How To Interpret Various Tax Blogs

In general, tax law blogs are written to promote interest in the subject matter without exhausting the topic, yielding ways to follow up with professional assistance that will improve the reader’s bottom line. Some tax blogs, however, recommend more serious treatments of the topics, giving interested readers a method to engage with the issue in a transparent forum, one that develops ideas in open dialogue.

Tax blogs can therefore be more formal, or, more colloquial; more professional oriented, or, more client oriented; and more in-depth, or, more cursory, in treatments of the subjects. Depending on the readership, tax blogs range from sources which give answers to negotiating a complex code – say for a personal tax return – to detailed updates on the court system’s interpretation of a tax code law, which can be useful for tax preparers of all levels.

Also, tax blogs can present trailheads in defense of certain procedures, which may become relevant in a communication either verbally or written with an IRS representative. Groups like churches – that have very specific regulations that change over the course of the tax season – may discover relevant news about tax law tweaks to discuss with other members of their organization, or to bring up with their accountant.

Perhaps most importantly, the primary benefits to the average taxpayer from these blogs are to take the abstract and sometimes ambiguous tax directions and forms, and use these to provide a venue for simpler discussions. The blog format allows users to follow a series of comments, usually initiated by an interested and knowledgeable person (although the comments that follow the initial post will help establish how effective the blog is), in order to establish guidance along a particular question or issue. There are other blogs that may be comparable to tax blogs: these include tech blogs, which often present “steps” to take in order to solve a tech problem, and medical blogs, which often present helpful information from an informed source.

Tax law blogs thus provide two key functions: they present issues that may be of interest to their readers, and they also provide a venue for further discussion about the topic. Good tax blogs should promote the guidance that the reader is looking for on that particular occasion, however, some tax blogs may take time to search over in order to find a particular strategy or remedy to a situation.

Tax Law Issues

The area of tax is one that confuses many people around the world. The laws and regulations regarding the paying and filing of taxes are often quite hard to follow, resulting in quite a bit of difficulty in understanding how exactly they work. When such mistakes are made, they often result in huge fines.

My name is Zachary and with this article, my goal is to help you get around this issue and learn about the problems commonly associated with tax laws.

Common Tax Issues

Accuracy-Related Penalties. The IRS may impose a penalty for an underpayment of tax, if the underpayment meets certain criteria. Examples of accuracy-related penalty cases filed this year included a taxpayer’s failure to keep records substantiating income and failure to report the proceeds from the sale of a house. Taxpayers were fully successful about 15% of the time and split the decision with IRS about 10% of the time. In one case, Bartlett v. Comm’r, T.C. Memo. 2012-254, taxpayer lost his argument for an abatement based on a reliance on TurboTax (I guess he forgot that the so-called “TurboTax defense” didn’t work for Geithner) while in another case, Neff v. Comm’r, T.C. Memo. 2012-244, the Court agreed that taxpayer relied on the advice of a competent tax professional.

According to forbes.com, this is the number one issue regarding tax. Most individuals underfile for taxes, resulting in harassment and legal action taken by the IRS. This leads to quite hefty fines, fines that no individual wants to face.

It is incredibly important to ensure that you file for taxes correctly. Whether you do that through use of the appropriate software or hiring a professional to do it for you, it’s absolutely imperative that you get it right. I encourage you to look at the other content on my site for more information regarding the appropriate filing of your taxes.

The website linked below also deals with common tax issues and talks about how they can be avoided.

http://www.api.org/oil-and-natural-gas-overview/industry-economics/tax-issues/api-key-tax-issues

How Serious are Tax Issues?

Many lawyers like myself have been fighting for individuals facing challenge from the IRS or other tax agencies for years.  To give you a little insight into just how seriously tax issues are fought, I’ve included some content from a resume below:

Associate, “Private” Law Firm, 1996 to 2010

Litigation practices highlighting federal and state felony criminal defense in trials and appeals).

Other areas of expertise included:

Defense against investigations and charges related to income tax.
Extradition
Proceeds of crime matters including search, confiscation and compliance
Charter rights

This section outlines the area of dealing with income tax issues as well as other government agency-based claims.

