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Tax Relief Blog

Item: Mike Habib, EA
Rating: 5
Author: April S.

July 12, 2019

Client tax update second quarter 2019

by Mike Habib, EA

The following is a summary of important tax developments that have occurred in April, May, and June of 2019 that may affect you, your family, your investments, and your livelihood. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable. Learn more about our IRS tax help.

Final regulations shoot down states’ SALT limitation workaround. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) limits an individual taxpayer’s annual SALT (state and local tax) deductions to a maximum of $10,000, with no carryover for taxes paid in excess of that amount. (The SALT deduction limit doesn’t apply to property taxes paid by a trade or business or in connection with the production of income.) As a result, many taxpayers won’t get a full federal income tax deduction for their payments of state and local taxes. Following the TCJA’s passage, some high-tax states implemented workarounds to mitigate the effect of the SALT deduction limit for their residents. One method used was to set up charitable funds to which taxpayers can contribute and receive a tax credit in exchange. The IRS has issued final regulations, which generally apply to contributions after Aug. 27, 2018, that effectively kill this workaround. The regulations provide that a taxpayer who makes payments to, or transfers property to, an entity eligible to receive tax deductible contributions must reduce his or her charitable deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive.

The IRS also issued a safe harbor that allows an individual who itemizes deductions to treat, in certain circumstances, payments that are or will be disallowed as charitable contribution deductions under the final regulations, as state or local taxes for federal income tax purposes. Eligible taxpayers can use this safe harbor to determine their SALT deduction on their tax-year 2018 return. Those who have already filed may be able to claim a greater SALT deduction by filing an amended return, Form 1040-X, if they have not already claimed the $10,000 maximum amount.

June 24, 2019

Employment payroll Form 941 – EA, CPA, Tax attorney resolution

by Mike Habib, EA

Form 941 is a quarterly payroll report filed by employers indicating employees’ wages, tips, withheld tax, medical, taxes, and social security taxes. It is a form of trust fund because the employer is in a fiduciary position to hold fund on employee’s behalf before the government receives it. If an employer fails to do so, it may result to tax liability and accumulation of employment tax debts under form 941 and 940. Consequently, the IRS may decide to get the debt through levies, liens, the sale of assets or getting the business’ trust fund from officers. A person may also end up bearing personal, civil and criminal liability.

Get a free case evaluation by calling us at 877-788-2937 – all 50 states.

June 4, 2019

CP 504 Help: What you need to know if you receive one in the mail

by Mike Habib, EA

The IRS or Internal Revenue Service has a singular purpose as part of the Federal Government, it is designed to collect and account for all of the tax dollars owed to the government. The IRS derives all of its power from the United States Tax Code and all actions that they take are done so using many different notices and forms. One of those forms is the CP 504 notice and it has to do with IRS Tax Levy.

Get tax help today, free case evaluation at 877-788-2937.

May 24, 2019

ROLE OF A TAX LAWYER, EA, CPA IN TAX DEBT REPRESENTATION AND TAX RELIEF

by Mike Habib, EA

This article will define tax debt and tax relief, the role of representation by EA, CPA, lawyer, benefits that come with using a power of attorney, situations that they come in and some of the tax relief solutions they offer.

Tax debt is where one fails to pay taxes to the government as required by law. Tax relief is a program put in place to lessen or abolish tax debts.

May 15, 2019

Tax Audit Representation – EA, Attorney, CPA

by Mike Habib, EA

A tax attorney, EA enrolled agent, CPA certified public accountant, provide tax audit representation to taxpayers who have never been audited in cooling down their anxieties and eliminating fear when the Internal Revenue Service checks in to conduct the audit. The first-time clients to be audited are not aware of what to expect during the inspection or what exactly is to be reviewed. An audit defense attorney, EA, CPA would, therefore, be needed to step in since they have vast experience and know what to expect during the tax audit. The fear will be dealt with if a competent EA, CPA, lawyer is hired. It is in the best interest for taxpayers seeking representation is to hire an EA, attorney, CPA so they do not put their case at risk. This is because an attorney, CPA, EA exhibits confidence and knows how to go about answering questions asked by the taxman. A competent representative, power of attorney, being present will let the client be at ease.

May 3, 2019

IRS tax penalties – how to abate them

by Mike Habib, EA

— This is a technical and educational piece —

The IRS consistently assesses different type of penalties. In 2017 the IRS assessed nearly 39 million civil penalties totaling roughly $26.5 billion, the IRS abated 4 million civil penalties totaling $12.6 billion. More than 80% of civil penalties were assessed against individuals, estates, and trusts for income taxes.

Taxpayers asking why me, why more penalties, and can I get rid of them or abate them?

Purpose of tax penalties: Penalties exist to encourage voluntary compliance by supporting the standards of behavior required by the tax code. I.R.M., pt. 20.1.1.2 (Nov. 21, 2017)

April 19, 2019

Know Your IRS Tаx Levy Rights

by Mike Habib, EA

Whаt is аn IRS Levy?

