Four Things NOT to Do When You’re Being Audited

Categories: IRS

I receive so many panicked calls from individuals and business owners who receive a notice of audit from the Internal Revenue Service (IRS). The reaction of fear is understandable, as nobody wants to deal with their tax records being scrutinized and possibly owing money to the IRS. However, it’s important to keep in mind that...

Read More

What is the First Thing You Should Do When You’re Being Audited by the IRS?

Categories: IRS

Receiving an audit notice from the Internal Revenue Service (IRS) can be a scary feeling. So many people see that letter and immediately start to panic. But rest assured, an audit is not something to fear, nor does it mean you’ll be facing heavy financial penalties. Here’s what you should do when you’re being audited...

Read More

Is VPDI Deductible on Schedule A of a Tax Return?

Categories: California Tax Law

Tax return caclculation

Voluntary Plan for Disability Insurance (VDPI) *The following article was updated in February 2022* When it comes to California tax returns, there are a lot of questions about what expenses are deductible and what are not. One area that is often asked about is the Voluntary Plan for Disability Insurance (VDPI). Let’s look at what...

Read More

Help, I’m Being Audited During a Pandemic!

Categories: IRS

Receiving an audit notice from the IRS is scary. But receiving one in the midst of a global pandemic, and at a time when your business may already be feeling the effects of that, can be even more overwhelming. Here are five things to do if you find you’re being audited during the COVID-19 pandemic....

Read More

Does California Tax Social Security?

Categories: California Tax Law

I often receive questions about social security benefits and whether it is considered taxable income, especially by the state of California. The answer is: it depends. Social security benefits are not taxable by the state of California. However, social security benefits may be taxable by the federal government. Let’s look at why this may or...

Read More

What are the Penalties for Late Payment of Payroll Taxes?

Categories: IRS

Calculating payroll taxes.

I’m often asked by business owners what will happen if they are late paying payroll taxes to the Internal Revenue Service (IRS). Employers should be collecting payroll taxes for every employee (with the exception of independent contractors). They are typically calculated as a percentage of the salaries that employers pay their staff, and they generally...

Read More

Is the IRS Keeping my Refund?

Categories: IRS

Refund of IRS.

One of the best feelings is filing your taxes and realizing you’re entitled to a refund. The thought of money coming into your pockets is an exciting thing. However, there are a few circumstances in which the IRS may keep your refund, especially if you owe them money in back taxes. Let’s look at the...

Read More

Do You Have to Pay Taxes on Profit from Selling a House?

Categories: IRS

Selling a house taxes payment.

I’m often asked by homeowners about potential taxes they may owe when they sell their house. Many individuals wonder if they make a profit, do they owe part of that profit to the Internal Revenue Service in the form of capital gains taxes. The answer, as always when it comes to taxes and law, is...

Read More