There are a number of companies (mostly in high-tech) that reward their employees with a form of deferred compensation called incentive stock options (ISOs). The tax rules for these stock options are complicated, but if you receive this kind of benefit, you need to understand the basic rules for them to be able to use them effectively. For some time I’ve wanted to discuss how profits from stock purchased via ISO exercises are taxed. This post, which will be the first of two parts, is more of a primer than an exhaustive discussion, but I hope it will be useful.…
If you filed your tax returns on time the April 15th filing deadline may seem like a distant memory. However, if you filed an extension or missed the filing deadline, the idea of filing a past due tax return should be fresh in your mind.
If you have tax returns that need to be filed you are not alone. It is not uncommon for some taxpayers to go one or more years without filing a tax return. Many times I have seen that a taxpayer fails to file a tax return in a year when financial and life circumstances changed. …Read More
If you are seeking professional guidance with a tax resolution issue you should pay attention to these common myths that some tax representation firms perpetuate through various media outlets in the form of television and internet marketing. Always remember there is a large group of ethical tax professionals available to assist people with tax problems. However, it is necessary to separate fact from fiction when determining the best tax resolution plan.
MYTH #1: The IRS offers a “one time only” opportunity to resolve your tax liabilities.
FACT #1: The impression that tax resolution is a one shot deal is completely …Read More
Whew!! The 2008 tax season is finally over and we can relax. Well not exactly; this is a great time to prepare for 2009 taxes. A little effort now can help you save in 2009 and will make the process a whole lot smoother. Below are some ideas to help save taxes in 2009.
1. Create a folder for your 2009 tax documents and receipts. Create a file right now, and keep it somewhere convenient, to keep track of all those expenses and donations as they occur.
2. Start going through your old clothes and junk in the garage and …Read More
Periodically the IRS issues a list of tax scams that it considers especially troublesome. Most of the 2009 “Dirty Dozen” Tax Scams involve fraudulent tax filings and other abuses of the tax system. However, the first item on the list is “phishing:” the use of e-mails that appear to come from the IRS but that are actually from crooks looking for ways to steal bank account information, social security numbers, and other personal information.
During periods of general economic stress, frauds like this often increase. I wrote last summer about a bogus IRS e-mail that I received, with advice about …Read More