Tax Attorney and Tax Resolution Services: IRS Help Blog » tax resolution

Michael Rozbruch Interviewed in Opportunist Magazine

TRS — Fri, 10 Feb 2012 18:45:56 +0000

It is always a pleasure to be able to speak to others about the work I do as a tax resolution expert.

I recently had the unique opportunity to be interviewed by Opportunist Magazine’s Managing Editor, Leslie Stone for her article Talking With the Tax Expert-Michael Rozbruch. She asked about the business of tax resolution, a subject of which I am WELL informed. The questions ranged from how my early business experience made me uniquely qualified to understand IRS practices and best negotiate, to upcoming strategic partnerships and government regulations to the “Tax Man” TV show.

I am very proud of the services Tax Resolution Services provides and that we genuinely help people in serious financial trouble, get back on their feet again. It’s why I come to work every day and why I look forward to a future of doing more of it.

Read the Opportunist Magazine article at the link below:

http://opportunistmagazine.com/talking-with-the-tax-expert-michael-rozbruch-name/

“It’s very rewarding to save somebody’s financial life—whether it’s through an IRS audit in their favor or a settlement with a payment plan they can live with that won’t adversely affect their lifestyle. When they’re happy, we’re happy…and the IRS is happy.”

Big IRS Tax Lien for Lil’ Kim

TRS — Wed, 08 Feb 2012 20:26:55 +0000

An article from TMZ titled Lil’ Kim Breaks the Million Dollar Tax Lien Mark reported on rapper Lil Kim and her current $1,026,862.42 IRS tax lien. Lil’ Kim appears to be no stranger to tax troubles as hers are well documented and stretch out over a ten year period. A spokesperson for Lil’ Kim said that she “hired professional attorneys to handle this matter” and that “she, along with her team of legal experts, are working cooperatively and diligently to work with the IRS and federal authorities to resolve this matter.”

Lil’ Kim’s tax lien is enormous but having IRS tax issues is not just unique to the wealthy; nearly 1-6 Americans are currently facing tax problems. If you have received a collection notice from the IRS threatening an IRS tax lien, IRS bank levy, or IRS wage garnishment, it is very important to act now. The longer you wait, the more your risk further fines and IRS penalties and there’s no reason to pay more than you have to.

Here are some things that expert tax representation can do to resolve IRS tax lien:

A tax attorney or Certified Tax Resolution Specialist can get you into an IRS tax relief program and designate your case “currently not collectible.”
If there’s a levy already filed on your bank accounts or your assets, your tax attorney or certified tax resolution specialist can help you file an IRS collection appeal to remove your tax lien for good.

Securing the right tax attorney or Certified Tax Resolution Specialist with expertise and knowledge in handling similar cases to yours, will help keep your credit rating intact, and put this situation behind you.

Deductions For Business Tax Relief

TRS — Tue, 07 Feb 2012 17:25:14 +0000

An article in Boston.com called Too Late to Lower Your 2011 Taxes? Not At All listed a few of the deductions a business owner can still take advantage of this year.

Here are three Tax Help Tips that every business owner needs to know about for this tax year:

1. Fund a Retirement Account

You can reduce your 2011 taxes by starting a retirement plan or Simplified Employee Pension (SEP) for you and your employees before October 15. With relatively little paperwork or filing necessary to the IRS, you have the ability to start a SEP account and deduct the amount of the contribution from last year’s income. It is also possible to take deductions on contributions to existing retirement plans such as a 401(k), and Simplified Employee Pensions (SIMPLE) also by the October 15 deadline. For more detailed information the IRS website has information on Small Business Retirement Plan Deductions.

2. Got Net Losses? Take them!

Businesses that suffer a net operating loss are able to use that loss to offset income for the following year or in some cases future years (depending on the size of the loss.) According to the article, business owners can either take a net operating loss carry back: using the loss to offset previous years’ income, or (if there is money left over) take a carry forward and offset income for up to 20 years. A certified tax professional can assist with the back tax amendments regarding the carry back.

