Paying taxes is inevitable, but if you receive a notice from the Department of Revenue (DOR), you might feel a sense of anxiety or fear. In some cases, you may be able to dispute DOR notices or create a more manageable payment program if the tax amount is...
Tax Controversies
Massachusetts sales and use tax extension is ending
Businesses that collect sales and use tax in Massachusetts were not required to file or make payments to the Department of Revenue (DOR) between March 2020 and October 30, 2021. Collection of the tax was still required on qualified sales during the period. The taxes...
Tax obligations will be shared by alter ego companies and corporations
Any businesses or corporations that try to hide their tax obligations behind other entities will not be successful under the IRS' alter ego theory. The following will explain what the alter ego theory is and how it could be established that third-party business...
Are Massachusetts business owners required to collect sales tax on subscription services?
In recent times, subscription services, in addition to products, have become the source of additional monthly or annual business income for entertainment and software services. However, recent litigation with the Massachusetts Commissioner of Revenue on whether sales...
The Supreme Court issues a favorable decision on tax day
On May 17, 2021, the income tax filing deadline for most Americans, the Supreme Court issued a decision that bolstered taxpayers' rights to challenge IRS reporting rules in court. Here's a summary of the decision and its practical effects on taxpayers and their...
Foreign bank accounts: How to stay out of trouble
If you have a foreign account, the government will likely find it. Hopefully, your foreign account will have already been reported annually to the Internal Revenue Service when they do. However, if you have decided not to report these accounts, or did not report them...
What does the new tax-filing extension by the IRS really mean to taxpayers?
With lots of bills being signed during March, new tax changes will take effect in April 2021. This tax year will be different from what we have seen in the past and alter timelines like last year. Below are what you can expect when filing your 2020 taxes this year....
COVID-19 may have caused new tax issues
The global pandemic has extended itself into 2021, presenting numerous tax challenges. While the Commonwealth of Massachusetts provided many breaks to individuals and business owners, some may face upcoming challenges when filing their taxes in 2021. Business taxes...
Offer in compromise may help struggling taxpayers
Not being able to pay a bill can easily trigger a panic response in any Massachusetts resident. For some individuals, the bill that they cannot pay is their tax obligation, and unfortunately, this could lead to serious issues with the Internal Revenue Service. If a...
Unhappy with your tax audit results? Appeal
Very rarely do tax audits result in taxpayers receiving refunds or having no change to their tax filings. Usually, Massachusetts residents who go through the audit process get word that they owe more in taxes and have to pay interest and penalties on top of it....