Here is the good news first: if your parents overseas send you money, or a relative abroad leaves you an inheritance, you generally do not owe U.S. income tax on it. A gift is a gift.

When a business owner sells, the headline number is the purchase price. The number that actually matters is what’s left after tax, and that depends less on the price than on how the price is characterized. Two sellers can close identical $2 million deals and walk away with after-tax proceeds that differ by tens of thousands of dollars, simply because one negotiated the allocation and the other signed whatever the buyer’s attorney drafted. In an asset sale, the IRS doesn’t see

Opening an IRS notice and seeing a penalty tacked onto your balance is stressful, whether it’s on your personal return or your company’s. The good news: many penalties aren’t final. The IRS has formal relief programs that can remove late-filing, late-payment, and late-deposit penalties, sometimes with a single phone call. This process is called penalty abatement, and knowing the basics can save you hundreds or even thousands of dollars. What Is Penalty Abatement? Penalty abat

“I moved back home, so I’m done with the U.S.” It is one of the costliest assumptions a green card holder can make. Leaving the country, letting the card expire, or shelving it in a drawer does not end your U.S. tax residency. Only a formal event does. Until then, the IRS still expects a return on your worldwide income, and sometimes years of back filings.

Most people think a charitable deduction comes from writing the check. To the IRS, it comes from the paperwork. A gift can be completely genuine and still be denied if you can’t prove it. With Giving Tuesday on December 1 and year-end about three months away, now is the time to set up your records, not next April. Step 1: Confirm the Charity Qualifies • Only gifts to qualified organizations are deductible. Check any charity you’re unsure about using the IRS Tax Exempt Org