As per Los Angeles Times
The effort is part of a new program to catch scofflaws. Investigators will be checking for seller’s permits, business licenses and evidence that firms are collecting and paying enough sales and use tax
Do you have back tax returns that are Unfiled? Are you missing the records and forms necessary to file your tax returns? I have the experience and procedures to help you in reconstructing the records necessary to file your back tax returns. The IRS will not allow you to file an offer in compromise or get an installment agreement if you are not current on filing your back tax returns. If you have a refund coming to you and you file more than 3 years past the due date, the IRS will keep the refund. It is important to get your past due returns filed and I can prepare them for you. Get tax help now.
If you have been notified by the IRS that your income tax return has been selected for examination, it is very important that you do not disregard notices. If enough time has passed without cooperation on your part, you will lose any right you have to present your side of the story to explain the income or deductions on your return. We have seen many taxpayers who have ignored IRS requests and ended up paying tax, penalty and interest on overstated income or legitimate deductions.
If you are being audited, we can represent you before IRS and advocate your position to explain and push for every valid deduction possible under audit. If you have received an audit notice, please call us as soon as possible so that we can begin working on your case while it is in the early stage of the audit.
The IRS, the State, and other taxing authorities would allow individual or business taxpayers that cannot fully pay their entire tax liability to settle their tax obligation through the Offer in Compromise Program. This is a great opportunity for the qualified taxpayer to settle their entire tax debt for less than they actually owe. The IRS, the State, and other taxing authorities sets specific rules and guidelines for accepting an Offer in Compromise. When evaluating an Offer in Compromise, the taxpayer’s past, current and future financial situation are analyzed before an Offer in Compromise can be accepted. Contact us today to see if you would qualify for an Offer in Compromise, as each individual or business financial situation is different.
The IRS, the State, and other taxing authorities would allow individual or business taxpayers that cannot fully pay their entire tax liability to settle their tax obligation through an Installment Agreement which allows taxpayers to pay their taxes owed through monthly installment payments. We can negotiate the payment amount and the time frame for the installment agreement on your behalf. When we establish an Installment Agreement for you, it would be a negotiated amount you can afford to pay and live with based on your financial condition. To effectuate an installment agreement, the taxpayer must be compliant by being current with all tax filing requirements before entering into an installment agreement with the IRS, the State or other taxing authority.
Currently Non Collectible – CNC is accomplished when the IRS holds off an individual or business taxpayer’s account from active enforcement collection efforts. There are specific rules and requirements that a taxpayer must meet before a CNC status be accomplished. The IRS would not pursue enforcement collection activity against the taxpayer and possibly the statute of limitations on the entire tax liability will run. CNC is a temporary status and if the taxpayer’s financial situation changes, the IRS could start enforcement collection on the delinquent tax account.
The IRS, the State and other taxing authorities are actively collecting taxes for the United States Treasury, the State and other localities. If an individual or a business taxpayer can not or refuses to pay their taxes, the IRS, the State and other taxing authority will enforce collection activities through direct contact such as field visits, demand letters, and collection phone calls. The taxpayer should never disregards the demands for delinquent tax payment as the IRS, the State and other taxing authority will be exercising their levy power to collect their delinquent taxes. Wage levy and wage garnishment is enforced to collect the delinquent taxes owed by the taxpayer. Contact us today to negotiate the release of your wage garnishment, and stop your wage levy and save your paycheck.
The IRS, the State and other taxing authorities are actively collecting taxes for the United States Treasury, the State and other localities. If an individual or a business taxpayer can not or refuses to pay their taxes, the IRS, the State and other taxing authority will enforce collection activities through direct contact such as field visits, demand letters, and collection phone calls. The taxpayer should never disregards the demands for delinquent tax payment as the IRS, the State and other taxing authority will be exercising their levy power to collect their delinquent taxes. The bank levy is enforced to collect the delinquent taxes owed by the taxpayer. Contact us today to negotiate the release of your bank levy, and save your bank account from being frozen or wiped out.
We actively represent business taxpayers with payroll tax problems before the IRS and or the State. We help business owners and corporate officers understand and adhere to various payroll tax requirements. Our clients usually never meet or deal with the IRS or the State directly, instead we handle all the payroll tax resolution directly with the IRS and or the State. Delinquent payroll tax is a very serious matter and should be addressed quickly for a favorable resolution as business owners, corporate officers and potentially other employees could be personally liable. Businesses should be current and compliant to reach a final settlement.
The Taxpayer Account Review service is to help individual and business taxpayers obtain specific balances and information about their tax account with the IRS, the State, or any taxing authority. Most taxpayers receive inaccurate and usually incomplete information from the IRS, the State, or other taxing authority. The Taxpayer Account Review is vital for taxpayers to receive exact and accurate information about their tax account including penalties and interest assessed. We will provide you a detailed account break down for the years in question detailing tax amounts, any credits or payments, and penalties and interest assessed. This is a great tool for root cause analysis to find out what is driving your tax liability
For most taxpayers, the accumulated interest and penalties are as much as, or more, than their original tax debt! If this is your situation, we can help by requesting what’s called a Penalty Abatement. A penalty abatement works like this: If we can show reasonable cause, the IRS may agree to reduce or even eliminate your penalties altogether. What’s reasonable cause? Generally, some kind of hardship beyond your control which prevented you from paying your taxes. It can be as simple as explaining to the IRS that your basement flooded, that you received bad tax advice, or that you or one of your family members suffers from a severe health problem. We can tell you whether you are a candidate for a penalty abatement when you call for your free consultation.