3. Review Your Records for Deductible Expenses

Reviewing your books and important business papers a second time might reveal other deductible expenses such as overlooked home office expenses. For example, if you own your home, you can take deductions on portions or some of the home repair costs. You are also allowed to deduct some of your car expenses if it’s used for both business and personal reasons. Personal records should also be checked to see if any business expenses were forgotten. A business owner is also encouraged to hire a tax professional who will make sure the business is taking full advantage of all the tax deductions available.

Tax Resolution Services BBB Rating

TRS — Fri, 03 Feb 2012 16:13:08 +0000

With tax season fast approaching, those who need IRS tax relief are encouraged to examine the qualifications of tax resolution specialists before they hire help. Searching the Better Business Bureau’s (BBB) TrustLink Reviews is a great resource for such an investigation. Every year, the BBB receives feedback from people suffering from IRS debt.

TrustLink reviews include comments from consumers acknowledging their experiences, good and bad. Tax Resolution Services, Co. (TRS) holds TrustLink reviews in high esteem and are proud to be one of the tax resolution firms with the MOST reviews and one of the highest ratings. Over the years, we have secured the the most credible firm with the most credible results reputation. See our rating: http://bit.ly/xmiwq2

What helps to distinguish TRS from other firms are the following:

An accredited member of the Better Business Bureau since 1998.
A National Certified Tax Relief Firm with one of the Highest BBB Ratings in our field.
Certified Tax Resolution Specialists as certified by the American Society of Tax Problem Solvers (ASTPS).
Hundreds of reviews

Because the IRS holds you personally responsible for all the information you provide them, it is imperative you do your homework and make sure the person or firm you are entrusting your finances with is credible – don’t be fooled by slick ads that seem too good to be true, because they usually are.

Below are two websites that are easy to use and help you make an informed choice: BBB and Google.

BBB TrustLink Reviews

Check out a potential tax attorney or tax resolution specialist/firm on the Better Business Bureau’s website: bbb.org. Typically, the BBB only tracks complaints and not resolutions but company responses to the complaint are often posted so you can see how disputes are handled.
Make sure to note the grade rating (example: B+), read all the BBB analysis and then read the Trust Link reviews for this company.

Trust Link reviews will give helpful feedback from previous client experiences and after reading them, you should get an idea of the service and satisfaction the company provides.

Google Search

Google the founder’s name and check his/her credentials. You need to know who’s running the business you are about to employ.
Google the company name with the words “complaint,” “rip-off” and “scam.”
Google your state’s bar (if there are tax attorneys) and check for complaints.
Google all their professional trade affiliations and associations including ASTPS and check current status.
Google Facebook, LinkedIn, and Twitter to examine their social media posting activity. The more reputable the company, the more timely information is posted. The benefit is that you will be able to see both the good and bad comments.

Now that you have more information, you can feel confident about contacting the tax resolution firm worthy of your business and make an appointment for a free consultation. You will be able to articulate details, ask relevant questions and be relieved to know your IRS tax issues are in the hands of certified tax resolution specialists giving expert guidance and beneficial results.

Doctor Sentenced for Failing to File FBAR Reports

TRS — Wed, 01 Feb 2012 19:01:08 +0000

Michael Reiss, New Jersey doctor, professor and medical researcher, was sentenced on January 11, 2012 for failing to report his offshore (UBS) bank accounts. According to the IRS, Reiss was sentenced to eight months in a community confinement center for failing to file Reports of Foreign Bank and Financial Accounts (FBAR) with the IRS. Reiss pleaded guilty in August 2011 and agreed to pay back taxes of at least $400,000 and to pay a civil penalty of over $1.2 million.

