Tax Compliance
Entries across the digest that deal with tax compliance.
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Tax
Estimated Tax Payments and the Underpayment Penalty
Federal income tax is pay-as-you-go. If withholding does not cover the year's liability, four estimated installments are due, and missing them triggers a penalty computed installment by installment.
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Tax
IRS Examinations: Correspondence, Office, and Field Audits
A federal examination runs in one of three formats — by mail, at an IRS office, or at the taxpayer's premises — and an unagreed outcome moves to Appeals and then to the Tax Court.
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Tax
Sales and Use Tax Nexus After the Wayfair Decision
Since Wayfair in 2018 a state may require a remote seller to collect sales tax without any physical presence, using economic thresholds that differ from state to state.
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Tax
Reporting Foreign Accounts: FBAR and FATCA Obligations
Two separate reports cover foreign financial assets. One is filed with FinCEN under the banking laws, the other with the tax return, and each has its own tests.
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Tax
Amending a Return and the Refund Statute of Limitations
An amended return is a refund claim, and it is governed by a limitations period that closes on a fixed date and by a lookback rule limiting what can be recovered.
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Nonprofit & Religious
Unrelated Business Income Tax for Exempt Organizations
An exempt organization pays tax on income from a trade or business regularly carried on that is not substantially related to its exempt purpose, subject to broad exceptions.
