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Wednesday, August 12th, 2009
The owner of a Texas-based trucking company has been convicted of three counts of making false statements on tax returns filed for the company for tax years 2000 to 2002.
Gladys Nell Bishop is the president of Quality Trucking Inc. in Houston. Trial evidence proved Bishop set up an accounting system at the company and maintained checking accounts at two different banks but only reported checks deposited into one of the checking accounts to the IRS. The total unreported income for all three years was in excess of $500,000.
Bishop faces up to three years in prison and a fine of up to $250,000.
Under reporting income is also know as tax evasion. Don’t think about blaming your accountant – when it’s your money, it’s your crime! Got tax problems? We’ve got tax attorneys and IRS specialists that can help you sort through your taxes. Tax Resolution Services boasts a tax relief success rate of 90% – second to none in the tax industry! Tax Resolution Services can be reached at 1-866-IRS-PROBLEMS and visit our Tax Resolution website to view our list of tax help services.
Tags: irs problems, tax attorney, tax cheat, tax evasion, tax help services, tax industry, tax problems, tax relief, tax relief success rate, tax resolution, tax resolution services, underreporting income
Posted in IRS Tax Cases, IRS Times and Inquirer, tax help | No Comments »
Tuesday, August 11th, 2009
The owner of several bars in Scottsdale, Ariz., was sentenced to 24 months in prison after pleading guilty to four counts of tax evasion for the year 2003. The total amount evaded was more than $500,000.
Brian C. Roehrich, 40, of Phoenix, attempted to evade the income tax due while he was the president and sole owner of several bars and nightclubs.
At the time of his guilty plea, Roehrich admitted that he established procedures to maintain a separate accounting of cover charge revenue collected from the patrons of one establishment and a portion of the revenue collected from the patrons of another establishment. The cover charge and other revenue were stored separately from the claimed corporate revenue and diverted from the corporate structures for the personal benefit of Roehrich.
Taxes are only a burden if you make them so! The only conclusion I’ve seen to evading taxes is earning prison time. If you need assistance managing your taxes, Tax Resolution Services is here to help you find tax relief. We offer a free tax consultation where we can review smart tax solutions such as IRS payment plans, IRS offer in compromise program and more! Our tax attorneys are standing by to help you. Sign up for your free tax consultation online or call us at 1-866-IRS-PROBLEMS (1-866-477-7762).
Tags: Free Tax Consultation, IRS Installment Agreements, IRS offer in compromise, IRS payment plan, Offer in Compromise program, tax attorney, tax cheat, tax evasion, tax help, tax relief, tax resolution, tax solution
Posted in IRS Installment Agreements, IRS Times and Inquirer, Offers in Compromise | No Comments »
Tuesday, August 11th, 2009
Although there never was a “good” time to cheat on taxes, now is worse than ever for taxpayers and tax preparers to file fraudulent tax returns. With the IRS getting more funding and 800 more agents to collect taxes, taxpayers and CPAs who deliberately report fraudulent information on tax returns will be hit with severe IRS penalties.
If the IRS detects and proves beyond a reasonable doubt that fraudulence was deliberate, both the tax preparer and the taxpayer will be liable for IRS penalties.
CCH (http://tax.cchgroup.com) reports:
CPA Convicted of Willfully Aiding and Assisting in Preparation of Materially False Returns
A CPA was convicted of willfully aiding and assisting in the preparation of materially false income tax returns for the president and 100-percent owner of a mortgage brokerage firm and his wife. The government proved beyond a reasonable doubt that the CPA prepared the couple’s tax returns and willfully failed to report as taxable income business funds used by the couple for their personal purposes, even though he was aware that the owner received officer’s compensation from the firm, that the firm’s business funds were used to pay the couple’s personal expenditures and that funds withdrawn by the owner for his personal expenses constituted shareholder distributions that were taxable to the couple. Despite such knowledge, he willfully failed to include the amounts as income on the couple’s individual income tax returns. His contention that he believed the owner to have acquired a substantial basis in the corporation was rejected. He knew, or should have known, that the owner lacked basis in the corporation to take any shareholder distributions without declaring them as capital gains on his tax returns.
Protect yourself against fraud by double-checking your information on your tax returns before signing them off. Once your signature is on the return, it legally binds you to the information presented (whether they were fraudulent or not).
