected and paid on time and the true tax liability. The projected tax gap for 2022 is $696 billion; $200 billion more than in 2014 through 2016. The tax gap looks at three main areas:...