Tax Relief Blog

Tax Relief

April 15, 2010 | Mike Habib, EA

Are you having problems with settling all your tax debts? If so, you might want to avail of any of the tax relief programs provided for by the IRS. A tax relief is a negotiated solution to your tax problem and possible reduction of the entire tax amount, penalty and interest. It is a form of help from the Government so the taxpayers, be it individuals or companies or corporations, may still be able to pay the tax that is needed to sustain the Government’s needs without such taxpayer suffering penalties from non-payment of taxes. It is a form of compromise where you, as a taxpayer and with back taxes, will promise to pay a possible lesser amount to the IRS instead of the whole amount, and where the IRS will not penalize you or charge you with interests and accept your payment as sufficient.

So what are the different tax relief programs that the Government provides? There is property, personal, business, and housing tax relief. You could also avail of the disaster tax relief program if you have experienced a natural disaster or calamity in your area, or even a financial crisis. However, before you could qualify for this kind, your place or area must first be declared by the Government to be in such a state. There is also an available tax debt relief for taxpayers who are insolvent and cannot, in any way, produce the money to settle their tax obligations. There are other tax relief programs and the best way to know which among these programs you are qualified to apply for is to consult with a tax professional that has an in-depth knowledge on these matters. Such tax professionals will assist you and make your application for tax relief successful, than if you will do it by yourself, particularly because there are many requirements to submit and papers to be produced. However, you must remember that a granted tax relief will not eliminate your tax obligations; instead, it will just make it more affordable for you to pay what you can based on your ability to pay. This is a common misperception of people about tax relief.

IRS Audits of Sole Proprietors

April 13, 2010 | Mike Habib, EA

IRS to Step up Audits of Sole Proprietors

IRS Examination, IRS Tax Examination

SOURCE: WebCPA

2010 Tax Help

April 12, 2010 | Mike Habib, EA

Important tax developments in the first quarter of 2010

IRS Tax Relief

While the new law tax changes in the health reform legislation and the hiring legislation were the most significant developments in the first quarter of 2010, many other tax developments may affect you, your family, and your livelihood. These other key developments in the first quarter of 2010 are summarized below. 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.

IRS Exam vs. Doctor Exam

April 1, 2010 | Mike Habib, EA

Health Reform Law to Spawn More Tax Men?

IRS Says It Needs More ‘Resources’ to Implement Tax Provisions of New Law

SOURCE: ABC

Tax changes affecting individuals in the 2010 health reform legislation

March 26, 2010 | Mike Habib, EA

Tax changes affecting individuals in the 2010 health reform legislation

Mike Habib, EA

I’m writing to give you a brief overview of the key tax changes affecting individuals in the recently enacted health reform legislation. Please call our offices for details of how the new changes may affect your specific situation.

2010 list of tax scams

March 17, 2010 | Mike Habib, EA

IRS unveils 2010 list of tax scams — the Dirty Dozen

Tax Relief

IRS has unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen”. The IRS highlighted tax schemes involving phishing, hiding income offshore and false claims of refunds. IRS warns that these tax schemes are illegal and can lead to problems for both scam artists and taxpayers who risk significant penalties, interest and possible criminal prosecution.

Tax Debt Settlement Help

March 10, 2010 | Mike Habib, EA

Today is the first day of the rest of your life. If things haven’t been going well lately, get a fresh start with a fresh attitude. The best is yet to come! Michael Josephson, of Character Counts.

Tax debt settlement help – get reliable tax relief

If you find yourself unable to comprehend the complexities of paying off your tax debts, then you need to get tax debt settlement help from a tax expert. Tax debt relief settlement help entails finding an experienced enrolled agent who is a tax relief expert to help you come up with the best solution for your tax problem. There are many tax negotiation companies these days offering tax debt settlement help that many people are inclined to believe that these firms are tax relief scams. Truth be told, it only takes the right choice of tax debt settlement company, enrolled agent or tax advisor to help you with your tax problem.

Tax Attorney: IRS Tax Lawyer in Los Angeles California: New York NY Tax Attorney Services

March 7, 2010 | Mike Habib, EA

Tax Attorney – Get the power of attorney for tax representation

A tax relief attorney may represent taxpayers with a tax deficiency, which is the excess of the correct tax liability over the tax shown on the taxpayer’s return plus amounts previously assessed (or collected without assessment) as a tax deficiency, and minus any credits made to the taxpayer.

The IRS is mainly authorized to assess taxes to individual and business taxpayers. The tax attorney would usually get involved as the collection process begins when a notice of deficiency is sent to the taxpayer’s last known address by registered or certified mail. In each deficiency notice, the IRS must provide a description of the basis for the assessment, an identification of the amount of tax, interest and penalties assessed and the date determined to be the last day on which the taxpayer may file a petition with the Tax Court. However, the failure by the IRS to specify the last day on which to file a petition will not invalidate an otherwise valid deficiency notice if the taxpayer was not prejudiced by the omission.

Trust Taxation Rules

February 24, 2010 | Mike Habib, EA

Basic Trust Taxation Rules It is estimated that $4.8 trillion in wealth will be inherited or transferred from one generation to the next by 2015, with much of it transferred through a variety of trusts. Filings of trust returns (Form 1041) are now the third most frequently filed income tax return behind individual and corporate returns. Although the vast majority of these transfers are legal, there is widespread potential for fraud.In the last few years, the Internal Revenue Service has detected a proliferation of abusive trust tax evasion schemes. These promotions are targeted towards wealthy individuals, small business owners, and professionals such as doctors and lawyers.Abusive trust arrangements typically are promoted by the promise of such benefits as:

Reduction or elimination of income subject to tax.
Deductions for personal expenses paid by the trust.

Tax Reform Bill

February 24, 2010 | Mike Habib, EA

Senate Unveil Tax Reform Bill

Senate Finance Committee members Ron Wyden, D-Ore., and Judd Gregg, R-N.H., on February 23 unveiled a broad tax reform proposal that they say would create a simpler and fairer system by lowering tax rates and eliminating narrow tax breaks that benefit special interests. The plan would also simplify tax returns into a one-page Form 1040.

The most significant individual provisions of the Bipartisan Tax Fairness and Simplification Bill of 2010 would reduce the number of income tax brackets from six to three –15 percent, 25 percent and 35 percent –increase the amounts of the standard deduction, eliminate the alternative minimum tax and allow an exclusion for capital gains. On the business side, the proposal would establish a single corporate income tax rate of 24 percent and allow a simplified cash flow accounting for businesses with gross receipts of less than $1 million per year.