Is mediation available to help resolve IRS problems?
- May 24th, 2011
- David Greene
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The IRS will mediate certain cases and I will discuss some of those in my next blog. However, I first want to explain what mediation is and why it works in many cases. Mediation is simply a negotiation session between two parties with a neutral, trained mediator helping both parties to compromise in everyone’s best interest.
Form 1099 Reporting Requirements
- May 18th, 2011
- David Greene
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Up until last year, the requirements for a buyer reporting payments to a seller have always been that if you pay someone who is not a corporation, LLC or similar entity more than $600.00 in a year year, you must file a Form 1099 information reporting form with the IRS on that person. This is usually affects work done by small sole proprietor businesses. It is a way for the IRS to monitor how much money the individual makes.
What is the Effective Tax Administration Offer in Compromise
- May 11th, 2011
- David Greene
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There are three criteria under which an Offer In Compromise is considered. The first two are Doubt as to Collectability and Doubt as to Liability. The first is based on the claim that the taxpayer cannot pay the full amount owed in a reasonable time due to his economic circumstances. The second is used when the taxpayer claims that the tax charged is not owed.
Recovery of refund by non-liable (Injured) spouse
- May 3rd, 2011
- David Greene
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Before I answer the question, let me inform everyone that Tax Freedom Day arrived on April 12 this year. This is the day when you have earned enough to pay your federal, state and local taxes, i.e., we worked for the government until April 12.
Tax consequences of early withdrawal of retirement funds
- April 26th, 2011
- David Greene
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When you withdraw money from a 401-K plan or any retirement plan before you reach age 59 1/2, you are assessed a penalty for early withdrawal in addition to having to pay income tax on the money withdrawn. This creates a double tax liability for all early withdrawals. This is the primary reason you should never dip into your retirement plan early unless it is a dire emergency.
Criteria for calculating an Installment Agreement
- April 18th, 2011
- David Greene
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There are restrictions on the amount one can pay on an Installment Agreement. In other words, you cannot just pick an amount “out of the air” and require the IRS to accept it. Different rules apply depending on the amount of delinquent taxes you owe.
Can’t pay your income taxes? Still file!
- April 13th, 2011
- David Greene
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Even if you can’t pay the taxes on your current tax return, you should still file the return on time, if possible. What you do not want to do is ignore the tax due. If you cannot file the return on time, you should file an automatic extension of time to file. Please note that this is an extension to file the tax return, not an extension of time pay the tax. By filing this extension you will avoid several IRS
Offer in Compromise for a divorced couple
- April 6th, 2011
- David Greene
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In my last blog we looked at what usually happens when one ex-spouse is ordered to pay all of the delinquent taxes and files an Offer in Compromise. Today I’m going to propose another solution to the problem that will not only relieve the liability of the spouse that files an Offer in Compromise but also
Effect to ex-wife of ex-husband making an Offer in Compromise when liability was joint
- March 29th, 2011
- David Greene
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If a husband is ordered to pay all delinquent taxes by Family Court Order as part of a divorce and then makes an Offer in Compromise with the IRS to settle the debt for a portion of the total, is the wife still liable for the remainder? If the returns were filed jointly, then the answer is “yes.”
Can you face criminal charges for failing to pay payroll tax?
- March 22nd, 2011
- David Greene
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When a business owner who collects payroll taxes from her employees does not submit them to the IRS that person will have the trust fund penalty assessed against her. The Trust Fund Penalty is the amount of taxes withheld from the employee’s paycheck. Most trust fund cases are not criminal because