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Thursday, September 2nd, 2010
There’s been a lot of confusion about what is and what is not in the Patient Protection and Affordable Care Act — otherwise known as President Barack Obama’s health care reform.
Of course, despite the rumor mongering that goes so well with contact politics, there aren’t death panels. But there is a big change to the way you do business and pay your taxes.
The U.S. Congress used the Patient Protection and Affordable Care Act to legislate a new tax-reporting requirement for companies. Here’s the kicker: If your business purchases goods or services valued at more than $600 from any other company or entity, you will be required to report the expenditure to the IRS and the vendor by using a Form 990-MISC.
In essence, this new requirement, which will be in effect for purchases made in 2012, forces companies to snitch on their vendors, informing the IRS of revenue streams as tiny as $600. Before we discuss whether this is effective tax enforcement policy, consider the practicality of the law: Do your have the time, and does your business have the resources, to file forms for each and every vendor to whom you pay $600 or more every year? The American Institute of Certified Public Accountants is betting the answer is no.
In July letters to the U.S. Senate and House of Representatives, Alan Einhorn, chairman of AICPA’s Tax Executive Committee, asked the government to repeal this new requirement.
“This expansion of information reporting may prove to be so burdensome to small businesses that we believe it will significantly contribute to hurdles to growth and formation that businesses face,” Einhorn wrote.
In creating this new requirement, the government’s logic here is pretty simple: Companies will have difficulty underreporting income if all transactions above $600 are reported to the IRS.
But with companies receiving hundreds, if not thousands, of 990 forms every year, how can the reporting requirement work effectively when it’s surrounded by a new paperwork tsunami? In his letter, Einhorn described any annual reconciliation process as “mind numbing.”
He wrote: “The AICPA strongly supports the efforts to reduce the tax gap, but we believe the extraordinary burden in this instance far outweighs the potential benefit.”
Given the budget crunch the federal government faces, it’s not shocking Congress is looking to close that tax gap. But a policy such as this one — which is not only impractical but also pits businesses against their clients — has the potential to overburden U.S. companies at the same time these companies are struggling in an ailing economy.
Putting aside the practicality of this requirement, you as a business owner must prepare yourself for your new tax-reporting obligations. New tax requirements means more ways in which the IRS can penalize you for failure to report cash flow. Arm yourself with the knowledge of what you must do in order to protect the well-being of your business.
At Tax Resolution Services, Co. we are dedicated to providing affordable tax help to businesses and individuals alike who find themselves in trouble with the IRS. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call (888) 699-7630.
Tags: certified tax resolution specialist, Free Tax Consultation, Patient Protection and Affordable Care Act, small business tax advice, small business tax help, tax advice, tax attorney, tax help, tax resolution
Posted in Expert Help From Tax Attorney, IRS Times and Inquirer, IRS help, Seeking Professional Tax Help, Tax Debt Help News, Tax news and tips, tax help | No Comments »
Tuesday, August 10th, 2010
Leonid Zaltsberg has lived an extraordinary life. The 76-year-old from Milltown, N.J., played for the Soviet Union’s national soccer team, competed in the World Cup, and now works with Ukraine’s national team.
He’s also now part of another extraordinary group: U.S. tax cheats who’ve been convicted of evasion following the release of account information from Swiss bank UBS.
Zaltsberg pleaded guilty in New Jersey to subscribing to a false tax return, admitting that he concealed more than $2 million in a UBS account. What’s more, Zaltsberg also admitted that, as with other U.S. taxpayers who kept secret accounts in Switzerland, he did not disclose the account on the IRS’s required form, known as a Report of Foreign Bank or Financial Accounts.
For that, Zaltsberg will pay dearly. He faces up to three years in prison and a fine of up to $250,000. In addition, Zaltsberg will pay a civil penalty equal to 50 percent of his highest Swiss bank balance during the period from 2000 to 2007.
Zaltsberg’s guilty plea, his possible prison sentence and his substantial civil penalty were made possible only through a historic deal between the Swiss and U.S. governments that effectively pierced the once impenetrable Swiss banking veil.
That deal, which came with a $780 million fine to UBS for helping U.S. taxpayers evade income taxes, forces the Swiss to release the details of more than 4,450 account holders suspected of evading U.S. income taxes.
For a man such as Zaltsberg, the news is that he’s not alone. There could 4,449 others who will receive similar punishments.
But for U.S. taxpayers who may be using other means to hide their monetary assets from the IRS, Zaltsberg’s prosecution and agreement with the Swiss government should be terrifying.
Here’s why: By piercing the Swiss banking veil, the U.S. government shows its ability to take down the world’s largest offshore banking center — once long viewed as the globe’s most secure tax shelter. And now that the Swiss tax shelter has been pried opened, the U.S. government is going after tax shelters in other nations. At the top of the list are banks in Singapore and Hong Kong.
In fact, the U.S. Department of Justice is opening a criminal inquiry into Asian clients of HSBC Holdings, Europe’s largest bank.
Reuters, the financial newswire, quoted unnamed IRS officials in July saying the tax-collecting agency expects a significant amount of tax cases to come out of Asia.
Those who follow the use of offshore tax shelters say Asia benefited from Switzerland’s vulnerability, with many bank account holders moving their money to places like Singapore and Hong Kong as U.S. officials put heats on Swiss banks and government officials.
