Fortunately, there are ways to fight back against a potential trust fund recovery penalty with the help of a proven business tax lawyer.

Real estate investing is a common investment vehicle that can be quite profitable. In the past, even money-losing investment properties were advantageous for U.S. tax purposes. However, current U.S. tax law seeks to limit the use of real estate investments as tax shelters. Unless a taxpayer is designated as a real estate professional, the amount of losses that can be claimed on rental property is now sharply limited.

The Internal Revenue Service (“IRS”) appears to be increasing the number of IRS small business audits they are issuing, which has had an effect on businesses in Boston and throughout Massachusetts. According to their website, the IRS audited almost one million taxpayer’s 2017 tax return. In addition, the IRS appears to be becoming stricter in their review of small businesses and their finances. What triggers an IRS small business audit? The IRS will issue an IRS small business audit for a multitude of reasons, not just when they are suspicious of a small business’s their tax returns or financial activity. This means that even companies with nothing to hide could be at risk for an IRS small business audit. Even if a crime has not been committed, an IRS Small business audit can be a traumatic experience for those who do not seek the proper guidance. If you want to avoid the devastating consequences an IRS small business audit can have, you need to hire the proper Boston tax lawyer to guide you and your business through it. Thorn Law Group can help.

IRS launched a second amnesty initiative for U.S. taxpayers on Feb. 8, 2011 for undisclosed offshore accounts. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) is based on the previous disclosure program that ran through October of 2009.