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 […]
Federal Income Taxes
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 […]
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 […]
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 […]
IRS Unlimited Statute of Limitations on Unfiled Returns
TL;DR Dealing with unfiled tax returns can be daunting. Many taxpayers wonder how long the IRS can pursue them or whether there’s a time limit after which tax issues expire. This article breaks down the rules in plain language, focusing on IRS deadlines and statutes of limitations, and explains what happens when you haven’t filed […]
IRS Options for Tax Debt Under $50,000: Payment Plans & More
TL;DR If you’re struggling with IRS tax debt under $50,000, you’re not alone—and the good news is that the IRS offers several tax debt resolution options to help. Owing a large tax balance can be stressful, but the IRS offers payment plans and other relief programs designed for individuals in your situation. In this article, […]
Do Tax Relief Companies Really Work? How to Avoid Rip-Offs
TL;DR Few financial issues are as stressful as unpaid taxes. The IRS can seize your assets, revoke your passport, and leave you financially destitute. That’s why the tax relief industry has grown so rapidly over the last 30 to 40 years—promises to handle state and federal tax issues sell, whether or not a company can […]
The IRS 10-Year Collection Rule: Taxpayer Hope or Hype?
TL;DR What is the IRS 10-year collection rule, and how could it impact your tax debt? Officially called the Collection Statute Expiration Date (“CSED”), this critical tax law generally limits tax collection efforts to 10 years from the assessment date. But certain events can pause or extend this period. Let’s dive in. The IRS’s Time […]
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 […]
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 […]
Do You Have to File Delinquent Returns for All Missing Years?
People fail to file their personal or business tax returns on time for a variety of reasons. You may not have the money when your return comes due, or you could be struggling with a prolonged and debilitating health condition that leaves you unable to cope with daily life, let alone your tax obligations. Whatever […]
Why Do the Self-Employed Have Higher Audit Risks?
Yes, it’s true. If you forgo traditional employment in favor of the American Dream, you have a higher chance of being noticed by Uncle Sam- and not in a good way. The Internal Revenue Service has many agendas, but a top one is collecting unpaid taxes from self-employed people. The IRS believes that this group […]
How Will A Government Shutdown Affect My NJ Tax Refund?
From December 22, 2018, until January 25, 2019, the U.S. federal government was partially shut down. Now that it’s ended, the leading question for many New Jersey residents seems to be “When will I get my tax refund?” The Internal Revenue Service (IRS) was among the government agencies impacted by the closure. It retained approximately […]
Every State’s Most Googled Tax Topics
Tax law is by far one of the most complex facets of US law. In fact, the US tax code runs over 2,000 pages in length. To make matters more complicated, laws and regulations are constantly changing year over year and state tax laws vary greatly from state to state. Failing to properly understand tax […]
How Many Years Can an IRS Audit Go Back?
If you fail to file your tax returns or the Internal Revenue Service (IRS) notes any mistakes or irregularities on the returns that you do submit, it may initiate an audit, which is an in-depth examination of your financial records and transactions. Although people dread the idea of an IRS audit, they don’t happen often. […]
What Is the Trust Fund Recovery Penalty (TFRP) & How Can You Settle It?
Stop me if this sounds familiar. Your business is experiencing a temporary cash crunch. You have some accounts receivable, or a big project on the way, but for now, you can barely pay your employees and keep the lights on. So you “borrow” from your payroll taxes aka your employment taxes payments to continue paying […]
Employee Vs. Independent Contractor & Tax Misclassification
The Internal Revenue Service (IRS) once estimated that millions of workers were victims of tax misclassification, being defined as independent contractors when the terms and conditions of their work actually defined them as employees. While some employers do so in genuine error, others misclassify their workforce deliberately for reasons like the following: They are not […]
Can NJ Businesses Benefit from the IRS Offer In Compromise (OIC) Program?
If your company is struggling with tax debt, the good news is that it is possible to make an arrangement with the IRS to reduce what you owe and establish a sustainable repayment plan, using the IRS Offer in Compromise (OIC) program. When economic times are tough, business owners can reach the point where they […]
