5 Things to Keep in Mind if You’re Being Audited by the IRS

You have received the dreaded audit notice from the IRS. Before you enter full-blown panic, take a deep breath and read the following tips to get you through the process.   1) Remember it’s not personal. One of your first reactions to an audit notice may very well be to take offense. Why am I being audited? My shady neighbor down the street is way more deserving! Just remember, it’s not personal. The IRS knows you Read More

4 IRS Myths, Uncovered

Many myths and horror stories have been spun about the IRS. It is to be expected given that every single American will interact with the agency in some way at some point (or many points) in their life. While the IRS sometimes seems to work in a fog of mystery, we can reliably bust at least four IRS-related myths. 1) Deductions are the way to an auditor’s heart. It’s not surprising that audits play a huge role in Read More

An Overview of Money Laundering

For as long as there has been money, there has been some form of money laundering. Essentially, money laundering is the process whereby “dirty” money (i.e. money that should be going to someone or somewhere else) is actually hidden elsewhere, sometimes in investments or other places so that it cannot be found. Over 4,000 years ago, Chinese merchants would hide their money from their rulers by investing it in Read More

5 Tips and Tricks on How to Keep Your Taxes Organized

You have emerged from the tax fog of April and the mad rush to get everything filed with the IRS by the ominous deadline of April 15 (give or take). In that mad rush, you promised yourself that next year will be different. Next year you will be organized in your tax preparation so that your home will not look like a paper bomb went off and you will not need to beg and plead with the mailman to wait another five Read More

Understanding the Ruckus Behind Racketeering

If you’ve ever found yourself grousing that a fee or a cost is a racket, then congratulations—you have just accused the seller of racketeering. Racketeering is the process of conducting a racket. A racket is a criminal enterprise whereby victims are made to pay for solutions to problems that do not exist or that will not be put into effect. The diversity of rackets is truly a wonder of criminal enterprise. Read More

How to Reduce IRS Penalties

Paying taxes can be hard enough, but what if you’re hit with penalties on top of them? The IRS has over 100 different possible penalties that they can assess. Most of these penalties fit into one of two categories: collections and accuracy. Collections refers to late filing while accuracy refers to people providing incorrect information. While the best course is to avoid paying penalties at all by filing on time Read More

What Exactly Does It Mean to be Charged with Mortgage Fraud?

Mortgage fraud is, according to the definition from the FBI, “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.” This type of fraud can be committed either by a borrower, by lending institutions, or even by other parties involved in the mortgage process like title agencies and mortgage brokers. Mortgage fraud can occur at any time, Read More

Understanding Currency Transaction Violations

There are many laws governing how currency can be deposited, withdrawn, and moved around. Most of these laws are put in place to attempt to stop money laundering, drug dealing, organized crime, and terrorism. For example, you are only allowed to make withdrawals or transfers from saving accounts a certain number of times per month. Violations of this regulation typically just require that the savings account be Read More

6 Types of Healthcare Fraud

Healthcare fraud is not new, nor is it going away anytime soon. At the very least, however, it is possible to become educated on what constitutes healthcare fraud so to avoid committing it. Here are six common types of healthcare fraud. 1) Billing for services that were never given. The services that are billed to an insurance company or the government should be reflected in the medical records of the patient. Read More

The IRS Summons: What to Know and How to Respond

An IRS summons can strike fear in the heart of even the most stalwart taxpayer. Being called up to the principal’s office can be daunting and overwhelming. As much as you would like to throw away the offending piece of paper and stick your head in the sand, the best responses to an IRS summons involves the following steps. 1) Open the summons and read it. This may seem obvious, but so often, we assume that we Read More