Tax Relief BlogArticles Posted in Tax Help
Tax Relief Second Opinion
Thinking of hiring a $5000 tax attorney?
HOLD IT.
If you do not qualify for an IRS Offer in Compromise, an attorney CANNOT help you.
Back taxes shutters CA Restaurant
Back taxes shutters Jack in the Box
Source: Mercury-Register
A state tax dispute is behind the sudden Jack in the Box closures Thursday.
Tax Crack Down on CASH ECONOMY
Hawaii Cash Economy Enforcement Act of 2009
On June 18, 2009, Governor Linda Lingle signed Senate Bill 972 SD2, HD1, CD1 into law as Act 134, the “Cash Economy Enforcement Act of 2009.”
This Act provides the department with additional resources and tools to target high-risk, cash-based transactions to shore up confidence in Hawaii’s tax system. In this regard, this measure ensures that all sectors of Hawaii’s economy, including those prone to substantial underreporting, are paying their fair share of taxes.
This Act focuses on the civil collection and enforcement nature of Hawaii’s tax laws, by establishing the Special Enforcement Section, a group of tax officials charged with handling sensitive and high-risk civil tax cases as directed by the director. This Act also provides various enforcement tools, including the authority to issue monetary fines and cease and desist citations.
IRS List of Interest
IRS Releases List of Transactions of Interest (Notice 2009-55)
The IRS has provided a list of transactions that have been identified by the Service as “transactions of interest.” The IRS will consider transactions similar to any of the transactions on the list to be transactions of interest for purposes of Code Secs. 6111, 6112, 6662A, 6707, 6707A and 6708, and Reg. §1.6011-4(b)(6).
One transaction of interest (initially identified in Notice 2007-72, 2007-2 CB 544) involves taxpayers who purchase a remainder interest or similar successor member interest directly or indirectly in real property and then transfer such interest to a tax-exempt organization, claiming a charitable contribution deduction significantly higher than the amount paid for the interest. The Treasury and the IRS are concerned that taxpayers may be utilizing the contribution of such successor member interests to generate an excessive deduction.
Oregon Tax Amnesty
Oregon: Tax Amnesty Program Enacted
Gov. Ted Kulongoski has signed legislation that authorizes the Oregon Department of Revenue (DOR) to initiate a tax amnesty program for taxpayers subject to the corporation excise (income) tax, the personal income tax, the inheritance tax, and the mass transit district tax on self-employment. The program will begin on October 1, 2009, and end on November 19, 2009, and applies to tax years, reporting periods, and estates for which the DOR could issue a notice of deficiency under ORS 305.265 or ORS 314.410, as amended and in effect on September 27, 2009.
To qualify for participation in the program, a taxpayer must have been required to:
- file an income tax return for a tax year prior to 2008;
- pay income tax for a tax year prior to 2008;
- file an inheritance tax return and pay any required tax if the return was due before 2008; or
- pay the mass transit tax on self-employment, if required to do so, before 2008.
A taxpayer may not participate in the tax amnesty program if the OR DOR issued a notice of deficiency before the start of the program or assessed a tax for a tax year for which the taxpayer could otherwise apply for amnesty. However, a taxpayer who has filed a bankruptcy petition may participate in the program if the taxpayer submits an order from the bankruptcy court allowing participation.
Starting a New Business?
Top Seven Tips for Taxpayers Starting a New Business
IRS Summertime Tax Tip 2009-02
Anyone starting a new business this summer should be aware of their federal tax responsibilities. Here are the top seven things the IRS wants you to know if you plan on opening a new business this year.
1. First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
Construction Industry Tax Problems
Construction Industry Tax Issues
Accumulated Earnings Tax
Closely held C corporations are more likely to accumulate earnings and profits beyond the reasonable needs of the business in order to avoid income taxes on its shareholders than are large C corporations. Each accumulated earnings case is unique. No pro forma guide for calculating a taxpayer’s reasonable needs can be prepared. Reasonable needs that would usually be considered in any accumulated earnings case are the need for sufficient net liquid assets to pay reasonably anticipated, normal operating costs through one business cycle and sufficient net liquid assets to pay reasonably anticipated, extraordinary expenses and capital improvement financing.
In addition, the following represents a non-exclusive list of specific items that should be considered for construction contractors:
IRS seeks more regulation
IRS to seek more regulation of tax preparers
The IRS reported that it is working on new rules that will require paid tax preparers to be licensed. This will improve tax compliance and reduce tax preparer fraud; IRS Commissioner Doug Shulman announced that on June 4, 2009.
A whopping eighty percent of taxpayers get help with their returns, either from paid tax preparers or tax software programs, Shulman told a congressional subcommittee. Surprisingly, tax preparers currently don’t have to be licensed, unless they represent clients in proceedings before the Internal Revenue Service.
Florida Tax Relief
IRS Disaster Tax Relief
Added Leon, Levy and Wakulla counties, 5/12/09
Added Dixie and Gilchrist counties, 5/4/09
