Once clients get back into compliance, the next goal is staying there. After years of stress and uncertainty, keeping filings current requires understanding your responsibilities and what the IRS expects going forward, including staying aligned with the IRS compliance timeline. After your missing years are filed, the IRS updates your account. From there you can […]
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Kwong v. United States: Can You Get an IRS Refund for COVID-19 Penalties?
The federal case Kwong v. United States has been seen as one of the most impactful tax rulings tied to the COVID-19 pandemic for individuals, businesses, and non-profits. Decided by the U.S. Court of Federal Claims, this tax case addresses whether taxpayers may be entitled to obtain refunds for penalties and interest that were assessed […]
What Is the IRS Substance Over Form Doctrine?
TL;DR Substance over form is both a principle and a doctrine. As an accounting principle, it is designed to ensure that an entity’s financial statements provide an accurate and complete overview of its events and transactions. These statements measure and report the economic impact of a transaction instead of its legal form, which could conceivably […]
What Is an IRS Revenue Officer?
TL;DR Imagine receiving an unexpected visit from an IRS Revenue Officer at your home or business. It’s a situation that can be overwhelming and intimidating. But fear not! In this comprehensive guide, we’ll explore the world of Revenue Officers and equip you with the knowledge and tools to navigate these encounters. Prepare to dive deep […]
Can You Go to Jail for Not Filing Taxes?
TL;DR Not filing is more serious than many people think when it comes to taxes. If the IRS believes that you have not filed in a deliberate attempt to commit tax evasion, you can face criminal charges and even jail time. At Paladini Law, we help people across New Jersey and the United States understand […]
What If You Miss an Installment Agreement Payment?
TL;DR Setting up an installment agreement with the IRS is one of the quickest, most effective ways to stay in good standing and get your balance paid off over time. However, sometimes, you might miss a payment and fear your agreement will be canceled or the IRS will come after you. If you’ve missed a […]
Are Offshore Accounts Legal? How Do They Affect My Taxes?
TL;DR On April 3, 2016, the German newspaper Süddeutsche Zeitung published the ‘Panama Papers,’ which were confidential documents belonging to Panama-based law firm Mossack Fonseca. Among other things, the papers exposed over 214,000 tax havens for politicians, celebrities, and current or former world leaders. While most of the documents involved offshore business entities that were […]
Do I Need A Tax ID Number For My Business?
TL;DR Thanks to the gig economy, a growing number of people are inspired to take control of their financial future by starting their own business. One of the first things they ask themselves is, “Do I need a tax ID number for my business?” In most cases, the answer to that question is yes. But […]
IRS Tax Resolution Services: Helping with Federal Tax Problems
TL;DR Are you dealing with tax issues that are causing you sleepless nights? Do you feel overwhelmed by the complexity of your tax situation? It may be time to consider finding tax resolution solutions with the help of a qualified tax resolution attorney. In this article, we will take a closer look at tax resolution […]
How Does The IRS Prove Tax Fraud or Tax Evasion?
TL;DR The IRS proves tax fraud or evasion by showing underreported taxes, a tax deficiency, and willful intent to evade taxes Common red flags include unreported income, false deductions, and personal expenses claimed as business costs When records are missing, the IRS may reconstruct income using spending patterns, net worth increases, or business markups Defenses […]
Owe Back Taxes? Everything You Need to Know
TL;DR Back taxes can result from insufficient withholding, IRS audits, or failing to file returns, often leading to penalties and interest The IRS offers resolution options like installment agreements and Offers in Compromise to reduce or manage tax debt You may also qualify for currently not collectible status if you cannot afford payments If ignored, […]
What Triggers a New Jersey Residency Audit?
TL;DR New Jersey residency audits determine if you should be taxed as a resident on all worldwide income Residency depends on domicile, permanent home, and time spent in the state (183+ days rule) You can still be taxed as a statutory resident even if you live elsewhere Common triggers include filing as a nonresident while […]
What Happens with Cash Transactions Over $10k?
TL;DR If you run a business that handles larger cash transactions, you probably know that federal law requires you to report cash payments of more than $10,000 by completing a Form 8300, which is jointly issued by the IRS and the Financial Crimes Enforcement Network. This form, which requires the payor’s name, address, and tax […]
IRS Fresh Start Program: Myth vs. Fact
TL;DR If you’ve been dealing with overwhelming tax debt, you’ve probably seen or heard ads for the IRS Fresh Start program. The ads likely promise that the program will provide options to pay down or settle the tax debt. But what’s the truth about the IRS Fresh Start process? Keep reading to find out. Understanding […]
What Happens If You Owe the IRS More Than 25,000 Dollars?
What happens if you owe the IRS more than 25,000 dollars? Owing more than 25,000 dollars often triggers additional IRS scrutiny. In some cases, it also leads to the filing of a federal tax lien. At Paladini Law, we help clients understand what liens mean, how long they last, and how to work toward resolution. […]
Who Qualifies for IRS Forgiveness?
You’ve probably heard about IRS tax forgiveness – this phrase is used heavily in tax relief advertisements, and it’s an enticing idea for people with tax debt. So, is it real? Is it possible? Yes, the IRS does forgive some taxes – but only if you qualify. To help you out, this post explains who […]
Will the IRS Find Out I Haven’t Filed Taxes?
Whether you haven’t filed your taxes on purpose or time just got the better of you and you forgot, don’t assume that the IRS hasn’t noticed. Yes, the IRS has to keep track of over 150 million tax returns each year, but it is very difficult to slip through the cracks. While you may think […]
What Is Tax Negligence?
When clients call Paladini Law for the first time, they often have questions about what negligence means, who can represent them, and what they should bring to a first meeting. This guide answers those questions. Tax negligence refers to careless or reckless handling of your tax obligations, such as: Negligence can result in substantial accuracy […]
What Does the IRS Know About Your Old Unfiled Taxes?
If you haven’t filed your taxes in years, you aren’t alone. More importantly, you aren’t out of options. Thousands of taxpayers fall behind each year, for reasons ranging from life upheavals that put them in survival mode to confusion over tax filing requirements to simply forgetting to file. If you don’t file and the IRS […]
How to File an IRS Collection Due Process Hearing
Getting behind on paying your taxes is a common issue in the U.S., and there are many reasons for not paying—you could have missed a deadline without knowing it, you may be experiencing financial hardship, or you could disagree with the amount the IRS assessed against you. But if you continue to avoid payment after […]
