Tax Help

Los Angeles, California CPA Certified Public Accountant, EA Enrolled Agent, Orange County, San Bernardino, Riverside, Whittier, CA

January 3, 2014 | Mike Habib, EA

I want to discuss the difference between a CPA and an EA. Most people refer to any accountant, tax preparer, bookkeeper, etc as a CPA. However there are differences between a CPA, an EA and a tax attorney. All 3 are regulated by the IRS’ circular 230.

The distinction between the two designations is very important, since my specialty is federal taxation and tax accounting. I have chosen to earn the Enrolled Agent license from the US Department of the Treasury because it does not limit the geographic area in which I may practice. In other words, I can work with clients in any of the 50 United States (or its territories), unlike a CPA (certified public accountant), or a tax attorney, who has a license that is state specific.

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

Get professional tax help today, call us at 877-788-2937.

Focus on the Affordable Care Act

December 6, 2013 | Mike Habib, EA

In March 2010, President Obama signed the Patient Protection and Affordable Care Act (the “Affordable Care Act”) into law. While some provisions of the ACA have already gone into effect, a number of new provisions are scheduled to take effect January 1, 2014.

Although we do not intend this newsletter to be the answer-all to the ACA, we thought this would be a good time to look at some of the provisions that might affect you.

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.

Professional Tax Services EA CPA Long Beach, CA, Lakewood, Los Alamitos, Seal Beach, California IRS – FTB – CDTFA – BOE – EDD Tax Help

October 3, 2013 | Mike Habib, EA

Tax Return Preparation
For your tax returns, you want a professional tax firm EA or CPA firm you know you can rely on their tax expertise. Our tax professionals will make sure your federal and state income tax returns, business tax returns and trust and estate tax returns are prepared right from the get go. Our specialized boutique tax firm is trusted by dentists, doctors, lawyers, investors, executives and other professionals and high net-worth individuals. Individuals and businesses from all walks of life have been relying on our firm for quality tax preparation, representation and planning for many years.

Serving Long Beach, Lakewood, Los Alamitos, Seal Beach, California

IRS – FTB – CDTFA – BOE – EDD Tax Help

We are A+ accredited member of the Better Business Bureau.

How long does the IRS have to collect income tax?

August 16, 2013 | Mike Habib, EA

Generally, the statute of limitation for collection expires 10 years after the date the tax was assessed (for tax assessed after November 5, 1990). For tax assessed before November 5, 1990, the statute of limitation for collection is six years. This period may be extended by an agreement between the taxpayer and IRS. In addition, there are numerous circumstances which suspend the running of the statute of limitation for some period of time. For example, the statute of limitation is suspended during the 90-day period after the issuance of a Notice of Deficiency and for an additional 60 days thereafter.

Note: The IRS does not necessarily have to collect the tax during this period, but does have to take collection action (e.g., levy or begin court proceedings) before this time has expired.

What can the taxpayer do if the time to respond to an IRS collection notice has passed?

June 20, 2013 | Mike Habib, EA

Do you owe the IRS unpaid back taxes? Have they sent you many letters but you did not respond?

There are still options.

CDP – Collection due process.

If the time to respond to an IRS collection notice has passed, you, the taxpayer, or your power of attorney / representative, may file a request for an equivalent hearing if you failed to make a timely request for a Collection Due Process (CDP) hearing (after receiving a Notice and Opportunity for Hearing upon Filing of Notice of a Federal Tax Lien or a Notice and Opportunity for Hearing Prior to Levy). The equivalent hearing will be held by the Appeals Office and will follow the procedures that are used for CDP hearings.

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.

Payroll tax penalty problem? How a taxpayer show reasonable cause to excuse the penalty for failure to file or pay payroll taxes?

May 22, 2013 | Mike Habib, EA

Are you a business owner or an officer facing a 941 payroll or employment tax problem?

Unpaid payroll or employment tax is a serious tax matter, and the IRS holds the business owner, officers and other personnel as responsible person(s) and actively enforce aggressive collection measures to collect on the unpaid back taxes, penalties and interest.

For the IRS to excuse the penalty for failing to file, the taxpayer must show that such failure was due to reasonable cause. A taxpayer can show reasonable cause by proving that he or she “exercised ordinary business care and prudence and was nevertheless unable to file the return within the prescribed time” (see Reg. §301.6651-1(c)(1)). This standard is objective and will be determined by analyzing all the facts and circumstances.

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.