Are Delinquent Taxes Dischargeable in Bankruptcy?
- David Greene
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The current bankruptcy law ushered in sweeping changes in how bankruptcies are handled and what can be discharged. It is a very restrictive law. As under the previous law, some taxes will be dischargeable and some will not. Perhaps the biggest restriction is that many people who would have qualified to file for
What is a Dissipated Asset
- David Greene
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When negotiating an Offer in Compromise with the IRS, they will often say that you have a dissipated asset and they add the value of that asset (usually cash) to the amount that you have offered. A Dissipated Asset occurs when (1) you have delinquent taxes and (2) you obtain a sum of money from any source and (3) you spend that money on something other than the delinquent taxes.
How to decide when a worker is an Independent Contractor or Employee
- David Greene
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Many small business owners like to save the hassle of withholding taxes from the paychecks of their workers, so they pay them their entire pay and issue 1099’s at the end of the year instead of W-2’s. Are there any rules that determine when one can do this, or can each business owner decide on his own?
The Importance of a Power of Attorney – Part 2
- David Greene
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This week I’ll discuss in more detail why a general durable Power of Attorney is, indeed, important. The word “durable” refers to the fact that a general durable POA is valid even when the grantor of the power cannot act on his own. The POA is usually granted to a spouse or adult child but it can be granted to anyone you trust to handle your affairs.
The importance of a Power of Attorney
- David Greene
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A durable Power of Attorney (POA) is a document giving legal authorization for someone else to act on one’s behalf. This power is usually actually used only when and if the grantor of the POA is incapacitated, but it can be useful in many other ways also. It can save time and money for the person granting the POA as well as a lot of heartache for the loved ones of the grantor if that person is incapacitated.
How Are Prizes One WIns Taxed?
- David Greene
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Many people win prizes in various contests ranging from a free dinner to thousands of dollars (or millions in the lottery). Most people think this is free money to them because they did not “earn” it.
Mediating IRS Disputes
- David Greene
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Last week I stated that the IRS will mediate certain disputes prior to forcing the taxpayer to file suit in federal court. These usually arise in an appeals setting.
Is mediation available to help resolve IRS problems?
- 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
- 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
- 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.