If you do find yourself in trouble with the IRS, you may get help from our specialized staff of tax attorneys, CPAs, EAs and tax professionals at TRS. Visit Tax Resolution Services for a free income tax relief consultation or call us at 866-IRS-PROBLEMS (1-866-477-7762).
Tags: Back Taxes, failing to file federal tax return, false tax return, FALSE TAX RETURNS, filing false tax return, Free Tax Consultation, IRS audits, tax attorney, tax cheat, tax cheats, tax debt, tax evasion, tax expert, tax fraud, tax lawyer, Tax Tips, unfiled tax returns
Posted in Tax news and tips | 1 Comment »
Monday, August 10th, 2009
Nobody wants to be in trouble with the IRS for someone else’ mistake. If your spouse is in trouble with the IRS, his/her penalties will be transferred to you in a marriage. If you can prove to the IRS with reasonable evidence that you were unaware of the fraudulent activities of your spouse, you will qualify for Innocent Spouse relief.
Filing and getting approved for Innocent Spouse relief is crucial to protecting your financial well-being. It is important to know the rules and deadlines for the application so that you are not mired in IRS trouble due to administrative negligence.
In a recent case, an individual lost his chance to dispute the IRS decision because he had failed to petition for Tax Court to review the IRS denial within a 90 day period.
CCH (http://tax.cchgroup.com) reports:
Denial of Innocent Spouse Relief Was Not Abuse of Discreation
The IRS did not abuse its discretion in denying a taxpayer’s request for innocent spouse relief from joint and several liability at a Collection Due Process (CDP) hearing. The IRS had already made a final determination denying the taxpayer’s request for innocent spouse relief; therefore, she could not raise the issue during the subsequent CDP hearing. In addition, the taxpayer failed to petition the Tax Court to review the final determination within the allotted 90 days after the IRS mailed it; thus, the Tax Court lacked jurisdiction to review it.
Learn more about how to qualify for Innocent Spouse relief.
Note: You cannot file an Innocent Spouse Claim if you are still married. You must be separated or divorced.
I deal with tax problems every day and this year alone, my firm has successfully negotiated hundreds of IRS settlements at a rate of $0.13 on the dollar. For a free, no-risk consultation, please call my office at 866-IRS-PROBLEMS (1-866-477-7762) or visit the Tax Resolution website.
Tags: Back Taxes, delinquent taxes, Innocent Spouse, innocent spouse defense, innocent spouse help, innocent spouse relief, IRS debt, IRS help, irs problems, IRS tax audit, tax attorney, tax help, tax lawyer, tax problems, tax resolution, tax resolution expert, tax resolution services, tax settlement, wage garnishment
Posted in Innocent Spouse, Tax news and tips | 1 Comment »
Friday, August 7th, 2009
Obama’s latest program to promote environmental-friendliness has recently ran dry of funds. Congress was quick to reassure the American public that the program will continue by allocating $2 billion into the program. The CARS program has been hugely successful and the bill for more funding was passed with the final vote of 316 to 109.
The replenishment of the CARS fund will allow Americans to continue enjoying non-taxable cash vouchers when they trade in their old gas guzzlers for new energy-efficient vehicles. (The vouchers are only taxable to the car dealers.)
See if you qualify for a tax break through the Cash for Clunkers program.
CCH (http://tax.cchgroup.com) reports:
Congress Scrambles to Replenish “Clunkers” Fund
Following reports that the “Cash for Clunkers” (CARS) program had been suspended because of depleted funds, Congress and the White House on July 31 scrambled to ensure that consumers can continue to buy cars under the program. The House immediately took up and passed a bill providing an additional $2 billion to keep the program running. The final vote was 316 to 109.
The additional funds come from a loan guarantee for clean energy included in the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act) and would extend the program through September 30, 2010. Rep. Edward J. Markey, D-Mass., one of the co-authors of the “Cash for Clunkers” program, said he would push to ensure that the money is replaced in the environmental fund.
Sen. Carl Levin, D-Mich., said that the program had proven “hugely successful” and that he had been assured by the White House that consumers could continue to purchase vehicles under the program until further notice. Levin said that the Senate is also going to seek additional funds to extend the program. The Senate will likely take up the measure, which would be open to amendments, during the week beginning August 3. However, passage may not be as smooth in the Senate because some senators plan to seek higher fuel-efficiency standards in the deal.
