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 [...]

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Tax Attorney - Get the power of attorney for tax representation
A tax attorney may represent taxpayers with a tax deficiency, which is the excess of the correct tax liability over the tax shown on the taxpayer’s return plus amounts previously assessed (or collected without assessment) as a tax deficiency, and minus any credits made to the [...]

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IRD – Income In Respect of a Decedent
All income the decedent would have received had death not occurred that was not properly includible on the final tax return is income in respect of a decedent.
If the decedent is a specified terrorist victim (see Specified Terrorist Victim, earlier), income received after the date of death and [...]

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Plane was crashed into Austin building by man angry at IRS, authorities say
A software engineer is presumed dead after flying his small plane into an office building. At least 13 people on the ground are injured and one is unaccounted for.
Source: LA Times
By Richard Fausset and Richard Serrano
Reporting from Washington and Austin, Texas
A disgruntled software [...]

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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, [...]

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Tax Problems – Tax Problem Resolution

When tax problems occur, it can be difficult to hide from the IRS. Being familiar with these tax problems allow you to recognize them as soon as they occur. Whether you are an individual or a business entity, make sure that you are aware of these common problems regarding taxes.
Payroll [...]

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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 [...]

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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    [...]

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Getting Tax Relief Help
By Mike Habib, EA
Even when you’re really careful about filing your income tax returns, something’s always bound to go wrong when you least expect it. It’s not uncommon to find even the most discerning and meticulous individuals and businesses to find themselves searching for tax relief assistance to get themselves out of [...]

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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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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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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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IRS Urgent Letters and Notices That YOU MUST ATTEND TO
Mike Habib, EA
IRS Audit & Examination Letters
Letter 525 – General 30 Day Letter
This letter accompanies a report giving you a computation of the proposed adjustments to your tax return. It informs you of the courses of action to take if you do not agree with the [...]

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Hawaii Cash Economy Enforcement Act of 2009

On June 18, 2009, Governor Linda Lingle signed Senate Bill 972 SD2, HD1, CD1 into law as Act 134, the “Cash Economy Enforcement Act of 2009.”

This Act provides the department with additional resources and tools to target high-risk, cash-based transactions to shore up confidence in Hawaii’s tax [...]

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Florida Department of Revenue Administrative Collection Processing Fee Beginning September 1, 2009

Effective May 30, 2009, a new law imposes a 10 percent administrative collection processing fee on any outstanding debt older than 90 days. The fee is equal to 10 percent of the total amount of tax, penalty, and interest owed, or $10 [...]

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IRS Releases List of Transactions of Interest (Notice 2009-55)
The IRS has provided a list of transactions that have been identified by the Service as “transactions of interest.” The IRS will consider transactions similar to any of the transactions on the list to be transactions of interest for purposes of Code Secs. 6111, 6112, 6662A, 6707, [...]

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Construction Industry Tax Issues

Accumulated Earnings Tax

Closely held C corporations are more likely to accumulate earnings and profits beyond the reasonable needs of the business in order to avoid income taxes on its shareholders than are large C corporations. Each accumulated earnings case is unique. No pro forma guide for calculating a taxpayer’s reasonable [...]

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Enrolled Agent vs. Tax Attorney / Tax Lawyer
Dealing with tax problems entails a good amount of hard work and stress, which is why it is not advisable to deal with such problems on your own. It requires that you have a fair understanding not only of the taxation process but also of how the [...]

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ORLANDO MAN SENTENCED FOR $181 MILLION PAYROLL-TAX FRAUD

Orlando, Florida – United States Attorney A. Brian Albritton announces that U.S. District Judge John Antoon, II, today sentenced Frank L. Amodeo (age 48, of Orlando) to 22 years and six months in federal prison for conspiring to commit wire fraud, to obstruct an agency proceeding, and to [...]

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IRS to seek more regulation of tax preparers
The IRS reported that it is working on new rules that will require paid tax preparers to be licensed. This will improve tax compliance and reduce tax preparer fraud; IRS Commissioner Doug Shulman announced that on June 4, 2009.
A whopping eighty percent of taxpayers get help with their [...]

