Blogs

The possibility of a tax increase has created a great divide between high and low class Americans. The rich are expected to pay higher taxes because of their income. The middle and lower-income groups, on the other hand, cannot pay higher taxes because they cannot afford to do so.Economists state that increasing taxes on the... Continue reading →

The rationale that ‘the more you make, the more you spend’ is very true, but it applies to the progressive tax system in the U.S. The impact of higher taxes on the rich, especially businesses, on employment must be considered.Businesses believe that higher taxes affect their job creation, as it is only when a business... Continue reading →

In a recovering economy, the IRS is doing its part to help taxpayers resolve their back taxes. The IRS is providing back taxes help by simplifying the resolution process of many tax debt payment plans including Innocent Spouse and Offer in Compromise. The qualifying factors and the resolution of back taxes after qualifying have been... Continue reading →

Filing taxes jointly is not always beneficial. Sometimes, a spouse intentionally understates their taxes on their return without the knowledge of the other spouse, who simply signs the return without knowing its contents. When it leads to back taxes, both the spouses are held responsible for it. Even if the married couple divorces later, the... Continue reading →

To increase revenue, the government adopted the twin strategy of increasing taxes and reducing government spending. In regards to building revenue, increasing taxes does not only result in advantages. There has been much criticism of high corporate taxes in the U.S., which is known to result in widespread tax evasion, legally and illegally.Many individual taxpayers... Continue reading →

It is not always strict tax laws that improves compliance or increases revenue. There are unexpected and often unpredictable results of stricter tax laws. When the IRS increases its efforts to improve tax compliance among Americans living outside the country, it led to many wealthy citizens renouncing their U.S. citizenship. Many wealthy people consider taxes... Continue reading →

The IRS had increased its efforts to bring down tax evasion. The newest result is that many Americans staying abroad are now renouncing their U.S. citizenship because of the strict regulations of the Foreign Bank and Financial Accounts (FBAR).As the IRS has increased its efforts to increase tax compliance, U.S. citizens overseas are finding themselves... Continue reading →

Tax debt should be resolved quickly because the IRS may use its collection methods anytime to recover it. Initially, the IRS sends notices regarding paying back IRS taxes, including the amount and how to pay it. However, IRS suggestions regarding the resolution of back taxes are aimed to get the maximum payments possible, while most... Continue reading →

Higher cigarette taxes will not promote health on all fronts. In the state of Massachusetts, where cigarette prices have increased $1 per pack, residents can expect an increase in the cigarette smuggling from low-priced states to Massachusetts. With the cigarette tax rate touching $3.51 per pack in Massachusetts, it has become the second-highest cigarette tax... Continue reading →

An increase in tobacco taxes is seen as an increase in revenue and a possible deterrent to smoking, but it remains largely unspoken that an increase in tobacco taxes leads to the expansion of its black market. Higher tobacco taxes in some states can encourage smuggling tobacco from high-tax areas to low-tax areas.Professor David Merriman... Continue reading →