Today is the first day of the rest of your life. If things haven’t been going well lately, get a fresh start with a fresh attitude. The best is yet to come! Michael Josephson, of Character Counts.
Tax debt settlement help – get reliable tax relief
If you find yourself unable to comprehend the complexities of paying [...]

• Comments Off

Southern California Tax Relief Services
IRS tax Relief, FTB tax Relief, BOE tax Relief, EDD tax relief
At Mike Habib, EA, a SoCal tax firm, we understand that being notified that your tax return is being challenged by the IRS or the FTB can be scary. When you are faced with an audit, or a collection action, [...]

• Comments Off

IRS Tax Levy – How to release federal tax liens and levies
Taxpayers have the right to appeal the IRS’ filing of a notice of a tax lien in the public record and petition for release. If filed in error, the IRS must release the lien and state that the lien was erroneous. The request for [...]

• Comments Off

Table 16.  Delinquent Collection Activities, Fiscal Years 2005-2008

[Money amounts are in thousands of dollars.]

Activity

2005

2006

2007

2008

(1)

(2)

(3)

(4)

Returns filed with additional tax due:

Total amount collected [1]

[r] 27,615,348   

[r] 29,172,915   

[r] 31,952,399   

28,465,648   

Taxpayer delinquent accounts (thousands):

Number in beginning inventory

5,981   

6,478   

7,074   

8,240   

Number of new accounts

5,870   

6,100   

7,146   

7,099   

Number of accounts closed

5,373   

5,504   

5,980   

6,107   

Ending inventory:

Number

6,478   

7,074    [...]

• Comments Off

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 [...]

• Comments Off

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 [...]

• Comments Off

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 [...]

• Comments Off

Widow entitled to equitable spousal relief for some years

Martinez, TC Memo 2008-165
Mike Habib, EA Tax Relief & Tax Problem Resolution

The Tax Court held that a widow was entitled to equitable spousal relief for two of four tax years even though she had knowledge of her and her husband’s tax liabilities, because she took [...]

• Comments Off

IRS not obligated to accept offer in compromise

Bennett, TC Memo 2008-251
Mike Habib, EA

The Tax Court held that the IRS did not abuse its discretion when it refused to accept the taxpayer’s settlement offer, which was higher than the amount it had calculated the taxpayer could pay. Instead the Service could place part [...]

• Comments Off

No More Tax Problems in 2009

Mike Habib, EA

Here is a New Year resolution you can’t afford to ignore… No more tax problems!! Yes, you can get rid of your tax problems in 2009.

You can solve your tax problems and get tax relief through our tax resolution services. You can finally get a [...]

• Comments Off

Taxpayer’s failure to timely file breached offer-in-compromise justified renewed collection action Trout, (2008) 131 TC No. 16

Mike Habib, EA
The Tax Court has concluded that IRS didn’t abuse its discretion in finding that a taxpayer had breached his offer-in-compromise (OIC) and deciding to proceed with its collection efforts where the OIC made timely filing [...]

• Comments Off

Capital contributions did not restore or increase shareholders’ tax bases in loans to S corporations Nathel, (2008) 131 TC No. 17
Mike Habib, EA
The Tax Court has held that taxpayers’ capital contributions to S corporations did not constitute income to the S corporations and that the contributions did not restore or increase their tax [...]

• Comments Off

A roadmap to disaster area tax relief in 2008 legislation
Mike Habib, EA

The 2008 calendar year has seen more than the usual share of natural disasters in the U.S., and legislation designed to provide tax relief to the victims. By and large, legislative relief has been granted on an ad-hoc basis, with an attempt [...]

• Comments Off

Appeals Court reverses ruling that denied taxpayer Section 530 Relief

Trucker tax relief, trucking tax relief, trucking tax problem resolution.
Peno Trucking, Inc. v. Commissioner, CA6, 102 AFTR 2d ¶ 2008-5360
Trucking Tax Help – Trucking Tax Relief – Trucker Tax Help
The U.S. Court of Appeals for the Sixth Circuit has affirmed a U.S. Tax Court [...]

