Audit problems? Don't try to have the IRS agent whacked

Randy Nowak, a Florida resident, has been arrested and charge with attempted murder of an employee of the United States for plotting to kill an Internal Revenue Service employee. He wanted the IRS Revenue Officer killed because she was investigating his personal and business finances.

Nowak offered an undercover FBI agent $20,000 to kill the Revenue Officer, and even put $10,000 down toward the deed. He also inquired as to whether the undercover agent would be willing to burn down the IRS office in Lakeland, Florida. The taxpayer allegedly had $4 million hidden in offshore accounts, and was going to owe around $300,000 in back taxes. The tax liabilities related to un-filed corporate taxes for his construction business, R.J. Nowak Enterprises, Inc.

When negotiating with the IRS about tax liabilities, it's probably best if you're not trying to kill the person in charge of auditing you. It's much more cooperative if it doesn't think you're trying to hire a hit man to whack one of its officers. And believe it or not, the IRS does negotiate on tax bills and a taxpayer who goes about it the right way might have some success in reducing what's owed and making payment arrangements.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Tax Tips for Real Estate Agents and Brokers

Most real estate agents and brokers receive income in the form of commissions from sales transactions. You're generally not considered an employee under federal tax guidelines, but rather a self-employed sole proprietor, even if you're an agent or broker working for a real estate brokerage firm. This self-employed status allows you to deduct many of the expenses you incur in your real estate sales or property management activities. Careful record keeping and knowing your eligible write-offs are key to getting all of the tax deductions you're entitled to.

Read More

Brought to you by TurboTax.com

What is the Educator Expense Tax Deduction?

The Educator Expense Tax Deduction allows teachers and certain academic administrators to deduct a portion of the costs of technology, supplies, and certain training. Here’s what teachers need to know about taking the Educator Expense Deduction on their tax returns.

Read More

Brought to you by TurboTax.com

Self-Employed Less Than a Year? How to Do Your Taxes

Have you been self-employed less than a year? If you’re just starting out, it’s possible you worked at a job earlier in the tax year before making the switch to self-employment, or you’re working multiple jobs. In this case, you may have more than once source of income you’ll need to report on your income tax return.

Read More

Brought to you by TurboTax.com

Taxes for Grads: Do Scholarships Count as Taxable Income?

Heading off to college to broaden your horizons is exciting, but funding your education via scholarships? That's even better. Scholarships often provide a path to education that might not be feasible otherwise, which is why the Internal Revenue Service (IRS) can be generous in minimizing students' tax obligations. But sometimes scholarship money does count as income, and it’s better to find out now if your scholarship adds to your tax liability than to have a surprise later. Here’s how to decode your scholarship taxation.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.