IRS Problem

Madoff IRS Tax Relief

February 24, 2009 | Mike Habib, EA

IRS urged to issue pre-April 15 guidance for Madoff victims

An influential voice in politics, former New York State Governor George Pataki, has asked IRS to issue pre-Apr. 15 guidance for victims of the Ponzi scheme alleged to have been perpetrated by dealer and advisor Bernard Madoff and his firm. Separately, members of the Senate Banking Committee will ask IRS to set up a special unit for Madoff victims.

Guidance sought in three areas. In a Jan. 12, 2009, letter to Eric Solomon, Assistant Secretary for Tax Policy, George E. Pataki, now a partner with Chadbourne & Parke, LLP, asked that IRS issue guidance before Apr. 15, 2009, on the following issues pertaining to Madoff victims:

Release your federal tax lien

February 9, 2009 | Mike Habib, EA

IRS Speeds Lien Relief for Homeowners Trying to Refinance, or Sell their house

Contact Mike Habib, EA to release your IRS Federal Tax lien

The Internal Revenue Service announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.

Tax Controversy

January 16, 2009 | Mike Habib, EA

As you can see from the article below, the IRS tax code is getting more complicated than ever. Further, the IRS‘s reach of audits has no limits.

If you have a tax problem, can not pay your tax bill or is facing an IRS tax audit contact us now.

Tax problem complicates Geithner’s confirmation process

As reported by the Los Angeles Times

Many senators want a better explanation from Obama’s would-be Treasury secretary about past underpayments. His hearing is delayed till after the inauguration.

Vital tax figures

January 13, 2009 | Mike Habib, EA

As you start to organize your records for your 2009 tax preparation, I thought you might find this brief rundown of 2009 tax changes useful.

* ADOPTION TAX CREDIT increases to $12,150 for adoption of an eligible child.

* SECTION 179 maximum deduction decreases to $133,000. Phase-out threshold is $530,000. (It is generally expected that a stimulus law in early 2009 will increase these amounts to the 2008 levels of $250,000 and $800,000.)

No More Tax Problems

January 5, 2009 | Mike Habib, EA

No More Tax Problems in 2009

Mike Habib, EA

Here is a New Year resolution you can’t afford to ignore… No more tax problems!! Yes, you can get rid of your tax problems in 2009.

Offer In Compromise

December 30, 2008 | Mike Habib, EA

Taxpayer’s failure to timely file breached offer-in-compromise justified renewed collection action Trout, (2008) 131 TC No. 16

Mike Habib, EA

The Tax Court has concluded that IRS didn’t abuse its discretion in finding that a taxpayer had breached his offer-in-compromise (OIC) and deciding to proceed with its collection efforts where the OIC made timely filing and payment of tax an express condition of the agreement.

S Corporation Tax

December 30, 2008 | Mike Habib, EA

Capital contributions did not restore or increase shareholders’ tax bases in loans to S corporations Nathel, (2008) 131 TC No. 17

Mike Habib, EA

The Tax Court has held that taxpayers’ capital contributions to S corporations did not constitute income to the S corporations and that the contributions did not restore or increase their tax bases in their loans to the S corporations.

Last minute reminder

December 19, 2008 | Mike Habib, EA

IRS reminds taxpayers to make use of recent tax law changes before December 31st [Fact Sheet 2008-26]:

Mike Habib, EA

With the end of tax year 2008 just weeks away, IRS has issued a number of tax tips that taxpayers should consider.

Year-end charitable contributions

December 15, 2008 | Mike Habib, EA

IRS tips for year-end charitable contributions IR 2008-138

Mike Habib, EA

IRS reminds individuals and businesses making contributions to charity that they should keep in mind several important tax law provisions that have taken effect in recent years. One provision offers older owners of individual retirement arrangements (IRAs) a different way to give to charity. There are also rules designed to provide both taxpayers and the government greater certainty in determining what may be deducted as a charitable contribution. IRS explains some of these changes in a news release as detailed below.

Tax Relief Roadmap

December 15, 2008 | Mike Habib, EA

A roadmap to disaster area tax relief in 2008 legislation

Mike Habib, EA

The 2008 calendar year has seen more than the usual share of natural disasters in the U.S., and legislation designed to provide tax relief to the victims. By and large, legislative relief has been granted on an ad-hoc basis, with an attempt made in the last go-around (tax provisions included with the Emergency Economic Stabilization Act of 2008, referred to here as the Bailout Act, P.L. 110-343) to provide “national” disaster relief. Inevitably, there are some overlapping tax relief provisions and as-yet unanswered questions on the scope of the relief and the interplay between national relief provisions and other relief provisions. This Practice Alert, to be issued in several parts, provides practitioners with a roadmap to disaster-related provisions that may provide significant tax relief to their business and individual clients.