menu MENU

Posts Tagged ‘Tax Returns’

Leawood, Kansas CPA Could be Going to Jail

December 5th, 2017

A former partner of an accounting firm in Leawood, Kansas pled guilty to the filing of false personal tax returns in an attempt to hide approximately $202,000.  As part of his plea, the CPA will pay over $100,000 to the U.S. government in restitution and could face up to three (3) years in jail and a $250,000 fine.

If you are in tax trouble and need assistance, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.

That’s Insane! Part Two:

August 16th, 2016

crazy cat lady 2

Next up in our series of crazy ways people have legally avoided taxes is Jan Van Dusen, the definition of a crazy cat lady. At one point, Ms. Van Dusen had taken in so many cats that she was caring for 70-plus cats at one time in her home. It’s safe to assume that caring for that many animals is going to come with a rather large price tag. On one tax return, Ms. Van Dusen tried to write off $12,068 for items such as cat food and vet bills. Normally, these would be considered personal taxes but Jan Van Dusen was prepared to take on the IRS herself in order to save her cats. Eventually, she was able to convince the IRS that her operation was more of an animal shelter organization, since her house was so overrun by felines that she was unable to ever have people over, and was able to get deductions for most of her claims. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

That’s Insane! Part One:

August 15th, 2016

pay your taxes 2

This series will outline some of the most insane ways people have legally avoided paying taxes. Remember, these posts are just to give you a glimpse into the sometimes odd thinking of the US Tax Court, not to give you any ideas on how to get out of your taxes.

First up we have Justin Rohrs, a man who slid his truck off an embankment, totaled his car, and was charged with driving under the influence. After being denied his insurance claim of $33,629, Rohrs attempted to deduct the loss of his vehicle from his taxes. He was originally denied, but somehow the US Tax Court decided that Rohrs’ deserved a casualty loss deduction for his truck. According to tax law, if an accident was not caused by your own willful negligence or actions, the costs from the accident are a valid deduction. Somehow, a judge was convinced that drunk driving was not acting with negligence – moral of the story, don’t think you will be able to convince any other judge of the same. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

Common Tax Filing Errors

May 16th, 2016

IRS 1040 Tax Form Being Filled Out

Before you file your tax return, make sure you double-check your return for these common mistakes:

  1. Wrong or missing Social Security Numbers.
  2. Misspelled names.
  3. Filing status errors.
  4. Math mistakes.
  5. Incorrect bank account numbers for direct deposits.
  6. Unsigned forms.

If you are having tax trouble, feel free to contact our office at 816-524-4949 or www.Hoorfarlaw.com.

Tax Tips When Selling Your Home

August 27th, 2014

for sale 3

Here are a few tax tips to keep in mind when selling your home this year:
1. If you have a capital gain on the sale of your home, you may be able to exclude the gain from your tax return. You can exclude up to $250,000 for individual returns or $500,000 for joint returns.
2. If the gain from your home is not taxable, you do not need to report the sale on your tax return.
3. If the gain is taxable, you must report it on your return.
4. You can only exclude the gain from the sale of your main home.
5. You can only exclude the gain from the sale once every two years.
6. If you claimed the first time homebuyer credit, then special rules apply.
7. If you sell your home for a loss, you cannot deduct it.

Contact our office at 816-524-4949 or check out our website at www.Hoorfarlaw.com.

Prepare for Hurricanes, Natural Disasters by Safeguarding Tax Records

June 4th, 2013

With the start of this year’s hurricane season, the Internal Revenue Service encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.

Create a Backup Set of Records Electronically

Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.

Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.

Document Valuables

Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.

A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.

Update Emergency Plans

Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.

Check on Fiduciary Bonds

Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

IRS Ready to Help

If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.

Visit our website at www.Hoorfarlaw.com
Courtesy of the Internal Revenue Service.