Archive for Blog

What Is The Purpose Of The Taxpayer Advocate

  • October 26th, 2010
  • David Greene
  • Comments Off on What Is The Purpose Of The Taxpayer Advocate

Following the congressional hearings on the IRS, which found many problems in how the IRS sometimes mistreats taxpayers, the Taxpayer Advocate Service was formed. The Taxpayer Advocate’s office is a special branch of the IRS that was formed to investigate any problems reported by taxpayers and help to resolve those problems.

 

 

What is an Innocent Spouse?

  • October 19th, 2010
  • David Greene
  • Comments Off on What is an Innocent Spouse?

The Innocent Spouse appeal is one in which one spouse who has been assessed delinquent taxes claims that, although she signed a joint return, she should not be held liable for the taxes because she did not know about the money that gave rise to the delinquent taxes.

 

 

Can a Former Partner be responsible for the Trust Fund Penalty?

  • October 12th, 2010
  • David Greene
  • Comments Off on Can a Former Partner be responsible for the Trust Fund Penalty?

The Trust Fund Penalty is a method the IRS uses to shift liability for non-payment of payroll taxes from a corporation or partnership to an individual.  The Trust Fund portion of the payroll taxes is that portion withheld from the employees’ paychecks and not forwarded to the IRS.   It does not include the corporation’s matching FICA.

 

 

Can the IRS seize property in another’s name?

  • October 6th, 2010
  • David Greene
  • Comments Off on Can the IRS seize property in another’s name?

A well-known law called the Statute of Frauds states that when you transfer property after you have notice of a potential lawsuit or debt, the Court can reverse the transfer as being done to avoid the debt.  This is true when the transfer was for less than fair market value.  This most often happens when a potentially

 

 

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.

 

 

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