Ask yourself: Are they following your money?
Contact out special division for overseas tax evasion defense TODAY! If you are in IRS trouble for undisclosed foreign funds, call our office at (888) 699-7630 for a free, no-risk tax resolution consultation or visit www.taxresolution.com.
Tags: FALSE TAX RETURNS, i need tax help, IRS enforcement, offshore accounts, tax advice, tax cheat, tax evasion, tax help, tax relief
Posted in IRS Tax Cases, IRS Times and Inquirer, IRS help, Offshore Tax Settlements, Tax Scams, Tax news and tips, income tax relief, tax help | No Comments »
Wednesday, June 23rd, 2010
Effective July 1st there will be a 10% excise tax on all indoor tanning services. Last week the IRS announced the new regulations outlining the administration of this new tax that has been in the works for several months. This new tax is part of the 2010 tax hikes aimed at funding the health care reform.
How the new tax affects you:
Whether you are a business providing indoor tanning services or are a customer simply seeking to maintain your bronze throughout the year, starting July 1st you need to be aware of how this new tax will affect you. The tax will be applied upon purchase of the tanning services. The provider of the tanning service will then, on a quarterly basis, hand over the collected tax amounts to the government, including IRS Form 720 – Quarterly Federal Excise Tax Return.
Exceptions include:
-Medical phototherapy services
-Physical fitness facilities that offer tanning as an incidental service to members
For more information, check out the video Tanning Services Excise Tax.
While this new tax will affect tanning service providers and taxpayers seeking that summer glow, it is part of the IRS’s fortified efforts at narrowing the gap between the federal deficit and taxpayers who fail (intentionally or unintentionally) to file proper tax returns. The IRS collection tactics are becoming more and more aggressive in targeting individuals and businesses that may owe back taxes or have delinquent tax returns.
If you owe the IRS back taxes, you can get expert tax attorney and tax resolution services to help you resolve your IRS tax problems. Call our office today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com.
Tags: Back Taxes, delinquent tax returns, IRS help, tanning tax, tax resolution services
Posted in Back Taxes, IRS help, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, tax help | No Comments »
Thursday, June 10th, 2010
Every day, in cities across the country, people are being prosecuted and convicted of tax crimes. If you find yourself struggling during these tough economic times and need IRS tax relief, do not fear as there are many options for you to consider in resolving your back taxes or other IRS woes!
Reality check: Tax evasion is not just a problem for the wealthy. The IRS reports that tax evasion is a widespread problem, costing the government an estimated $350 billion in unpaid taxes. This creates a tax gap that grows by 10% each year. However, with federal initiatives aimed at narrowing this tax gap, the IRS is cracking down on tax evaders both big and small.
There is a big difference between tax evasion and tax avoidance. While it is perfectly legal to work within existing laws to avoid paying more than what is required by the IRS, cheating the government on taxes by evading tax laws is criminal and can carry up to a 5-year prison sentence. There are also IRS penalties up to $100,000.
You don’t have to be a tax attorney to know the red flags that will cause the IRS to be suspicious of tax evasion. Even in the current enforcement-prone climate, taxpayers can learn how to avoid IRS tax audits, save money by taking advantage of legal tax deductions and avoiding costly IRS penalties and interest.
It’s important for taxpayers to avoid becoming targets of aggressive IRS collection efforts like debilitating bank levies, which can be financially crippling for life. If you owe back taxes or are being audited by the IRS, it would be worthwhile to know that working with a Certified Tax Resolution Specialist or tax lawyer can greatly increase your chances of successfully resolving your IRS tax problems and negotiating a settlement for the lowest amount allowed by law.
For a FREE tax relief consultation and more information on affordable solutions in settling your back taxes or other IRS troubles, visit www.TaxResolution.com or call 866-IRS-PROBLEMS.
Tags: Back Taxes, IRS audit, irs tax relief, tax attorney, tax lawyer
Posted in Back Taxes, IRS tax audit, Seeking Professional Tax Help, Tax Resolution Options and Alternatives, Taxpayer Rights, tax help | No Comments »
Wednesday, June 9th, 2010
On Saturday, June 5 Tax Resolution Services sponsored the KFI Law Day free event for the public to receive expert tax help and tons of free legal advice from over 100 lawyers specializing in all areas of the law.
I put together a presentation for a seminar I gave at Law Day that I think provides a lot of great IRS tax advice. For some useful tax help and tax relief tips you should view my presentation.
Here is a summary of what I discussed.
IRS enforcement is on the rise, but many of us may be wondering why. It’s because of the estimated $345 billion in back taxes the IRS claims they are owed. Now, more than 4 million individuals will not be able to pay their 2009 tax liability because tax debt problems are at a 10-year high.
The IRS is constantly expanding. With new hires in Collections and Audit, enforcement revenue is expected to climb well over $60 billion plus in 2010 and beyond. In order to improve taxpayer compliance and reduce the $345 billion+ tax gap, the IRS continues to increase funding.
How can you protect yourself?
- You have the right to file delinquent tax returns and until you do, the IRS will NOT entertain any type of settlement or Offer in Compromise.
- DO NOT ignore IRS collection notices. The IRS has the ability to issue an IRS bank levy and will not cease to do so until your tax debt has been fully paid off.
- Obtain an IRS payment plan or Offer in Compromise.
- With reasonable cause, the IRS will remove 100% of penalties with penalty abatement.