Sens. Dianne Feinstein, D-Calif., and Susan M. Collins, R-Maine, on July 31 urged the Department of Transportation to promptly provide Congress with a detailed evaluation of the effectiveness of the CARS program. In a letter to Transportation Secretary Ray LaHood, Feinstein and Collins requested a detailed analysis of how the program has worked to date, including the make and model of the vehicles purchased, the fuel efficiency of purchased vehicles, and the condition of vehicles traded-in. “The tremendous number of sales in the first week of this program demonstrates that the CARS Act (Consumer Assistance to Recycle and Save Act of 2009, approved as part of the 2009 Supplemental Appropriations Act for Iraq, Afghanistan, Pakistan and Pandemic Flu has succeeded in increasing new vehicle sales, but Congress needs this data in order to determine if the fleet modernization program delivered significant fuel economy gains and oil savings,” stated the lawmakers.
President Obama is “enormously pleased” that the House bill proposes to use $2 billion from energy efficiency funds contained in the 2009 Recovery Act, according to White House Press Secretary Robert Gibbs. Gibbs said the CARS program benefits taxpayers because their new cars are more fuel-efficient.
Obama on June 24 signed legislation to boost the sale of vehicles at financially strapped U.S. automobile dealerships. The program provides $1 billion in tax-free vouchers to automobile dealers who participate in the new program. The program vouchers, worth $3,500 or $4,500, are given to dealers when consumers trade in old vehicles for ones with higher fuel efficiency. The vouchers are considered to be taxable income for the dealers but not the customers who purchase a new vehicle.
Congress created the new program as part of the CARS Act. Generally, the trade-in vehicle must have a fuel economy value of 18 miles-per-gallon (mpg) or less. The vehicle must be in drivable condition and have been continuously insured and registered in the same owner’s name for one year before trade-in. Vehicles manufactured more than 25 years ago generally are ineligible for the program. The new law limits the number of vouchers to one per customer, including joint registered owners of a single eligible trade-in vehicle.
By Jeff Carlson and Paula Cruickshank, CCH News Staff
Tax Resolution Services is a team of specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: CARS, cash for clunkers plan, Congress, IRS help, IRS payment plan, irs problems, Obama's CARS program, tax advice, tax attorney, tax audits, tax problems, tax relief, tax resolution
Posted in Tax news and tips | 2 Comments »
Thursday, August 6th, 2009
The Internal Revenue Service has begun sending out refund checks to victims of Bernie Madoff’s scheme who’ve taken advantage of a special IRS rule for Ponzi victims. The IRS is now repaying investors who’ve paid taxes on money they thought they made on investments with Madoff’s firm.
I’ve blogged about how Ponzi victims can get expert tax help for maximizing their tax benefits to help them regain their financial welfare. Taxpayers can recover 30-40% of their losses by filing tax theft loss deductions and filing amended tax returns to recover some of their financial losses. For instance, if you’ve lost $100,00 million in this scheme, you can recoup $30 to $40 million of that in taxes.
Our tax resolution firm is handling several Madoff-related cases. The only way for these folks who lost out and got caught up in investment fraud to get some of their money back is to get specialized investment fraud representation. Madoff victims will have to amend their tax returns – which is a complicated and technical process.
The IRS has also denied tax refunds in some cases. If you don’t get specialized tax help to assist you in recovering your investment fraud losses, you could be leaving money behind on the table.
If you’re a victim of investment fraud, you need the help of a highly specialized tax attorney and/or tax resolution professional. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
The Wall Street Journal reports:
An early trickle of refunds includes checks for substantial amounts, nearly half a million dollars in some cases. The very biggest sums haven’t materialized, however, according to certified public accountants. By some estimates, these could be for tens of millions of dollars.
The Madoff-related tax refunds are arriving after a lot of uncertainty over how the IRS would handle returns filed by burned investors. Tax advisers clashed over how best to retrieve money for clients as the scandal emerged. Some urged people to file amended returns, while others counseled them to hold off.
In March the IRS set the stage for large refunds with a generous reading of rules that let investors take a theft loss on their 2008 tax returns.
Those suing third parties get less-generous treatment because they have a better prospect of recovering money.
