Tax Tip

Filing tax returns can be costly and time consuming. And with companies increasing reluctant to hire full-time employees, more taxpayers are having problems figuring what to do with those pesky 1099s on their annual returns. While filing a tax return with W-2 is fairly straightforward. 1099s are a catchall form that is used to account for many different kinds of income and can be tricky. 1099s may be issued for Schedule Cs, Schedule Es, and for many other types  of income. One of the main problems with 1099s is accuracy. Many times 1099s are issued that are simply not accurate.  

Here are a couple of things you can do to make sure the information submitted on your tax return is accurate ---- even 1099s aren't. 

1) Contact the issuer of the 1099 and ask for amended 1099s to be sent;
2) Provide an explanation to the IRS and other tax authorities explaining why the 1099 is not accurate; and
3) If you've submitted an inaccurate return because of the 1099, fix the mistake and amend the return.



 
There's an easy way to avoid being audited. Just meet filing deadlines. Try to avoid filing extensions for returns and do your best to file on time, Doing anything unusual, like failing to file your tax returns, can raise red flags to the IRS.  If you can't pay all your taxes when your return is filed, make sure to send along at least a small portion  of you may owe. 

 
Compensation to Chapter 7, 12, and 13 trustees is governed by Section
330(a)(7), which was added to the Bankruptcy Code in 2005.  Prior to
that amendment, compensation for all trustees was governed by Section
330(a)(3), which establishes multiple factors for determining whether
the fee is reasonable.Bankruptcy trustees, who administer cases, are
entitled to reasonable compensation for their services.

Judge Hoffman in the Massachusetts Bankruptcy court recently
determined that 10 percent of the estate’s income is a reasonable fee.
He stated “When all is said and done, requiring that every chapter 13
plan provide a flat 10% commission, the maximum to which the trustee
will ever be entitled, is the only methodology that adequately
addresses the feasibility and practicality concerns raised by the
trustee.”
 
I hope all of my friends and clients are having a great holiday season. I wish each of you a Happy New Year!

The Law Offices of Thomas Mason, P.C, has lawyers ready to help you and your family with legal matters such as bankruptcy, financial law, tax law, environmental law and employment law with offices in Burlington and Lakeville, MA.