- IRS tax liens are statements alleging you owe a tax debt that show up on your credit report and devastate your ability to procure credit of any kind.
- An audit is an examination of the tax return you filed with the IRS. NEVER go through an IRS audit on your own. Make sure you have the help of a professional tax attorney or Certified Tax Resolution Specialist.
Tax Resolution Services has a 99.7% client satisfaction rate—the highest in the industry. We are the only nation firm comprised of Certified Tax Resolution Specialists. Our average Offer in Compromise settlement is $0.11 on the dollar and 90% tax relief success rate. That is about 5 times the national average.
We are a highly ethical firm with an industry leading ratio of 6 to 1 of tax professionals (attorneys, CPAs, EAs, etc.) to clients. We obtain the most expeditious settlements for the lowest amount allowed under the law on behalf of our clients and are dedicated to bringing our clients into compliance with the IRS. Visit www.TaxResolution.com or call 866-IRS-PROBLEMS to set up a FREE tax relief consultation.
Tags: certified tax resolution specialist, Free Tax Consultation, IRS debt, IRS problem solver, KFI, law day 2010, Michael Rozbruch, tax attorney, tax relief, tax resolution services, Tax Tips
Posted in Expert Help From Tax Attorney, IRS Tax Cases, IRS help, IRS tax audit, Offers in Compromise, Penalty Abatement, Seeking Professional Tax Help, Tax Debt Help News, Tax Liens and Levies, Tax Problem FAQs, Tax Relief News, Tax news and tips, Working with the IRS, income tax relief, tax help | No Comments »
Friday, June 4th, 2010
This Saturday, June 5th 2010, the IRS will be holding a second round of open houses aimed at assisting both individual taxpayers and small business owners with:
filing tax returns (2009 and prior years)
resolving tax problems
setting up payment arrangements
To find your local IRS Taxpayer Assistance Center check the IRS website. It is important to keep in mind this tax preparation service is available by the IRS for individual taxpayers who’s income is less than $49,000.
It is also important to keep in mind that these open houses allow taxpayers to work directly with the IRS, though this is not always the best option for taxpayers who are seeking serious IRS tax help. IRS enforcement is on the rise. And while this opportunity will allow you to seek tax help from the IRS, in some cases you may need to disclose your financial information to the IRS which could land you in more trouble than when you started.
While the extra IRS tax help could be good for taxpayers, if you owe back taxes, it is strongly recommended you seek expert tax help from a tax attorney, CPA, or Certified Tax Resolution Specialist before you speak to the IRS. Re-arranging your Saturday plans to include a quick visit to your local IRS open house may seem like a convenient solution, but in many instances this is like going to court without a licensed attorney – not a wise move.
If you live in the Southern California area you can also join us at KFI’s Law Day 2010 Featuring Expert Tax Help and Legal Advice.
Evaluate your specific tax situation and judge for yourself if you can benefit from this free open house service. You can also prepare yourself by checking out this article: When Contacting the IRS for Tax Help, What You Don’t Know About Resolving Back Taxes and IRS Problems Could Really Hurt You!
Tags: Back Taxes, certified tax resolution specialist, IRS help, IRS open house, tax attorney, tax help, tax problems, tax relief, tax resolution services
Posted in Back Taxes, Expert Help From Tax Attorney, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips, tax help | No Comments »
Wednesday, June 2nd, 2010
The IRS is at it again. The stealthy and highly aggressive agency has added two new 1099 tax forms for businesses, requiring extra caution and countless more hours in reporting and preparing your tax returns. This means all business, no matter how small, will be affected. Whether big or small, it is essential to be aware of these new tax extensions NOW– or you could find yourself in BIG trouble when filing your tax return next year.
Additionally, we can expect the number of IRS audits to continue to rise for small-business owners in 2010. About 25% to 30% of my tax relief clients are small businesses with tax problems – so I know how important it is to avoid IRS penalties, IRS audits or other tax problems that could be detrimental to your business.
Neil deMause revealed in his CNNMoney.com article “Stealth IRS changes mean millions of new tax forms” these two new tax extensions:
1) 1099-K – an extension to the 1099 form, which requires businesses to report non-wage income (dividends, earned interest, contract work). The 1099-K addresses “hard –to-track” payment streams used by businesses: credit cards. From 2011, businesses making over 200 payment transactions per year (and totaling over $20,000) through credit or debit cards have to fill out the 1099-K, documenting the year’s transactions and send this to their clients and the IRS. This will have little effect on companies currently reporting all credit card transactions to the IRS, though if you are not currently in the practice of doing so, it’ll be worth it to anticipate this for the near future.
2) 1099-Misc – used by companies use to record payments to individual service providers and freelance workers, has been massively expanded to include, from 2012, all annual business payments and purchases over $600. While previously payments to corporations and purchases of goods have been excluded, now all businesses need to obtain the taxpayer ID number of firm or individual you are paying. This form will now be a tracking mechanism used for any and all business transactions.
What This Means For Your Business: Swimming in Paperwork and Receipts!
The simple truth is that these extensions to tax legislation are quite the burden. There is a high probability you may get lost in the paperwork and tracking of receipts. A small business currently spends 3 – 5 hours a year on average filing 1099 forms. A survey conducted by Pennsylvania-based SMC Business Councils, shows that filing these two 1099 extensions for services purchased from corporations only would cause a standard small business at least 200 filings per year and an additional cost of $6,000 in preparing yearly tax returns. This estimate excludes the requirement for filing 1099s for purchases of goods – this would cause a staggering increase.