Tags: Bernard Madoff, investment fraud, investment fraud recovery, investment fraud representation, IRS refunds, Madoff Victims, Michael Rozbruch, ponzi victims, tax attorney, tax break for madoff victims, theft loss deductions
Posted in IRS Tax Cases, Tax Resolution Options and Alternatives, Tax news and tips, Working with the IRS | 1 Comment »
Friday, July 31st, 2009
Check out our latest TRS IRS tax help newsletter for tax tips, IRS insider news, and income tax relief advice.
Many taxpayers who are in IRS trouble have found it difficult to be approved for IRS settlements such as the Offer in Compromise program. Historically, OIC application approval rates have remained under 25%. Recently, the IRS has updated the OIC application forms so that it is easier for applicants to understand. This will increase accuracy rates on the applications which will improve your chances of being approved for a tax settlement (as long as your qualifications meet the requirements).
One of the ways to stay out of IRS trouble is to understand the anatomy of an IRS audit–how to avoid it and how to seek tax help when the IRS is after you. As taxpayers, you are essentially “considered guilty till proven innocent” by the IRS. Therefore, it is extremely crucial that you wage a proper battle agains the IRS with the right weapon—find a good tax attorney.
With IRS enforcement on the rise, it would be unwise to deliberately cheat on your taxes. As a savvy taxpayer, it is good practice to know your options for battling the IRS. By pursuing different tax relief options (depending on your unique situation), you can save yourself time, money, and frustration.
If you are in trouble with the IRS, our specialized staff of tax attorneys, CPAs, EAs and tax professionals can help. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: FALSE TAX RETURNS, Free Tax Consultation, IRS audits, IRS debt, IRS enforcement, IRS problem solver, IRS tax problems, Offer in Compromise, Offers in Compromise, tax advice, tax attorney, tax audit, tax audits, tax cheat, tax resolution services, tax settlement, Tax Tips, unfiled tax returns
Posted in Tax Relief News, Tax news and tips | No Comments »
Wednesday, July 29th, 2009
Losing the battle with an IRS tax audit can cripple your financial welfare for life. It is extremely helpful (and oftentimes crucial) to seek the professional help of a tax attorney in order to safeguard your financial future.
For those who are unsure whether they want to hire a tax lawyer, there are some helpful “Do’s” and “Don’ts” until you make a final decision on whether or not to seek professional tax representation.
Nolo.com has a very good (if slightly flawed) taxes and audit section (http://www.nolo.com/resource.cfm/catid/e60b9a45-4b75-424c-91cddac9f6ab3a18/213/287/). Here you’ll get solid tax advice like:
Don’t answer unless asked. Give the auditor no more information than she is entitled to, and don’t talk any more during the audit than is absolutely necessary. Don’t give copies of other years’ tax returns to the auditor. In fact, don’t bring to an audit any documents that do not pertain to the year under audit, or were not specifically requested by the audit notice.
Know your rights. Browse IRS Publication 1, explaining the Taxpayers’ Bill of Rights, prior to your audit. If the audit is not going well, demand a recess to consult a tax pro. Ask to speak to the auditor’s manager if you think the auditor is treating you unfairly. If the subject of tax fraud comes up during an audit, don’t try to handle it yourself.
Appeal the results. When you get the examination report, call the auditor if you don’t understand or agree with it. Meet with her or her manager to see if you can reach a compromise. If you can’t live with an audit result, you may appeal within the IRS or go on to tax court.
In addition, you may also find that Roy Lewis at Motley Fool is very helpful. (http://www.fool.com/personal-finance/taxes/how-to-survive-an-irs-audit.aspx) Roy likens going into an IRS audit without a tax lawyer to “removing your own appendix,” but he offers a few nuggets of IRS advice including:
Organize your records. Making the auditor’s job easier will win you some points. The auditor will at least believe that you’re an organized person and that all of your items are documented and justified. Don’t be afraid to group the items in question, or attach an adding-machine tape that matches the tax return. That will allow the auditor to quickly review the important issues. Don’t believe those who tell you that you can just throw your records in a bag, drop it on the auditor’s desk, and shout, “You figure it out!” That just doesn’t work. Remember, it’s your legal responsibility to prove your deductions.
