Tax Inspector: FSU Experts Offer Tax Advice As Deadline Approaches

The deadline for filing personal income tax is Tuesday, April 18.
The deadline for filing personal income tax is Tuesday, April 18.

So, we are in the most disgusting time of the year, and we don’t mean the weather.

We’re talking about tax season.

Florida State University College of Business faculty offer tips to help ease the anxieties associated with paperwork, personal allowances, and late filing fees. They also give advice on how to avoid scams and scams.

The Internal Revenue Service set Tuesday, April 18, a deadline for filing 2022 tax returns or a deferment for filing and paying tax.

Listen to the advice of our experts:

Allen Blay, Chairman and Professor at EY, Department of Accounting
(850) 644-9847; [email protected]

Blay’s areas of expertise include: auditor decision making, corporate financial difficulties, and auditor independence.

“If you own 100% of a small business, such as a sole proprietorship or limited partnership, you can pay your children under 18 almost $13,000 tax-free, and you can deduct that amount as a business expense. This is probably one of the most underestimated and misunderstood benefits of owning your own business, including an online business, store, or even rental property. You don’t even have to withhold payroll taxes. If you can document the legitimate work your child does for the business, the income earned by the child is deductible for your business and is covered by the standard per child deduction ($12,950 in 2022). You can still claim your child as a dependent upon your return. Just make sure you document the work like you would for any other employee.

“You can even fund an IRA for your child, or your child can use their earnings to contribute to a college savings plan. Just make sure you follow the rules, document everything, and pay them for the work they do.”

Ann Ehinger, Associate Professor of Accounting
(850) 644-8209; [email protected]

Ehinger specializes in taxation and income tax accounting.

“Be sure to file a tax return, even if you are not required to. Generally, taxpayers with gross income in excess of the standard deduction are required to file a tax return. However, if your employer withheld enough money from you to cover any taxes you may pay, the IRS will not charge you any interest or penalties. I think a lot of people don’t file a tax return for this reason – they think their employer’s withholding should be enough to cover any taxes they may owe. But it’s always a good idea to file a tax return, even if you don’t owe extra money, for two reasons:

“First, whether you file a tax return or not, you only have three years from the original filing date to claim a refund of any tax overpayments or any tax credits to which you are entitled. To receive this money, you must file a tax return.

“Secondly, the IRS has a certain amount of time to go back and review your tax return after you file it (usually three years). However, if you don’t file your tax return, the clock will never start ticking. This means the IRS may come back and check on you many years later. So, as long as you prepare your tax return in good faith and do not commit intentional fraud, filing your tax return gives you a degree of confidence that the review window will eventually close.”

Chris McCoy, Accounting Assistant
(850) 644-4558; [email protected]

McCoy specializes in taxation, financial accounting, cost accounting and management accounting.

“Keep being incredibly careful about tax fraud. While these scams are less technical than the loopholes and resulting tax issues, they continue to hurt real people immensely. Fraudsters use fear of the IRS, AI-generated scripts, and phone number spoofing to try and steal from people. The biggest lesson here is that the IRS doesn’t call or write. He mails things. If someone calls and says they’re from the IRS, don’t say anything. Don’t ask to be put on the no-call list. Don’t tell them your name. Just hang up immediately. And if you see IRS in the caller ID, don’t answer it and block the number.”

Jeffrey Paterson, Deloitte Professor, Department of Accounting
(850) 644-7887; [email protected]

Paterson specializes in taxation and financial accounting.

“File your tax return early. If filing early reduces your stress, it could save you from making mistakes on your return. Filing your tax return early has at least one other potentially very important benefit: it reduces the chance of someone else filing a fraudulent tax return on your behalf. Every year, honest, hardworking taxpayers find that the IRS is rejecting their tax returns because someone else has already filed on their behalf. The money goes to the scammer, and he quickly disappears. The taxpayer is left with the problem of working with the IRS. You can’t eliminate the risk of someone else filing in your name, but you can reduce it by simply applying early.”

Paterson also recommends that withholding agents obtain a tax return. Identity Protection PINor IP PIN, a six-digit number that prevents someone else from using your Social Security Number or Individual Taxpayer Identification Number to file a tax return.

Miles Romney, Associate Professor of Accounting
(850) 644-7861; [email protected]

Romney specializes in tax matters in mergers and acquisitions, as well as tax and accounting disputes.

“Ask for forgiveness, not permission. If you reasonably believe that something is eligible for a tax deduction or credit, declare it upon your return. If your claim is indeed verified, you will have the opportunity to defend your position. If you successfully defend it, you will benefit from tax savings. If you don’t end up successfully defending it, you’ll pay the difference in tax plus penalties and interest. You won’t end up in a “tax jail”.

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