Tax Relief Blog

Representing High-Income Taxpayers Who Owe Delinquent Back Taxes

March 15, 2021 | Mike Habib, EA

TIGTA identified 685,555 taxpayers who had a balance due as of May 14, 2019. These taxpayers reported adjusted gross income (AGI) of $200,000 or more and owed a combined total of $38.5 billion. Because the IRS prioritizes high balance due cases for collection, many of these high-income taxpayers would be included in high-priority work. However, balance dues are not prioritized by incomes earned and some improvements could be made to prioritize high-income taxpayers more effectively. A separate IRS analysis of 64,317 delinquent tax cases showed that the IRS collected less than 50 percent of tax debt owed by these high-income taxpayers within 52 weeks of assignment to Field Collection. The following chart shows that taxpayers having an average AGI of over $1.5 million paid the IRS an average of 39 percent of what they owe. While 39 percent is more than what the IRS predicted it would collect, these high-income taxpayers still owed over $2 billion.

Average AGI of Taxpayers in This Group Balance Due Actual Recovery Rate Remaining Balance Due $1,563,390 $4,009,955,107 39% $2,442,387,519 $98,289 $1,089,010,998 17% $906,586,760 $24,985 $1,157,135,371 12% $1,014,227,292

Get proper representation by power of attorney 1-877-788-2937.

Los Angeles/Orange County, California Tax Service Help

February 1, 2021 | Mike Habib, EA

Tax Resolution Services

Los Angeles-Long Beach-Santa Ana Metropolitan SoCal area

Local tax helpline 877-78-TAXES [877-788-2937]

US Expat Tax Help – Professional IRS help for Americans living overseas

January 8, 2021 | Mike Habib, EA

Preparation – Planning – Representation – Special situation advisory

Americans living abroad, expatriates, are not immune from having to pay US Federal Income Tax and even some states do as well. Unfortunately, there are some people who mistakenly think that as soon as they leave the United States that they are no longer responsible for paying taxes. They soon discover that is not the case when they receive a letter from the IRS stating that they are delinquent on filing their taxes. These are times that having US Expat tax help, by CPA, EA, or tax attorney, would really come in handy.

Call us at 1-562-204-6700 or toll free 1-877-78-TAXES.

CAA, 2021 CHANGES TO PAYCHECK PROTECTION PROGRAM SECOND DRAW

January 4, 2021 | Mike Habib, EA

Dear Client:

At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary and necessary expenses paid from the proceeds of PPP loans.

Save on Business Taxes – 6 Useful Planning Tips from the Experts

December 1, 2020 | Mike Habib, EA

As ruthless as the IRS can be, they aren’t completely heartless and they themselves know that businesses can’t be expected to hand over unreasonable amounts of profit every time they file their tax returns.

As a result of this, for people looking to save on your business taxes, the IRS is set up in such a way that it provides a series of tax savings, breaks aka deductions for individuals and business owners alike.

No Whittier, Los Angeles, or any other business owner wants to spend more money than they have to, and if you’re looking to maximize your profits and cut back on unnecessary spending, this is the perfect planning article for you.

Below we’ll be listing 6 useful planning tips from tax experts that will help you to save on your business taxes. If you’re not using the strategies set out below, hopefully you will by the time you’ve finished reading.

Want to save on federal & state taxes? Get a free evaluation by calling us at 1-877-788-2937.

Backed up Bookkeeping – 5 Tips on Managing Your Accounting

November 2, 2020 | Mike Habib, EA

As any business owner will tell you, there are simply not enough hours in the day, and life as a business owner can be described as ‘busy’ at best.

If you’re running your own business, in Los Angeles, or Orange County, regardless of how large or small your company is, you simply must ensure that you have your books and accounts in order. The IRS doesn’t care about how busy you are, they don’t care about years of backed up bookkeeping, financial worries, or anything else, they simply care about you filing your accurate business tax return annually and paying what you owe.

If you’re busy running a business and, you know, actually trying to have a personal life in the process, you’ll dread tax season as there is mountains of paperwork to sort though, hours upon hours of work involved, and then, for all of your troubles, you get to hand over a large portion of your profits to the IRS. Hooray.

It’s far from ideal, but it’s the way the world turns and if you’re struggling to get your books, records and accounts in order, this article is for you.

Get a free evaluation today 1-877-788-2937.

Tax Account Review – TAR or Discovery

October 1, 2020 | Mike Habib, EA

For Los Angeles, and all over America, individuals or businesses who are concerned about the information they receive from the Internal Revenue Service (IRS) about their taxes, a tax account review – TAR may be the answer. For those who have complicated tax forms to fill out, a proper review by tax professionals may shed light on their current situation. In fact, many individuals have benefited in ways from a review that has helped them to pay less in taxes and keep more in their pocket.

What is a Tax Account Review or TAR, Discovery?

As the name implies, it is a review of the tax returns and other information of an individual or a business with the IRS and or the state. The goal is to provide a clear, comprehensive report about the taxpayer status with the IRS. This means a thorough review of previous tax returns, an overview of the income and expenses incurred by the taxpayer, and discovery of any new tax rules or regulations that may alter the taxes which are paid.

Maximizing Profits Through Proper Tax Planning

September 1, 2020 | Mike Habib, EA

With more than 30 million small businesses in the US, effective tax planning is essential to maximizing profits and minimizing taxes, keeping more of what is earned, and lowering your taxes for the future. Understanding the intricacies of effective tax planning takes professional guidance to ensure that you are taking advantage of every opportunity. But there are some basic techniques that can be used to help lower you tax burden and maximizing profits coming into your business while reducing expenses.

Employee Benefits: These are mostly the incentives used to keep valuable employees. Such benefits include health insurance, contributions to life, long-term care, and disability insurance. And you may even include assistance for tuition, childcare, transportation, and even what you use for the cafeteria in your company.

Payroll Tax Resolution – How to Resolve Payroll 941/940 Tax Problems

August 10, 2020 | Mike Habib, EA

If you want an easy and stress-free business life, one of the best tips we can give you today is to stay on the IRS’ good side and to not tick them off.

Payroll tax resolution issues are amongst the most common reasons for the IRS pursuing Los Angeles or other cities, business taxpayers, or individuals whom they deem should be responsible taxpayers, which is why it’s important to ensure that you resolve any payroll 941/940 tax problems sooner, rather than later, should they arise.

It doesn’t matter whether you think you’re above the law, whether you make a mistake, whether you fail to file on time, or anything else for that matter, if you’re needing payroll tax resolution and are on the IRS’ radar they will come for you one way or another and get what they feel they are owed.

If you’re experiencing payroll 941/940 tax problems and require payroll tax resolution help, the sooner you rectify these issues and seek help, the better.

Call us today for a free case evaluation at 1-87-788-2937.

IRS Revenue Agent and IRS Revenue Officer – Different roles & responsibilities

July 10, 2020 | Mike Habib, EA

Although an IRS revenue agent – RA and IRS revenue officer – RO may sound like the same title, there are actually differences between them that you should know. While most individuals may never have to face an IRS audit for example, understanding how the different agents and officers operate can be quite important just in case you are facing the IRS.

Get IRS tax help by calling us at 1-877-788-2937.