• Comments Off

Mortgage debt relief extension, tax relief for community banks, and crackdown on some executive compensation in the 2008 Economic Stabilization Act

I am writing to provide details regarding three tax provisions in the Emergency Economic Stabilization Act of 2008: which was enacted Oct. 3, 2008. Those provisions are: (1) an extension for home mortgage debt [...]

• Comments Off

AMT relief in the 2008 Extenders Act

I am writing to provide details regarding three key provisions in the “Tax Extenders and Alternative Minimum Tax Relief Act of 2008” (the 2008 Extenders Act), which was enacted on Oct. 3, 2008. The provisions extend partial relief to individual taxpayers from the alternative minimum tax, or [...]

• Comments Off

Individual and business extenders and other relief provisions in the 2008 Extenders Act

The “Tax Extenders and Alternative Minimum Tax Relief Act of 2008” (the 2008 Extenders Act), which was enacted on Oct. 3, 2008, provides extensions for several popular tax breaks and the addition of several new relief provisions, including disaster area tax relief. [...]

• Comments Off

Once is enough as far as collection of the trust fund recovery penalty is concerned Chief Counsel Advice 200838027

The IRS has issued a new Chief Counsel Advice (CCA) on the trust fund recovery penalty. The IRS notes that the CCA may not be used or cited as precedent.
IRC §6672, imposes a penalty on [...]

• Comments Off

Leader of $181 million payroll tax scheme admits guilt [United States v. Amodeo, DC FL, Case No. 6:08-cr-176-Orl-28GJK
Frank Amodeo, the former head of Mirabilis Ventures Inc., has pleaded guilty to federal charges that he and his co-conspirators knowingly failed to remit payroll taxes to the IRS totaling between $172 million and $181 million. (The [...]

• Comments Off

TIGTA review finds small number of cases where IRS employees harassed taxpayers while attempting to collect taxes [Audit Report No. 2008-10-162]:
In 2007, there were five cases involving Fair Tax Collection Practices (FTCP) violations for which an IRS employee received administrative disciplinary action, according to a recent audit by the Treasury Inspector General [...]

• Comments Off

Texas Hurricane Ike Victims Qualify for IRS Disaster Relief

IR-2008-107, Sept. 18, 2008

WASHINGTON — Texas taxpayers who were adversely affected by Hurricane Ike qualify for tax relief from the Internal Revenue Service, including the postponement of tax filing and payment deadlines until Jan. 5, 2009.

Following the hurricane’s landfall on Saturday, Sept. 13, the [...]

• Comments Off

IRS explains how to collect from sole member of LLC law firm
Chief Counsel Advice 200836002

In Chief Counsel Advice (CCA), IRS has concluded that a levy served on a limited liability company (LLC) will attach to property or rights to property belonging to the LLC’s sole owner. He practiced law and received income from [...]

• Comments Off

LLC may receive continuous wage levy on owner

Chief Counsel Advice 200835030

A new IRS Chief Counsel Advice (CCA) says that a limited liability company (LLC) may be required to honor a continuous wage levy on salary and wage payments to its sole owner. [Note:  The CCA may not be used or cited as precedent.]
Facts. [...]

• Comments Off

Do you have back tax returns that are Unfiled? Are you missing the records and forms necessary to file your tax returns?
The IRS will not allow you to file an offer in compromise or get an installment agreement if you are not current on filing your back tax returns.
If you have a refund coming to you and you file more than 3 years past the due date, the IRS will keep the refund.

• Comments Off

Ability to pay tax liability not relevant to determination of willfulness under Code Sec. 7202

U.S. v. Easterday (2008, CA9) 102 AFTR 2d ¶ 2008-5218
By a vote of two to one, a Ninth Circuit panel decision has upheld a district court’s ruling that a defendant’s ability to pay wasn’t relevant to the determination of whether [...]

• Comments Off

TIGTA reviews IRS methodology for selling seized property [Audit Report No. 2008-30-144]:
IRS management needs to provide better oversight to ensure that employees consistently follow the requisite procedures for the storage and sale of seized property, according to a recent audit by the Treasury Inspector General for Tax Administration (TIGTA).
As described in the [...]

