Wednesday, February 29th, 2012
A major focus of the Obama Administration has been to reduce the âtax gapâ (the difference between the amount of taxes reported and what the government actually collects). Nowhere has this become more obvious than with the Presidentâs 2013 budget solicit. A recentarticle in OMB Watch entitled Obama Proposes Exempting IRS from Budget Caps, reports on the Administrationâs solicit to have some IRS enforcement spending be âexcludedâ from budget
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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 âIRS dealsâ and false promises that would end up
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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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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. Iâm really worried about
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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 âyourâ 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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Thursday, February 23rd, 2012
An MSN article titled IRS Targets Retiree Tax Cheats points to a report from The Treasury Inspector General for Tax Inspection that is critical of how the IRS processes reported retirement income. The report mentions the inspector generalâs recommendations for improvements to the process that would provide tax help to the growing number of taxpayers who inadvertently under-report retirement income and end up with hefty IRS penalties and fines.
The Treasury
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Thursday, February 23rd, 2012
Business owners preparing for tax day, take note. A Reuters article entitled IRS Clarifies 1099-K Reporting for 2011 Taxes reported recent IRS clarification for how to report the new 1099-K forms on your 2011 tax returns. The Housing Assistance Tax Act of 2008 created the Form 1099-K to help the IRS keep better track of electronic payments.  Because most business entities obtain payments electronically, itâs more important than ever they
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Wednesday, February 22nd, 2012
Every month we choose a very special Tax Client Of The Month. Itâs our way of acknowledging good friends and saying âthanksâ to those who support Tax Resolution Services with referrals, word of mouth and repeat business.
This monthâs Tax Client Of The Month is Mr. Alvin K. Mr. Alvin K owed the IRS over $38,000 in back taxes when he sought our help. After several months of negotiations, we were
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Tuesday, February 21st, 2012
IRS commissioner Doug Schulman announced on Thursday its IRS âDirty Dozenâ List of tax scams and âphishingâ expeditions to warn taxpayers about scams that range from identity theft to return preparer fraud. This annual list is meant to provide the most recent advice for consumers to prevent tax problems on a year round basis. However, as tax day draws near, scams and schemes tend to peak as people get their
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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 Forbesâ article: Owe IRS Taxes, Lose Your Passport, Senator Hatchâs 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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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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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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Wednesday, February 1st, 2012
With tax day just around the corner, many taxpayers will soon scramble to get their documents organized in order to take full advantage of all the tax breaks available to them. Of these taxpayers, homeowners have a lot to gain but to getting the tax help they need, will mean preparing the dreaded and often confusing itemized deductions. Â A Fox Business Article entitled Six Tax Breaks Every Homeowner Should Know
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Friday, January 27th, 2012
The National Oceanic and Atmospheric Administration (NOAA) reported 12 natural disasters in 2011 that each caused more than $1 billion in damages, ranging from Hurricane Irene, to severe wildfires, tornadoes and flooding. Â As the victims of these disasters rebuild their lives from utter destruction, this tax season many are receiving IRS tax help.
USA Todayâs article Tax Relief Possible for Losses in Natural Disasters reports the good news that taxpayers affected
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Wednesday, January 25th, 2012
An article in Bloomberg entitled IRS Called Easy on Criminal Tax Evaders in Watchdogâs Critique outlines Nina Olson of the National Taxpayer Advocateâs concerns that intentional tax evaders get more IRS help than those who werenât 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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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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Sunday, January 22nd, 2012
Every month Tax Resolution Services chooses a very special Tax Client Of The Month. Itâs our way of acknowledging good friends and saying âthanksâ to those who support Tax Resolution Services with referrals, word of mouth and repeat business.
This monthâs TaxClient Of The Month is Mr. Joe F.
Mr. Joe F. owed the IRS $16,000 in back taxes when he sought help. After several months of negotiations, we were able
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Friday, January 20th, 2012
Question: Iâve likely waited way too long, but now that weâre into 2012, I really want to get a handle on my tax debt. In fact, I want to eliminate my tax debt. What advice do you have for me? Answer: The first thing you should do â and you should do this immediately â is visit a qualified tax professional. He or she will discuss with you your current
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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 Washingtonâs most outspoken officials, states her concerns for current IRS policies
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Tuesday, January 3rd, 2012
Happy New Year! This year, why not keep on top of your taxes? If you owe IRS back taxes, read on! The IRS has a new tool in tax collection, aimed at better recovering taxes owed from taxpayers. The IRS is now using analytics to:
–collect back taxes
–detect tax fraud schemes
–reduce the number of fraudulent refunds the agency pays out
The IRS has contracted SAS Institute for $6.25 million to use their data
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