Tax Relief Blog

Surface Transportation and Veterans Health Care Choice Improvement Act of 2015

August 10, 2015 | Mike Habib, EA

Dear Client,

On July 31, 2015, President Obama signed into law P.L. 114-41, the “Surface Transportation and Veterans Health Care Choice Improvement Act of 2015.” Although this new law was primarily designed as a 3-month stopgap extension of the Highway Trust Fund and related measures, it includes a number of important tax provisions, including revised due dates for partnership and C corporation returns and revised extended due dates for some returns. This letter provides an overview of these provisions, which may have an impact on you, your family, or your business.

IRS: FINAL REGS ISSUED ON PARTNERSHIP VARYING INTERESTS RULE

August 3, 2015 | Mike Habib, EA

FINAL REGS ISSUED ON PARTNERSHIP VARYING INTERESTS RULE

T.D. 9728, 07/31/2015, Reg. § 1.706-1, Reg. § 1.706-4, Reg. § 1.706-5

IRS has issued final regs on the determination of a partner’s distributive share of partnership items of income, gain, loss, deduction, and credit when a partner’s interest varies during a partnership tax year. The final regs also modify the existing regs on the required tax year of a partnership.

How Does IRS Tax Settlement Work and How to Settle the Taxes you Owe

July 12, 2015 | Mike Habib, EA

When a taxpayer decides to resolve and pay back the owed amount using any one of the IRS payment programs/filings/settlements, it is called a tax settlement. Internal Revenue Service or IRS offers a tax settlement if the concerned taxpayer is struggling to pay back the tax debts or if there is a valid reason to nullify the penalties. In fact, the IRS offers more than one way for taxpayers to settle their tax debts. While the debate about whether you will get a settlement or not depends upon your financial situation, the type of settlement you will be allowed to opt for is dependent on the severity of your monetary and financial situation / troubles. Even though the IRS prefers that every individual or business pays his/her taxes completely, they can make some exceptions if the situation arises.

Final Notice of Intent of Levy – Help with IRS Letter 1058 or L-1058/LT11

June 15, 2015 | Mike Habib, EA

If you received a letter that reads ‘IRS Letter 1058/LT11’, know that it is a final notice from the IRS (Internal Revenue Service) reminding you about the balance you still owe. Moreover, if you do not resolve your delinquent matter, they will make an attempt to levy your bank accounts, garnish wages and other assets within the next thirty days. In most cases, a CP 504 (a final notice of your due balance) is sent before the IRS Letter 1058. Ideally, IRS Letter 1058/LT11 is more formal than other notices that you may have received by now. It will tell you that they will also be looking for other assets you own that can be levied. By then, you should have received prior notices that should have been addressed.

Tax Recordkeeping Tips

May 15, 2015 | Mike Habib, EA

Recordkeeping Tips

Keep and organize all banking records, including deposit slips and receipts for unusual nontaxable items such as inheritances, gifts, loans, and insurance payouts. Make notations on large deposits and account transfers so you will be able to recall the source of the monies to avoid being classified by the IRS as income.

Tax attorney – Tax problem resolution 877-788-2937 IRS Audits and Back Taxes Help

April 20, 2015 | Mike Habib, EA

Taxpayer Rights Power of Attorney – Representing individuals and businesses before the IRS

Tax representation by a tax lawyer for IRS audits and back tax settlements

Did the IRS claim that you did not report all your income? Did they disallow some of your expenses or deductions? Have you been audited, and the bank deposits were more than what you reported in sales and revenue? The IRS would generally recompute your taxes, and add stiff penalties and interest as well. You will learn about representation by tax lawyers and more as you keep reading on.

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

If you were being represented by a power of attorney, tax lawyer, CPA or an EA enrolled agent, your representative would have been able to explain to the IRS that not every deposit is income. Many taxpayers transfer funds from credit lines to meet urgent expenses, others obtain loans to pay accounts payable. So, to sum, not every deposit should be income to be taxed on. Only tax lawyers, CPAs, EAs can represent you before the IRS.

Call us today at 877-788-2937 for a brief consultation.

Tax Lawyer – Radio TV commercials Internet advertisements for tax attorney relief

February 26, 2015 | Mike Habib, EA

Many companies advertise “heavily” on the radio, TV and the internet promising that they can resolve and settle any and all tax problems for pennies on the dollar or get you an 80-90% reduction.

BEWARE! I highly caution you to NOT call these advertisers.

Here is why you should not be ripped off by these unscrupulous companies, https://www.myirstaxrelief.com/files/tax_negotiation.pdf

What you need is an actual tax firm or law firm that specializes in tax representation. If any attorney states that ONLY lawyers could represent you before the IRS, beware and avoid this lawyer. You can be represented by Enrolled Agents (Tax experts, federally licensed and regulated by IRS directly), CPAs licensed by their respective states, or lawyers as licensed by their respective states.

Learn more about the IRS fresh start initiative.

Call us today at 877-788-2937 for a brief consultation.

Tax planning letter 2014-2015 tax year Los Angeles, Whittier, Orange California Tax Service

October 3, 2014 | Mike Habib, EA

Dear Client & Perspective Client:

Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this year (and, possibly, not until next year). These breaks include, for individuals: the option to deduct state and local sales and use taxes instead of state and local income taxes; the above-the-line-deduction for qualified higher education expenses; tax-free IRA distributions for charitable purposes by those age 70-1/2 or older; and the exclusion for up-to-$2 million of mortgage debt forgiveness on a principal residence. For businesses, tax breaks that expired at the end of last year and may be retroactively reinstated and extended include: 50% bonus first year depreciation for most new machinery, equipment and software; the $500,000 annual expensing limitation; the research tax credit; and the 15-year write-off for qualified leasehold improvements, qualified restaurant buildings and improvements and qualified retail improvements.

The tax impact of the Affordable Care Act

June 5, 2014 | Mike Habib, EA

I came across this good article, and I wanted to share with you.

Checking Up on the Affordable Care Act

By Rande Spiegelman

SOURCE: SCHWAB

With all the commentary and debate surrounding the Patient Protection and Affordable Care Act, or “Obamacare,” it can be difficult to figure out what to expect as an individual. The effects of the new law will vary from person to person and state to state, but as investors, we should pay particular attention to five key tax changes.

How to Find Professional Tax Audit Help for Your Business

April 21, 2014 | Mike Habib, EA

It is crucial for your business that you hire a tax professional in order to get proper assistance with your tax audit. Mike Habib EA, the right tax professional, will be able to help you protect and generate more money for your business. Professional tax audit assistance can help you all year long, advising and giving you tips regarding any tax problems. When you have the right help, you will be relieved from stress throughout the year. However, finding a right tax audit help can be a little difficult. Read on to understand how you can find professional tax audit help suitable for your business needs.