Tax Relief Blog

OIC Offer in Compromise: Tax Court upholds IRS’s rejection

June 6, 2011 | Mike Habib, EA

IRS OIC Johnson, (2011) 136 TC No. 23
The Tax Court has upheld IRS’s determination to reject an individual’s proposed offer in compromise (OIC) and sustain collection action against him. IRS’s determination, which was in part based on the inclusion of certain dissipated assets in the taxpayer’s reasonable collection potential (RCP), wasn’t an abuse of discretion.

Under Code Sec. 7122, IRS will consider an OIC offer in compromise where: (1) the taxpayer is unable to pay the tax; (2) there is doubt as to the taxpayer’s liability for the tax; or (3) a compromise would promote effective tax administration because collection of the full amount of tax would cause economic hardship for the taxpayer, or compelling public policy or equity considerations provide a sufficient basis for compromising the liability.

Tax treatment of charitable giving

June 1, 2011 | Mike Habib, EA

Charitable contribution has always been a hot IRS tax audit item.

Recently, the Congressional Budget Office (CBO) published a report entitled “Options for Changing the Tax Treatment of Charitable Giving.” While the deduction of charitable donations has historically been a feature of the U.S. individual income tax system, the cost, equity and efficiency of the deduction are now the focus of increased scrutiny.

Are vineyards eligible for expensing under Code Sec. 179?

May 21, 2011 | Mike Habib, EA

Did you receive an IRS tax audit for your vineyard?

Code Sec. 179 expensing has become a potent tax saver, thanks to current law’s $500,000 deduction ceiling. So it should come as no surprise that taxpayers and their advisers are on the lookout for assets that potentially qualify as Code Sec. 179 property eligible for expensing. One such class of property is vineyards and orchards. IRS has published an Audit Techniques Guide (ATG) turning a thumbs down on expensing for such property, but its conclusion appears to be based on prior law. A more recent ATG leaves the door open to a better result. This Practice Alert presents the case for treating vineyards and orchards as Code Sec. 179 property and covers IRS’s current “conflicted” guidance as well.

Tax Controversy: Understanding IRS Guidance – Tax Help

May 20, 2011 | Mike Habib, EA

For anyone not familiar with the inner workings of tax administration, the array of IRS guidance may seem, well, a little puzzling at first glance. To take a little of the mystery away, here’s a brief look at seven of the most common forms of guidance.

In its role in administering the tax laws enacted by the Congress, the IRS must take the specifics of these laws and translate them into detailed regulations, rules and procedures. The Office of Chief Counsel fills this crucial role by producing several different kinds of documents and publications that provide guidance to taxpayers, firms and charitable groups.

Seeking an independent tax opinion letter?

Tax controversy matter? Get expert tax help at 877-788-2937.

Tax Relief Attorney: specialist in tax relief resolution

May 15, 2011 | Mike Habib, EA

Most taxpayers assume that they need a tax attorney or a tax lawyer to respond to an IRS notice or letter. Taxpayers with tax problems should consider EAs (Enrolled Agents) who specialize in tax relief and tax problem resolution.

Looking for a tax relief attorney? Our firm is headed by Mike Habib, he is an EA who specializes in tax relief and can resolve your tax problems such as releasing tax levies, stopping wage garnishments, IRS audit representation, 941 payroll tax matters, etc. Tax attorneys and criminal lawyers should be considered by the taxpayers facing criminal charges. The vast majority of tax problems in need of tax relief are civil matters, and our firm can represent you before all administrative levels of the IRS. You will need a tax criminal attorney if you’ve been visited by a criminal or special agent.

Tax Problem Help – IRS tax resolution services

May 6, 2011 | Mike Habib, EA

Are you looking for tax problem help? As we all know, the American economy is still stagnant and depressed, 2011 has been the toughest year for most individual and business taxpayers seeking tax problem help. Unemployment is still high, family incomes are lower, business income is slashed and retirement savings have significantly declined and the reality is many taxpayers are struggling to make ends meet. The American government has provided a variety of tax resolution programs to help you resolve your tax problem, and I urged you to take advantage of these tax relief options as well as other strategies to resolve your tax problem and get peace of mind.

Whittier CA Tax Services: Need for individual/business taxpayers to use EA for professional tax services

May 1, 2011 | Mike Habib, EA

When you need tax relief help you may have to hire a tax professional to get the job done right. Even though there are several types of tax professionals such as CPAs, tax attorneys, tax lawyers, Enrolled Agents can do a lot for you on many levels. Mike Habib, EA is an Enrolled Agent who provides tax relief services in Whittier, La Habra, Hacienda Heights, Rowland Heights, La Mirada, City of Industry, La Habra Heights, Montebello, El Monte, Downey, Pico Rivera, Cerritos, Long Beach, Fullerton, Placentia, Brea, Buena Park, and other southern California cities.
For a free confidential tax consultation call 877-788-2937.

Tax Relief, IRS Back Taxes Help, IRS Audit Representation

April 22, 2011 | Mike Habib, EA

Get reliable tax relief, IRS back taxes help, IRS audit representation from Mike Habib, EA
Confidential tax relief consultation 877-788-2937.

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IRS Tax Relief Services: 2011 Q1 IRS tax developments

April 18, 2011 | Mike Habib, EA

The following is a summary of the most important tax developments that have occurred in the past three months that may affect you, your family, your investments, and your livelihood. Please contact 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.

IRS has issued detailed guidance on the 2010 Tax Relief Act’s 100% bonus depreciation rules for qualifying new property generally acquired and placed in service after Sept. 8, 2010 and before Jan. 1, 2012. Overall, the rules are quite generous. For example, they permit 100% bonus depreciation for components where work on a larger self-constructed property began before Sept. 9, 2010, allow a taxpayer to elect to “step down” from 100% to 50% bonus depreciation for property placed in service in a tax year that includes Sept. 9, 2010, permit 100% bonus depreciation for qualified restaurant property or qualified retail improvement property that also meets the definition of qualified leasehold improvement property, and provide an escape hatch for some business car owners who would otherwise be subject to a draconian depreciation result.

Under the 2010 Tax Relief Act, a taxpayer that buys and places in service a new heavy SUV after Sept. 8, 2010 and before Jan. 1, 2012, and uses it 100% for business, may write off its entire cost in the placed-in-service year. A heavy SUV is one with a GVW rating of more than 6,000 pounds.

Payroll tax problems resolution: 941 tax relief for payroll taxes

April 4, 2011 | Mike Habib, EA

Help with IRS Payroll Tax Problems

If you own or manage a business (sole proprietor, partnership, or corporation) and pay employees, you will have to deal with 941 and 940 payroll taxes (employment taxes). Social Security, Medicare and income tax withholding from employee paychecks is just part of normal business operations. If you fail to file and pay your 941 payroll taxes then you are guaranteed to get in trouble with the IRS and the other state agencies such as EDD. This usually leads to additional stiff IRS penalties and larger tax debt, and may also be considered by the IRS a federal crime.