How did this tax provision blizzard come upon us? This new legislation has been in the works since 2007 when a tax-gap study was conducted. This ‘tax gap’ between businesses and individuals costs the government about $300 billion per year in lost revenue. The study showed that adding additional 1099 tax extension forms could produce $345 billion per year in federal tax revenue and this is where the health reform bill comes into play. These two extension requirements are part of the health reform bill – snuck in the 2,000+ page bill, allowing the government to track down unreported income. The goal of this new tax legislation is to catch income that is not currently reported to the IRS.
For more information on these tax extensions, view draft versions of the 1099-K form and watch a video on “How to avoid a tax audit by the IRS” read the full article on CNNMoney.com.
If your business is under audit or you owe back taxes or IRS penalties – it’s important to get immediate tax relief to protect the future of your business. And you don’t want to go up against the IRS alone without the expert help of a professional tax attorney or Certified Tax Resolution Specialist.
Tax Resolution Services, Co. is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Our expert team of tax attorneys, CPAs, and Certified Tax Resolution Specialists has a success rate of 90% – second to none in the industry – and an Offer in Compromise Settlement Rate of $0.11 on the dollar. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 866-IRS-PROBLEMS.
Tags: i need tax help, IRS audits, IRS help, IRS penalties, tax advice, tax news, Tax Tips
Posted in Back Taxes, Expert Help From Tax Attorney, IRS tax audit, Seeking Professional Tax Help, Tax Debt Help News, Tax news and tips, tax help | No Comments »
Tuesday, May 25th, 2010
I recently appeared on the Big Biz Show to discuss the new IRS enforcement initiatives for 2010 and the the post-April 15th tax developments Americans should be aware of! Though April 15th has come and gone, the IRS does not cease its operations. In fact, the first wave of collections for taxpayers who did not pay their returns in full is just around the corner!
Keep in mind that the economy hasn’t healed just yet! In fact, it’s so bad, CEOs are now playing miniature golf! However, whether you’re in trouble with the IRS, owe back taxes or just need a bit of tax help, there is a IRS tax relief solution for you.
Check out the interview below for quick tax relief tips and tax help advice you could use to protect yourself from IRS penalties.
June Collection Notices On Their Way – So Get Tax Relief Now!
Russ: Now that April 15th has come and gone, people just think life is good. Life is good, but I have personally taken it upon myself to make sure I’m way ahead of the game this year. I actually had a meeting with my accountant this week, already, and I said let’s get a strategy for the rest of the year, so we know what we’re doing – so there’s no stress going forward. So what’s new with you guys? Michael, are you guys busy as ever? Getting people out of trouble with the IRS?
Michael: Yes, a lot of people ask me, so you’re on vacation now, things are slow, you’ve made it through the hump on the 15th of April. I tell people, we don’t have a traditional business model – we’re busy all year round! And pretty soon, in the first, second week of June, people who’ve filed their 2009 returns by April 15th but did not pay it in full, will start getting collection notices. That’s the first round of collection notices – about 6 weeks after you’ve filed your tax return.
Offer in Compromise As a Secret Weapon Against IRS Problems
Russ: So what’s an Offer in Compromise by the way?
Michael: To put it in a nutshell, it’s really cost vs. benefit analysis. In other words, if the IRS figures they can collect something from you now, then going after you administratively for the remaining life of the statute of expiration on collections (10 years from the date of assessment). So let’s say you’re halfway through that, you got 5 years left to go, the IRS can’t get blood from a rock, you have no assets, your job’s been eliminated, you don’t know if you’re going to get employed again in the same field, but you owe $50K and you have $10K to pay them today, so they’ll take the $10K.
Russ: Now this doesn’t work for people like pro-athletes, that are making a bazillion dollars and have assets?
Michael: No, because you have to disclose your assets and income and prove to them you cannot pay them back.
IRS Repayment Options - Consider Payment Plans If You Can’t Afford to Pay Your Back Taxes Up Front
Russ: We were talking about celebrities, a guy in the news, that owed a big amount of back taxes, but he was able to pay it monthly…like $10K, $15K, $20K a month. That’s true?
Michael: Yes, we put people on structured payment plans every day of the week.
Russ: So even if a guy owes like $300-$400K , is quarterback of the Pittsburg Steelers and you know he has a big contract next year, the IRS doesn’t just go sell his house and let him pay it off?
Michael: They require him to see if he can get loans on the house. They will not force him to sell his house if he can make a monthly payment.
2010 IRS Enforcement – Why It’s Important to Resolve Your IRS Problems Today!
Michael: The budget that was given to the IRS by congress this year was $11.7 billion. Half of that goes to enforcement, so about $5.7 billion. That number is about $800 million more than 2009 and they’re taking that extra $700-800 million and hiring auditors and collectors. And they’re going after 2 initiatives: one is foreign bank accounts, the second one is small business. They’re doing what’s called a worker reclassification analysis- in other words, people who have been paying their workers a 1099, that should be employees.
And a little food for thought… What the Tax Gap is Costing the Government
Russ: Let me ask you this, how much money per year is lost by folks either not filing or paying late?
Michael: About $80 billion.
