Data from the 2012 fiscal year shows that there may be some relationship between the reduced budget for the Internal Revenue Service and the percentage of tax returns that are audited each year. Between the 2010 and 2012 fiscal years, the IRS suffered from a three percent reduction in its budget. This in turn lead to workforce reductions, sending 8,000 full-time employees packing. Out of those 8,000, about 5,000 were auditors. Given those numbers, it is not a big surprise that the IRS collected 13 percent less revenue through audits in 2012.
Is the IRS unfairly targeting small businesses in the Bay Area?
Most small-business owners in the Bay Area do their best to pay their taxes on time and in full. While it may not be the most enjoyable part of owning a business, it is necessary to avoid trouble with the Internal Revenue Service. Sometimes, however, people make mistakes.
The importance of considering taxes in estate planning
Some California residents know firsthand the difficulties that come with estate taxes. Forgetting to plan for taxes is a common mistake people across the country make when putting together an estate plan. However, failing to consider estate taxes, gift taxes and other taxes that may be left to pay after your death can leave your loved ones with a mess on their hands.
Update: California investors may not be facing back taxes
A few weeks ago we discussed a very serious and controversial tax issue that was slated to hit California investors. In particular, people who invested in small businesses within the last five years. In 2008, the California government gave a tax break to people who chose to invest in a small business. Last winter, however, a court called the tax break partially unconstitutional.
IRS decision to tax automatic tips could hurt waiters' income
As many Californians know firsthand, the Internal Revenue Service makes decisions that can have huge impacts on the lives of many people. Changing tax policies can often make things very difficult for the affected individuals. The most recent decision the IRS made involved the restaurant industry and could leave some restaurants and their staff members struggling to make ends meet.
Boy Scouts may be stripped of tax exempt status
The story of Ryan Andresen's ouster from his Boy Scout troop earlier this year caused wide-spread controversy about the role of gay youth in the National Boy Scouts of America. Andresen was initially denied the scout's highest honor, Eagle Scout designation, because he was gay. Once the story became a national headline, he was eventually reinstated and the scouts changed its policy on gay members.
