The Correct “Process” for Correcting an employment Tax Return
Mike Habib, EA
Even the best of us can make a mistake on a quarterly Form 941 (or on a Form W-2, which often creates an error on the 941). The IRS has introduced a new form for correcting the dollar amounts on a previously filed 941: Form [...]

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Interest expense deduction of foreign corporations
Mike Habib, EA
TD-9465, provides final regulations under section 882(c) of the Internal Revenue Code (Code) concerning the determination of the interest expense deduction of foreign corporations engaged in a trade or business within the United States. These final regulations conform the interest expense rules to recent U.S. Income [...]

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IRS Issues Guidance on 2009 Required Minimum Distribution Waiver
Mike Habib, EA
The Internal Revenue Service today provided guidance for retirement plan administrators, plan participants and retirees regarding recent legislation affecting required minimum distributions. The Worker, Retiree, and Employer Recovery Act of 2008 waives required minimum distributions for 2009 from certain retirement plans.
Generally, a required minimum distribution [...]

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Cash IS Taxable
Law school grad turned call girl Cristina Warthen under house arrest after cheating the Government
Source: NY Daily News
Law school comes in handy when trying to evade taxes as a call girl, or at least that’s what one Stanford graduate seemed to think.
Cristina Warthen – a 2001 Stanford Law School graduate – was sentenced [...]

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Tax Relief Services for Union Members

We represent Union members before the IRS and their respective States in regards to tax matters such as back taxes, tax problem resolution, stopping wage garnishments, tax relief services, and IRS tax audits.
If you are a Union member of any of the following organizations and currently experiencing a tax [...]

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IRS to Audit 6,000 Companies to Test Employment Tax Compliance
Source: Bloomberg
By Ryan J. Donmoyer
Sept. 18 (Bloomberg) — The Internal Revenue Service will audit 6,000 U.S. companies to determine whether they pay all their required employment taxes to fund Social Security and Medicare benefits.
The IRS said the audits will provide data for its first statistical [...]

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Thinking of hiring a $5000 tax attorney?
 HOLD IT.
 
If you do not qualify for an IRS Offer in Compromise, an attorney CANNOT help you.
 
That’s $5000 down the drain.
Many of the unnamed tax attorneys that advertise are nothing but fast-talking salesmen trying to get your money without really helping you solve your tax problem. They tend [...]

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Back taxes shutters Jack in the Box
Source: Mercury-Register

A state tax dispute is behind the sudden Jack in the Box closures Thursday.
A press release issued this morning indicated that owner Abe Alizadeh, president of Kobra Properties, has temporarily closed the restaurants.
Alizadeh owns 70 Jacks in northern and central California, including ones in Chico, Paradise and [...]

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California – Corporate Income Tax: FTB Has Begun Contacting Return Nonfilers for 2007
The California Franchise Tax Board (FTB) has begun contacting more than 35,000 companies that did business in California in 2007, but failed to file a California corporation franchise or income tax return for that year. Businesses contacted by the FTB will have 30 [...]

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IRS Appeals mediation program
A new IRS revenue procedure updates Rev Proc 2002-44, 2002-2 CB 10, which formally established a mediation procedure for cases at the IRS Appeals administrative level. The new revenue procedure expands and clarifies the types of cases that may be mediated by Appeals. Generally, the program is available for cases in [...]

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IRS Back Taxes Help for Financially Distressed Taxpayers
IRS Back Taxes – IRS Tax Tip
If you are facing financial difficulties and struggling to meet your tax obligations the IRS can help. As the 2009 tax filing season begins, in addition to new credits, deductions and exclusions, the IRS is taking steps to help people who owe [...]

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What is Self-Employment Tax?
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.
You figure SE tax yourself using Schedule SE (Form 1040). Social security and Medicare taxes of most [...]

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Employee vs. Independent Contractor – Ten Tips for Business Owners
IRS Tax Tip
If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business [...]

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California – Multiple Taxes: Wildfire Relief Extended to Taxpayers in Three More Counties
For taxes and fees they each administer, the California State Board of Equalization (BOE) and the Employment Development Department (EDD) have extended relief to qualifying taxpayers and fee payers who have been affected by wildfires in the counties of Los Angeles, Monterey, and [...]

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CEO of Long Distance Phone Service Reseller Personally Liable for Unremitted Taxes (Brinskele, FedCl)
An individual who was the chairman, president and CEO (”the CEO”) of a company that resold long distance telephone service had to pay the IRS an assessed penalty plus interest. The term “markup,” in the context of the litigation, referred to the [...]

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Clarification of the “Cash for Clunkers” Tax Rules
September 2009 – The federal “Cash for Clunkers” program has generated a lot of interest among consumers and we have received many inquires about the tax implications of this popular program.  As a result, we are clarifying state tax rules for people who trade in their used vehicle [...]

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IRS May Mine Mortgage Data To Flush Out Tax Cheats
Source: Dow Jones
WASHINGTON -(Dow Jones)- The Internal Revenue Service might scrutinize mortgage interest data more closely to help catch tax cheats, after prompting from an IRS auditor.
The tax collector said it will study whether it should make greater use of mortgage interest data provided to the [...]

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