Dr. Reiss had opportunities but made no attempt to enter either the IRS Voluntary Disclosure Program (OVDP) that began in 2009, or the following program that recently closed in September 2011. These voluntary programs were designed for people like Reiss; U.S. taxpayers who may have undisclosed assets or income offshore. The program’s objectives were to bring taxpayers into compliance with the U.S. tax system, have them pay an IRS penalty, and by coming forward voluntarily, non-compliant taxpayers avoided the same criminal prosecution and stiff penalties facing Dr. Reiss.

It is always in taxpayer’s best interest to come forward from behind the shadows for IRS debt relief. Recent figures show the disclosure programs’ success thus far. The IRS has now collected an estimated:

$2.7 billion in tax revenues as a result of the 2009 and 2011 Offshore Voluntary Disclosure Initiative.
$2.2 billion has been collected by people who participated in the 2009 program, and the IRS is starting to work through the 2011 applications ($500 million in payments so far from the 2011 program).

For Reiss, purposely failing to report his accounts, made his IRS tax issues not only more complicated but also more expensive. According to the sentencing memos, Reiss was apparently aware of his obligation to file a Report of Foreign Bank Account (FBAR) as he had done so for other offshore accounts. However, he did not attempt FBAR filings for the Swiss accounts. This willful behavior exhibited by Reiss (and quite possibly his financial advisor) has him facing criminal charges that will no doubt have a major negative impact on his net worth. He will be responsible to pay the original income tax amount, plus severe penalties, interest for his failure to file and pay the taxes, as well as pay the 50% FBAR penalty. Being locked up for eight months will only exacerbate the financial devastation Dr. Reiss will most likely endure.

The latest IRS enforcement strategy proves, no one is safe from the wrath of the IRS. They are more determined than ever to go after wealthy individuals, both at home and overseas. If you still have undeclared funds in offshore bank accounts and owe back taxes, being proactive to disclose them to the IRS could help reduce your chances of criminal prosecution. You are encouraged to hire a certified tax resolution specialist or tax attorney to handle your case, to take over all IRS communications, bring you into FBAR compliance, minimize severe IRS penalties and work out a structured IRS payment plan that brings you out in the open and away from the shadows.

IRS Offers Tax Help Using Social Media

TRS — Wed, 18 Jan 2012 20:42:11 +0000

Most of us do everything online. From paying the mortgage to posting on Facebook, our lives are increasingly more apt to be managed by a computer or a mobile device. Social media has become a major player in how we gather information and communicate; a fact that even IRS has become quite aware of. As a result of this ubiquity, the IRS recently began providing the latest tax information, new initiatives, products and services and IRS tax help to taxpayers through their favorite social media platforms.

According to their latest announcement in the Meridian Patch article entitled IRS Stays in Touch With Twitter, YouTube, Apps, the IRS outlined these new IRS communication methods and briefly explained what each tax help platform offers. IRS Commissioner Douglas Schulman acknowledges the Agency’s necessity to use new communication methods like social media to get information out. “This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it,” said Shulman. “As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.”

Here are some of the new social media features:

IRS2GO: This mobile application (for the iPhone, iPod Touch and Android) was designed to make IRS interaction with the IRS easy by giving refund status and tax updates.

YouTube: The IRS has its own YouTube channel that offers short, informative videos, (available in English and a variety of foreign languages) on several tax-related topics.

Twitter: Following @IRSnews can provide tweets on tax-related announcements, news for taxpayers and tax professionals and updates for those seeking employment.

iTunes podcasts: The IRS has created short audio recordings (available on iTunes) that provide useful information on one tax-related topic per podcast. Transcripts of the podcasts are also available.

Facebook: Yes, the IRS has a Facebook page that provides the latest news and information. Just “like” the page to receive recent updates.

Being able to get general information or updates on return status will be useful to those who don’t have any tax issues with the IRS. For those that do, the idea of dealing with a complicated, intimidating government entity can be overwhelming. If this is your situation, you are advised to contact a tax attorney or certified tax resolution specialist to resolve your IRS tax problems on your behalf to get you back in the game.