Russ: Wow, that would solve some issues, wouldn’t it?
Michael Rozbruch, CEO of Tax Resolution Services, Co., is a Certified Tax Resolution Specialist. If you owe $15,000 or more to the IRS or have 3+ years of unfiled tax returns, call our office today at 1-866-IRS-PROBLEMS or visit www.taxresolution.com and receive a free, no-risk tax resolution consultation.
Tags: Back Taxes, big biz show, failing to file federal tax return, i need tax help, IRS debt, IRS enforcement, IRS help, IRS payment plan, Michael Rozbruch, Offer in Compromise, tax help, tax relief
Posted in Back Taxes, Expiration of the Collection Statute, IRS help, Offers in Compromise, Tax Debt Help News, Tax news and tips, tax help | No Comments »
Monday, May 17th, 2010
I’ve blogged before about how IRS Commissioner Douglas Shulman has pledged greater flexibility for taxpayers who have fallen on hard times and owe IRS back taxes. However, it’s still important to remember that “Revenue” is still the IRS’s middle name.
Due to the economic challenges of the current recession, more tax settlements than ever are expected to be submitted to the IRS this year. While taxpayers with back taxes and IRS debt may go to the IRS web site or call the 1-800 helpline for tax help, it’s important for them to understand that what they don’t know about tax resolution could really hurt them.
Although, the IRS has pledged to offer help to struggling taxpayers, it’s important to remember that ‘Revenue’ is still the IRS’s middle name.
The IRS enforcement budget is at a record $5.5 billion, with most of that money going towards heightened collection efforts to combat the rising deficit and growing tax gap. Plus the federal tax code is notoriously complicated, which is why knowledge can greatly increase a taxpayer’s chances of settling tax debt for less than what they owe.
A well-qualified tax resolution firm or IRS tax attorney will work to ensure that the taxpayer’s best interests are prioritized above all else so they can finally retire their back taxes and IRS problems for good.
Whether it’s bringing taxpayers into IRS compliance or helping them understand their tax issues so they can work directly with the IRS – a reputable tax resolution firm will guide taxpayers to tax relief options that best fit their individual circumstances. Expert and credible tax relief firms hold the IRS accountable to following their own rules and regulations during the tax resolution process, while simultaneously helping Americans understand their taxpayer rights and ensuring they are not obligating themselves to pay a penny more than what they have to.
Tax Resolution Services, Co. is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their expert team of tax attorneys, CPAs, and Certified Tax Resolution Specialists has a success rate of 90% – second to none in the industry – and an Offer in Compromise Settlement Rate of $0.11 on the dollar. For more information or to receive a FREE tax relief consultation, visit www.TaxResolution.com or call 866-IRS-PROBLEMS.
Tags: Back Taxes, certified tax resolution specialist, Free Tax Consultation, IRS debt, IRS help, IRS problem solver, irs problems, IRS tax problems, Michael Rozbruch, tax attorney, tax expert, tax help, tax resolution, tax resolution expert, tax resolution services, Tax Tips
Posted in Ask the Expert, Back Taxes, Expert Help From Tax Attorney, IRS help, Seeking Professional Tax Help, Tax Problem FAQs, Tax Relief News, Tax Resolution Options and Alternatives, Tax news and tips, tax help | No Comments »
Wednesday, April 28th, 2010
Jim Angle of FOXnews.com reports that Americans involved in hiding offshore funds in Swiss Bank UBS have inspired the IRS to establish a new unit which will track high-wealth individuals operating globally. The IRS is ready to get to the bottom of the $300 billion tax gap that has been haunting the federal government for the past few years. They’ve invested $20 billion in the program in order to guarantee its success. With the assistance of whistleblowers like Bradley Birkenfeld they’re likely to catch numerous tax evaders.
Birkenfeld, an American citizen and former UBS employee, ratted out the 19,000 Americans participating in offshore tax evasion. Ironically, he is facing 40 years in cuffs for participating in the scheme himself, pending clemency from President Obama.
UBS account holders who now face federal courts plea guilty with hopes of a lesser punishment, but whether or not their wishes will be granted is yet to be determined. They were duped into a false sense of security by Swiss bankers who marketed UBS bank secrecy in the U.S. over a span of 3,800 trips. Don’t end up in their position. Tax Resolution Services recognizes bad things happen to good people, and we’re here to help.
Read full article here: IRS Targets Taxpayers Hiding Income in Offshore Accounts
If you are currently withholding funds overseas, now is the time to come forward to the IRS before someone blows the whistle on you. Be proactive. Our tax attorney and Certified Tax Resolution Specialists can help you disclose funds and avoid serious FBAR penalties.
Tax Resolution Services has a special division for overseas tax evasion defense. This special division is led by one of the nation’s leading tax help experts, Brian Compton. If you are in IRS trouble for undisclosed foreign funds, call our office today at 1-866-IRS-PROBLEMS for a free, no-risk tax resolution consultation or visit www.taxresolution.com.
Tags: foriegn bank and financial accounts, irs problems, offshore accounts, offshore tax evasion, Overseas Banking, tax cheats, tax problems, tax resolution
Posted in Offshore Tax Settlements, Tax Relief News, Voluntary Disclosure | No Comments »
Thursday, March 25th, 2010
Believe it or not, the IRS is doing its best to provide tax help to struggling taxpayers.
