Small Business Tax

The so-called “100% tax penalty” is one of the most-dreaded provisions in the entire tax law. If you’re held responsible for unpaid federal payroll taxes that were withheld from employee paychecks, you may be personally liable for 100% of the unpaid amount.

Where do you stand statistically in comparison to other taxpayers? Find out in the spring 2012 issue of the Statistics of Income Bulletin, which the IRS recently released to the public.

If you want to make a large donation to your favorite charity, you don’t necessarily have to give cash. Instead, you might donate shares of stock in your portfolio. Strategy: All other things being equal, give away stock with a low tax basis. Conversely, you should generally hold onto stock with a high basis.

Q. My husband and I are getting a divorce. If we sell our home afterward, can we still claim the home sale exclusion?

The IRS has issued new guidance on an important change for flexible spending accounts (FSAs) beginning in 2013. A $2,500 cap will apply to contributions made to health care FSAs. The limit on FSAs for dependent care expenses remains at $5,000.

If your child will be entering or returning to college this fall, he or she may prefer off-campus housing to living in a dorm. At the same time, you could be looking to acquire real estate property for the investment and tax benefits. Fortunately, there’s a way you can kill two birds with one stone.

The IRS has implemented a new pilot program designed to aid law enforcement in obtaining tax return data to help investigate and prosecute specific cases of identity theft.

As the November elections draw closer, the IRS aims to ramp up its investigations of political campaigning by “social welfare groups” and other nonprofit organizations. It will be carefully eyeballing these entities to ensure they don’t cross the boundaries established by law.

The U.S. Supreme Court has generally upheld the con­­sti­­tu­­tion­­ality of the Patient Pro­­tec­­tion and Affordable Care Act of 2010. This means the tax-related provisions in the law will stand, so the tax bill for some tax­­payers will increase, starting next year.

Can an IRS agent walk up to your front door if you’ve posted a “No trespassing” sign on the property?