An Innocent Spouse is spouse “A” who has become liable for income taxes from a joint return filed with spouse “B” when spouse “B” has caused the income taxes to underpaid by mistake or fraud, and spouse “A” signed the return believing the return to be true and correct. For spouse “A” to be entitled to relief under the Innocent Spouse rules, spouse “A” must be able to prove when signing the returns, he or she did not know or have reason to know that at the time filing, the return either understated income or overstated deductions.
Federal tax liens are a public record stating that you owe federal taxes and are filed in the county you live. Because the tax liens are public records they will show up on your credit report. This often makes it difficult or impossible for a taxpayer to obtain financing, even for an automobile or home. The tax liens need to be reviewed to determine if they are valid. If the tax liens are valid, a strategy must be developed to deal with the IRS tax liabilities.
Employer not required to obtain worker status determination before withholding taxes
Nino v. Ford Motor Company, DC MI, 102 AFTR 2d ¶2008-5215, Dkt. No. 07-13545, 8/8/08
A federal district court has dismissed an employee’s pro se (“for self”; non-attorney) complaint that he should not have had withholding deducted until his employer obtained a worker status determination from the IRS.
Court rebuffs IRS and allows deduction for lease termination payment
ABC Beverage Corporation & Subsidiaries v. U.S., (DC MI 8/27/2008) 102 AFTR 2d ¶ 2008-5231
A district court has allowed a party that exercised an option to buy property that it was leasing to deduct a portion of the amount tendered in the transaction as a lease termination payment. In so doing, the court rejected IRS‘s argument that full amount tendered had to be capitalized as part of the purchase price. The record, however, was insufficient for the court to determine the proper year for taking the deduction.
Ability to pay tax liability not relevant to determination of willfulness under Code Sec. 7202
U.S. v. Easterday (2008, CA9) 102 AFTR 2d ¶ 2008-5218
By a vote of two to one, a Ninth Circuit panel decision has upheld a district court’s ruling that a defendant’s ability to pay wasn’t relevant to the determination of whether he willfully failed to collect or pay over tax under Code Sec. 7202. In so doing, the Ninth Circuit effectively repudiated a decision it handed down over 30 years ago on the issue of willfulness.
IRS Fact Sheet reviews whether a hobby is actually a for-profit endeavor [Fact Sheet 2008-23]:
Taxpayers must follow appropriate guidelines when determining whether an activity is engaged in for profit, such as a business or investment activity, or is engaged in as a hobby, IRS said in a new fact sheet published on the agency’s Web site.
As described in the fact sheet, Code Sec. 183 –often called the hobby loss rule–limits deductions that can be claimed when an activity is not engaged in for profit. There are tax implications for incorrectly treating hobby activities as activities engaged in for profit, IRS stressed. The goal of the fact sheet is to provide information for determining if an activity qualifies as an activity engaged in for profit and what limitations apply if the activity was not engaged in for profit.
TIGTA reviews IRS methodology for selling seized property [Audit Report No. 2008-30-144]:
IRS management needs to provide better oversight to ensure that employees consistently follow the requisite procedures for the storage and sale of seized property, according to a recent audit by the Treasury Inspector General for Tax Administration (TIGTA).
As described in the audit, when a taxpayer owes delinquent tax and thorough consideration has been given to all aspects of the case and alternative collection methods, IRS can seize taxpayer property for payment of the tax. The seized property can be sold by public auction or by public sale under sealed bids.
To disclose or not to disclose, that is the question.
Yes, we are all fed up with the cost of fuel.
No, I’m sorry to report, not everyone is eligible for the fuel tax credit.
Jefferson City, Mo. – A South Carolina company that advertises it can help consumers resolve their state and federal tax problems didn’t provide the services it promised, Attorney General Jay Nixon says. Nixon filed a lawsuit today seeking full restitution from JK Harris & Company LLC (JKH) for its Missouri customers who received neither the services for which they paid as much as $4,500 each nor the refunds they requested.
“JK Harris promises it can help consumers who are having tax problems, but the Missourians who complained to my office told a different story – one of unreturned phone calls, lost paperwork, and a worse financial situation than when they started,” Nixon said.
The JKH Web site tells consumers the company has a step-by-step strategy – known as “The Process” – to help consumers with their tax problems. According to JKH, “The Process” includes providing immediate relief to consumers by attempting to stop collection activities by the IRS; assigning a case specialist to review the consumer’s information and begin work on resolving the customer’s tax problems; and submitting an offer to the IRS to resolve the customer’s tax problems.
Tax Relief Blog