According to the IRS news room website, IRS will hold hundreds of special Saturday open houses to give struggling taxpayers more opportunity to work directly with IRS employees to resolve tax issues. The offices will be open on March 27 and three additional Saturdays in the spring and early summer. Future dates, times and locations will be announced shortly.
During the expanded Saturday hours, taxpayers will be able to address economic hardship issues they may be facing or get help claiming any of the special tax breaks in last year’s American Recovery and Reinvestment Act, including the:
* Homebuyer tax credit
* American Opportunity Credit
* Making Work Pay credit
* Expanded Earned Income Tax Credit
In addition to these special Saturdays, taxpayers can take advantage of toll-free telephone assistance and regularly scheduled hours at local Taxpayer Assistance Centers. Taxpayers can find the location, telephone number and business hours of the nearest assistance center by visiting the Contact My Local Office page on IRS.gov.
You need to realize that IRS enforcement is on the rise. For those of you who owe the IRS more than $15,000 in back taxes, penalties, and interest, be prepared to fully disclose your financial information–where you work, how much is in your bank…etc. to the IRS.
While the extra IRS tax help could be good for taxpayers, if you owe $15,000 or more, I strongly advise you to get expert tax help from a tax attorney, CPA, or Certified Tax Resolution Specialist before you speak to the IRS.
Check out this video for more on What You Must Know About Working with the IRS to Solve Your Tax Problems.
And while it may be tempting to pick up the phone and call the IRS to resolve your tax problems, many taxpayers are not aware that it is not a good idea for them to work with the IRS without prior consultation with an expert tax attorney or Certified Tax Resolution Specialist. This is because any little thing the taxpayers say may be later used against them. Talking with the IRS about your tax problems without being familiar with the tax law is akin to walking on eggshells–you can get in deeper tax trouble without even realizing it.
Tax Resolution Services is a team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists. Get professional tax help to maximize your chances of winning–call our team of tax experts today at 1-866-IRS-PROBLEMS for a free tax resolution consultation or visit www.taxresolution.com.
Tags: Back Taxes, delinquent taxes, Free Tax Consultation, IRS debt, IRS help, irs news, irs problems, IRS Saturday open house, Michael Rozbruch, tax attorney, tax credit help, tax evasion, tax expert, tax help, tax resolution, tax settlement, Tax Tips
Posted in Back Taxes, Delayed IRS Collection and Currently Not Collectible St, Expert Help From Tax Attorney, IRS help, Seeking Professional Tax Help, Tax Debt Help News, Tax Relief News, Tax news and tips, Unfiled Returns - Delinquent Tax Returns, Useful Tax Resolution Websites, Working with the IRS, income tax relief, tax help | 1 Comment »
Thursday, March 4th, 2010
Tax season is officially here and the current economic downturn may encourage struggling taxpayers to cheat on their taxes – resulting in an even larger tax gap than prior years.
There is close to a $400 billion tax gap each year, which means that taxpayers are paying $400 billion less than they should in taxes. Meanwhile, the federal budget deficit for 2009 soared to an all-time high of $1.42 trillion and still growing, surpassing the previous record of $454.8 billion set in 2008. These factors along with the increasingly aggressive IRS going after tax cheats make this tax season the worst one for anyone who wants to illegally skimp on their tax bill.
Taxpayers have to understand that for the government, collecting funds through more aggressive collection tactics by the IRS will be more politically appealing than raising taxes – so beware! Instead of risking the wrath of the IRS, taxpayers must learn about their options for settling their tax debt and avoid becoming the target of aggressive IRS collection efforts. If you are in IRS trouble and you’re not sure what to do next for tax relief, your best bet is to hire tax help from a tax attorney, CPA, or Certified Tax Resolution Specialist. Getting professional tax expertise on your side will truly maximize your chances of winning a tax resolution settlement.
There are a number of unique tax cuts/credits that are available to taxpayers this year due to the economic crisis–it’s a good idea to take advantage of the ones you qualify for in order to cut down on your tax payment.
Thinking about cheating on your taxes? I strongly urge you to think again. Learn more about why tax evasion schemes may cost you more money than your regular tax bill.
Tax Resolution Services is a team of expert tax attorneys, CPAs, and Certified Tax Resolution Specialists. Call our office today at 1-866-IRS-PROBLEMS for a free, no-risk tax resolution consultation or visit www.taxresolution.com for more tax help tips!
Tags: Back Taxes, federal budget deficit, IRS debt, IRS help, Michael Rozbruch, tax attorney, tax evasion, tax evasion schemes, tax expert, tax gap, tax help, tax relief, Tax Tips
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Monday, December 21st, 2009
The latest from Washington is that patrons of tanning salons will be hit with a 10% tanning tax – raising an estimated $2.7 billion over 10 years to pay for health care reform. While this replaces the proposed 5% “BoTax” on plastic surgery providers, we know this won’t be the last we’ll hear from the IRS.
President Obama is optimistic about the passage of the Health Care Bill, which is set to provide some 30 million Americans currently without health insurance affordable coverage, and the administration is looking at creative ways to acquire funding without raising the federal deficit.
You can read more about additional tax hikes for 2010 to fund health care reform.