Replace missing records. If you’re going through your records and find that some of them are missing, call for duplicates immediately. Don’t just go to the audit and claim that the records are missing or lost. That does you no good at all. At best, the auditor will request that you obtain the records. At worst, the deduction in question will be denied, since there are no supporting documents.
Provide only copies. Don’t bring original documents to the audit. If you do bring originals, do not give them to the agent. Request that the agent make copies and give the originals back to you. Once you hand over your original documents, there’s a very good chance that they will be misplaced or lost. Then you’re the one left holding the bag, since the IRS isn’t responsible for documents lost in its possession.
While it may be tempting to try these “Do It Yourself” remedies, you may end up saving more money by hiring a professional tax attorney than trying to battle the IRS on your own.
The cash you “save” by not hiring a reputable tax attorney may be the most expensive money in your life. And you may have a long time to consider the cost of going it alone as you write big checks to the government for the rest of your life or worse yet, repenting at leisure while you’re pumping your biceps in the prison yard. It’s your call.
Read the full press release for more IRS tax tips
Feel free to contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: Free Tax Consultation, i need tax help, income tax relief, IRS debt, IRS help, IRS problem solver, IRS tax problems, Michael Rozbruch, tax advice, tax attorney, tax audit, tax audits, tax cheats, tax lawyer, tax resolution expert, Tax Tips
Posted in Seeking Professional Tax Help, Tax news and tips | No Comments »
Wednesday, July 29th, 2009
It is extremely dangerous to sit and “ignore” IRS problems because a large accumulation of IRS tax penalties can lead you to eventually lose your home. Recently, an individual whose IRS penalties (debt and interest) were so high, she could not find a suitable alternative to pay back the IRS other than to give up her primary residence.
CCH (http://tax.cchgroup.com) reports:
Levy on Individual’s Principal Residence Judicially Approved
A levy on an individual’s principal residence was judicially approved because all statutory requirements relevant to the levy were met and the individual did not establish that a reasonable alternative existed to satisfy her unpaid tax liabilities. Her offer of the proceeds from a home equity loan and the amount of wages already garnished by the IRS was insufficient to fully satisfy her liabilities, including interest and penalties. On the other hand, the levy and sale of her residence would permit the IRS to recover substantially more than the offer and presented the possibility of full satisfaction of the individual’s debt. Moreover, the court could not require the IRS to settle or forgive penalties and interest in lieu of seeking a levy.
Other forms of levies include bank levies–which can be extremely harmful to your financial well-being. In a bank levy, the IRS essentially has the power to freeze an amount of money in your bank account up to whatever is owed and taking this money after 21 days.
Don’t lose your home to the IRS. If you find yourself in trouble with the IRS, it is important that you contact a professional tax attorney right away to help you resolve the problem. The worst thing anyone in trouble with the IRS can do is to “sit it out” and avoid the issue—it will only get worse with time and a lack of open communication with the IRS.
At Tax Resolution Services, we take over the communication aspect from our clients so that our clients never have to talk directly with the IRS. We have a success rate of 90% (2nd best in the industry) and OIC Settlement Rate of $0.13 on the Dollar. Contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: IRS help, IRS levies, IRS problem solver, irs problems, levies, levy, Michael Rozbruch, tax advice, tax audit, tax problems, tax relief, Tax Tips
Posted in Tax Liens and Levies | No Comments »
Tuesday, July 28th, 2009
Recently I spoke with Russ and Sully on the Big Biz Show to discuss how the more aggressive IRS tax collection effort is affecting tax cheaters as well as innocent law-abiding taxpayers.
Unfortunately, during this tense climate of increasing IRS enforcements, even some innocent people are going to get weaved into the mix and may find themselves in IRS trouble. Many of these innocent taxpayers will be able to explain and prove their innocence. It is always a good idea to understand the procedures of filing a case against the IRS to maximize chances of success. You are entitled to the help of a professional tax attorney–make sure you choose the right one for you.
Read on for some of the pertinent questions during today’s tax environment:
Q: For those people with bank accounts in Switzerland or have used the Bahamas as a tax haven, what can we expect now with the Obama Administration going after offshore accounts so aggressively?