More Wealthy Americans Need Tax Help

TRS — Mon, 16 Jan 2012 21:36:32 +0000

The IRS just released a study showing a rise of under-reporting by American taxpayers to the tune of $450 billion dollars in 2006; that’s up $105 billion from the last IRS study that was conducted in 2001.

A Forbes article called New IRS Tax Gap Report: Cheating Still Rampant shows taxpayers have an 83.1% compliance rate. That means that the 17% of American taxpayers who are under-reporting their taxes are contributing more to widening the tax gap, and as a result, will face the wrath of the IRS (and their stepped up, often aggressive collection efforts!).

Let’s look deeper into who these non-compliant taxpayers are; typically wealthy Americans hiding overseas assets and the self- employed, and you’ll see why the IRS is currently laser focused on exposing them into coming forward. Tax Cheats beware: you are going to need IRS tax relief to win this one.

According to this recent study, overall compliance is highest amongst regular wage earners who are beholden to third-party information reporting and/or withholding to the IRS on W-2 forms. As a result, the IRS reports a net of only 1 percent of wage and salary income was misreported.

With amounts subject to little or no IRS information reporting, they showed a 56 percent net misreporting rate in 2006. This under reporting of taxes becomes a major contributing factor to the tax gap; the difference between the amount of taxes reported and the amount of taxes the government actually collects. If you are a small business owner with IRS tax problems or have yet to report your offshore accounts to the IRS, know that it won’t take long before the IRS is knocking on your door to collect from you. It’s best to know your options.

A sluggish economy has the IRS looking to find revenue where it can, often from those it may not have focused on before. This narrowed approach goes after the people and the practices that could cause severe IRS tax issues, been lax about regulations and non-compliance, and who in the past, have gone unchecked and allowed to flourish.

For non-compliance issues, the IRS will focus on the following areas:

Unscrupulous tax return preparers: A continued crack down on unscrupulous tax return preparers and by registering all paid return preparers.
Cost basis reporting for stock brokers and mutual fund companies: Brokerage firms will be required to report costs basis information on stocks and mutual funds to investors and the IRS, and will make incorrect reporting much harder if not impossible to do.
New merchant card reporting requirements: Helps IRS to spot businesses that are either underreporting receipts or not reporting at all.
U.S. individuals with financial accounts overseas: Continued monitoring will help the IRS keep raps on offshore tax avoidance and bring American citizens overseas into FBAR compliance.

If you are one of the Americans facing the IRS and under-reported income, at this stage, you are wise to hire a tax attorney or certified tax resolution specialist to help you understand IRS enforcement practices and to inform you of options for an IRS tax settlement.

IRS Guidance on Forms for Offshore Foreign Accounts

TRS — Fri, 30 Dec 2011 13:55:09 +0000

With numerous offshore account dramas unfolding recently, the IRS has been taking a closer look at offshore foreign accounts of US taxpayers. Taxpayers who have such financial interests in and/or signature authority over foreign accounts are already required to file a Report of Foreign Bank and Financial Accounts (FBAR) form if the combined value of their financial accounts exceeds $10,000 during the calendar year. Recently IRS sent out a reminder about Form 8938 (Statement of Specified Foreign Financial Assets) that must be filed in addition to the FBAR.

Form 8938 was enacted in 2010 and the IRS imposes big penalties on taxpayers who qualify to fill out the form, but do not do so. Failure to initially file the form when qualified will result in a $10,000 penalty and an additional penalty of $50,000 for continued failure to file; hefty penalties to pay!

If you aren’t sure if you should file a Form 8938 some guidelines are as follows:

Qualified filers include U.S. Citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

The form 8938 is required when certain thresholds of amounts in foreign accounts is reached: For example: A Married couple, living in the US, filing jointly must file Form 8938 only if their foreign account assets exceed $100,000 on the last day of the tax year, or if they reach $150,000 at any point during the year.

