IRS Problem

What is the TFRP trust fund recovery penalty?

November 21, 2013 | Mike Habib, EA

The trust fund recovery penalty (TFRP) is a 100% penalty on an employer’s failure to pay its trust fund taxes. The TFRP can be assessed against any person in the employer’s business who is (1) responsible for collecting, accounting for, and paying withheld employment taxes, and (2) who willfully fails to collect or pay these taxes.

A director, officer, shareholder or employee of a corporation, a member or employee of a partnership, or any other person with the authority and control over these taxes can be held liable as a responsible person under the TFRP.

Get professional IRS representation. Our firm represents taxpayers before all administrative levels of the IRS.

Please call us at 877-788-2937 or email us to schedule an appointment.

When will IRS collection action be initiated? Back taxes help?

October 21, 2013 | Mike Habib, EA

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 by IRS or a Tax Court judgment.

• Second, the IRS must give the taxpayer a Notice of Tax Due and Demand for Payment, which will request payment within 10 days. The notice is usually mailed to the taxpayer. Generally, if the taxpayer does not respond and the liability is for individual income taxes and the liability is small, the IRS will send a series of notices and attempt to make telephone contact with the taxpayer.

What CP notices does the IRS send? IRS letters, notices

July 19, 2013 | Mike Habib, EA

If you are contacted by the IRS, they usually send you a notice to call, or pay an unpaid tax amount. Most taxpayers are confused as to what the notice is for, or what does it really mean.

This article will clarify the most common notices received by taxpayers needing back tax help.

Some of the Individual CP notices the IRS sends are:
• CP09, Earned Income Credit You May Be Entitled To From IRS: Informs the recipient that, based on information reported on the tax return, he or she may qualify to take the Earned Income Credit.
• CP10, Changes to Tax Return, Reduced Amount Applied to Next Year’s Estimated Tax:Informs the recipient of one or more changes made to his or her individual income tax return. The changes resulted in a reduced amount being applied to the following year’s estimated tax.

Call us today at 877-788-2937 for a brief consultation.

What is the difference between a tax lien and a tax levy? Release your levy today!

June 7, 2013 | Mike Habib, EA

Did you receive an IRS or state tax lien notice, levy letter, postcard or phone call?

Know the difference between a tax lien and a tax levy, there are major differences between both enforcement action.

A tax lien is a type of claim against property that secures the payment of a tax debt. A Federal Tax Lien is a non-consensual lien that gives the IRS an interest in the taxpayer’s property (this interest will allow the IRS to seize and sell the taxpayer’s property in order to satisfy an assessment). Under §6321, the tax lien is imposed in favor of the United States Treasury when an assessment has been made by the IRS, a notice and demand for payment has been made, and the taxpayer has neglected or refused to pay the assessment. Under §6322, the IRS tax lien arises at the time the assessment was made.

The lien attaches to all property and rights to property belonging to the taxpayer at the time the lien arises as well as any property acquired after the lien arises. The IRS files a Notice of Federal Tax Lien to put the taxpayer’s other creditors on notice that the IRS has a claim against all of the taxpayer’s property. The IRS lien continues until liability for the assessment is satisfied by payment or abatement, or the assessment becomes unenforceable by reason of lapse of time.

Get professional IRS representation. Our firm represents taxpayers before all administrative levels of the IRS.

Please call us at 562-204-6700 or email us to schedule an appointment.

Pico Rivera, California Tax Preparation and Planning Services, El Monte CA IRS – FTB – CDTFA – BOE – EDD Tax Help

May 9, 2013 | Mike Habib, EA

Mike Habib, EA tax firm provides a wide range of tax preparation, tax planning, tax representation and consulting services. We professionally prepare individual and business tax returns including Federal, State and e-filing. Clients come to us for expert assistance with any tax notice or IRS problem. We serve Pico Rivera, El Monte, CA and other surrounding cities.

IRS – FTB – CDTFA – BOE – EDD Tax Help

Please call us at 562-204-6700 or email us to schedule an appointment.

Proven Ways to Resolve Your IRS Tax Debt Problems

April 18, 2013 | Mike Habib, EA

Are constant calls and mail from the IRS bogging you down? Have you run out of possible options to pay your IRS tax debt running out of control in the tens or hundreds of thousands? Trust us; it’s not the end of the world and you are not alone. ‘How to resolve my IRS tax debt problem?’ is a constant question hovering over many people’s minds.

Tax Help for the Entertainment Industry – The Enrolled Agent Advantage

April 8, 2013 | Mike Habib, EA

If you work in the entertainment industry you know that it has its share of advantages, but it can get tricky at tax time. Depending upon your role – whether you are an entertainer or involved in one of the many other aspects of the industry – you know how busy your schedule gets and how complex your income and expense records can be. The IRS still requires you to file your income tax returns on time, and accurately.

In all probability your return isn’t quite as straightforward as someone who works at a corporation, goes to the same job every day, and gets a weekly or monthly check with all of the taxes taken and accounted for. That’s why it’s even more important to get the right kind of help during tax season; for some entertainers, it may also be advisable to get guidance throughout the year due to the complexity of transactions for income, expenses, and investments particular to this industry.

Don’t compromise on your tax representation!

A tax professional with experience in the entertainment industry can provide you with the best advice.

Our tax firm led by Mike Habib, EA, handles various tax aspects for clients in the Entertainment Industry, for a free confidential consultation, call us today at 877-788-2937.

Identity Theft and Taxes – Be on the Lookout.

March 25, 2013 | Mike Habib, EA

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 of the Treasury Inspector General for Tax Administration (TIGTA). It is big business for the thieves and it’s a huge headache for the taxpayers whose identities have been stolen.

Identity theft refers to someone obtaining another person’s personal details, to commit fraud or other crimes. This includes the use of a name and Social Security number not belonging to the fraudster.

Tax attorney: tax relief for IRS tax problems

January 2, 2013 | Mike Habib, EA

When faced with tax problems by the IRS or the state, you should consider professional help and representation by a tax attorney. A licensed representative aka power of attorney can resolve a number of tax problems:

Is Your Tax Advisor Right for YOU? Finding the Perfect Match.

December 28, 2012 | Mike Habib, EA

When it comes to choosing a tax professional to resolve a tax problem, represent you before the IRS, or handle complex tax issues, it is important to work with someone with the experience and expertise to deal with your situation effectively. You need to find someone you can rely on and trust. There are a lot of people out there claiming to be “the best,” so how do you choose? Here are some things to keep in mind when looking for the right person to handle your taxes.