Our Recent Articles and Resources
Start Strong: 2024 Tax Prep and 2025 Tax Planning
As we dive into 2025, tax season is officially here! At Hogberg Tax, we’re dedicated to more than just tax preparation—we’re here to help you strategize for the entire year ahead. Filing your 2024 return is a critical step, but it’s also the perfect time to establish a plan that keeps you compliant, confident, and prepared for the opportunities ahead. This Week: Why Take Action Early? Simplify...
Avoiding Tax Trouble: Simple Expense Documents Lead to Tax Court
US Tax Court Docket No. 6481-23S. Tax compliance can be a tricky landscape to navigate. A recent tax court ruling highlights how even well-meaning taxpayers can face significant challenges due to documentation errors and misunderstanding tax laws. To help you stay informed, let’s break down what happened, where it went wrong, and how you can avoid similar issues in your own tax filings. At...
Report Your Income: A Simple Reminder to Avoid Costly Mistakes
Report Your Income: A Simple Reminder to Avoid Costly Mistakes Tax compliance is straightforward in principle: report all your income and follow the rules. A recent Tax Court ruling (Docket No. 27575-22.) serves as a reminder that attempting to sidestep this responsibility can lead to significant penalties, especially when arguments against reporting income are deemed frivolous. Here’s what you...
It’s Tax Season: Let Us Help You Navigate with Confidence and Compliance
As we usher in another year, tax season is upon us. At Hogberg Tax, we recognize that tax preparation is more than just filing forms—it's an opportunity to align your financial strategies with your long-term goals. Our advisory-first approach focuses on compliance, confidence, and proactive planning, ensuring you’re not just meeting obligations but positioning yourself for continued success. Why...
Tax Crimes in Focus: Employment Tax Fraud Cases and How to Protect Your Business
At Hogberg Tax, we aim to keep clients informed about the consequences of tax mismanagement and the proactive steps to ensure compliance, build confidence, and avoid future pitfalls. Recent high-profile cases of employment tax fraud highlight the severe penalties business owners can face if they fail to meet their tax obligations. Below, we summarize two such cases and explain how our three-step...
Understanding the IRS John Doe Summons and Ensuring Tax Compliance
Recent developments underscore the growing emphasis on tax compliance, particularly for those earning income through non-traditional means. A federal court has authorized the IRS to issue a "John Doe summons" to JustAnswer LLC, a digital platform connecting professionals with customers, seeking information about individuals paid through the platform from 2017 to 2020. This action highlights the...
How Mishandling a Small Tax Bill Can Lead to Big Problems: Lessons from a Tax Court Case
A recent Tax Court case highlights how even a modest tax issue can escalate into a complex and unnecessary legal dispute if not handled properly. In this case, a taxpayer ("Ms. P." for privacy) ended up in Tax Court over a 2015 federal income tax deficiency of just $2,279—a situation that could have been avoided with timely and appropriate action. The Background Ms. P. filed her 2015 tax return,...
Happy New Year
As the year draws to a close, we want to take a moment to wish you and your loved ones a happy, healthy, and prosperous New Year! This is a time to reflect on the accomplishments of the past year and to set goals for the year ahead, and we hope your 2025 is filled with success and joy. As we enter the busy tax season, now is the perfect time to ensure you're prepared. If you're not yet a client...
Why Year-End Tax Deduction Spending Isn’t Always Smart: Real Advice for Business Owners
Let’s set the record straight: spending a dollar to save on taxes is not the same as keeping a dollar in your pocket. At Hogberg Tax, we believe in helping business owners implement real strategies that create value—not chasing ineffective schemes. The Truth About Tax Deductions As the year comes to a close, you’ve likely seen countless articles, posts, and ads encouraging business owners to...
Is Electing S Corporation Status Right for Your Small Business?
Electing S Corporation (S Corp) status can be an excellent tax strategy for many small, solo-owner businesses, but it isn’t a one-size-fits-all solution. While the potential tax savings are appealing, S Corp status introduces additional responsibilities and complexities that may not suit every business owner. Understanding the pros, cons, and the typical starting point for suitability can help...
Don’t End Up Behind Bars: The Importance of Working with a Trusted Tax Expert
Tax compliance is more than just a routine obligation—it’s a safeguard against mistakes that could upend your life and business. Yet, every year, stories emerge of business owners and individuals who take shortcuts, trust the wrong advisors, or engage in outright fraud, only to find themselves facing prison, staggering fines, and reputational ruin. Let’s explore three cautionary tales from...
Year-End Tax Planning: Protect Your Business and Maximize Savings
Takeaway: Getting a clear view of your tax position before the year ends provides clarity, reduces stress, and positions your business for continued success. With the guidance of a dedicated tax advisor, you can turn tax season into a strategic opportunity rather than a source of worry. Don’t wait—start planning today to take advantage of proactive, compliant tax strategies that protect and...
VOTE! – Like your tax bill depends on it!
Today is Election Day—an invaluable opportunity to collectively influence policies that shape the financial landscape for business owners and individual taxpayers alike. As you consider tax strategies for the coming year, remember that voting also plays a critical role in shaping the environment around these strategies. Consider this another tax planning tactic in your toolbox. This election...
Proactive Tax Planning is Essential for Business Owners
As the end of the year approaches, business owners may find themselves tempted to hold off on tax planning until tax preparation season. But waiting until it’s time to file returns is a mistake that often proves costly. Strategic planning throughout the year, particularly as issues arise, provides opportunities to reduce your tax burden and ensure compliance with IRS regulations. Tax planning...
Received IRS Letter 11? Here’s What You Need to Know and How We Can Help
If you’ve received IRS Letter 11, the Final Notice of Intent to Levy, the IRS is preparing to take serious action to collect unpaid taxes. This letter is a clear warning that your wages, bank accounts, or other assets may be levied (seized) if you don’t act fast. While this can feel overwhelming, you have options, and our tax firm is here to help you protect your financial future. What Does IRS...
The Importance of Properly Classifying Workers and Paying Employment Taxes
Properly classifying workers, withholding the correct taxes, and timely filing and paying employment taxes are fundamental responsibilities for any business owner. Failing to do so can lead to serious legal consequences, as evidenced by a recent IRS Criminal Investigation (CI) and Department of Justice (DOJ) case involving a New Jersey business owner. A New Jersey man recently pleaded guilty to...
How Long Should You Keep Tax Records? A Guide to Record Retention
The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep records that support an item of income, deduction, or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or...
The 4th Quarter Is Here!
Is Extending Your Tax Return the Right Move? As we continue to progress through the year, many taxpayers are relying on extensions to file their returns by October 15. While extensions can be useful for some, they may not always be in your best interest. Filing an extension delays the completion of your tax return, which can delay your financial planning and decisions. Waiting until the last...
Lessons from a Recent Court Injunction: Protect Yourself from Unscrupulous Tax Preparers
A recent case in Ohio highlights the risks of working with dishonest tax return preparers and the severe consequences they face for manipulating tax filings. In this instance, an Ohio tax return preparer and his businesses were permanently barred from preparing federal tax returns for others after a court found evidence of fraudulent activity. This case serves as an important reminder to...
Lessons from a Recent Tax and Loan Fraud Case: Avoiding Costly Mistakes
A recent case in Arizona highlights the severe consequences of misusing federal assistance programs and falsifying tax filings. This case serves as a critical reminder for business owners and individuals of the importance of honesty and accuracy in all dealings with the IRS and other federal agencies. By understanding the mistakes made, others can avoid falling into similar traps that lead to...