Thresholds for taxpayers living abroad is higher. Married couples, for instance, are not required to file Form 8938 unless their foreign assets reach $400,000 on the last day of the tax year, or if they reach $600,000 at any point during the year.

Taxpayers who are not required to file income tax returns do not need to file Form 8938.

For more information on specific thresholds, form instructions etc. you can visit the IRS website page on Foreign Account Tax Compliance Act. If you are or someone you know needs help with FBAR and Offshore Account Disclosures because of failure to file contact a Certified Tax Resolution Specialist or tax attorney today.

IRS Incentives Provide Small Business Tax Help for 2011

TRS — Fri, 30 Dec 2011 01:47:50 +0000

At Tax Resolution Services, we help individuals and small businesses find a solution for their IRS tax problems. For a small business owner, this means not only spelling out the resolution process, but also the assessment and prevention of future tax issues down the road. It cannot be said enough that sound legal and financial advice helps to streamline operations and is key to small business success both in good times and in bad. In preparation for a new tax year, a CNN Money article “Own a business? 6 new tax breaks” reminds us of the six incentive programs under the Small Business Jobs Act that, if taken advantage of, could yield a business owner financial savings through credits and deductions. However, it’s important to act quickly as some of these programs are due to expire soon.

Health care tax credit: The Affordable Care Act (ACA), allows small businesses that pay at least half of their employee’s health coverage significant tax benefits:

The maximum credit goes to businesses with 10 or fewer full-time employees with annual wages that average $25,000 or less. The break phases out for firms with 25 employees or that pay average wages above $50,000.
For 2010 through 2013, the tax credit covers up to 35% of the money that a qualifying business spends on insurance premiums. In 2014, top tax credit bumps up to 50%.
Tax-exempt organizations can claim 25% in the first time period and 35% after that.
The credit is available for a maximum of six years: 2010 through 2013 and for any two years after that.

Self-Employed Health insurance deduction

If you are self-employed and pay for your own healthcare, you can now deduct insurance costs from your business profits and your self-employment taxes. Prior to the 2010 filing year this was not allowable.

‘Section 179′ provision

The “Section 179″ of the tax code allows businesses to write off the full amount of large qualifying equipment or computer software purchases or leases made in 2010 or 2011, up to $500,000 per business, per year. The benefit? This temporary change to Section 179 allows businesses to get more cash up front instead of capital expenditure deductions made over time.

Note: These programs begin to phase out in 2012, so in order to qualify for the Section 179 deduction for the 2011 tax year, the equipment must be purchased or leased and placed into service between January 1, 2011 and December 31, 2011.

Bonus depreciation extension: The government wants small business to “invest in themselves.”

Unlike Section 179, under the Bonus Depreciation Extension you can depreciate items even if your business is in the red for the year.

Bonus depreciation covers new equipment only, and can be taken in addition to a Section 179 write-off, if the item is eligible for both benefits.
You can depreciate “tangible property,” like buildings, machinery, vehicles, furniture, and equipment, as well as “intangible property,” such as patents, copyrights and computer software.
Businesses that bought a qualifying item after Sept. 8 can claim 100% of its cost (so long as it is used before Jan. 1, 2012).
Businesses that bought such items before Sept. 8 can claim 50% (so long as it is put into service before Jan. 1, 2013).
A business that spends more than $2 million in one year on qualifying capital will not be able to get the full benefit of the Section 179 write-off.
You can only take advantage of the full Section 179 write-off if your small business booked a profit. A Section 179 write-off cannot cause your business to “make or increase a loss” for the year.

Depreciation on a business car or truck:

If you bought a new car, van or truck for your business last year, you will be able to depreciate more than before.

For 2010, — $11,060 for a car, and $11,160 for a light duty truck or van. This figure includes an extra $8,000 bonus depreciation, on top of the usual first-year depreciation. The rules are different for SUV’s and heavy pickup trucks.