Referenced in conjunction levies involve tаking property to sаtisfy а tаx debt where liens аre merely а clаim аgаinst the property. The Internаl Revenue Service (IRS) mаy use levies to seize аnd sell аny reаl or personаl property. This includes cаrs, boаts, homes, wаges, retirement аccounts, dividends, bаnk аccounts, licenses, rentаl income, аccounts receivаble, the cаsh loаn vаlue of life insurаnce, commissions, etc.. The levies thаt аre most frequently seen аre bаnk аnd wаge levies.

Tаxpаyers who ignore or refuse to pаy а Notice аnd Demаnd for Pаyment from the IRS will receive whаt is known аs а “Finаl Notice of Intent to Levy аnd Notice of Your Right to A Heаring” (а.k.а. “Intent to Levy” notice) аt leаst 30 dаys before the levy.

Get a brief case evaluation by calling us at 877-788-2937.

April 5, 2019

IRS Tаx Help with Offer In Compromise

by Mike Habib, EA

While Americаn taxpayers аre troubled with IRS tаx debt in the middle of аn economic downturn, the IRS mаy seem like the bаd guy; since the IRS is knocking door to door to collect bаck tаxes. The IRS isn’t in the wrong to аsk taxpayers to pаy their bаck tаxes. So there аre two viewpoints. One side is clаiming the other side аnd the other is prompted to collect whаt they аre owed. Unpaid back taxes versus offer in compromise resolution is a dilemma.

Get a brief case evaluation by calling us at 877-788-2937.

March 22, 2019

The importаnce of hiring Tаx Consultаnts when prepаring for Tаx Audit Defense

by Mike Habib, EA

IRS, FTB, EDD, BOE, CDTFA Tax Audit Representation Defense

Allowing the government to provide exceptionаl services to the people аs well аs to fuel the growth of the nаtion tаxes is importаnt. With this, the Tax Revenue System hаs plаced strict meаsures to ensure thаt individuаls аnd businesses pаy whаt is due them. Indeed, the IRS, FTB, EDD, BOE, CDTFA conduct tаx audits regulаrly to curb frаud using specific progrаms to trаck flаgs, most notаbly from businesses. These flаgs will include numerous deductions аnd fluctuаting or unreported income, аs well аs improperly filed returns.

Do it yourself, or seek audit defense representation?

March 7, 2019

Whittier, CA Tax, Accounting, Bookkeeping Help – 3 Reasons You Might Need Tax Help – Los Angeles, California

by Mike Habib, EA

Some things in life are easier than others. Gaining weight for example, is much easier than losing it. When it comes to levels of difficulty however, most taxpayers out there would agree that getting your taxes, bookkeeping in order and filing your tax return is one of the toughest things you will do all year. Today we’re focusing on Whittier, CA tax help. California is renowned for its many professional tax & accounting services and experts operating in the state, and if you’re located in Whittier and are wondering whether you should consider hiring an expert, this article could prove particularly interesting. Here’s a look at 3 reasons why you might need tax help.

Tax, accounting, bookkeeping services Whittier, Hacienda Heights, La Mirada, Buena Park, La Habra, Pico Rivera, Norwalk, Downey, Lakewood, Rosemead, Montebello, Baldwin Park, La Puente, El Monte, Santa Fe Springs, City of Industry, Bellflower, Commerce, Brea, Long Beach, Los Angeles and Orange County.

★★★★★

Mike has given us peace of mind! He helped negotiate down a large balance and get us on a payment plan that we can afford with no worries! The stress of dealing with the IRS is huge and Mike helped us through it all. The peace of mind is invaluable, thank you Mike!April S.

Mike Habib - Thank you for being so professional and honest and taking care of my brothers IRS situation. We are so relieved it is over and the offer in compromise process went just as you said. Mike is very professional and will give you honest answers to the OIC process and you can really trust him. You won't be sorry you chose him!Joe and Deborah V.

Mike is a true professional. He really came thru for me and my business. Dealing with the IRS is very scary. I'm a small business person who works hard and Mike helped me see that they are not that scary after all. He was always there with the answers I needed and was very good about calling me back which I appreciated since your first reaction is to freak out and ask a million questions. He solved a messy case and worked very hard to resolve it. His rates are VERY reasonable for the amount of work he does! I give him my highest recommendation!Marcie R.

Mike was incredibly responsive to my IRS issues. Once I decided to go with him (after interviewing numerous other tax professionals), he got on the phone with the IRS immediately (as in the same day I signed with him) to squash an impending issue. And he worked directly with them to quickly come to a resolution I am very happy with. I'd highly recommend reaching out to Mike to see if he can help you with any IRS issues. I'm very satisfied!Marshall W.

I’ve seen and heard plenty of commercials on TV and radio for businesses offering tax help. I did my research on many of them only to discover numerous complaints and unresolved tax issues. I found Mike Habib through my own online search and contacted him. He was very professional with great communication, always answering my questions and concerns. Mike resolved my complicated tax problem just as he said he would. I would definitely recommend his services to family and friends.Nancy & Sal V.

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