IRS Tax Help Basics for the Self-Employed

Wednesday, January 25th, 2012

Self-employment can be a liberating experience. You get to make your own rules, work your own hours and say goodbye to the horrors of a demanding boss. With this freedom comes responsibility and handling all your business affairs now solely rests on your shoulders, including payingyour own taxes. A recent Ledyard-Patch article entitled Self-Employed? IRS Says You Should Read This reminds us that the self-employed are urged to get

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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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IRS Audits Increase for the Wealthy

Thursday, January 12th, 2012

According to a new article by the Los Angeles Times, the IRS is increasing the number of audits on taxpayers making over  $1 million a year.  In the article titled Big earners more likely to face audits by Tiffany Hsu, the majority of audits done by the IRS are done on those making $1 million and very rarely on anyone making under $20 k a year. Hsu states that in

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Bad Real Estate Situation Turns into IRS Problems for Retired Couple

Monday, November 7th, 2011

Retired and on a fixed income, our client Carol and her husband ended up owing the IRS $18,000 after a bad real estate situation.  With no options, Carol started to do some research and discovered the great help Tax Resolution Services had done for others in her situation. Tax Resolution Services negotiated with the IRS and Carol and her husband’s IRS debt was reduced to $5300. To hear Carol’s personal

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IRS Crackdown on Employers Who Improperly Use Independent Contractors

Sunday, October 2nd, 2011

The IRS revealed last week a new program where business owners, particularly those that own small businesses, need to reclassify contractors as employees and make a small payment to cover past payroll taxes. The article Price of Reclassifying Workers, written by Sarah E. Needleman and Emily Maltby comes after an ultimatum by the IRS for small businesses (which tend to have less staff and a looser structure): raise operating costs

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IRS New Voluntary Worker Classification Settlement Program

Wednesday, September 28th, 2011

There has been a lot of buzz about the IRS’s New Voluntary Worker Classification Settlement Program (also known by the acronym VSCP).  It’s on IRS.gov, going out in newsletters and major media publications are covering it in stories.  What I am not seeing covered yet is how this new settlement program as a disguised as amnesty for small businesses – like a payroll tax “fresh start” settlement program of sorts

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Tax Resolution Tip: 7 Year Rule

Friday, September 9th, 2011

Today’s Tax Resolution Tip:
Once you file your yearly tax return, you might be tempted to get rid of all the receipts, forms, calculations and documentation lying around on your living room floor or home office. However, it is important you keep your tax documents for each taxreturn for at least 7 years. Copies of your tax return should be kept indefinitely.
Your tax returns do not disappear once you file them.

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Taxpayers flee high tax rates?

Tuesday, August 16th, 2011

Are wealthy Americans shuffling around the states in the attempt to obtain some tax relief? In an article on MarylandReporter.com, Len Lazarick interviews a man who explains that his future move to Florida is not just an attempt to avoid the cooler climate. In the article, Tax flighta reality for Frederick business owner, Lazarick quotes Mark Graver, a Maryland native and a man with high financial success (earning over

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Your IRS Tax Problem Question Answered: What to Do If You Are Audited

Wednesday, July 20th, 2011

Being audited by the IRS can be a scary and stressful situation. Whether you are being audited for tax problems from investment mishaps, offshore accounts or any other reason, it is important to make sure a tax professional is there to make your audit goes as smoothly as possible. Karen E. Klein of the LA Times offers great advice to a reader about to be audited:
Karen: You answered a question

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Tax News: IRS in Need of More Employees; Expect Process to Slow Down While Workload Amps Up

Tuesday, July 19th, 2011

The IRS has been making huge increases in its workload of audits and taking your tax payments and they won’t be stopping anytime soon.  TRS blogged back in March about the government’s pressure to close the whopping $345 billion tax deficit which in turned caused theIRS to increase audits by 11% last year-targeting both consumers and business owners. Arden Dale’s  article Why Paying Taxes Takes Longer from  SmartMoney, examines

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U.S. Government Partnering with Banks to Catch Offshore Tax Cheats

Saturday, July 16th, 2011

I recently came across a post on The Global Resolution from the Thorn Law Group. The Global Resolution is the agreement the U.S. government and European banks are currently working on in a continued effort to put a stop to offshore tax evasion.
How will it work:
1) Any foreign bank under U.S. investigation will pay a fine to the government
2) Said bank will disclose U.S. client names to the government
3) U.S. government

