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reach age 59 1/2, you are assessed a penalty for early withdrawal in addition to having to pay income tax on the money withdrawn.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
AMNESTY PERIOD FOR ILLEGAL OFFSHORE ACCOUNTS
- March 15th, 2011
- David Greene
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An illegal offshore account is a bank account in a foreign country in which an American citizen places money that has not been taxed and he does not report that the account exists on his tax return. Several years ago the IRS began a voluntary disclosure program that allowed taxpayers to disclose these
Taxpayer Advocate is Overwhelmed!
- March 10th, 2011
- David Greene
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Faced with an historic deficit, the federal government has taken an aggressive stance on tax collection. It’s clear every day when you read the news: more money allocated to enforcement, more audits and criminal charges against celebrities as well as neighbors. But a new study from the Treasury Inspector General for Tax Administration found this aggressive enforcement has come with an unwelcome, unfair side effect.
Representing Clients Who Live Out Of State
- March 1st, 2011
- David Greene
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Many potential clients want to know if I can help them solve their IRS problem even though they live in another state The answer is “yes.” The IRS is a federal agency and I can represent anyone who is subject to paying federal taxes, no matter where that person lives. When I talk with an IRS revenue