• Comments Off

To disclose or not to disclose, that is the question.
Hiding Income Offshore is not the way to go.
Mike Habib, EA
For years, offshore accounts have been a hot topic in popular culture and for the IRS; most recently Liechtenstein has been mentioned, however the IRS is interested in accounts anywhere in the world that generate income [...]

• Comments Off

Yes, we are all fed up with the cost of fuel.
No, I’m sorry to report, not everyone is eligible for the fuel tax credit.
Fuel Tax Credit Scams
Mike Habib, EA
The IRS has recently added fraud involving the fuel tax credit to the list of frivolous tax claims being put forth by individuals and businesses. The [...]

• Comments Off

JK Harris didn’t provide promised services to Missourians who sought help with tax problems, Nixon says in lawsuit
Jefferson City, Mo. – A South Carolina company that advertises it can help consumers resolve their state and federal tax problems didn’t provide the services it promised, Attorney General Jay Nixon says. Nixon filed a lawsuit [...]

• Comments Off

Beneficial owners can deduct home mortgage interest and taxes

The Tax Court held that taxpayers were entitled to deduct mortgage interest and real estate taxes they paid on property owned by their son, because they were the beneficial owners of the property.
The taxpayers resided at the property for all of 2003. During that [...]

• Comments Off

IRS official pledges improved collection of billions in unpaid payroll taxes from businesses
WASHINGTON (AP) — A top IRS official promised Congress Tuesday that the agency “will do better” in collecting billions in taxes that businesses supposedly withheld from employees’ paychecks but never remitted to the government.
Linda Stiff, a deputy Internal Revenue Service commissioner, agreed [...]

• Comments Off

Court rebuffs IRS and allows policyholder to escape gain on demutualization

Eugene A. Fisher et al. v. U.S. (Ct Cl 8/6/2008) 102 AFTR 2d ¶ 2008-5150

The Court of Federal Claims has applied a variation of the open transaction doctrine with the result that a policyholder had no gain to report when it chose a cash option [...]

• Comments Off

New IRS settlement initiative for LILO and SILO transactions

Mike Habib, EA
IRS recently announced a settlement initiative for Lease-In/Lease-Out (LILO) and Sale-in/Lease-Out (SILO) transactions. Under this initiative, more than 45 of the nation’s largest corporations that participated in these shelters will receive a letter with an offer. Shelter participants will have 30 days to [...]

• Comments Off

Proposed regs explain strict charitable contribution substantiation & appraisal rules Preamble to Prop Reg 08/06/2008; Prop Reg § 1.170A-15, Prop Reg § 1.170A-16, Prop Reg § 1.170A-17, Prop Reg § 1.170A-18
Mike Habib, EA
IRS has issued proposed regs explaining the charitable contribution substantiation changes made by the American Jobs Creation Act of 2004 (AJCA) and [...]

• Comments Off

Finance Chairman Baucus wants more action and details on IRS strategy to combat identity fraud [Press release dated Aug. 5]:

A recent IRS update on its Identity Protection Strategy has failed to satisfy the concerns of Sen. Max Baucus (D-MT), chairman of the Senate Finance Committee.
The report, submitted to Baucus on July 21 by IRS [...]

• Comments Off

IRS may require reporting of PAL activity groupings
Mike Habib, EA
Notice 2008-64, 2008-31 IRB 268

A new notice requests comments regarding a proposal to require taxpayers to report to IRS their groupings and regroupings of activities and the addition and disposition of specific activities within their existing groupings of activities for purposes of [...]

• Comments Off

Innocent spouse relieved of tax from embezzlement and forgery

Yakubik, TC Summary Opinion 2008-74
Mike Habib, EA

The Tax Court recently held that the IRS abused its discretion in not granting equitable innocent spouse relief to a husband whose wife embezzled funds from her employer and forged checks taken from her stepfather.
Facts. The taxpayer was married [...]

• Comments Off

Doctors get socked with big tax and penalties for donations tied to consolidation of their practice

Berquistist and Kendrick, et al., (2008) 131 TC No. 2

Mike Habib, EA

The Tax Court has determined that doctors grossly overvalued charitable donations of stock in their medical professional service corporation (PSC) that arose in connection with a consolidation of [...]

