Tax Relief Blog

Taxpayer Advocate Report

July 10, 2010 | Mike Habib, EA

National Taxpayer Advocate Submits Mid-Year Report to Congress; Identifies Priority Challenges and Issues for Upcoming Year

WASHINGTON — National Taxpayer Advocate Nina E. Olson today released a report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the coming fiscal year. The report expresses concern about the adequacy of IRS taxpayer service, particularly as the IRS begins to implement health care reform, about new information reporting burdens facing small businesses and others, and about certain IRS collection practices.Among the areas the report identifies for particular emphasis in FY 2011 are the following:1. Taxpayer Services.

Spending for IRS taxpayer service programs has been declining in recent years. At the same time, more taxpayers have been contacting the IRS for assistance as the IRS has been tasked with administering an increasing number of social benefit programs, including Economic Stimulus Payments, Making Work Pay credits, and First-Time Homebuyer credits. The report says that as a result of the imbalance between taxpayer demand and IRS resources, the IRS has fallen short of providing adequate taxpayer service in important areas. Most notably, after answering a high of 87 percent of its calls from taxpayers seeking to reach a telephone assistor in FY 2004, the IRS answered only 53 percent of its calls in FY 2008 and has set of goal of answering only 71 percent in the current fiscal year.

Tax Problems

July 9, 2010 | Mike Habib, EA

Tax Problems are problems related to Taxation and most prominent is Income taxation. It affects natural persons – individuals or people and juridical persons – companies, corporation and other legal entities. Tax problems begins from the time you start earning for a living and receiving income or making profits, every time you spend or the expenses you incur up to the time you have spent all of your hard-earned money and profits. Tax Problems are those affecting any benefits you receive from the government and elsewhere, the tax exemptions you enjoy; even the savings you made and interest you earn and receive from any savings and investments. Tax problems also affect the home or properties you buy and sell; it involves even the how many children you have and if you donate to some charity or if somebody makes any payment to you or if you just inherited a lump sum of money, Tax Problem will be there if you don’t declare all you financial transactions and activities and don’t check which are taxable and not and if so, when, when and how to make tax payments.

This is so because, tax problem covers situations from the preparation of the income tax return, calculating the tax liabilities, earnings and expenses and exemptions until the full payment of the income tax is made. But this is just under the normal circumstances. Tax problems also arise under special circumstances like late in filing of the return, late in payment of the tax due, extension in filing returns, extension in payment of tax or taxes, and payment in installments. When you think everything is already fine and complied with, you will be notified and learn of a Tax Lien, Tax Levy or a Bank Levy against you and even garnishment on your wage. You may well discover that a tax audit has been made and discovery of deficiency in payment arising out of improper or erroneous calculation of tax, discovery of inconsistencies between that declared in your income statement, expenses and exemptions as against the records of the IRS from other sources such as your employer’s payroll, your bank statement and for companies – calculation of sales tax and other duties and taxes, 941 Payroll tax and many more; the incorrect calculation of interests and consequently erroneous payment of the amount due.

When you resort to solving the tax problem, you will find that you will encounter more related tax problems in paying back taxes, problems in settling your debt, problem in negotiating with the IRS, problem in complying with IRS payment plan and what have you. For an individual, untrained mind in the field of taxation, even small and big business, this is a real headache and the simplest issue in complying with form alone, albeit, the substance is enormous as a cross carried on one’s shoulder.

Christian IRS Tax Help – Audit Representation – Back Tax Resolution

July 2, 2010 | Mike Habib, EA

Christian IRS Tax Help

By Former Dave Ramsey ELP 2012-2019

Christian IRS Tax help means reliable and professional help by a Christian tax professional. It is correlated with real solutions to IRS or State tax problems of a taxpayer with unpaid back taxes and or IRS audits. Most people avoid this topic while others ignite upon hearing IRS or TAX. But the truth is that, the IRS Tax Help is about tax problems assistance or simply means that there are several ways to help you if you have IRS or State tax problems. For the record, it is not only the duty of the IRS officers and agents to effectively collect taxes or review tax returns or statement of income or perform detailed analysis of financial status of the taxpayer or otherwise give them difficulties and headache, it is also the duty of the IRS to help and assist taxpayers with their taxation problems, or find a solution to a taxpayers’ liability. The IRS also offers tax resolution or relief options to provide tax amnesty in some cases to delinquent taxpayers. Our firm provides IRS Tax help to our clients, either individual taxpayers or businesses with back taxes and IRS audit representation.

IRS Tax Help to Oil Spill Victims

June 28, 2010 | Mike Habib, EA

IRS Offers Tax Help to Oil Spill Victims

SOURCE: WEBCPA

The Internal Revenue Service has issued guidance to individuals and businaesses affected by the oil spill in the Gulf of Mexico and announced new efforts to help affected taxpayers, including a special Gulf Coast Assistance Day on July 17.

¿PROBLEMAS DE IMPUESTOS?

June 22, 2010 | Mike Habib, EA

Alivio de problemas de impuestos federales (IRS), Alivio de problemas de impuestos estatales (BOE or FTB), Alivio de problemas de impuestos del empleador (EDD).

Español Tax Relief Help Call 1-877-970-7007

En Mike Habib EA, una compañia Californiana de ayuda para problemas de impuestos, entendemos que ser notificado que sus declaraciones de impuestos estan siendo inspeccionadas por el IRS o el estado puede ser intimidatorio. Cuando uno se encuentra frente a una auditoria o un proceso de coleccion por el IRS o el estado, uno no sabe que hacer o para donde voltear. Nuestra compañia cuenta con todas las habilidades y experiencia para negociar con el IRS o el estado en defensa suya. Nuestra compañia entiende las reglas y tenemos la experiencia adecuada para negociar la menor cantidad de dinero a pagar aprobada por la ley.

