Can the IRS use private debt collectors to collect delinquent taxes?
- March 9th, 2016
- David Greene
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Yes, the IRS has begun that practice again, but only if certain criteria are met. If you remember, several years ago the IRS used private debt collectors on a wide variety of cases. They eventually stopped the practice due to…
Does a divorced person still owe the taxes generated in a previous marriage?
- March 3rd, 2016
- David Greene
- Comments Off on Does a divorced person still owe the taxes generated in a previous marriage?
I have been asked this question many times before. The general answer is that he owes all of the taxes because he signed the return. For a joint return the signers are jointly and severally liable for the tax. This…
What is the status of tax credits for tax year 2015?
- March 1st, 2016
- David Greene
- Comments Off on What is the status of tax credits for tax year 2015?
Will any of the tax credits we had in tax year 2014 still be available for tax year 2015? Yes, I’m happy to say that the Protecting Americans from Tax Hikes (PATH) Act of 2015 preserved many of the consumer…
What exactly is the Trust Fund Penalty?
- February 23rd, 2016
- David Greene
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First let me clarify that the Trust Fund Penalty is not really a penalty added to tax owed but is a portion of the payroll taxes owed by a corporation. The Trust Fund Penalty only applies to corporations, not to…
How long does the Offer in Compromise process take?
- February 9th, 2016
- David Greene
- Comments Off on How long does the Offer in Compromise process take?
Let me make one thing clear at the outset, dealing with the IRS is not like dealing with your neighbor down the street or a local business. A submitted Offer will not be resolved in a matter of a few…
When can a business deduct gifts to Charities?
- February 5th, 2016
- David Greene
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Gifts to charities by a business are not alweays deductible, but in some cases they are. The IRS Chief Counsel recently issued an Advice Ruling in which he said that when a business conducts a promotion where it advertises that…
Are consumer tax return preparation programs right for everyone?
- February 2nd, 2016
- David Greene
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The answer depends on the complexity of your tax situation. If you have only W-2 income and claim the standard deduction, you can probably prepare your own tax return or the available programs would be fine. However, if you claim…
How to fight IRS denial of your Earned Income Credit and exemptions.
- January 26th, 2016
- David Greene
- Comments Off on How to fight IRS denial of your Earned Income Credit and exemptions.
Many people find their Earned Income creit and/or claim for exemptions for relatives denied by the IRS each year. This usually arises in the context of recently separated or divorced parents. Both will claim the exemption and credit and the…
When can the 10% early withdrawal penalty for IRAs be avoided?
- January 21st, 2016
- David Greene
- Comments Off on When can the 10% early withdrawal penalty for IRAs be avoided?
Money can be withdrawn from an IRA at any time for any reason, but if it is withdrawn before the owner reaches 59 ½ a 10% penalty will generally be imposed. However, there are certain circumstances where the 10% penalty…
Ever hear taxes are illegal? Don’t buy it and stop filing or face criminal charges!
- January 20th, 2016
- David Greene
- Comments Off on Ever hear taxes are illegal? Don’t buy it and stop filing or face criminal charges!
This is an area that the IRS pursues very vigorously, so there are many people who try this and get caught. These people and groups generally fall into two categories: the promoters and the victims. The promoters are willful violators…