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Celebrity Tax Woes: Michael Jackson’s Former Manager Faces IRS Tax Problems

Thursday, July 14th, 2011

Michael Jackson’s former manager is facing some major IRS tax problems. Raymone Bain was charged on two counts of failure to file tax returns from 2006 – 2008 despite large earnings from working for the star as his general manager and spokeswoman during that period.
Bainpleaded guilty on Wednesday, June 22 for failing to file both federal and District of Colombia returns.  She is scheduled for sentencing on August 13,

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IRS Audits Expose All Tax Cheats Such as Louisiana Woman Who Obtained 94 Months in Prison for Tax Fraud

Thursday, June 30th, 2011

Should you be afraid of an IRS audit?  The answer is yes.  More than 50% of the referrals that the Criminal Investigation Division (CID) gets are from the IRS Revenue Agent that conducts the audit interviews.  IRS audits are there to keep the innocent on track and to exposethose that are not so innocent, from small time tax cheats to big time tax evasion like in the article below.
Clarissa

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Tax Resolution Tip for Home-Based Businesses

Saturday, June 25th, 2011

Today’s Tax Resolution Tip:
Do you own a home-based business? Ensure you can easily track your expenses by saving a copy of each and every business transaction and deduction!
While good record keeping is a great practice when it comes to filing taxes, it is all the more important if you own a small home-based business. If the IRS decide to audit your business you need to show proof of every deduction

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Tax Help: Don’t Wait to Correct Your Tax Return Errors

Wednesday, June 22nd, 2011

Many people spend a lot of time, effort and money into preparing accurate yearly income tax returns, even if a professional is giving tax help.  The process is often complicated and accuracy is important. With that combination of factors errors can become common and the IRS wantsto see those errors fixed in a timely fashion. The Wall Street Journal Article titled If You Goofed on Your Taxes, Fix It.

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Cat Volunteer Wins Case for IRS Tax Relief Deductions in Tax Court

Tuesday, June 21st, 2011

Jan Van Dusen, a volunteer for a cat rescue program, recently went to battle with Tax Court to deduct expenses for the care of some 70 plus cats. The article Stray Cat Strut: Woman Beats IRS published in the Wall Street Journal outlines how Ms. Van Dusen won her case against the taxcourt in her argument for the deduction for over $12,000 in bills accumulated for the care of

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Tax Resolution Tip: Be Ready for an Audit with Relevant Proof of Transactions

Thursday, June 16th, 2011

Today’s Tax Resolution Tip:
If you are a home-based business owner, here’s a tax tip that is particularly relevant to you. Tracking your expenses is essential, especially if you are audited by the IRS. Save at least one copy of each and every transaction and/or deduction as proof in case of audit.
Visit our audit FAQ page for more information on IRS tax audits, including how to avoid them and survive an IRS

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IRS Amps up Audits on Wealthy Americans

Saturday, June 11th, 2011

As we all know by now, the IRS has increased its level of scrutiny of tax payers and audits are increasing. Lara Saunders (Wall Street Journal) wrote an article called Rich Are Targeted in IRS Audit Offensive addressing how the wealthy are being audited at a rate double or triple what was seen in the previous decade.
According to Saunder’s article the wealthiest Americans are being targeted increasingly by the IRS

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Illinois Man Charged with Tax Evasion Will Probably Face Jail Time and Hefty Fine

Thursday, June 9th, 2011

The president and sole owner of an Illinois construction company was indicted on charges of filing false federal individual income tax returns for allegedly under reporting his company’s income by more than $864,000 over two years and failing to pay more than $260,000 in taxes.
Robert W. Conforti Sr., 63, of Downers Grove, Illinois, owned Conforti Construction Co., and was charged with two counts of filing false federal tax returns.
According to

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Texas Man Barred from Preparing Tax Returns– Tax Audits of His Customers Reveal Understated Tax Liabilities

Sunday, May 22nd, 2011

Any tax audit by the IRS should be taken seriously.  Ironically, it was tax audits of multiple returns that led the IRS to a corrupt individual and his company who were falsely preparing tax returns for others. 
A federal court has barred Eddie Madrigal of San Antonio, Texas,from preparing federal tax returns for others. The government complaint alleged that Madrigal and his company prepared tax returns for customers that claimed

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