Tax Tips For Newly Married Couples
- November 8th, 2011
- David Greene
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Generally a married person has two options for filing tax returns – joint or marred filing separately. If the taxpayer files married filing separate and her spouse owes delinquent taxes, the IRS cannot seize any
Mixing Corporate and Personal Liabilities in an Offer in Compromise
- November 1st, 2011
- David Greene
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In my last blog I discuzssed this scenario for the situation where the company is unincorporated. This week we look at a small corporation where one or two people own all the stock. This analysis will usually also apply to an LLC or LLP. First, if the corporation is still in business, two separate Offers will need to be filed. This is
Will one Offer in Compromise suffice if a business owner owes both income and payroll taxes?
- October 25th, 2011
- David Greene
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If the company is a sole proprietorship (i.e., not incorporated) or a Partnership the taxpayer may be able to choose whether to file one or two Offers if he owes both kinds of taxes. It does not matter whether the company is out of business or still in business. It is assumed that the company reports the company income on a Schedule “C” under the taxpayer’s Social Security number on his 1040 form. If so the taxpayer can file
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.