I hope this drives home just how severe the government tax agencies take tax issues. They must be treated with extreme care and caution. Hire a tax professional like me for all your tax needs as this will save you tremendously.

An Entire Area of Study

Tax law issues are taken so seriously, in fact, that there is an entire field of study and education dedicated to teaching lawyers how to deal with such laws. I am a product of this field of study and will provide you with my expertise in this area.

In law schools, “tax law” is a sub-discipline and area of specialist study. Tax law specialists are often employed in consultative roles, and may also be involved in litigation. Many U.S. law schools require about 30 semester credit hours of required courses and approximately 60 hours or more of electives. Law students pick and choose available courses on which to focus before graduation with the J.D. degree in the United States. This freedom allows law students to take many tax courses such as federal taxation, estate and gift tax, and estates and successions before completing the Juris Doctor and taking the bar exam in a particular U.S. state.

This excerpt from wikipedia.com drives home just how big of an area of expertise tax law is. It is quite imperative that individuals know how seriously tax law issues are taken and do their best to file their taxes correctly.

Conclusion

I hope this article has helped you understand the issues and severities of tax law issues. I encourage you to look at the other tax-related content on my site as this will help you tremendously in the area of avoiding these tax law issues. I also encourage you to seek the help of a professional such as myself when filing for taxes as this will prove to be a huge money and time saver.

Income Tax – What’s the deal for freelancers?

When the economy took a nosedive in 2008, many people turned to freelance writing as a way to supplement their income and earn a few extra hundred bucks a month. But a question that many people have concerns the area of income tax for freelancers. What are the rules and regulations regarding income tax for freelancers?

My name’s Zachary and I’d like to help you answer this question.

“Freelancers are in full control of their financial and tax situation, though independence comes at a cost. Independent contractors face higher taxes and more record keeping duties than employees. There are special circumstances that apply to freelance writers and other independent professionals.”

http://taxes.about.com/od/taxplanning/a/freelance.htm

This quote from about.com pretty much sums up the difficulties that many freelancers face when it comes to filing their income tax. Your record keeping skills must be quite impressive in order to avoid any issues that might arise with your tax filing.

However, it is important to first clarify whether your writing activities even qualify to be classified as ‘work.’

I found the article linked below to be a tremendous help in differentiating between ‘hobbyist writers’ and ‘career writers.’

http://www.writersdigest.com/writing-articles/by-writing-goal/get-published-sell-my-work/tax-advice-for-writers

This classification really makes all the difference when it comes to income tax as a freelance writer, since only those who make a substantial portion of their income from freelance writing are really subject to filing income tax for their earnings.

More About Freelancing

Maybe you’re a freelancer already, in which case, I hope that this article has been helpful in informing you about the income tax policy regarding freelance writing. But maybe you’d like to know a little more about freelancing?

Blogging is another free marketing tool you need to take into consideration too. You need to have your own WordPress or Blogger blog so that you can build credibility in your niche as soon as possible. Guest posts are also very useful to attract even more target traffic to any website out there, therefore type in “write for us” + your niche in a major search engine like Google, and you will come up with tons of blogs to write to.

This quote from makemoneyonlinekit.com shows us that blogging is one of the most lucrative areas for freelance writers. It is quite possible to earn a substantial or even completely independent income from blogging alone, especially if your clients are the owners of successful websites.

Conclusion

I hope this post has been helpful in informing you on the issue of income tax regarding freelance  writing. To summarize, filing income tax as a freelance writer is only necessary if you earn a substantial amount of your income from your freelancing, as specified by your local laws.

Tax Tips

Taxes can take a pretty big toll on your finances.

“Many Canadians who own U.S. vacation homes are unaware that certain events may trigger taxes,” says Jamie Golombek, CIBC’s managing director of & Estate Planning. “If you earn rental income on the property, sell or gift the property, or own the property upon death, taxes may need to be paid in both the U.S. and Canada.”

Read more at http://www.advisor.ca/news/industry-news/4-tax-tips-for-clients-who-own-u-s-property-167540

My name’s Zachary and I hope this piece of advice has helped you! Take a look at the other articles on my site for tax tips and resources.