You owe the IRS, now what?

You receive the news many of us hate to hear – you owe the Internal Revenue Service (IRS)! So what should you do?

When the IRS Comes Knocking

You receive the letter many dread, the Internal Revenue Service (IRS) has requested to audit your tax return. It could be for many different reasons. Maybe your income on your tax return did not match the amount reported to the IRS, or your expenses seem to be a bit questionable. If so, you could be the lucky winner of a full IRS audit. No matter what reason the IRS decides to come knocking, one thing is certain – you must be prepared. As a former IRS agent, I have had the opportunity to participate in a host of audits, and time and time again, the key to surviving these unwanted ordeals, is to make certain you understand your rights and responsibilities.

Self-Employed? Reporting your income may be more beneficial than you think!

If you are a self-employed individual, you have at your discretion to be flexible when reporting your income and deductions on your tax return. Of course, if you receive 1099s, this income will be reported to the IRS, however if you receive cash payments or unreported income, you may be go unnoticed.  Besides, will the IRS really know you receive those payments last year?  Hey, no one is looking – right?

Wrong! Even if you never been audited or never will, these type of decisions will be certain to catch up with you down the road.

Obama vs. Romney: Which tax plan is better for you?

by: Kemberley Washington, CPA and James Washington III JD, CPA

After exploring the proposals of both President Obama and Governor Romney, this article provides an overview of what each candidate is proposing.  Keep in mind, the most important thing is to remember – no matter who wins the White House, without a willing Congress, the successful candidate’s proposal will depend on his ability (or inability) to work with Congress.  So, as you prepare to vote today, know that these are only PROPOSALS!

Kem Washington appears on Fox 8

Kem Washington appears on Fox Channel 8 to discuss how the affordable health care plan will impact you!  

Does It Pay to Cheat on Your Taxes?

Before you sign on the dotted line this tax season, there are many things to consider.  Yes, it may be easy to bump up your deductions a couple of dollars here or there, but does it really pay to cheat on your taxes?

What to do with your tax refund?

Now that tax season is winding down, hopefully you have taken advantage of the many tax deductions available and the IRS has allowed you to walk away with a couple of dollars in your pocket.  According to the Internal Revenue Service (IRS), the average tax refund is approximately $3,000.