Archive for February, 2012

Avoid Tax Scams: Inflated Income and Expenses

Wednesday, February 29th, 2012

Some taxpayers have a tendency to overstate their income or expenses. The IRS “Dirty Dozen” Tax Scam # 6 – False and Inflated Income and Expenses makes this list annually simply because taxpayers still believe they can get away with it. What many don’t anticipate is that stepped-up IRS scrutiny of their flawed returns will yield not only IRS problems for them but also less money in their pockets as

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  3. IRS Warns of “Dirty Dozen” Tax Scams

Payroll Tax Reduction Equals More Money in Your Pocket

Wednesday, February 29th, 2012

Just last week, on February 22, 2012, President Barack Obama signed into law an extension of the Middle Class Tax Relief and Job Creation Act, which effectively slashes the payroll tax, meaning employees get to keep a higher percentage of their paychecks. The payroll tax cut translates as a reduced social security tax withholding rate of 4.2 percent, which is a full 2 percent lower than the original 2011 act

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Obama Proposes More Money for IRS Enforcement

Wednesday, February 29th, 2012

A major focus of the Obama Administration has been to reduce the “tax gap” (the difference between the amount of taxes reported and what the government actually collects). Nowhere has this become more obvious than with the President’s 2013 budget solicit.  A recentarticle in OMB Watch entitled Obama Proposes Exempting IRS from Budget Caps, reports on the Administration’s solicit to have some IRS enforcement spending be “excluded” from budget

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2d Circuit Upholds Rule That Correspondence Law School Graduates Are Not Eligible To Sit For Bar

Wednesday, February 29th, 2012

Bazadier v. McAlary, ___F.3d___(2d Cir. Feb. 16, 2012), is an important case which has gotten little press. The 2d Circuit upheld New York’s bar admission rules which effectively bar graduates of law school correspondence and online schools from sitting for…

The Problem With Student Evaluations

Wednesday, February 29th, 2012

Adjunct Professor Tim Edwards, University of Wisc. Law School sent in an excellent commentary on student evaluations which is applicable to full-time faculty. I could not agree more with the below statements. It is a bit long, but stay with…

Did Media Matters Pay $850,000 to Silence IRS Whistleblower?

Wednesday, February 29th, 2012

From Paul Caron:  Media Matters Paid Former Domestic Partner $850k ‘Blackmail’ Settlement After Threat to Inform IRS: Fox News, Media Matters Boss Paid Former Partner $850k ‘Blackmail’ Settlement: Media Matters chief David Brock paid a former domestic partner $850,000 after being threatened with damaging information involving the organization’s donors and the IRS – a deal [...]

Condo association settles lawsuit with veteran over service dog

Wednesday, February 29th, 2012

Condo association settles lawsuit with veteran over service dog http://www.sltrib.com/sltrib/news/53602814-78/association-condo-service-dog.html.csp from The Salt Lake Tribune Simon W. Johnson swj@swjlawoffice.com Law Office of Simon W. Johnson Martindale,Avvo,Justia,LawGuru LinkedIn,Twitter,Facebook Serving Cleveland and Ohio, 44124

Where Does TaxMasters Stand?

Wednesday, February 29th, 2012

In the last three years,TaxMastershas accumulated 1,047 Better Business Bureau complaints. These complaints have mostly been about their poor service, but there are a considerable number of complaints about their billing and advertising practices. Much like JK Harris,TaxMastershas suffered its share of lawsuits and Attorney General investigations. Texas, Minnesota, and Florida are currently looking into charges againstTaxMastersfor the following complaints.

  • Misleading clients on contract terms (including its no refund policy).
  • Unauthorized credit card transactions.
  • Unlawful collection practices.
  • Misleading ads that greatly exaggerated Offer in Compromise success rates.
  • Failure to deliver on promises or often start work on cases at all.
  • Misrepresentation of the breadth of services offered.
  • Charging for unnecessary services.

I wish I could say I was surprised by these reprehensible actions, but I’m not. JK Harris andRoni Deutchdid the same thing to clients. The only difference between those companies and TaxMasters is thatTaxMastersis still operating. Not only isTaxMastersstill scamming people every day, it just secured$25 million in financingfrom an anonymous lender. So, expect to see moreTaxMasters commercialswhere Patrick Cox stands at an awkward angle and promises to settle your tax debt for“pennies on the dollar.”

Unfortunately, many people will fall forTaxMasters’ promises. Their tax problems will grow worse, and they’ll have even less money to find a successful resolution. Spread the word!TaxMastersis an F rated company that steals money from those already victimized by the IRS. It’s time to take downTaxMasterslike we took downJK Harrisand Roni Deutch!