No one is safe from the IRS. In addition to the tanning salon tax and other pending tax hikes to combat the rising deficit and growing tax gap, the IRS is also looking at collection tactics that are more politically appealing than raising taxes – so taxpayers beware! In addition to scrutinizing your tanning practices, they are also more aggressively scrutinizing your tax returns. And if you owe any back taxes – regardless of your tax bracket or how much you bronze – the IRS will find you!!
If you owe the IRS back taxes, you can get expert tax attorney and tax resolution services to help you resolve your IRS tax problems. Call our office today at 1-866-477-7762 for a free tax resolution consultation or visit www.taxresolution.com.
Tags: Back Taxes, BoTax, health care reform, IRS tax probelems, tanning salon tax, tanning tax, tax attorney
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Friday, November 13th, 2009
In this current economy where the unemployment rate is still climbing, millions of taxpayers like you are setting up shop in their homes to provide services as self-employed independent contractors. Whether your new self-employment status is a temporary measure or part of your long-term plan to fortune and glory, there are tax dangers (plus surprisingly lucrative income tax relief) that you should pay attention to.
One of the top priorities for IRS tax collection is targeting independent contractors like you. The government estimates that 85% of the $345 billion tax gap is due to self-employed individuals – freelance professionals and independent contractors who don’t get a 1099 the way large business employees do. Being a self-employed independent contractor means you’re the boss, unfortunately it also means you’re the one on the hook for any problems with back taxes. How you handle your back tax problems will not only determine whether your business will succeed, but it also carries the real threat of jail time if you get it wrong.
To learn more ways to legitimately maximize deductions while avoiding IRS problems, check out Part 2 of this series on Tax Help Tips for Saving Money on Taxes for Freelance Professionals and Self-Employed Individuals.
Here are some of my best year-end tax help tips to show self-employed taxpayers like you how to get the biggest income tax relief possible:
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #1: Did you owe back taxes because you made a mistake in your quarterly estimated taxes? If you’ve spent your life working as an employee, you may be delighted that the first money you receive as a self-employed independent contractor is a flat fee without any taxes taken out. But your joy should be short-lived, this is a case of the taxman being delayed but not denied. To get a preliminary idea about self-employment taxes check out http://www.irs.gov/businesses/small/article/0,,id=98846,00.html. Before you start, you should contact a tax attorney to make sure you have structured your business correctly. If you haven’t gotten tax help from a tax attorney yet, there is still time to structure your business to get the maximum income tax relief before the year end. (After that you’re stuck with your mistakes. Well, mostly. A good tax attorney or tax resolution specialist can still get you out of back tax trouble, but the best approach is to avoid owing back taxes in the first place.)
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #2: Are YOU really a self-employed independent contractor? Many businesses (large and small) mislabel their employees as “self-employed independent contractors” to get income tax relief and sidestep a host of state and federal laws. The IRS has a comprehensive page to help determine whether you’re an employee or a true self-employed independent contractor: http://www.irs.gov/businesses/small/. If your boss has you misclassified as a self-employed independent contractor and you file as one, you could be in a heap of trouble when the IRS comes knocking on either your door or your boss’s door to collect back taxes. Suddenly, all those lovely deductions go out the window and your tax bill explodes. If you feel your boss has misclassified you as a self-employed independent contractor, contact a tax attorney or tax resolution specialist immediately for some self-employed independent contractor back tax help before the year ends.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #3: Are your subcontractors really self-employed independent contractors or are THEY employees? While you may be a true self-employed independent contractor, you need to establish whether your subcontractors are self-employed independent contractors or employees. According to IRS Summertime Tax Tip 2009-20, “the cost of misclassification to employers in additional taxes, as well as administrative time, or the loss of tax-favored status for employee benefit plans, can be steep.” If you’re not sure, contact a tax attorney or tax resolution specialist to get tax help immediately.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #4: Want to get income tax relief on your 2009 self-employed independent contractor work by delaying paying taxes until 2011? For a host of income tax relief reasons, a self-employed independent contractor might want to defer getting paid until next year. If you did work in 2009 but don’t want to pay 2009 taxes on it, simply wait to invoice your clients until January 1, 2010. This 2009 income tax relief technique is perfectly legal for self-employed independent contractors as long as you pay taxes on that income in your 2010 tax return.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #5: Get that root canal before New Year’s. The secret to income tax relief is just like the secret to great comedy…timing. A self-employed independent contractor’s medical expense deduction is limited to 7.5% of the self-employed independent contractor’s adjusted gross income. If you haven’t reached that cap yet, go have those dental procedures or that bit of elective surgery (we’re not just talking about that nose, the swimsuit season will be here again before you know it). As long as you’re under that 7.5% limit, you can get income tax relief from your standard variety medical expense deductions. A little known year-end income tax relief tip – you don’t even have to pay for the medical procedures before January 1, 2010. Just put the medical charges on plastic and pay the minimum balance. As long as you had the procedures in 2009, the deduction is good. If your medical expenses are already over the 7.5% level of your self-employed independent contractor’s adjusted gross income, you should delay breaking your leg until January 1st, 2010.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #6: Pay your state taxes before the ball drops. As a self-employed independent contractor, one of the best income tax relief strategies is to pay your state estimated tax before December 31st. If you pay by December 31, 2009 you get the deduction (on your federal return) in 2009. You can also charge these expenses on your credit card(s) in 2009 and receive the deduction in 2009, even though you won’t be paying for them until 2010. If you are having issues paying your estimated state taxes, a tax attorney can give you tax help to get the maximum income tax relief possible.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #7: Make your stock market losses work to your advantage. If your personal portfolio has taken a nose dive, realize your tax losses before New Year’s Eve. Long term capital losses can be used to offset long term capital gains, and up to $3,000 of ordinary income, with any remainder carried forward for use in future years. This is about getting income tax relief not whether you made the right investment choices. If you still believe those stocks will go up again, buy them back on January 1st. Keep in mind that some mutual funds can have high capital gains distributions even as they lose money. The best income tax relief advice is to ditch these first because they are hitting you with a double whammy. As a self-employed independent contractor you have access to some of the best retirement accounts out there like a SEP-IRA. To understand which investing should be done as part of a retirement account, and which should be in your personal portfolio and when to take losses for maximum income tax relief, get tax help from an experience CPA or tax attorney.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #8: Give your personal gifts before Rudolph goes flying. As a self-employed independent contractor, you can give a friend or family member up to $13K annually before the year end without having to pay gift taxes. (Your spouse can give that same amount to the same individual.) You can also give that same amount to your child’s or grandchild’s tax-free 529 education plan. If you haven’t funded such a plan yet, you can make a single contribution covering five years of gifting. That’s $65,000 you can give per donor per recipient tax-free. (Your spouse can match that contribution as well.)
