What Happens to Payroll Tax Debt When a Business Closes? Closing a business does not automatically wipe out its payroll tax debts. The IRS will still expect those taxes to be paid, and it has tools to hold individuals personally responsible for the unpaid amounts. Payroll taxes (employment taxes withheld from employee wages) are considered […]
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United States Tax Court: A Strategic Guide for Taxpayers and Business Owners
Introduction The United States Tax Court exists to give taxpayers and business owners a fair forum to challenge IRS determinations. Unlike most courts, it allows you to dispute a tax deficiency before paying. That unique feature makes it critical for those facing large assessments, audits, or IRS collection efforts. This article explains how the Tax […]
IRS Form 9297: What It Means, Why It Matters, and How To Respond The Right Way
You opened the mail and found IRS Form 9297, the Summary of Taxpayer Contact. That single page means an IRS revenue officer has been personally assigned to your case. It’s no longer just the Automated Collection System sending you balance-due letters. A collection employee—an individual revenue officer—is now contacting you directly to collect payment on […]
When Do I Need to Hire a Tax Attorney?
Tax issues can be extremely costly, with outstanding tax debt and building interest and penalties. In many cases, the last thing you want to think about is spending more money to hire someone to assist you, but some situations warrant working with a professional. A tax attorney can help you understand tax laws, your options […]
Tax Court Takeaways: Even Tyga Needs To Make Estimated Tax Payments to Get an Installment Agreement
Background Michael R. Stevenson, aka Tyga, recently sought review in Tax Court of an Intent to Levy Notice issued by the IRS. Tyga timely filed his 2019 federal income tax return but failed to pay the reported liability of $2,166,469. In an effort to collect this liability, the IRS issued a notice of intent to […]
Understanding ERTC Audits and How to Prepare for Them
The Employee Retention Tax Credit (ERTC) is a federal program aimed at helping eligible businesses keep their employees on payroll during the COVID-19 pandemic. While the program has been immensely helpful for many organizations, it has also drawn the attention of the IRS. Unfortunately, many less-than-ethical companies sprung up overnight to take advantage of ERC […]
From Distressed Properties to Tax Distress: Uncovering the Lavish Lifestyle of a Real Estate Mogul’s Tax Fraud
Unmasking the Master of Distressed Properties Robert Anthony Di Giorgio, Sr., was a real estate guru who turned distressed properties into goldmines. But this high-rolling, jet-setting tycoon wasn’t just hiding renovation secrets – he was also hiding a fortune from the taxman. Between 2005 and 2007, Di Giorgio failed to report a substantial portion of […]
Charles Lin & Amy Lin
https://www.courtlistener.com/opinion/9385539/charles-lin-amy-lin/ Background Charles Lin and Amy Lin, a retired couple residing in Virginia, filed their 2019 federal income tax return. On their return, they reported $4,010 in dividends, $50,629 in taxable retirement benefits, and a rental real estate loss of $8,189. The rental loss was from a room that the couple rented out to a […]
Requesting a Refund or Abatement from the IRS: When Can You Use Form 843?
If you owe money to the Internal Revenue Service (IRS), you are probably looking for any possible way to resolve the matter or reduce the amount that you owe. In some situations, you may be able to request a refund or abatement of your tax debt. This can be done by filing a Form 843. […]
Can’t Pay Your Taxes in Full? Consider Filing IRS Form 9465
For many American taxpayers, April 15 is the worst day of the year. Beyond the drudgery of filling out forms and assembling documentation, these individuals know that they will have to write a big check to the Internal Revenue Service (IRS). So what happens if you owe more in taxes than you can pay on […]
IRS Tax Debt Forgiveness
It can happen to anyone. Getting behind on your taxes is a far too common occurrence. Yet tax debt can often be overwhelming, threatening your financial security and making it hard to keep up with your other bills. If you owe money to the Internal Revenue Service (IRS), there are options. In some situations, the […]
FBAR Penalties
Each year, individuals in the United States who hold foreign financial accounts are required to file a Report of Foreign Bank and Financial Accounts (FBAR). A failure to file when required to do so can lead to serious penalties. This may include substantial monetary fines as well as possible criminal charges. FBAR penalties are among […]
Offer in Compromise Pre-Qualifier Tool
Tax problems can happen to almost anyone. Perhaps you got behind on your estimated payments as a self-employed individual, or you withheld too little from your paycheck, and now owe thousands of dollars to the IRS. Whatever the case may be, if you are having trouble paying off your tax debt, you may be able […]
IRS Notice LT-11
Paycheck Protection Program
Paycheck Protection Program If your business is in immediate need of cash, the federal government has rolled out several different programs to assist businesses, one of which is the Paycheck Protection Program. The Paycheck Protection Program (“PPP”) is a federally guaranteed loan to businesses to pay their payroll and certain other operating expenses. PPP has […]
COVID-19 Tax Relief: Everything You Need to Know
The IRS and state governments have announced various COVID-19 tax relief programs due to the coronavirus. We’ll do our best to keep this page updated with the most up to date information. The IRS’s COVID-19 Tax Relief Announcements The IRS officially extended the deadline to file and pay your 2019 taxes until July 15, 2020, […]
How Long Does an IRS Audit Typically Take?
The IRS has three years from the due date of a return or when you actually file the return to audit you. Most audits are completed in under a year, but they can sometimes take longer. Bear in mind that three years is the limit under normal circumstances. If you excluded more than 25% of […]
The Four Types Of Tax Audits Explained
Although everyone dreads the prospect of a tax audit, they’re a rare occurrence. In 2018, the IRS audited an estimated 1 million returns, which is only 0.5% of all returns filed the year before. Situations that can trigger a tax audit include: Miscalculations on any of your personal or business tax return Claiming a high […]
Estimated Tax Payment Penalties- How It Works
Last March, attorney Michael Avenatti, who is best remembered for his representation of actress Stormy Daniels, proved that failure to make estimated tax payments is a bad idea. In addition to being charged with providing false tax returns for 2011-13 in order to receive $4.1 million in loans, the U.S. Attorney’s Office in Los Angeles […]
Understanding the IRS Collections Process
Like most creditors, the IRS will act on its right to collect taxes that you owe. In the beginning, its collection process is similar to what you may have encountered with an overdue credit card or utility bill: you get a Notice and Demand for Payment (also known as a CP501 notice) in the mail […]
