Falsely increasing income to secure larger refundable credits such as the Earned Income Tax Credit can have serious repercussions. This scam involves inflating or including income on a tax return that was never earned, either as wages or self-employment income. Taxpayers can face a large bill to repay the erroneous refunds, including interest and penalties. In…
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Early Withdrawals From Retirement Plans
An early withdrawal normally is taking cash from a retirement plan before the taxpayer is 59 1/2 years old. If a taxpayer took an early withdrawal from a retirement plan last year, they must report it to the IRS. Additionally, the taxpayer may have to pay an additional 10% in taxes. If you need assistance with…
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