Subsidiary’s employment tax liability cannot be collected from the parent corporation [Chief Counsel Advice 200913052]:
The IRS Office of Chief Council has expressed its opinion in a new Chief Council Advice (CCA) that the employment tax liability of a subsidiary corporation in a consolidated group cannot be collected from the parent corporation.
A “subsidiary” [...]

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IRS announces settlement offer for those that voluntarily disclose unreported offshore income

Mike Habib, EA Tax Relief & Tax Resolution Services
IRS Commissioner Doug Shulman has announced what is in effect a settlement offer for those that voluntarily and timely disclose unreported offshore income. Those meeting the terms of the offer will have to pay back-taxes [...]

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IRS wage garnishment levy and IRS bank levy tax relief
Collecting tax revenue in the face of recession has been – and will continue to be – a challenge for the IRS. There is an increase in the number of taxpayers unable to pay their back taxes due to loss of main income and other such [...]

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Solve Your Payroll Tax Problems 940 / 941
It’s fairly common for businesses – no matter what size – to struggle with some sort of payroll tax issue or another. Even companies that use good payroll software to sort out their entire payroll related taxes are still prone to errors. The IRS implements strict guidelines when [...]

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How small businesses can use the new longer NOL carryback to achieve maximum tax savings
Mike Habib, EA Tax Relief & Tax Problem Resolution
The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial changes for businesses. A [...]

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IRS Tax Penalties in Detail
Mike Habib, EA Tax Relief & Tax Problem Resolution
The Internal Revenue Code imposes many different kinds of penalties, ranging from civil fines to imprisonment for criminal tax evasion.
If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You [...]

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Summary of IRS tax penalty rules
Mike Habib, EA Tax Relief & Tax Problem Resolution
Taxpayers who do not file their tax return and pay their tax by the due date may have to pay a penalty. Here are seven things you should know about failure-to-file and failure-to-pay penalties.

The failure-to-file [...]

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IRS giving relief to some Madoff investors
By MARCY GORDON, AP Business Writer
WASHINGTON – The Internal Revenue Service issued guidelines Tuesday that will allow tax relief and refunds for some Bernard Madoff victims who were levied for investment earnings that turned out to be nonexistent.
IRS Commissioner Douglas Shulman told Congress the guidelines are for taxpayers [...]

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What are your chances for being audited? IRS’s 2008 data book provides some clues IR 2009-22
Mike Habib, EA Tax Relief & Tax Problem Resolution

IRS has issued its annual data book, which provides statistical data on its fiscal year (FY) 2008 activities. As this article explains, the data book provides valuable information about how many [...]

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Pasadena, CA March 13, 2009 – The current recession offers the best opportunity for individuals and businesses to address their tax issues and effectuate a tax settlement with the IRS. The Internal Revenue Service has announced its willingness to resolve and settle delinquent tax accounts; this will help those taxpayers who’ve been struggling for years [...]

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Get your CA FTB withheld tax refund today by contacting Mike Habib, EA at 1-877-78-TAXES (1-877-788-2937)
CA Tax Rates
According to the California State Franchise Tax Board (FTB), partnerships that are not based in California should file withholding tax on the sale of real estate in the state. The CA tax rate is at 3 1/3 [...]

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TIGTA audits effectiveness of the Federal Payment Levy Program [Audit Report No. 2009-40-031]:

Mike Habib, EA Tax Relief & Tax Problem Resolution

An IRS program to collect delinquent taxes through the use of levies needs some changes in order to reduce taxpayer burden, the Treasury Inspector General for Tax Administration (TIGTA) said in [...]

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Tax Relief Services
Filing tax returns is a necessary hassle, and everyone – even prudent individuals – are prone to errors. Tax delinquency is becoming a common problem as the harsh economy renders more people incapable of paying their taxes for various reasons.
Luckily, resolving delinquent tax liabilities need not be traumatic. If you’re one of [...]

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Homeowners whose debt is forgiven under Treasury’s “Making Home Affordable” initiative may be entitled to tax relief

Relief for Responsible Homeowners: Treasury Announces Requirements for the Making Home Affordable
Mike Habib, EA Tax Relief & Tax Problem Resolution
On Mar. 4, Treasury release the first details on two programs designed to offer mortgage relief to struggling [...]

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Fifth Circuit finds tax-exempt hospital’s chairman liable for trust fund penalty

Verret v. U.S., (CA 5 2/26/2009) 103 AFTR 2d ¶2009-576
Mike Habib, EA Tax Relief & Tax Problem Resolution

In an unpublished per curiam decision, the Court of Appeals for the Fifth Circuit has affirmed a district court’s finding that the chairman of the board [...]

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Licensed real estate agent’s activities count for PAL qualifying real estate professionals’ exception

Agarwal, TC Summary Opinion 2009-29
Mike Habib, EA Tax Relief & Tax Problem Resolution

In a Summary Opinion, the Tax Court has held that a licensed real estate agent’s activities counted for purposes of the Code Sec. 469 passive loss exception for qualifying real [...]

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IRS has a check for you

Mike Habib, EA Tax Relief & Tax Problem Resolution

IR-2009-16, March 3, 2009

WASHINGTON — Unclaimed refunds totaling approximately $1.3 billion are awaiting over a million people who did not file a federal income tax return for 2005, the Internal Revenue Service announced today. However, to collect the money, [...]

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GAO report says noncompliance with 1099-Misc reporting requirements contributes to the tax gap [GAO-09-238]:

Mike Habib, EA Tax Relief & Tax Problem Resolution

A “significant problem” may exist regarding the extent to which third party payers fail to submit required Form 1099-MISC information returns, the Government Accountability Office (GAO) said in a report [...]

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President’s budget proposal includes funds to improve IRS:

Mike Habib, EA Tax Relief & Tax Problem Resolution

President Obama’s fiscal year 2010 budget proposal, totaling $3.6 trillion, includes funding “for a robust portfolio of IRS international tax compliance initiatives,” according to budget documents released on Feb. 26.

The new administration also wants “to improve the quality [...]

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How individuals are affected by tax changes in the American Recovery and Reinvestment Act of 2009
Mike Habib, EA Tax Relief & Tax Problem Resolution

The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial [...]

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