Tax Controversy

IRS Tax Help

April 9, 2009 | Mike Habib, EA

Recession Offers the Best Opportunity to Obtain Tax Relief

American taxpayers are afforded the best IRS tax help in this financial crisis.

Pasadena, CA –(PR.com) — The current financial crisis is the best time to get IRS tax help. Just recently, the IRS has announced that it will adopt a more humane approach to taxpayers who are currently faced with issues such as increasing medical bills, heavy dependence on the assistance of Social Security or even recent job loss. According to the Internal Revenue Service, these are the criteria that can make taxpayers eligible for certain tax breaks. The IRS is also willing to make certain adjustments for those who have problems with unfiled tax returns or unpaid back taxes.

Making Work Pay Credit

April 7, 2009 | Mike Habib, EA

IRS posts Q&As on the Making Work Pay Credit

Making Work Pay Credit: Questions and Answers, IRS Web Site

IRS has posted a number of questions and answers (Q&As) on the Making Work Pay Credit (MWPC) on its web site. They are grouped into four categories: general issues, Form W-4, new withholding tables, and economic recovery payments. The most widely applicable information from each of the four categories is summarized below.

Payroll Tax Relief

April 7, 2009 | Mike Habib, EA

Roundup of recent employment tax related cases of interest

Mike Habib, EA Tax Relief & Tax Problem Resolution

Federal courts have recently issued rulings on: (1) whether medical residents may qualify for the student FICA exception, (2) whether an employee’s embezzlement was reasonable cause for failing to remit withholding taxes, and (3) whether the sole owner of a limited liability company (LLC) may be held liable for the LLC’s unpaid employment taxes.

Settle with IRS

April 2, 2009 | Mike Habib, EA

Most Tax Procrastinating City in America

Settle with IRS and resolve your tax problems by contacting the tax firm of Mike Habib, EA at 877-788-2937 or online at myirstaxrelief.com

As reported by Intuit, maker of TurboTax.

1031 Tax Problem

April 1, 2009 | Mike Habib, EA

Like-kind-exchange related party rule triggered gain recognition despite use of qualified intermediary

Ocmulgee Fields, Inc. (2009) 132 TC No. 6

Mike Habib, EA Tax Relief Services

IRS Tax Help for Expats

April 1, 2009 | Mike Habib, EA

Adverse conditions may allow certain U.S. citizens to claim foreign earned income and housing cost exclusions [Rev Proc 2009-22]:

Individuals who were forced to leave certain foreign countries in 2008 because of adverse conditions may still qualify as bona fide residents of that country for purposes of the IRC §911 foreign income tax exclusion. Under IRC §911(a), qualified individuals may exclude foreign earned income and housing expenses from their gross income for tax purposes.

To qualify for the exclusion, an individual must prove that he has lived in a foreign country for at least 330 full days during any period of 12 consecutive months. However, if instances of war, civil unrest, or other adverse conditions force an individual to leave a country before the 330-day requirement is met, that individual can still qualify for the exclusion if he can prove that he would have otherwise stayed in the country.

Subsidiary employment tax problem

March 31, 2009 | Mike Habib, EA

Subsidiary’s employment tax liability cannot be collected from the parent corporation [Chief Counsel Advice 200913052]:

The IRS Office of Chief Council has expressed its opinion in a new Chief Council Advice (CCA) that the employment tax liability of a subsidiary corporation in a consolidated group cannot be collected from the parent corporation.

A “subsidiary” is defined under Reg. § 1.1502-1(c) as a corporation that is a member of a consolidated group, but is not the common parent of the group. In a consolidated group, (1) the parent corporation must directly own at least 80% of the total voting power and 80% of the total value of the stock in at least one other “includible” corporation in the group, and (2) one or more of the other includible corporations in the group must directly own at least 80% of the stock (by vote or value) in each of the remaining includible corporations.

Offshore Tax Settlement

March 27, 2009 | Mike Habib, EA

IRS announces settlement offer for those that voluntarily disclose unreported offshore income

Mike Habib, EA Tax Relief & Tax Resolution Services

IRS Commissioner Doug Shulman has announced what is in effect a settlement offer for those that voluntarily and timely disclose unreported offshore income. Those meeting the terms of the offer will have to pay back-taxes and interest for six years, and pay either an accuracy or delinquency penalty on all six years. They will also pay a penalty of 20% of the amount in the foreign bank accounts in the year with the highest aggregate account or asset value. In other words, 20% of the highest asset value of an account anytime in the past six years. However, those who come forward on a timely basis will not face criminal prosecution.

Linked trusts are eligible for S status

March 26, 2009 | Mike Habib, EA

Linked trusts were eligible to be S shareholders PLR 200912005

Mike Habib, EA Tax Relief & Tax Resolution Services

IRS has privately ruled that a trust having a second trust as a remainder beneficiary could choose to be treated as an electing small business trust (ESBT) and thus was eligible to be a shareholder of an S corporation. IRS also concluded that the second trust was not a charitable remainder trust. As a result, the second trust will be eligible to be treated as an ESBT when it becomes a potential current beneficiary of the first trust.

IRS Levies on the rise despite the recession

March 24, 2009 | Mike Habib, EA

IRS wage garnishment levy and IRS bank levy tax relief

Collecting tax revenue in the face of recession has been – and will continue to be – a challenge for the IRS. There is an increase in the number of taxpayers unable to pay their back taxes due to loss of main income and other such economic hardships. Are you one of these people? Don’t worry – there’s IRS collection help, wage and bank levy release, and other tax relief assistance available for you from this website. Mike Habib has the expertise to help affected taxpayers like you defend their rights and take advantage of the appropriate IRS tax relief options.

Wage and bank levy release

When wage garnishment, wage levy occurs, the employer keeps a sizeable part of an employee’s salary or wage in order to pay the employee’s tax debts. So what debts qualify for a wage garnishment? The most common ones are unpaid taxes, unpaid court fines, child support, unpaid student loans, and many more. If the person has more than one debt, then there is a big chance that his salary won’t be able to cover them all. What the employer does is to prioritise which debt demands solutions first. In most cases, of course, the federal tax would be paid first.