Did you know that every year many taxpayers’ individuals and businesses face the gavel just because they haven’t filed their taxes? Though you may plead not guilty, the IRS doesn’t think so. In its eyes every person who hasn’t filed their taxes is an offender even though the perspective is…
I want to discuss the difference between a CPA and an EA. Most people refer to any accountant, tax preparer, bookkeeper, etc as a CPA. However there are differences between a CPA, an EA and a tax attorney. All 3 are regulated by the IRS’ circular 230. The distinction between…
The trust fund recovery penalty (TFRP) can be applied to any responsible person who willfully fails to collect or pay trust fund taxes. The penalty amount is equal to the total amount of the tax that was not paid, up to the full amount. This is why it is sometimes…
In March 2010, President Obama signed the Patient Protection and Affordable Care Act (the “Affordable Care Act”) into law. While some provisions of the ACA have already gone into effect, a number of new provisions are scheduled to take effect January 1, 2014. Although we do not intend this newsletter…
Two events must occur before the IRS may begin collections activity: • First, the tax must be assessed and due. The tax may be shown on a tax return showing a balance due, an audit closing agreement, an audit deficiency that was not contested, an SFR substitute for return filed…
Do you owe 941 employment and payroll back taxes? The answer is: Yes the IRS take a lien out on property for payroll taxes. Under IRC §6321, the federal government can encumber property with a general tax lien. Generally, this lien can be used to encumber any property that the…
The IRS may seize all property and rights to property (except for exempt property), whether the property is real or personal, tangible or intangible, belonging to any taxpayer who neglects or refuses to pay back taxes, or any property on which there is a tax lien for payment of any…
Do you owe the IRS unpaid back taxes? Have they sent you many letters but you did not respond? There are still options. CDP – Collection due process. If the time to respond to an IRS collection notice has passed, you, the taxpayer, or your power of attorney / representative,…
Identity thieves are very clever. They not only steal credit cards and drain bank accounts; in 2011, the Internal Revenue Service reported the number of fraudulent tax returns associated with identity theft at 940,000 returns, resulting in $6.5 billion in associated fraudulent refunds – according to J. Russell George, head…
What do tax lawyers charge as far as cost and fees? When taxpayers are faced with tax problems such as unpaid back taxes or IRS audits, they usually seek the help of a tax attorney. Taxpayers have the right to be represented by a licensed and IRS approved representative, known…