• Comments Off

TV ads and TV Tax Relief Commercials claiming “Pennies On The Dollar” Tax Settlements – As Seen On TV
Mike Habib, EA
Many Tax Relief and Tax Negotiation firms advertise on TV claiming that they can settle your tax debt for “pennies on the dollar”. Now, you, as a taxpayer must be informed of what options you [...]

• Comments Off

Pension plan benefits for military personnel in the Heroes Earnings Assistance and Relief Tax Act of 2008
The recently enacted “Heroes Earnings Assistance and Relief Tax Act of 2008” (the 2008 Heroes Act) provides several important pension plan benefits for military personnel. Specifically, the Act makes the following pension plan liberalizations for members of the military [...]

• Comments Off

IRS Begins Focus on Foreign Athletes
and Entertainers

The IRS recently launched an Issue Management Team focused
on improving U.S. income reporting and tax payment complianceby foreign athletes and entertainers who work in the United States.The initial focus is on those engaged in tennis, golf and music. Theseindividuals and those associated with arranging their appearances inthe U.S. [...]

• Comments Off

Truckers Tax Relief – Are you a truck driver with tax problems?
If you’re a truck driver and owe the IRS, you’re better off resolving your tax debt now. As you know, tax problems do not go away by themselves! Stop your IRS wage garnishment today, stop your IRS bank levy today, and release your [...]

• Comments Off

If you owe the IRS, you’re better off resolving your tax debt now. As you know, tax problems do not go away by themselves! Stop IRS wage garnishment today, stop IRS bank levy today, and release IRS tax lien today.
As you can see from the statement below by Mr. Douglas H. Shulman, [...]

• Comments Off

IRS website provides guidance on S corporation election problems Filing Requirements for Filing Status Change, on IRS website
Mike Habib, EAmyIRSTaxRelief.com
In a recent posting on its website, IRS explains the steps to be taken and forms to be filed by taxpayers requesting to change their filing status from a C Corporation (filing Form 1120) to [...]

• Comments Off

How to compare tax relief and resolution service companies?
Customer…Beware!

How To Keep From Getting Ripped Off?
Many “Tax Negotiation” companies out there will absolutely rip you off. These unscrupulous firms will take your money regardless of whether they can help you or not. They’ll lie to you and tell you they can [...]

• Comments Off

IRS provides guidance on new rules for employment tax levies
Mike Habib, EA
The IRS has issued interim guidance to its directors and collection area offices that explains when it is permissible to issue a levy to collect employment taxes without first giving the taxpayer a pre-levy collection due process (CDP) notice.
The IRS is authorized to take [...]

• Comments Off

Direct from the IRS
Mike Habib, EA
Is an Offer in Compromise Right for You?
Should the IRS determine that a taxpayer is unable to pay the liability in a lump sum or through an installment agreement and has exhausted the search for other payment arrangements the last option would be to file an Offer in Compromise (OIC).
An [...]

• Comments Off

As per the IRS Offer in Compromise
Mike Habib, EA
If taxpayers are unable to pay a tax debt in full and an installment agreement is not an option, they may be able to take advantage of an offer in compromise (OIC). Generally, an OIC should be viewed as a last resort after taxpayers have explored all [...]

• Comments Off

Want to stop a wage levy or a bank levy? Read on….
Mike Habib, EA
If you have not noticed, the IRS is getting more aggressive in their collection, and audit activities. Enforcement actions is at its highest level for years now!
Here is the scoop directly from the IRS
Fiscal Year 2007 Enforcement and Services Results
The IRS continues [...]

• Comments Off

Tax problem with capital gain taxes, S Corp capital gain tax problem
Ninth Circuit holds that gain was recognized on disputed sale in shareholder’s forced buyout
Glenn Hightower v. Comm., (CA9 2/12/2008)
The Court of Appeals for the Ninth Circuit, affirming the Tax Court’s decision, has held that an individual who had been a 50% co-owner of [...]

• Comments Off