A: We’re going to see the end to the secretive banking laws. The US Government has already sued the Swiss Government for the 52,000 names on the Swiss bank accounts. It is very probable that the Swiss is going to give those names up because the press has been announcing that the Swiss wants to cooperate. And if that happens, there’s going to be a lot of unhappy people in this country with regard to that. These tax evaders will have to answer to their crimes here and face the appropriate IRS penalties.
Q: What will happen to someone who inherits money from someone that recently passed away and is unaware of the tax responsibility they have on the inheritance?
A: Many people do not know that the money they inherit from someone–be it a 401k or an IRA–is taxable to the beneficiary. There could be hundreds of thousands of dollars in the retirement fund that was tax-free during the life of the person but when they pass, that money is all of the sudden taxable. If you inherit money and do not pay taxes on it, you are committing tax evasion and will be punished as that.
Q: If someone finds themselves in trouble with the IRS for failing to file for taxes in the past couple of years, what will you do to help them?
A: The first thing Tax Resolution Services does is we make a Voluntary Disclosure to the IRS—in other words, we’re going to the IRS instead of the IRS seeking out our client. One phone call from Tax Resolution Services can help you keep the case civil. 99% of the time, we keep the cases civil even when the IRS has already been contacting you to file those back taxes.
Voluntary Disclosure offers immediate relief for a couple of reasons: Number One, the client doesn’t have to talk or deal with the IRS from that point forward. We take over all correspondence and communications; Number 2, it keeps the case in the civil arena because it is a misdemeanor punishable by one year in prison to not file a return when it’s due. So we keep the case out of the judicial arena and keep it civil.
Listen to the full interview for more tax tips!
Avoid harsh IRS tax penalties. If you find yourself at odds with the IRS but are innocent of the charges, you are entitled to seek a professional tax attorney’s representation.
Don’t fight the IRS alone–you can contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
Tags: IRS audits, IRS debt, IRS enforcement, IRS help, IRS problem solver, tax audit, tax cheats, tax debt, tax evasion, Tax Tips
Posted in Tax news and tips, tax help | No Comments »
Monday, July 27th, 2009
In the current economy, tax problems can confound anyone–especially if your spouse suddenly lost his/her job or if you default on a loan. I recently had the pleasure of sitting down with Drew on the Money, Riches, and Wealth Radio Show to answer tax problem questions from regular taxpayers who may not be able to afford tax lawyers. Read on for information regarding paying the government taxes you owe and also getting back the refunds that are entitled to you:
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Paying Quarterly Taxes As an Independent Contractor
Barbara: I’m an independent contractor and I’m making enough to pay my bills in this economy but not enough to pay the quarterly taxes and I don’t really know what to do.
Michael: Are your taxes based on the lower estimates?
Barbara: Yes and I’m still having trouble making those. I’m trying to set money aside for it but I already missed the last quarter and my accountant said I can file for fall but it’s going to be that much more.
Michael: As difficult as it may be, you may want to find yourself a W-2 job until your industry picks back up because you’re just going to keep digging a bigger hole each year if you don’t pay your taxes. A lot of the times, if you’re not making enough to pay the taxes being an independent contractor, you’ll probably end up making more (net) being a w-2 employee.
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Filing for Amends on Past Returns
William: I’ve been married to a illegal alien since 2006, but I haven’t been able to put her as a dependent because she has no Social Security Number.
Michael: You can get a IRS tax ID from Pennsylvania, they have an international unit there–this will allow you to claim your wife as a dependent on your returns.
William: How far back can I go to file for refunds? How many years?
Michael: You have 3 years from the date that the tax return was due to file an amendment. So right now, since the 2006 return was due in April of 2007, you have until April of 2010 to amend the 2006 return. So ‘06, ‘07, and ‘08 are the years you can claim a tax refund for.
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I Answered More Questions to Back Taxes and IRS Debt
Listen to the full interview for more tax tips!
Avoid getting into IRS tax trouble by stay informed on IRS news. Follow us on Twitter @ Taxresolution.
Contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: filing false federal tax return, Free Tax Consultation, income tax relief, IRS debt, IRS enforcement, IRS help, irs problems, tax help, tax problems, tax resolution expert, tax resolution services, tax settlement, unfiled tax returns
Posted in Ask the Expert | No Comments »
Saturday, July 25th, 2009
Mark Arthur Henriksen, of Monmouth, Ore., was sentenced to 12 months and a day in prison after pleading guilty to one count of income tax evasion for the 2001 tax year. Henriksen was a principal of Applied Technical Systems, a business in Lake Oswego. Henriksen evaded the assessment of his income taxes in 2001 by instructing employees of ATS to make his bonus checks payable not to him but instead to third parties.