Late Receipt of Excelsior List Is Objectionable

Tuesday, February 28th, 2012

Matter of The Ridgewood Country Club, 357 NLRB No. 181 (Jan. 3, 2012), is an interesting case and probably one of Member Becker’s last cases. Under the Board’s Excelsior Rule, the Employer is required to transmit a list of voters…

Smart People Make Better Choices

Tuesday, February 28th, 2012

I found something on Greg Mankiw‘s blog that seems to explain why so many Americans bought homes and signed mortgages they could not afford thereby causing the housing crisis: In today’s NY Times, Robert Shiller reports: Even after taking into account factors like income and education, the authors concluded that people with relatively high I.Q.’s typically [...]

Accident Compensation – Getting What You Deserve

Tuesday, February 28th, 2012

Attorneys who specialize in accident compensationare the butt of plenty of jokes, but the truth is that when you’ve been injured and need someone on your side they’re no laughing matter. A good attorney will fight hard for your rights and get you exactly what you’re owed for your suffering. Whether it’s a work accident, [...]

No Free IRS Money-Avoid Tax Scams

Monday, February 27th, 2012

In a recent blog post called IRS Warns of Dirty Dozen Tax Scams, I covered in detail the top four most common and pervasive tax scams currently permeating the tax system. It’s important to prevent IRS tax issues from the start and covering each tax scam separately could go a long way to help consumers first recognize then steer clear of “IRS deals” and false promises that would end up

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IRS Offer in Compromise Tax Settlement Program: What You Need to Know

Monday, February 27th, 2012

Consumers come to us every day at Tax Resolution Services with tax questions and, in fact, one of the most popular subjects is the IRS Offer in Compromise program. This program allows taxpayers to settle their tax debt for substantially less than what they owe. Before you get excited, I want to point out that the Offer in Compromise program is a privilege and not everyone will qualify for it. ———————-
Question:

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No Tax Relief Through IRS Refund Delays

Monday, February 27th, 2012

I recently noticed several news agencies reporting on how the IRS refund delay is angering taxpayers who filed their tax returns early and electronically expecting to receive their refund within 15 days and are still waiting. According to an article in Accounting Today, entitled IRSExperiences Further Tax Refund Delay Problems many early filers obtained a notice of acknowledgement the IRS received their return. But later when they checked the

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Under California Law, Financially Responsible School District is that of Resident Parent

Monday, February 27th, 2012

Divorce presents interesting legal issues concerning the responsibility for education and “who pays”. The 9 th Circuit recently affirmed in part and reversed in part a lower court judgment that under California law, the state agency responsible for funding a…

Is Obama’s IRS Harassing the Tea Party?

Monday, February 27th, 2012

In a 2009 commencement address President Obama jokingly threatened to audit Arizona State University for not giving him an honorary degree on the grounds that his record was incomplete (he had been President for just two months). Now it appears there may have been more than a kernel of truth in the joke: Virginia Republican U.S. [...]

What NOT to Do During Your Divorce

Monday, February 27th, 2012

Divorce is an emotional process.  It is human nature to act out of characterwhen dealing with loss, i.e. loss or end of your marriage.  However, there are some acts you should avoidto prevent hurting yourself at the end of your divorce process.  1.  Don’t withhold information from your divorceattorney / Don’t lie to your divorce [...]

Failure to File Income Taxes Gets Kentucky Man 24 Months in Prison and $2.4 Million Fine

Sunday, February 26th, 2012

A Boone Count, Ky., man who evaded paying his federal income tax liability from 1995 to 2001 was sentenced today to 24 months in prison.
He was also ordered to pay approximately $2.4 million in restitution to the Internal Revenue Service.
From 1995 to 2001, William C. Shehan Jr., 45, failed to file federal income tax forms and diverted money that should have been paid in taxes into private business ventures and

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Five Tips to Resolving Payroll Tax Problems

Sunday, February 26th, 2012

Payroll Tax Problem Question: Our business has done well financially until a year ago when some of our best customers got behind on their payments to us; the crushing blow came when one closed its doors before we could to collect. We are still behind and the loss in income has weakened our business finances so much, we cannot afford to make the payroll tax payments. I’m really worried about

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Swiss Proposals Maintain Tax Compliance and Secrecy

Sunday, February 26th, 2012

In another chapter of Swiss Banks versus the IRS, strong pressure from both U.S. and European governments, have forced Swiss lawmakers to take a stand. Yesterday, Switzerland announced it outlined proposals for how it aims to do the following: improve its reputation as a private global banking center.
comply with the exchange of tax information that includes requiring all offshore account holders to declare their taxable assets. A Wall Street Journal article titled

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