Internal Revenue Code section 61 defines gross income as “all income from whatever source derived.” This definition reaches your worldwide income, so it is important to understand exactly what “income” means. There are a couple of approaches to the definition of income. One approach is the Haig-Simons approach which indicates that income is the sum of … Continue reading Tax Tip – Identifying Gross Income
Happy new year! With the new year comes tax season. IRS Plans Jan. 30 Tax Season Opening For 1040 Filers WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and … Continue reading Tax Season Opening For 1040 Filers: Jan. 30, 2013
What’s good for the goose is good for the gander. So it goes for offshore accounts. Offshore accounts have had a high place on the IRS’ radar since 2009, with the IRS’ first push for taxpayers to seek amnesty for unreported offshore accounts through voluntary disclosure. Earlier this year, Alec Harrington let you know about … Continue reading 2011 Offshore Voluntary Disclosure Initiative Countdown – 36 Days Remaining
When a married couple elects their filing status for federal tax purposes, they may only have in mind which option saves them the most. Unbeknownst to many unwitting couples, however, is that, when filing jointly, each spouse also assumes liability for the total tax bill. By way of example… Say, for example, that Jack makes … Continue reading IRS Changes Deadline to Seek Innocent Spouse Relief
With the dreaded April 15th (or this year, April 18th) behind us, most can breathe easy now that another Tax Day has passed. However, for registered domestic partners in California, 2010 saw a major change, wrought with traps for the unwary, in the Internal Revenue Service’s position on how registered domestic partners are required to … Continue reading Registered Domestic Partnerships – New Tax Traps for the Unwary