General Business Credit: If you are affected by the Alternative Minimum Tax (AMT), you may get a little break in 2010. Usually, general business credits do not apply toward the AMT calculation. But for 2010, deductions included in the “General Business Credit” part of the tax code are also allowable under the AMT. Applying these credits to your AMT will reduce what you owe under the AMT. Some that might impact small biz include a benefit for hiring someone unemployed, the costs for starting up an employer pension plan or the costs of employer-provided child care services.

Consult your tax professional to make sure purchases are prudent

While tax savings are often good for business, the first step should be to consult your tax professional to ensure your business is able to make any large capital purchases. Due to a slow economy, there may be less revenue from which to take any deductions against. Your CPA or tax attorney can analyze your situation and help you make an informed decision based on your individual business needs.

If tax debt relief is what your business needs, contacting a certified tax resolution specialist or tax attorney to handle your case will go a long way to putting this matter behind you so you can focus on making your business a success.

IRS Tries to Ease Nerves of Americans Living Abroad

TRS — Thu, 15 Dec 2011 19:01:54 +0000

The IRS has created its own storm of controversy by going after US Citizens worldwide to collect their taxes. But from the nearly one million American citizens who live and work in Canada, the IRS received a stern message: clarify the regulations for tax compliance. Initially, many law-abiding citizens living abroad who failed to file US tax returns or declare financial holdings were simply unaware that they needed to do so. But after receiving intimidating IRS letters threatening severe penalties, many frustrated expats proceeded to flood the Canadian Embassy with calls demanding clarification of the tax responsibilities of US Citizens or Dual Citizens living abroad and the penalties levied on unpaid taxes and undeclared bank accounts.

An article in the Globe and Mail published December 2, reported on an Ottawa interview with US Ambassador to Canada, David Jacobsen who tried to ease concerns raised by taxpayers including advocate groups such as American Citizens Abroad (ACA) who believe information to be lacking and punitive penalties too severe. Jacobsen explained that because of the outcry, the IRS heard their message “loud and clear” and eased up on penalties (for those who qualified). Not long after the Ottawa interview, the IRS issued its newest guidelines Information for U.S. Citizens or Dual Citizens Resigning Outside the U.S. that attempts to simplify the three main points for citizens to remember:

If a U.S. citizen files tax returns late and owes no taxes, there are no penalties for failure to file.
U.S. citizens who were unaware of the bank account reporting requirement can file previous reports now, along with a statement explaining why they’re late. No penalty will be imposed if the IRS determines that there is reasonable cause for the delay.
Individuals who took part in the 2009 Offshore Voluntary Disclosure Program (OVDP) or the 2011 Offshore Voluntary Disclosure Initiative can reapply and get back penalties already paid.

All U.S. citizens living abroad are obliged to file a Federal Tax Return no matter where they earned their living and even if they owe no taxes. These same citizens are also required to provide the US government with information pertaining to financial holdings such as bank accounts, retirement savings and all other investments held in their name. Failing to report this information can have serious consequences in the form of huge penalties or civil action brought against you. For example, Foreign Bank and Financial Accounts Report (FBAR) penalties can exceed 100% of the value of the asset, plus tax penalties and interest!

Beginning in 2014, Canadian financial institutions will have to report on accounts held by US citizens. Not only do the institutions believe these regulations could violate Canadian privacy laws but that they will get stuck with the huge costs associated with tracking all their U.S. account holders. One thing is for sure, the IRS is not afraid to go after the back taxes it is due, no wherever in the world that might be. The rest of the world is beginning to see that this determination has few boundaries.

If you are in the situation of unreported assets and owe back taxes on your foreign accounts, now is the time to be proactive about disclosing your foreign funds. Due to the severity of the financial penalties and criminal implications, it is not in your best interest to wait for the IRS to approach you. Even though the amnesty deadline has passed, you are advised to retain specialized tax representation to help you immediately. You will need a tax attorney or tax resolution specialist expert in FBAR regulations to provide professional tax help representation with your best interests in mind to get you back on track with the IRS.