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #9: Give gifts to clients: Gifts to clients are limited to $25 per recipient per year, BUT if the gift has your embossed logo on it and tells about your services, it isn’t a gift, it is an advertising or promotional expense. There is a fine line here, a quick call to a CPA or tax attorney for year-end tax help will help you stay on the right side of the law.
Self-Employed Independent Contractor Year-End Income Tax Relief Tip #10: Take your retirement contribution to the max. Self-employed independent contractors have the best income tax relief vehicle the federal government has ever offered. While individual worker contributions to a simple IRA max out at $11,500, if you’re under 50 in 2010 ($14,000 if you’re over 50), how is this for serious income tax relief, as a self-employed independent contractor you can use SEP-IRAs to contribute 25% of your wages (or up to 20% of your Schedule C income) up to a maximum of $49,000. The income tax relief to a self-employed independent contractor are massive. A tax lawyer or CPA an give you the tax help to set up the right retirement vehicle for you.
I know that this is a long list but the income tax relief you can get from just paying attention to the calendar is huge. These 20 self-employed independent contractor tax help tips can make the difference between being a Grinch and having a Happy New Year. Your call.
If you are one of thousands of taxpayers who procrastinate in filing your tax returns and owe the IRS back taxes, you can get tax help to resolve your tax problems. Read more tax tips about how you can take control of your tax debt and learn some more year-end tax help tips.
For more information on achieving a tax resolution for your back taxes or IRS debt, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Tags: Back Taxes, income tax relief, IRS audit, self-employed independent contractor, tax attorney, tax help, tax relief, tax tips for freelance professionals, tax tips for self-employed, year-end tax tips
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Thursday, October 22nd, 2009
More than 7,500 Americans rushed to take advantage of a the opportunity for tax amnesty offered through a special voluntary disclosure program for offshore accounts that ended last Thursday. But what can you do if you didn’t come forward to the IRS last week and still need to declare your offshore account?
If a U.S. taxpayer or U.S. resident was not able to file the voluntary disclosure memorandum by the October 15th filing deadline to qualify for tax amnesty, there is a heightened need for that account holder to get expert tax help as soon as possible.
All offshore reporting activity is being managed thru the IRS’s Criminal Investigation Division (CID). The Foreign Bank Account Reporting (FBAR) penalties for not filing and meeting the amnesty guidelines are severe:
- FBAR penalties can amount to 200-300% of the asset value of the account.
- If CID makes a referral to the U.S. Department of Justice for felony indictment, the criminal sanctions can be as much as 10 years in prison.
Depending on the magnitude of the penalties, it may be appropriate to seek redress through the penalty abatement process – this may be an effective approach to minimize or reduce the impact of these penalties.
Every year the government loses billions in tax revenues from offshore accounts held by Americans. According to The New York Times, The Obama administration is determined to smoke wealthy tax cheats out of their offshore hiding places. In recent months, dozens of formerly uncooperative sanctuaries, from Singapore to Liechtenstein, have rushed to sign on to new multinational agreements on information sharing. The Treasury Department is negotiating with several countries to establish common protocols to exchange information about foreign accounts. The Internal Revenue Service is opening offices in Beijing, Sydney and Panama and opening a new unit to investigate evasion by high-net-worth individuals, at home and overseas.
Due to the severity of the financial penalties and criminal implications, it is not in the account holders best interest to wait for the IRS to approach them. Even though the amnesty deadline has passed, the account holder should retain specialized tax representation now.
Effective representation means that your tax attorney, tax resolution specialist or CPA will take over all communications with the IRS, making the required disclosures, filing FBAR reports and amending tax returns typically for 2003 thru 2008.
Our team of tax attorneys, tax resolution specialists and CPAs can help you mitigate the severe IRS penalties and criminal sanctions for offshore account holders. Don’t wait for IRS to come after you, we can help you resolve your IRS problems before it’s too late. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or for a free consultation.
Tags: Foreign Bank Account Reporting (FBAR), offshore accounts, Penalty Abatement, tax amnesty, tax attorney, tax help, Voluntary Disclosure
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