Tax Resolution Services helps people every day find tax relief. Read our Tax Help Testimonials on our website. Tax evasion is not the answer! Our tax attorneys can guide you to a tax resolution that makes sense. See a complete list of our tax services. We’ll find something that works for you – call us today – 1-866-IRS-PROBLEMS!
Tags: evade taxes, irs problems, tax attorneys, tax evasion, tax help, tax relief, tax resolution services, tax resolution testimonials, tax services, tax testimonials
Posted in IRS Tax Cases, IRS Times and Inquirer | No Comments »
Friday, July 24th, 2009
Many people are skeptical about hiring professional tax attorneys to help resolve their IRS tax problems–some are concerned about saving service fees and others are downright skeptical about their chances of winning.
There has been a lot of misinformation going around about tax resolution scams. There have been stories of official looking IRS snail mail or email that not only steal your identity but also tricks some victims into writing big checks to the “tax resolution firm.” Naturally, horror stories like this will breed a defensive level of skepticism towards tax resolution attorneys. However, going against the IRS without a tax lawyer is like riding buck naked in a motocross race, you probably won’t win and if you crash, the results could be fatal.
You can ensure the professional quality of your tax representation by doing your research. If you proactively seek out as much information as you can on a tax attorney (success rate, areas of expertise, professional record…etc.), you will be much more confident in your decisions. Learn how you can pick the best tax attorney for you.
As a tax resolution specialist for the past 10+ years, I have my obvious bias. At TRS, we are a team of highly specialized tax resolution experts including tax attorneys, CPAs, EAs (enrolled agent tax experts) and others who have been providing income tax help for a combined 150 years of experience. We have helped provide IRS tax relief for people who have tax problems with back taxes, late filing, tax fraud, theft (from Madoff and other Ponzi schemes) and more. We have seen the substantial tax relief success our team can bring. We’ve also seen the disasters that strike those who dare to go solo.
Contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: IRS audits, IRS debt, IRS help, IRS problem solver, Michael Rozbruch, tax advice, tax attorney, tax audit, tax audits, tax lawyer, tax resolution services, Tax Tips
Posted in Seeking Professional Tax Help, Taxpayer Rights | No Comments »
Friday, July 24th, 2009
IRS tax problems can be overwhelming and confusing. It’s always a pleasure to me to appear on radio shows and give free tax advice to regular taxpayers who may not be able to afford a tax lawyer.
Recently I sat down with Drew on the Money, Riches, and Wealth Radio Show to answer some questions average taxpayers had regarding back taxes and resolving IRS tax debt with or without the help of a professional tax lawyer:
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Resolving to Pay Back Taxes
David: I have some back taxes and it’s not a whole lot of money-it’s $4,000 for one year and a couple of thousand dollars for another year. I was wondering if there’s something to work out with the IRS to push all of this together to next year?
Michael: The IRS does not take individual taxpayer’s financial schedule into consideration. For any back taxes under $10,000, you can pick up the phone and give the IRS a quick call and they’ll set you up on a small monthly payment plan for $100-$115/month. Use the 800 number on the notice you received. You will not have to fully disclose your financial information (where you work, how much is in your bank…etc.) to be able to be set up with a reasonable payment plan.
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Waiving IRS Penalties For Hospitalization
Luigi: Last year, I was hospitalized in Kosovo Medical Center and I did not receive the 1099 for $5,000 because I was not home. So naturally I didn’t file because I didn’t receive it. Now the IRS sends me a notice saying that I owe $1800 dollars and I guess they overpaid me on a return for what I owed. But now I don’t have the money to give back to them. Would the IRS make a deal to make it less money? And for the refunds that I’m filing for this year–since I owe the IRS money, would they take what I owe out of the refund they send me?
Michael: The IRS probably won’t make a deal on the principal, but you may be able to get the penalties waived if you tell them that you were hospitalized and if you show them documentation to prove it—that would work. But like David (above), you may just want to give the IRS a call and get on a $25-$30/month payment plan till it’s paid.
