Archive for May, 2009

The IRS’s Dirty Dozen: 12 Tax Scams to Avoid

Sunday, May 31st, 2009

With people looking for ways to save money this year, the tax-scam artists are having a field day. But here are the 12 tax scams you are most likely to encounter
By Michael Rozbruch
April 15 has come and gone. You can check off one more line in the Death and Taxes column.
But that doesn’t mean you should relax. With identity theft on the rise and scamsters preying on taxpayers looking for a
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Arizona Man Faces Five Years for Willful Failure to Pay Taxes

Saturday, May 30th, 2009

Arlan R. Turley, 60, of Gilbert, Arizona, was indicted on two counts of willful failure to file a tax return and 20 counts of willful failure to pay over taxes. Turley, a licensed dentist in Arizona, operated the East Valley Dental Service in Mesa, Ariz.
The indictment alleges that the charges for failure to file are the result of Turley’s non-filing of his 2002 and 2003 income tax returns. In fact,
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Massachusetts Businessman Charged with Tax Evasion

Friday, May 29th, 2009

Gary P. Mallows, of Longmeadow, Massachusetts, was indicted on charges of tax evasion and failure to file tax returns.
The government alleges Mallows concealed assets and income that he received from various sources. It also alleges Mallows evaded payment of a Trust Fund Recovery Penalty assessed by the IRS in 2001 in the approximate amount of $86,237.08. In addition, Mallows allegedly failed to file timely tax returns for 2002, 2003 and
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Law Day 2009 – A Full Day Filled with FREE Legal and Tax Advice at Whittier Law School

Thursday, May 28th, 2009

Join me and KFI radio host Bill Handel on Saturday for Law Day 2009 at Whittier Law School. This event is FREE and open to the public!
Law Day at Whittier Law School (3333 Harbor Blvd., Costa Mesa, CA)
Saturday, May 30,  2009 /9:00am to 2:00pm
Bill Handel will be on hand to give you marginal legal advice during a LIVE taping of his show Handel on the Law. There will also be
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General Motors Pending Bankruptcy – Tax Help Available for GM and Chrysler Employees with IRS Debt

Thursday, May 28th, 2009

The General Motors bankruptcy may become an unthinkable reality as the company faces a Monday deadline to prove its financial viability to the federal government. The looming bankruptcy could financially cripple the community of Flint, Michigan, where GM is based.
If the company files Chapter 11, the region will be have to weather plant closings and massive layoffs. The consequences of the company’s pending bankruptcy are very complex,  and will affect
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No Income Tax Rate Increase Until 2011 But Expect Increased IRS Audits of Tax Returns in Near Future

Tuesday, May 26th, 2009

While Geithner has told Congress that there will be no income tax increases until 2011, his recent proposal to Congress requested additional funding for improved IRS collection operations and increased scrutiny of tax returns.
We’re already seeing the IRS cracking down on both small businessess and individuals with increased tax audits and aggressive collection tactics including bank levies.
Anyone who owes back taxes in this down economy will need to know how
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Alaska Dentist Tried to Evade $575K in Taxes – Deducted Nearly All Expenses

Sunday, May 24th, 2009

Glenn E. Lockwood, 61, of Kenai, Alaska, was sentenced to five years in prison for his conviction on four counts of tax evasion. In addition to prison, Lockwood was ordered to pay a $10,000 criminal fine and an additional $42,000 for the costs of prosecution.
According to court records, Lockwood was a practicing dentist who owned the Kenai Dental Clinic and attempted to evade more than $575,000 in federal income taxes
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Do You Owe the IRS Payroll Taxes or Over $15,000 in Back Taxes? Legal Advice from KFI’s Bill Handel

Saturday, May 23rd, 2009

In this weak economy, many individuals and businesses – both big and small – are struggling to make their payroll tax deposits and many are falling behind.
Payroll tax problems can be the “kiss of death” for many business owners as IRS penalties can add up quickly! Payroll tax debt should not be taken lightly -  IRS levies on wages and bank accounts can cause you to lose your business!
Popular radio
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Filing False Tax Return Results in 18-Month Prison Sentence

Saturday, May 23rd, 2009

Lee B. Woodbury, 51, of Gilbert, Ariz., was sentenced to 18 months in prison and ordered to pay restitution of $97,232 after pleading guilty to willfully filing a false tax return. Until contacted by the IRS Criminal Investigation Division, Woodbury had not filed returns for tax years 1998 to 2001. He later under reported his income in returns. In total, the tax loss as a result of Woodbury’s willfully filing
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Don’t Hide from the IRS if you Owe Over $15,000 in Back Taxes or Have Unfiled Tax Returns

Friday, May 22nd, 2009

Bill Handel is a nationally syndicated talk show host who offers expert legal advice on his entertaining show Handel on the Law.
Here’s some great income tax relief advice from Bil:
Do you owe the IRS over $15,000 in back taxes or do you have unfiled tax returns? Don’t hide from the IRS!
Tax Resolution Services can help you negotiate a settlement of up to 85% of the original amount owed including
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Tax Resolution Services Founder Michael Rozbruch Featured in List of Top 40 Tax Advisors to Know During a Recession

Thursday, May 21st, 2009

I was just featured in CPA Magazine as one of the top 40 CPAs in the nation!
I’m really honored as I take my job very personally and it’s really great to be recognized for my work as a Certified Tax Resolution Specialist. Since 1998, I’ve helped clients with IRS problems save in excess of $40 million.
Check out the April/May 2009 issue of CPA Magazine to read about the Top
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Ask the Tax Resolution Expert – Which is Better: Installment Agreement or Offer in Compromise?

Wednesday, May 20th, 2009

Got tax questions?  Tax season is not the only time to have your tax questions answered.  To answer your questions about tax audits, wage garnishments, IRS bank levies, payroll tax problems, how to set up monthly payment plans with the IRS or general questions about tax relief, call our office at 1-866-IRS-PROBLEMS or visit
Question: I’ve read a little bit about the Offer in Compromise and the Installment Agreement. Which one is better?
Answer:  The question
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A Couple’s Canceled Credit Card Debt is Forgiven and Recognized as Taxable Income

Tuesday, May 19th, 2009

This is the second tax case I’m blogging about today that relates to taxability of canceled debt.
When a lender cannot collect debt and subsequently cancels the debt (which we are seeing alot of in the form of foreclosures in this struggling economy) -  the IRS considers the canceled debt as taxable income.
The IRS offers guidelines for exceptions or exclusions in which canceled debts are not taxable.
Additionally, the IRS may also
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Discharged Credit Card Debt Found Not Excludable from Taxable Income in Recent Tax Case

Tuesday, May 19th, 2009

In this weak economy, taxpayers have lots of questions about cancellation of debt and taxability.
According to the tax code, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you may have to include the canceled amount in gross income. While it’s important to know if your canceled debt qualifies for exclusion from your income,  it is also necessary to
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Tax Compromise Improvement Act Helps Struggling Taxpayers Enter into Offer in Compromise Agreements with IRS

Monday, May 18th, 2009

Great news for troubled taxpayers! New legislation has been introduced to end Offer in Compromise down payments and make it easier for recession burdened taxpayers to enter into a tax settlement with the IRS.
Qualifying for the Offer in Compromise program can save taxpayers thousands of dollars in taxes, penalties and interest. Negotiating a compromise on your back tax deb is the closest thing to “amnesty” that the federal government offers
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