Enforcement Against Nonfilers

It is the obligation of all citizens and residents to comply with the requirements of the tax laws by filing returns and paying taxes. The Internal Revenue Service takes the position that taxpayers who fail to file income tax returns and who stop paying taxes pose a serious threat to the economy of the nation. Therefore, the IRS is using its Criminal Investigation personnel for outreach, education, and enforcement of the tax laws if they have been violated.

Community Property Rules

The issue of community property rights is usually only relevant when a married couple decides to file separate income tax returns. Joint filers have no need to distinguish between community and separate income because all income is reported on a single tax return. There are currently nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Under the laws of these states, one half of the income and property earned and acquired by spouses during their marriage is generally deemed to belong to each spouse, no matter in whose name the legal title is held.

Civil Damages for Collection Actions

What if you feel that an Internal Revenue Service employee intentionally disregarded the law in collection procedures against you? Do you have any recourse against the government? Surprisingly, depending on the facts of your case, the answer just might be yes.

Employer Identification Numbers

An Employer Identification Number (EIN) is a nine-digit number that the Internal Revenue Service assigns to identify taxpayers that are required to file various business tax returns. EINs are used by employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates of decedents, government agencies, certain individuals, and other business entities.

Employer-Provided Child Care Credit

In order to encourage businesses to provide child care for their employees, Congress has recently created a tax incentive for those employers who make certain qualified child care expenditures. The amount of the credit allowable in a tax year is the sum of 25 percent of qualified child care expenditures plus 10 percent of qualified resources and referral expenditures. The credit is limited to a maximum of $150,000 for any tax year.