As for the refund, the IRS will definitely take whatever amount you owe them out of the refund check you will receive this year. However, the fact that your refund may “pay off” your IRS debt does not mean the IRS will not continue to make aggressive collections efforts in the meanwhile. The IRS will not be waiting for you to file a return for them to take the money out—you will be penalized and hunted until you provide them documentation of your hospitalization and until you set up a payment plan.
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Applying & Qualifying for Offer in Compromise
Larry: I owe around $20,000 to the IRS and I contacted them to find out that they will settle for less than what’s owed. What’s the procedure here and is it likely that I will be able to get a break?
Michael: You’re talking about the Offer in Compromise program, which is the closest thing to amnesty that the government offers. And they are taking more offers nowadays because of the economic meltdown and the real estate bubble bursting. But you will need professional tax help—it’s a formulated process, they look at your assets, liabilities, income, and whether you own any real estate–essentially a full financial disclosure.
The formula allows them to see whether you qualify for the offer, because the IRS doesn’t want to decrease what you owe if you have hundreds of thousands of dollars in your bank account. They want to make sure you’re the right fit for the program.
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I Answered More Questions on IRS Tax Problems
Listen to the full interview for more tax tips!
Contact our specialized staff of tax attorneys, CPAs, EAs and tax professionals. Visit the Tax Resolution Services web site for a free tax relief consultation or call us at 866-IRS-PROBLEMS.
Tags: Back Taxes, delinquent taxes, failing to file federal tax return, IRS debt, IRS tax problems, Michael Rozbruch, Offer in Compromise, tax advice, tax attorney, tax resolution services, Tax Tips
Posted in Ask the Expert, Offers in Compromise, Penalty Abatement, Seeking Professional Tax Help | 1 Comment »
Thursday, July 23rd, 2009
Small business owners and sole proprietors have been identified as the largest group that is contributing to the increasing tax gap of $350 billion/year. It is extremely difficult for the IRS to investigate each small business owner to uncover tax evasion acts such as under-reporting income.
In the current economy, the astonishing yearly tax gap is alarming to policymakers who are desperately short of funds. They find that they cannot fulfill promises of helping to stimulate economic growth with public programs at the current tax revenue level. Public schools are suffering from the lack of money as well–leading ordinary Americans to suffer and burden the consequences of the tax gap.
Due to these pressing concerns, the IRS has been given more resources than before to heighten collection efforts in order to close the gap of $350 billion. Therefore, if you are tempted to partake in a tax evasion scheme, you need to prepare yourself for a more aggressive IRS crackdown that could result in your financial paralysis from severe IRS tax penalties.
You don’t have to be a tax lawyer to know the red flags that cause the IRS to suspect tax evasion. If you intentionally fail to report your business cash receipts, including checks that are cashed at the maker’s bank, the IRS has specific audit programs that will investigate this activity. Also, if the amount of income reported on your tax return far exceeds the previous year’s – you will be flagged as suspect! Additionally, if you are one of those “do-gooders” that helps others to file fraudulent tax returns and accept payment for this…that could be a problem.
Tax evasion encompasses any cheating of the government in taxes. Tax evasion is a felony and can carry up to a 5-year prison sentence and/or IRS penalties up to $100,000. Even in the current enforcement climate, taxpayers can learn how to save money by taking advantage of legal tax deductions to reduce their IRS bill.
Additionally, anyone who owes back taxes or is being audited by the IRS will need to know that there are options for negotiating a tax resolution. Working with a tax resolution specialist or tax lawyer can greatly increase your chances of successfully resolving your IRS tax problems. However, it’s important to be informed in the first place so you can avoid becoming a target of aggressive IRS collection efforts that can financially cripple you for life.
For more information on achieving a tax resolution for your IRS problems or back taxes, visit www.taxresolution.com for a free tax relief consultation or call 866-IRS-PROBLEMS.
Tags: Back Taxes, failing to file federal tax return, FALSE TAX RETURNS, filing false tax return, Free Tax Consultation, IRS debt, IRS enforcement, IRS problem solver, irs problems, Michael Rozbruch, tax evasion, tax lawyer, tax resolution, tax resolution services
Posted in Seeking Professional Tax Help, Tax Scams, Tax news and tips, tax help | No Comments »
