Archive for April, 2012

Senator Rand Paul Challenges U.S. and Swiss Banking Treaty

Monday, April 30th, 2012

In another chapter of the IRS versus the Swiss Banks saga, Republican Senator Rand Paul from Kentucky has recently blocked an amendment to a U.S.-Swiss tax treaty that provides the IRS data on Americans with hidden offshore bank accounts. Paul believes the protocol is too “sweeping” and would threaten taxpayers’ Fourth Amendment rights that guard against unreasonable search and seizure.
Bloomberg’s article Rand Paul Seeks to Block Tax Treaty Change on
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Tax Relief Weekly News Round-Up

Friday, April 27th, 2012

Happy Friday! The common theme in last week’s news was aimed at giving tax relief advice to those who did not make the tax filing deadline of April 17.
Here are some of the highlights:

The IRS just released a video entitled Employee or Independent Contractor? aimed at getting employers to properly classify their workers as either an employee or independent contractor. Improper classification can result in steep IRS penalties but many
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See Ya Later, Aggregator!

Friday, April 27th, 2012

At the first official meeting of the National Association of Tax Debt Resolution Companies (NATDRC) in Washington D.C., May 20-21, we will be discussing the regulation of companies utilizing deceptive advertising claims and misleading trade practices that solicit unsuspecting consumers (by advertising on the internet, radio, and TV) believing that they are hiring a legitimate tax professional—i.e., an attorney, CPA, or Enrolled Agent—to represent them before the IRS/State. Nothing can
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IRS Offers Tax Help Tips-Worker Classification

Friday, April 27th, 2012

The IRS just released a video entitled Employee or Independent Contractor? that gives guidance to unsure employers interested in properly classifying their workers as either an employee or independent contractor. Improper classification can result in steep IRS penalties for both employer and worker with many business owners getting into trouble simply because they don’t know the difference. Understanding this distinction can help a business owner avoid an IRS audit.
The IRS
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False Tax Returns by Couple Result in $550,000 Tax Loss

Thursday, April 26th, 2012

A Gatlinburg, Tenn., couple was sentenced for subscribing to false tax returns that resulted in a $550,649.13 tax loss. Kevin Matthew Flannery, 65, received 24 months in prison. Margaret Anne Flannery, 63, received three years of probation and one year of home confinement.
Kevin Flannery pleaded guilty to one count of subscribing a false tax return for M.K.M.K. Associates Inc., doing business as Southland Car and Jeep Rental, for tax year
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IRS Loses Tax Shelter Case & Billion in Revenue

Thursday, April 26th, 2012

News agencies were abuzz about Wednesday’s Supreme Court decision stating the IRS could not use the extended, six-year statute of limitations to collect unpaid taxes from a business, Home Concrete & Supply, LLC in a tax shelter case. Robert Wood of Forbes in his article HUGE Taxpayer Win: Supreme Court Tells IRS 3 Years to Audit Is PLENTY! believes the historic decision regarding this tax shelter case will have a
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Tax Refund Scam Gets New Jersey Man 28 Months in Prison

Wednesday, April 25th, 2012

A Bergen County, N.J., man was sentenced to 28 months in prison for his involvement in a scheme to file fraudulent tax returns that claimed more than $200,000 in tax refunds.
Stephen Pirrone, 51, of Norwood, N.J., previously pleaded guilty to two counts of an indictment charging him with filing false, fictitious and fraudulent tax returns. According to court records, Pirrone created false W-2 forms for himself and a family member
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Back Tax Help-How Long to Keep IRS Records

Wednesday, April 25th, 2012

Like clockwork, about a week or two after the April 17 tax deadline, I begin fielding taxpayer questions regarding what tax documents to keep and for how long.  A recent article in Forbes by Tax Girl Kelly Phillips Erb entitled How Long Should You Keep Records after Tax Day? provided good guidelines on the subject.
Here are seven basic recommendations for keeping tax documents both individuals and small businesses can follow:
In
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Tax Issues Facing E-Commerce and Virtual Businesses

Tuesday, April 24th, 2012

The Internet has enriched our lives and made some things easier, but it didn’t make life simpler especially for those with virtual businesses. I recently wrote an article regarding e-commerce tax issues entitled “The E-Commerce Conundrum: Taxing Virtual Businesses and Their Investors and the Law” explaining that e-commerce businesses not only face IRS tax problems but also pressure from state legislatures to collect and pay state taxes.
Advances in technology including
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Paying Off Tax Debt: Advice from a Tax Professional

Tuesday, April 24th, 2012

Question: I owe a lot in back taxes to the Internal Revenue Service. I’m not sure how I’ll ever get paid up. Plus, it’s been several years, and I think it’s too late for any of the programs you’ve discussed. What can I do?

Answer: First of all, it’s not too late. Actually, it’s never too late. If you owe money to the Internal Revenue Service, you have many options
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Identity Theft-Proving a Tough Foe for IRS

Monday, April 23rd, 2012

Most information dispensed last week was designed to give tax help to last minute filers attempting to complete their tax returns. But news agencies including the IRS are now busy reporting on a new tax story about how rampant IRS identity theft issues are for the Agency itself. Even after the filing deadline, taxpayers are asked to remain vigilant against these tax fraudsters who continue to dupe ordinary citizens. Here
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Tax Evasion by Pizza Shop Owner Gets Six Months in Prison

Sunday, April 22nd, 2012

Adam Lucas, a North Huntingdon, Penn., restaurateur, has been sentenced to six months in prison following his conviction of tax evasion and filing a false return. Lucas owned the Pizza and Gyro Express restaurant and failed to report approximately 50 percent of the gross receipts from his business, as well as underreported payroll and employment taxes. Lucas’ underreporting resulted in a $321,376.77 tax loss.

Tax Evasion by Business Owner Who Skimmed $1 Million

Saturday, April 21st, 2012

The owner and operator of a Cincinnati, Ohio, private investigation company known as Business Intelligence Inc. pleaded guilty to one count of tax evasion and one count of conspiracy for skimming more than $1 million from the company in order to avoid paying taxes.
According to court records, between 2003 and 2008, James Simon, 66, skimmed at least $1,047,656.23 from Business Intelligence and failed to report the money as income to
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Tax Help for Taxpayers who Missed April Deadline

Friday, April 20th, 2012

Happy Friday!
I am relieved that tax day is now just memory for most taxpayers. Those who did not file or request a filing extension here are some tough facts to consider – consumers are legally obligated to file their tax returns; not filing means facing significant IRS tax issues. Failure to file is considered a misdemeanor that can be punishable up to $10,000 per year and one year in
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FATCA-No Tax Relief for Americans Living Abroad

Thursday, April 19th, 2012

With Tax Day a recent memory, many Americans still express their frustration with the whole tax process particularly if they find themselves settling tax debt with the IRS.  However, none have been more baffled by the American system of taxation than American citizens who live and work abroad. An International Herald Tribune article by David Jolly entitled Americans, the Tax Man Cometh gives a European glimpse into the plight
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