Explore a comprehensive range of resources related to tax law, including in-depth articles, expert video interviews with seasoned tax attorneys, and clear definitions of key legal terms. This category offers valuable insights into tax regulations, compliance issues, and strategies for individuals and businesses navigating complex tax matters. Stay informed and empowered with the latest legal information and expert guidance tailored to your tax-related questions and concerns.
September 22, 2026•Published with permission from J. David Tax Law
A tax problem rarely arrives all at once. It builds quietly — a missed filing, a year of underpayment, a business that fell behind on withholding — until a notice from the IRS or the Illinois Department of Revenue lands demanding money the taxpayer can’t immediately produce. At that point, the practical question is whether […]
State tax authorities have spent the past decade treating outbound moves as revenue events. New York initiated more than 3,000 residency audits a year on high earners in the late 2010s, collecting an average of over $140,000 per audited taxpayer, and enforcement practices developed there have spread to other high-tax states. At the center of […]
The IRS Fresh Start Program is a set of IRS relief options introduced in 2011 and expanded in 2012 to make resolving tax debt easier for individuals and small businesses. It can help taxpayers avoid aggressive collection by using tools like streamlined installment agreements, penalty relief, and offers in compromise. This article explains what it […]
A tax lien sale is when a local government auctions a delinquent property tax lien, allowing an investor to pay the taxes owed and earn interest until the owner redeems. It helps counties recover unpaid taxes quickly while the property owner typically keeps title during the redemption period. This article explains how tax lien sales […]
Schedule C is an IRS tax form used to report a sole proprietorship’s or single-member LLC’s business income and expenses, resulting in net profit or loss for the year. It’s typically filed with Form 1040 and supports self-employment tax calculations. This article explains who must file, what to report, and common deductions. Understanding Schedule C: […]
A W-2 form (Wage and Tax Statement) reports your annual wages and the taxes withheld by your employer for the prior year. Employers generally must send it to employees by January 31. This article explains what information is on a W-2 and how it’s used for filing taxes. Understanding the W-2 Form The W-2 form, […]
A 1099 form is an IRS information return used to report income you received outside of wages, with multiple versions (like 1099-NEC and 1099-INT) for different income types. It helps the IRS match reported payments to your tax return and reduce underreporting. This article explains the purpose of 1099s, common types, and what to do […]
A tax credit reduces your taxes owed dollar-for-dollar, so a $1,000 credit cuts a $3,000 tax bill to $2,000. Unlike a deduction, it lowers the final tax you pay rather than your taxable income. This article explains how tax credits work, key differences from deductions, and common examples. A tax credit is a dollar-for-dollar reduction […]
A tax deduction is an eligible expense you subtract from your income to reduce taxable income and potentially pay less tax. For example, deducting $10,000 from $50,000 means you’re taxed on $40,000, not $50,000. This article explains how tax deductions work and why they can lower your tax bill. A tax deduction is an expense […]
A tax penalty is an IRS-added charge—often 0.5% per month for late payment or 5% per month for late filing—imposed when you miss tax deadlines or violate reporting rules. It’s added on top of the tax you owe and may also accrue interest until paid. This article explains common IRS penalties, how they’re calculated, and […]
An IRS installment agreement lets you pay federal tax debt over time through monthly payments—often up to 72 months for streamlined plans. It can help you avoid more aggressive collection actions if you stay current on payments and future filings, though penalties and interest typically continue to accrue. This article explains how IRS installment agreements […]
Innocent spouse relief can release you from paying additional tax, interest, and penalties on a joint return caused by your spouse’s incorrect items. It applies when you didn’t know (and had no reason to know) about the understatement and it would be unfair to hold you liable. This article explains how it works, who qualifies, […]
