News and Events

For many businesses, collecting sales tax is a normal part of operations. However, sales tax collection has been complicated by the rapid and dramatic rise in Internet transactions.  As the Internet has grown and expanded and more and more commerce has moved online, states have created a hodgepodge of different regulations for how online sales of merchandise are to be taxed. The issue of taxing Internet transactions is complicated by these myriad different regulations in different jurisdictions, as well as by the fact most e-commerce companies do business nationwide and not just in states where they are based or where they have physical locations.

There is a good reason why the words IRS audit strike dread in the hearts of every taxpayer. Audits can have a profound financial impact and it can take a very long time (and a lot of effort) to satisfy the IRS and get the investigation to stop.

The U.S. government has been cracking down on banks that help to facilitate tax evasion by U.S.-connected persons.  Just recently, the Wall Street Journal reported that the Swiss Bank Credit Suisse is under investigation for its handling of accounts owned by American clients. Credit Suisse has had trouble with the U.S. Department of Justice before, but this time the investigation relates to whether bank employees in Israel helped people who were dual U.S. and Israeli citizens to conceal their U.S. status so they would not have to pay taxes in America.

No one ever wants to be audited. If you do find yourself in a position where the IRS is asking questions about your past returns or your company, you need to call a Maryland tax attorney right away. A tax professional will know how to respond to the IRS with the goal of minimizing or avoiding any possible penalties that could result from a finding that back taxes are owed. 

Many small businesses find themselves facing audits by the Internal Revenue Service. The IRS pursues small businesses because these companies often deal in cash and the taxing authorities want to make certain all income is being reported. The IRS also wants to ensure that small companies are in full compliance with the myriad of taxing regulations addressing everything from withholding of payroll taxes to submitting required quarterly tax payments.