When is Failure to File or Pay Taxes a Crime
- October 17th, 2011
- David Greene
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There is no question about the fact that one can face criminal charges and spend time in federal prison for failure to file and/or pay taxes. There is “equality of opportunity” when it comes to this area. The IRS does not care if the violator is an individual, business man, politician, “famous person” or anyone else. They will go after anyone they feel has violated the law.
Will the IRS release a Levy based on economic hardship?
- October 11th, 2011
- David Greene
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Usually, in order to release a levy one must enter into an Installment Agreement or propose an Offer in Compromise. One must also be current with all tax filings since 2004. Without the proposed solution and
What events extend the Statute of Limitations for collecting tax?
- October 5th, 2011
- David Greene
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The IRS has 10 years to collect your income tax, but that time does not start running until you file the tax return and it is assessed (meaning entered into their computers). If you do not file your return until 4 years after it is due, then the statute will not begin running until 4 years later also. However, several events will temporarily stop the time from running and thus make the time to collect longer than 10 years
Can a non-custodial parent claim the tax exemption for a child?
- September 27th, 2011
- David Greene
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When two parties with children are divorced, the custodial parent usually claims the children. However, this is not always the case and the non-custodial parent may claim the children either by Court Order or by agreement of the parties. This usually occurs when the non-custodial parent is better able to take advantage of the tax savings associated with the dependent exemption.
When is a business owner liable for the Trust Fund Penalty if he uses a payroll company?
- September 20th, 2011
- David Greene
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The Trust Fund Penalty is charged against an owner or other responsible party in a company who does not pay the company’s payroll taxes to the IRS. It consists of the portion of payroll taxes withheld from the employee’s paycheck. An employer that uses a payroll service provider (PSP) or Professional Employer
What tax records should be kept and for how long?
- September 13th, 2011
- David Greene
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If one is audited the IRS will not accept the taxpayer’s word as proof of expenses. They want to see backup documents. These backup documents should be kept for all items claimed as deductions on Schedule A or Schedule C, including receipts, invoices, mileage logs, etc. You should also keep proof of all income,
How Does the IRS Find Someone Who Has Moved?
- September 6th, 2011
- David Greene
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If a taxpayer owes taxes for previous years, the IRS will begin sending him notices about the delinquent taxes to his last known address as stated on his most recent tax return. What is the taxpayer moves to another city or state. Does he escape these taxes? Unfortunately, there is no question that the federal tax liability will follow the taxpayer wherever he moves.
What is an IRS Lien?
- August 23rd, 2011
- David Greene
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When the IRS assesses a tax against a taxpayer (income, payroll or other tax) a lien automatically arises by law to secure the payment of the tax. If the tax remains unpaid, the IRS will almost always record the lien at the Courthouse in which the taxpayer lives or owns property.
When can you file an Offer in Compromise based on Doubt as to Liability?
- August 18th, 2011
- David Greene
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If you are charged with delinquent taxes that you genuinely feel you do not owe, there is a process you can use to challenge the tax. It is the Offer in Compromise based on “Doubt As To Liability”. There is no filing fee for this Offer. As the name implies, you state to the IRS that you do not think you owe the tax. However, you
User Fee for an Installment Agreement
- August 9th, 2011
- David Greene
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If a taxpayer cannot pay his delinquent or current taxes in full or within 120 days, he can enter into a payment plan with the IRS to full-pay the tax over time. This is called an Installment Agreement. The IRS used to charge a user fee of $43.00 to set up the account for the Installment Agreement. However,