IRS Audits of Wealthy Taxpayers Are Paying Off

Wednesday, March 28th, 2012

In case you haven’t noticed, the IRS is doing quite well collecting taxes from wealthy Americans. An article in the LA Times by Tiffany Hsu titled IRS collected $2.4 trillion in taxes, audited more multimillionaires demonstrates how IRS audits of millionaires has helped to contribute to the first revenue increases the IRS has seen since 2008.
From October 2010 through September 2011, the IRS collected $2.4 trillion in taxes from 234

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Tax Resolution Expert-Five Reasons to Hire One

Sunday, March 25th, 2012

While taxpayers are allowed to represent themselves before the IRS, it doesn’t mean they should. There are instances where hiring a tax resolution expert such as a tax attorney or certified tax resolution specialist is highly recommended especially if your personal or businesstax problems are too large, complicated and risky to handle on you own.
For example cases that involve IRS audit, IRS criminal prosecution, payroll/corporate tax issues and IRS

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IRS Helps Unemployed Avoid Penalties

Tuesday, March 13th, 2012

A recent IRS announcement plans to expand the “Fresh Start Initiative” to help unemployed taxpayers, unable to pay their taxes, avoid IRS penalties and make IRS Installment Agreements available to more taxpayers than before. Below is how the program aims to assist struggling taxpayers find tax relief: Penalty Relief
IRS penalty relief will be available to two categories of taxpayers who will be subject to eligibility criteria and income limits: Wage earners

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IRS Reminds Taxpayers of $1 Billion in Unclaimed Refunds

Saturday, March 10th, 2012

With so many people on the financial edge needing tax relief, it’s hard to imagine anyone not already claiming a previous tax refund. Yet every year, millions of dollars in refunds remain accounted for even after many attempts to track down the taxpayers are unsuccessful.  Arecent IRS bulletin gives information on how entitled taxpayers can file to collect their slice of $1 billion dollars in unclaimed 2008 refunds. But

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IRS Bankruptcy-Five Tax Relief Options for Back Taxes

Wednesday, March 7th, 2012

With the economy still sputtering, many tax stressed people teetering on the edge of IRS bankruptcy enter our offices wanting to know if their IRS tax debt could be wiped away with bankruptcy protection. While in some cases back taxes can be discharged (personal income tax), in mostcases, they cannot. However,the good news is that taxpayers in this situation have options. Here are the five simple tax relief options

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Tax Expert Explains Ways to Pay IRS Debt

Saturday, March 3rd, 2012

I was recently quoted in an article for CreditCards.com entitled Pros and Cons of Paying the IRS with a Credit Card where I encourage taxpayers to compare the costs of using their credit cards to pay their taxes versus a negotiated IRS installment agreement if they don’t havethe case on hand. I enjoy lending my expertise to this conversation because all too often, I see very smart people rush

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Americans Abroad Propose Tax Changes to Worldwide Income

Saturday, March 3rd, 2012

No doubt about it, the IRS is making headway in their efforts to bring Americans with unreported offshore accounts into tax compliance with the Foreign Account Tax Compliance Act (FATCA) and (FBAR) regulations. IRS enforcement and data sharing from European banks, has made it possible for the U.S. to gather account information on wealthy American clients; something just three years ago was impossible.
But an article in Forbes entitled Expats Lobby

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Delinquent and Unfiled Tax Returns? 8 Steps to Resolving Them

Thursday, March 1st, 2012

If you have unfiled and delinquent tax returns, you’re probably dreading this tax season; owing back taxes to the IRS is a big burden. Doing nothing to resolve them, however only makes matters worse and more expensive. Even if the IRS isn’t currently knocking on your doorto remind you of your tax debt, you are not out of the woods and will need to devise a plan for

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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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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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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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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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Filing Joint Tax Returns? Prevent IRS Problems

Saturday, February 25th, 2012

An article in Smart Money Magazine entitled Your Tax-Cheating Spouse May Cost You, considered the benefits of married couples filing joint tax returns. It also discussed what you may want to consider if your spouse was not on the level with “your” previous tax returns. Filing separately from your spouse could prevent IRS problems from occurring in the first place, but in each unique situation this may not be possible.

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140K Tax Lien for Lindsay Lohan

Friday, February 24th, 2012

Actress Lindsay Lohan, no stranger to off-screen troubles, was recently issued a tax lien for failing to pay both tax liabilities on both her 2009 and 2010 earnings amounting to $140,203.30.
An E! Online article Lindsay Lohan Evades Federal Taxes…Again! Working Out “Acceptable Arrangement” With IRS reports that the tax issued February 13 for both 2009 and 2010 earnings was assessed against her home in Encino, California and therefore making her

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Got Back Taxes? Passport and Retirement at Risk

Tuesday, February 21st, 2012

Senator Orrin Hatch (R-Utah) is frustrated with tax delinquency and last week introduced legislation aimed at those with back taxes. His message: pay up or face the consequences.
According to the Forbes’ article: Owe IRS Taxes, Lose Your Passport, Senator Hatch’s proposedlaws are intended to force tax avoiding Americans to deal with their tax debt or suffer the following: If you owe more than $50k to the IRS in back taxes

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Doctor Sentenced for Failing to File FBAR Reports

Thursday, February 2nd, 2012

Michael Reiss, New Jersey doctor, professor and medical researcher, was sentenced on January 11, 2012 for failing to report his offshore (UBS) bank accounts. According to the IRS, Reiss was sentenced to eight months in a community confinement center for failing to file Reports of Foreign Bank and Financial Accounts (FBAR) with the IRS. Reiss pleaded guilty in August 2011 and agreed to pay back taxes of at least $400,000

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Doctor Sentenced for Failing to File FBAR Reports

Thursday, February 2nd, 2012

Michael Reiss, New Jersey doctor, professor and medical researcher, was sentenced on January 11, 2012 for failing to report his offshore (UBS) bank accounts. According to the IRS, Reiss was sentenced to eight months in a community confinement center for failing to file Reports of Foreign Bank and Financial Accounts (FBAR) with the IRS. Reiss pleaded guilty in August 2011 and agreed to pay back taxes of at least $400,000

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Offshore Tax Evaders Get Preferred IRS Help

Wednesday, January 25th, 2012

An article in Bloomberg entitled IRS Called Easy on Criminal Tax Evaders in Watchdog’s Critique outlines Nina Olson of the National Taxpayer Advocate’s concerns that intentional tax evaders get more IRS help than those who weren’t intending to hide money from the U.S.government. Olson warns that future IRS collection efforts could be jeopardized due to confusion over the treatment of accidental tax evaders. The IRS sees

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Tax Advocate Warns Taxpayers Rights at Risk

Friday, January 20th, 2012

While cutting government spending is often seen as a good thing, in the case of the IRS, it may be having the opposite effect. Forbes featured an article IRS Advocate: New Taxpayer Rights Crisis Is Brewing highlighting the release of a recent annual report to Congress by National Taxpayer Advocate, Nina E. Olson. Olson, known for being one of Washington’s most outspoken officials, states her concerns for current IRS policies

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More Wealthy Americans Need Tax Help

Tuesday, January 17th, 2012

The IRS just released a study showing a rise of under-reporting by American taxpayers to the tune of $450 billion dollars in 2006; that’s up $105 billion from the last IRS study that was conducted in 2001.
A Forbes article called New IRS Tax Gap Report: Cheating Still Rampant shows taxpayers have an 83.1% compliance rate. That means that the 17% of American taxpayers who are under-reporting their taxes are contributing

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