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Posts Tagged ‘taxes’

Three Kansas Citizens Indicted for Tax Fraud

June 12th, 2017

Fraud 5

Three adult men from Kansas City were charged with twenty-three (23) counts of tax fraud.  According to the charges, the men prepared forty-seven (47) false tax returns in order to obtain tax refunds of $108,621.

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

IRS Accepting Returns that Skip the Obamacare Health Tax

March 13th, 2017

tax season again

Pursuant to President Trump’s executive order, the IRS will be accepting income tax returns that do not complete the requirement to report your health insurance on your income tax return.  However, the IRS has stated that it can, and may, follow-up on income tax returns that leave the information blank.

If you would like assistance filing an income tax return, contact our law office at 816-524-4949 or visit our website at www.hoorfarlaw.com.

Amazon May Be Collecting Taxes Soon

March 8th, 2017

amazon

The state of Mississippi is now requiring that any company that sells items through the mail above $250,000 per year will be subject to collecting the state’s sales tax.  This means that companies such as Amazon and Quill will be required to collect sales taxes on their sales in the state of Mississippi.  While this does not affect Missouri or Kansas just yet, it may soon.

If you are facing tax issues, contact our law office at 816-524-4949 or visit our website at www.hoorfarlaw.com.

It’s a Girl

March 2nd, 2017

egg donors

Egg donors have to go through a barrage of tests and hormone therapies and as such are compensated rather well. The payout for enduring the process generally runs around $50,000 for those who make it through. In Perez v. Commissioner the tax court finally made a definitive ruling that this money is taxable. Perez tried to argue that the payment was for pain and suffering and thus excludable under Internal Revenue Code Section 104 as a payment for physical injury.

For all you tax buffs it is important to note what the case was not about. It was not a case to determine the tax treatment of selling her eggs. Perez was compensated for her time and would have been paid regardless of whether there was a successful donation. Though income from donating other items such as plasma is taxable.

If you need help with your taxes, contact us at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

You’ve Won a New Car

February 27th, 2017

new car

If you win the prize on a game show in California you have to pay a 10% withholding tax at the conclusion of the filming of the show. So if you didn’t win cash or bring a stack of hundreds with you it may be necessary to sell the prize on the spot. However, if you sell the prize before you use it you can probably claim whatever you sold it back for as the value for income tax purposes. On the other hand, if you use the prize at all you will have to claim the full retail price as the value even if you sell it for significantly less the next day.

If you have tax questions, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Do You Believe in Miracles

February 24th, 2017

olympics

The United States Olympic Committee awards cash prizes for bringing home the gold, and silver and bronze. These prizes are taxable despite complaints from lawmakers that, like the games themselves, roll around every couple of years. However, for most athletes not named Michael Phelps the tax bill for the prize is negligible. This is because the costs incurred for training and travel are deductible under the hobby loss rules for amateur athletes and as business expenses for professional ones.

If you need help with your taxes, contact us at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

The IRS Indicts an IRS Agent

February 15th, 2017

TAX FRAUD

Former IRS employee Carla Mitchell, a 48 year old woman from Kansas City, Kansas, was indicted by a federal grand jury for filing false tax returns.  Carla is charged with filing false tax returns for herself and 13 of her friends, for multiple years, claiming fraudulent income tax refunds in the amount of $118,000.

If you need tax help, contact our law office at 816-524-4949 or visit or website at www.hoorfarlaw.com.

Taxation of Selling Your Home

January 27th, 2017

TAXATION ON SELLING OF HOME

Taxpayers can exclude from their income up to $250,000 ($500,000 if you are married filing jointly) of any gain on the sale of your home.  However, you must have lived in the home for at least two years and used the home as your principal residence.

If you need assistance with your taxes, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

No Tax Refunds until February 15, 2017

January 23rd, 2017

tax refund time

Due to a new law, the IRS will not be issuing tax refunds on the Earned Income Tax Credit and the Additional Child Tax Credit until February 15, 2017.  The IRS will hold the entire refund until February 15, 2017.

If you need assistance filing your tax returns, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Tax Evasion Means Jail Time

December 8th, 2016

prison-3

A man from Peculiar, Missouri was recently sentenced to five years in prison for evading the IRS for over a decade in the amount of $1 million.  The man believed the government was corrupt and therefore did not recognize any local, state, or federal authority.  The man failed to file income tax returns for multiple years and should have paid taxes in the amount of $980,025.

If you are having tax troubles, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.