TaxCure Blog

The Internal Revenue Service (IRS) has launched a program called the Voluntary Classification Settlement Program (VCSP) or amnesty which enables employers to reclassify certain workers from independent contractors to employees going forward without being liable for all federal employment tax liabilities that would be due for misclassifying workers in the past.

There are several factors to consider when selling your home, especially in an economy where every cent counts. It is essential for homeowners to understand how actions related to selling a home will impact their finances and, in particular, their tax liabilities.

Cindy Sheehan, the well-known anti-war activist who created a stir in 2005 after her son died in combat during the Iraq war, recently posted on her Facebook page that she received an Intent to Levy Notice from the IRS. Although still unknown, the IRS could be coming after her for income taxes she may not have paid on speaker’s fees and her book contract.

If you’re hoping to pay for your child’s college by investing in Beanie Babies, you may be in for a surprise, and not just that you may have paid too much. Making a profit on the sale of collectibles that you held for investment purposes will trigger the capital gains tax, and if this investment was a long-term gain, you may end up paying a higher rate than if you invested in stocks or equities. Profits you make on the sale of other collectible items that weren’t held for the short-term (a year or less) are taxed at your personal income tax rate just as if you invested in stock or bond for the short-term. The IRS defines quite a wide variety of things as “collectibles”, including gold and silver coins, which can trip you come tax time. So when you’re choosing your investment vehicle, be they soft and fluffy or hard and shiny, make sure you keep in mind the tax laws assigned to collectibles.

Bartering is the oldest form of commerce, dating back to long before the development of money in its current form.

If you are fortunate enough to have received a full or partial scholarship to use toward your educational studies, it is important for you to be aware that you may be taxed on some or all of the money that you receive. Depending on what the scholarship money is spent on or used for, the IRS may very likely classify the funds as taxable income. If you have received a scholarship, you will want to carefully determine whether or not the money you received needs to be claimed on your end-of-year tax return.

Former NBA player Latrell Sprewell once secured the number one spot on a list of Wisconsin’s top 100 delinquent taxpayers. Sprewell’s NBA career famously ended in 2005 after he scoffed at a three-year, $21 million contract with the Minnesota Timberwolves, publicly stating that the money offered would not be enough to feed his family. Now, the Wisconsin native owes more than $3.5 million in state back taxes.

Christian Lopez, a 23-year-old from Highland Mills, NY, caught Derek Jeter’s 3,000th hit home run ball. Instead of selling the ball – as many others in similar situations have done in the past – or holding on to the ball as a keepsake, Lopez chose a much more generous route: he gave the ball back, no strings attached. His selflessness will now be rewarded with the warm feeling of giving, several luxury box tickets and some autographed Yankees memorabilia – and a tax bill exceeding $10K.

Protestors from the direct action group Art Uncut crashed U2’s long-awaited headline performance at the Glastonbury Festival this past Friday, June 24th.  A group comprised of artists and musicians, Art Uncut organizes creative events in opposition to major public service cuts – which involve music, comedy and short talks – in order to inform, inspire and motivate the public to action.

It sounds like something out of a bad dream. You file your taxes and happily anticipate a refund. You start thinking of all the things you’ll do with that money…buy a new couch, pay off that credit card, or take a mini-vacation. But day after day, your refund fails to arrive. Finally, you check its status and are horrified to discover that your entire refund has been seized by the IRS or another government agency. You might even have your state tax refund seized! How do you know when your refund might be taken?