Tax Relief Blog

Offshore Tax Settlement

March 27, 2009 | Mike Habib, EA

IRS announces settlement offer for those that voluntarily disclose unreported offshore income

Mike Habib, EA Tax Relief & Tax Resolution Services

IRS Commissioner Doug Shulman has announced what is in effect a settlement offer for those that voluntarily and timely disclose unreported offshore income. Those meeting the terms of the offer will have to pay back-taxes and interest for six years, and pay either an accuracy or delinquency penalty on all six years. They will also pay a penalty of 20% of the amount in the foreign bank accounts in the year with the highest aggregate account or asset value. In other words, 20% of the highest asset value of an account anytime in the past six years. However, those who come forward on a timely basis will not face criminal prosecution.

Linked trusts are eligible for S status

March 26, 2009 | Mike Habib, EA

Linked trusts were eligible to be S shareholders PLR 200912005

Mike Habib, EA Tax Relief & Tax Resolution Services

IRS has privately ruled that a trust having a second trust as a remainder beneficiary could choose to be treated as an electing small business trust (ESBT) and thus was eligible to be a shareholder of an S corporation. IRS also concluded that the second trust was not a charitable remainder trust. As a result, the second trust will be eligible to be treated as an ESBT when it becomes a potential current beneficiary of the first trust.

IRS Levies on the rise despite the recession

March 24, 2009 | Mike Habib, EA

IRS wage garnishment levy and IRS bank levy tax relief

Collecting tax revenue in the face of recession has been – and will continue to be – a challenge for the IRS. There is an increase in the number of taxpayers unable to pay their back taxes due to loss of main income and other such economic hardships. Are you one of these people? Don’t worry – there’s IRS collection help, wage and bank levy release, and other tax relief assistance available for you from this website. Mike Habib has the expertise to help affected taxpayers like you defend their rights and take advantage of the appropriate IRS tax relief options.

Wage and bank levy release

When wage garnishment, wage levy occurs, the employer keeps a sizeable part of an employee’s salary or wage in order to pay the employee’s tax debts. So what debts qualify for a wage garnishment? The most common ones are unpaid taxes, unpaid court fines, child support, unpaid student loans, and many more. If the person has more than one debt, then there is a big chance that his salary won’t be able to cover them all. What the employer does is to prioritise which debt demands solutions first. In most cases, of course, the federal tax would be paid first.

Solve Your 941 Payroll Tax Problems

March 23, 2009 | Mike Habib, EA

Solve Your 941 Payroll Tax Problems

It’s fairly common for businesses – no matter what size – to struggle with some sort of 941 tax issue or another. Even companies that use good payroll software to sort out their entire payroll related taxes are still prone to errors. The IRS implements strict guidelines when it comes to filing and paying payroll taxes in a timely manner. Are you a business owner with 941 payroll tax problems? It’s going to be difficult to obtain tax relief if you have been found guilty of deliberately failing to meet your obligations.

Late filing and payment

Late payment of payroll taxes causes your business to incur penalties and additional fees, which can be a huge problem especially if your business is already contending with cash flow issues to begin with. Small businesses, for instance, rarely have ample capital to run their operations, so when unexpected fees like these come up, cash flow is compromised.

How small businesses can use the new longer NOL carryback to achieve maximum tax savings

March 18, 2009 | Mike Habib, EA

How small businesses can use the new longer NOL carryback to achieve maximum tax savings

Mike Habib, EA Tax Relief & Tax Problem Resolution

The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial changes for businesses. A key provision in the new law which is designed to help struggling eligible small businesses cope with the economic downturn is a temporary elective extension of the carryback period for certain net operating losses (NOLs) from 2 years to up 5 years. The longer NOL carryback period gives small businesses that experienced losses the ability to get immediate refunds of income taxes paid in earlier years. The refunds can be used to fund capital investment or other expenses.

Details of IRS Tax Penalties

March 18, 2009 | Mike Habib, EA

IRS Tax Penalties in Detail

Mike Habib, EA Tax Relief & Tax Problem Resolution

The Internal Revenue Code imposes many different kinds of penalties, ranging from civil fines to imprisonment for criminal tax evasion.

If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You may also have to pay a penalty if you substantially understate your tax, understate a reportable transaction, file an erroneous claim for refund or credit, or file a frivolous tax submission. If you provide fraudulent information on your return, you may have to pay a civil fraud penalty.

Summary of IRS tax penalty rules

March 18, 2009 | Mike Habib, EA

Summary of IRS tax penalty rules

Mike Habib, EA Tax Relief & Tax Problem Resolution

Taxpayers who do not file their tax return and pay their tax by the due date may have to pay a penalty. Here are seven things you should know about failure-to-file and failure-to-pay penalties.

IRS Tax Relief to Madoff Investors

March 17, 2009 | Mike Habib, EA

IRS giving relief to some Madoff investors

By MARCY GORDON, AP Business Writer

WASHINGTON – The Internal Revenue Service issued guidelines Tuesday that will allow tax relief and refunds for some Bernard Madoff victims who were levied for investment earnings that turned out to be nonexistent.

Chances of being audited?

March 16, 2009 | Mike Habib, EA

What are your chances for being audited? IRS’s 2008 data book provides some clues IR 2009-22

Mike Habib, EA Tax Relief & Tax Problem Resolution

IRS has issued its annual data book, which provides statistical data on its fiscal year (FY) 2008 activities. As this article explains, the data book provides valuable information about how many tax returns IRS examines (audits), and what categories of returns IRS is focusing its resources on, as well as data on other enforcement activities, such as collections.

The Financial Crisis Opens Opportunities for Tax Relief to Burdened Americans

March 13, 2009 | Mike Habib, EA

Pasadena, CA March 13, 2009 – The current recession offers the best opportunity for individuals and businesses to address their tax issues and effectuate a tax settlement with the IRS. The Internal Revenue Service has announced its willingness to resolve and settle delinquent tax accounts; this will help those taxpayers who’ve been struggling for years to fulfill their tax obligations. Tax relief is going to be easier for those who are also facing huge medical bills, recent job loss as well as those who are relying on Social Security.

“This is a very difficult period for the whole country but most specially to individuals who are heavily burdened by the financial obligations that they have to meet,” says Mike Habib, an Enrolled Agent who specializes in providing expert tax help to individuals and businesses. “With the IRS promising to be more flexible, the current conditions are giving rise to an opportunity for Americans to resolve their tax concerns and get proper help.”

The IRS has changed its policies for tax payments in response to the ongoing recession. It has taken on a more humane approach when it comes to addressing people who are finding it difficult to pay their taxes due to financial burdens. IRS employees are now provided with greater authority to be able to suspend collections particularly in situations where individuals are incapable of making their payments because of emergencies such as job loss or substantial medical bills.