Payroll tax problems

June 20, 2010 | Mike Habib, EA

Payroll Tax Problems 941 / 940 – Unpaid employment tax relief

The 941 Payroll Tax problem is businesses’ tax problem concerning their payroll. Before understanding what a 941 payroll tax problem is, it is important to know what it is. There are three (3) main types of taxes falling under the category of payroll taxes. First is the regular income tax that must be withheld from the business’ employees’ wages or salaries. Second is the Federal Insurance Contribution Act (FICA), which is a contribution to the Social Security and Medicare. The third is the Federal Unemployment Tax (FUTA).

The first is commonly known as the withholding taxes from employees which will appear in their individual pay vouchers or pay slips. The amount of taxes withheld is dependent upon the earnings of an individual employee, exemptions and deductions and basically based on their individual returns and calculation. An error in the deduction is considered a 941 payroll tax problem. On the second tax, Employers are required to withhold from the employees 7.65 percent of the first $62,700 income and match that amount so that the total FICA contribution will be equivalent to 15.3 percent. Again erroneous calculation of the percentage amount will fall as a 941 payroll tax problem. If you are a Self-employed persons, you have to should both or the entire FICA tax. The FUTA tax is solely paid by the employer equivalent to approximately 1 percent of the first $7,000 wages of an employee.

Tax Relief – Get tax debt relief today

June 19, 2010 | Mike Habib, EA

Tax Relief – Get tax debt relief today

Reasonable Cause/Good Faith Defense: Even if the taxpayer did not have substantial authority for a position and failed to make adequate disclosure, the substantial understatement penalty does not apply if the taxpayer had reasonable cause for the tax underpayment and acted in good faith [IRC Sec. 6664(c); Reg. 1.6664-4]. This defense is applied on a “facts and circumstances” basis [Reg. 1.6664-4(b)]. However, the key factor seems to be whether the taxpayer made a reasonably energetic attempt to determine the correct tax liability. For example, an honest misunderstanding of fact or law, an isolated computational error, reliance on professional tax advice, or reliance on information returns all indicate reasonable cause/good faith. However, if the taxpayer should have known better, the defense will not apply.

Observation: According to IRM 20.1.5.6, the most important factor in determining whether the taxpayer has reasonable cause and acted in good faith is the extent of the taxpayer’s effort to report the proper tax liability. For example, reliance on erroneous information reported on an information return indicates reasonable cause and good faith, provided the taxpayer did not know or have reason to know that the information was incorrect. Similarly, an isolated computational or transcription error may indicate reasonable cause and good faith. Other factors to consider are the taxpayer’s experience, knowledge, sophistication, education, mental and physical condition, and reliance on the advice of a tax advisor.

CA RESIDENCY RULES & AUDIT

June 18, 2010 | Mike Habib, EA

CALIFORNIA FRANCHISE TAX BOARD

CA RESIDENCY RULES & AUDIT

RESIDENCY LAWS, TERMS, AND RESIDENCY CONCEPTS

Having Unfiled Tax Returns and need Help?

June 8, 2010 | Mike Habib, EA

Having Unfiled Tax Returns and need Help?

Taxpayers with unfiled tax returns can invite a lot of problems. The famous IRS has coined ten years for the collection of taxes that are owed. If the return for owed taxes was filed ten years ago, the IRS will probably use the last address known to them. The government will not be able to maintain any contact if you have already left the country. But if by any chance, you return back within the ten years limit, this can be a big problem. If you start earning or start with any job, it will be very easy for the IRS to contact you and then you are in big trouble. They not only claim the unfiled tax returns but all of the fines interest and penalties that have accrued over the original payment are also asked for. If you have somehow not at all bothered to file the tax returns, it is very important for you to have all the documents necessary to file your tax returns. Having lower income or lots of medical bills will not make any difference. It could simply lead to the conclusion that you probably are left with no money at all to pay for the mortgages or even the regular bills.

If anyone finds himself stuck in such serious circumstances it is strongly suggested that services of an experienced tax relief professional be asked. Only they will be able to guide you properly as to what is required to be done. They will be able to sort through all of the back taxes of past years and negotiate with the IRS to make some reasonable solution. The help of tax relief expert can invite many days of annoyance, severe deadlines or some difficult and confusing forms to be handled on your own. The tax relief specialist, as a professional will do his best to help you deal with the situation and come out of it successfully. He will be spending most of his time to sort out the best interest of the client and find a solution.

Back Taxes

June 2, 2010 | Mike Habib, EA

Back Taxes – How to get tax resolution

When one is undergoing financial problems and above all a number of tax bills that are due, the first thing that crosses ones mind is how to settle back taxes. Burden of tax debt is a complicated issue. This is so because if one does not pay the past due tax bills the amount keeps on doubling with time. Moreover, more interest and penalties are added to it. In the end, the rights of the taxpayer are no longer protected because then the tax collectors start intruding into person’s bank accounts and seizing all the property he has in his name. As each and every move is interlinked with the previous one which makes these back tax debts a complicated one. Thus, there is a dire need to settle back taxes and get peace of mind.

In order to settle tax debt a proper channel is required, that is, a legal tax relief representative such as an experienced Enrolled Agent can do a fine job in corresponding and negotiating with the IRS, or any tax agency. As it is seen, for every problem one needs to discuss the matter openly. Both parties look at their positive and negative points for each alternative resolution. Then a modified tax resolution is formulated which would be acceptable to both parties. This is how to settle back taxes.