Archive for Blog

When is spouse responsible for business taxes or the Trust Fund Penalty?

  • September 29th, 2010
  • David Greene
  • Comments Off on When is spouse responsible for business taxes or the Trust Fund Penalty?

If the business is a sole proprietorship then the income and expenses are usually filed on a form 1040 in Schedule C.  If the owner and his spouse filed a joint return, then the spouse is responsible for the taxes as much as the owner simply because she signed the return.  However, if the company only owes payroll

 

 

How To Avoid Paying Additional Tax on April 15

  • September 21st, 2010
  • David Greene
  • Comments Off on How To Avoid Paying Additional Tax on April 15

Everyone hopes to get a refund at tax time.  However, getting a refund simply means you overpaid the IRS during the year.  The ideal situation is to owe no additional tax and also not get a refund on April 15.

What if you owe additional tax on April 15?  How can you be sure this does not happen next year?  There are several solutions.  If you are self employed you are required to pay estimated tax for the current year. 

 

 

Can a business make an Offer in Compromise?

  • September 15th, 2010
  • David Greene
  • Comments Off on Can a business make an Offer in Compromise?

Most Offers in Compromise for businesses are only successful if the business is about to “go under” and the owners know they cannot make the business successful.  In that case, the IRS will usually settle for the discounted value of the remaining assets.  It is important to make an Offer if payroll taxes are involved because the trust fund penalty will be less against the owner.

 

 

Common Procedures in an IRS Case

  • September 8th, 2010
  • David Greene
  • Comments Off on Common Procedures in an IRS Case

Each IRS case is unique to its own set of facts, so I can only give a general guideline of what I usually do to pursue a solution for someone who owes delinquent taxes.  When a client retains me, he will sign a Form 2848 Limited Power of Attorney that allows me to represent him before the IRS.  I will then order the client’s Master File records for all the years in which he is delinquent to determine how much is owed and

 

 

How Aggressive Are IRS Collections Today?

  • August 31st, 2010
  • David Greene
  • Comments Off on How Aggressive Are IRS Collections Today?

How likely are you to be audited or levied this year?  I cannot give you “odds” on the IRS pursuing you.  It depends on how much you owe, how old the tax is, how much your tax return deviates from prior years, your occupation and other factors.

 

Does The IRS Have To Obey a State Court Order?

  • August 24th, 2010
  • David Greene
  • Comments Off on Does The IRS Have To Obey a State Court Order?

Many times, in a divorce or legal separation action, a Family Court will order one spouse (e.g. husband) to be liable for all delinquent taxes owed by the couple for jointly filed tax returns.  Then, the wife is surprised when the IRS begins collection activity against her. She tells them she doesn’t have to pay because the Court ordered husband to pay and is shocked when they ignore her protests.

 

 

Deductible Job Hunting Expenses

  • August 16th, 2010
  • David Greene
  • Comments Off on Deductible Job Hunting Expenses

Many people have lost jobs due to the economy and are out “beating the bushes” looking for work.  I’ve been asked whether or not some of the money they are spending can be deducted on this year’s taxes.   I’m not an accountant and one should check with her own tax preparer for guidance, but I’m happy to say that

 

 

Statute of Limitations To Collect Tax

  • August 10th, 2010
  • David Greene
  • Comments Off on Statute of Limitations To Collect Tax

There are several different statutes of limitations dealing with the processing and collection of federal taxes.  The most important one for most people is the ten year statute of limitations on collection of taxes that have been assessed.  This means the IRS has ten years to collect your taxes from the time they were registered in the IRS computers, not from when due.  Thus, if you filed your 1999 taxes in 2001, the ten years would not be up yet.

 

 

Inheritance of Real Property through Unprobated Estates

  • August 2nd, 2010
  • David Greene
  • Comments Off on Inheritance of Real Property through Unprobated Estates

The only way for real property to pass with clear title to a devisee or heir is for each prior owner to have gone through the probate process in the county in which the property is located, for at least for 60 years back.  If the land does not pass by virtue of being probated, there is a cloud on the title.  Clear title means

In-Business Offer In Compromise

  • July 27th, 2010
  • David Greene
  • Comments Off on In-Business Offer In Compromise

In general, Offers in Compromise are not encouraged or accepted for on-going businesses.  The tax debt arises from unpaid payroll taxes and/or unpaid corporate income taxes.  If a business is closing or has just closed, the IRS will consider an Offer in

 

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