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UBS CLIENT PLEADS GUILTY TO FILING FALSE TAX RETURN HID ASSETS WORTH $3 MILLION IN SECRET SWISS BANK ACCOUNT
Ft. Lauderdale Yacht Broker Second UBS Client Charged, First to Plead Guilty
WASHINGTON – Robert Moran, of Lighthouse Point, Fla., pleaded guilty on criminal information charging him with filing a false income tax return, the Justice [...]

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U.S. JUDGE BARS TWO CONNECTICUT RESIDENTS FROM PREPARING FEDERAL TAX RETURNS FOR OTHERS
Father and Daughter Prepared Tax Returns That Falsified and Inflated Deductions for Customers
WASHINGTON – A federal district court in Connecticut has permanently barred Wethersfield residents Deowraj Buddhu and his daughter, Sunita Buddhu, from preparing federal tax returns for others. Mr. Buddhu [...]

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TAX SHELTER PROMOTER PLEADS GUILTY TO CONSPIRING TO IMPEDE AND IMPAIR THE IRS
WASHINGTON – Anthony G. Merlo, a former resident of Fort Worth, Texas, and the U.S. Virgin Islands, pleaded guilty to conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced. Merlo appeared before Magistrate Judge Ellen S. [...]

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IRS TAX HELP – First Quarter 2009 Tax Update

While the new law tax changes in the American Recovery and Reinvestment Act of 2009 were the most significant developments in the first quarter of 2009, many other tax developments may affect you, your family, and your livelihood. These other key developments in the first quarter [...]

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IRS unveils 2009 list of notorious tax scams—the “Dirty Dozen” IR 2009-41

Mike Habib, EA Tax Relief & Tax Problem Resolution Services

IRS has unveiled its latest list of notorious tax scams, which it calls the “Dirty Dozen,” highlighted by schemes involving phishing, hiding income offshore and false claims for refunds. IRS warns that these tax schemes [...]

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Get Tax Relief Today
It’s important for you to file your income tax return on time, even if you cannot pay. The IRS does not take delays lightly, so if you already know that you’re going to have a difficult time paying your taxes in full, you want to start exploring your options for tax relief [...]

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Tax Court finds regs imposing time limit on request for relief from joint and several liability invalid Lantz, (2009) 132 TC No. 8
Mike Habib, EA Tax Relief & IRS Tax Help
The Tax Court has concluded that Reg. § 1.6015-5(b)(1), which provides that a spouse must request relief under Code Sec. 6015(f) no later than [...]

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Recession Offers the Best Opportunity to Obtain Tax Relief
American taxpayers are afforded the best IRS tax help in this financial crisis.
Pasadena, CA –(PR.com) — The current financial crisis is the best time to get IRS tax help. Just recently, the IRS has announced that it will adopt a more humane approach to taxpayers who are [...]

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IRS posts Q&As on the Making Work Pay Credit
Making Work Pay Credit: Questions and Answers, IRS Web Site
IRS has posted a number of questions and answers (Q&As) on the Making Work Pay Credit (MWPC) on its web site. They are grouped into four categories: general issues, Form W-4, new withholding tables, and economic recovery [...]

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Roundup of recent employment tax related cases of interest
Mike Habib, EA Tax Relief & Tax Problem Resolution
Federal courts have recently issued rulings on: (1) whether medical residents may qualify for the student FICA exception, (2) whether an employee’s embezzlement was reasonable cause for failing to remit withholding taxes, and (3) whether the sole owner of [...]

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Most Tax Procrastinating City in America

Settle with IRS and resolve your tax problems by contacting the tax firm of Mike Habib, EA at 1-877-78-TAXES or online at myirstaxrelief.com

As reported by Intuit, maker of TurboTax.
 
SAN DIEGO–(BUSINESS WIRE)–April 1, 2009–It’s the 50 yard dash to the April 15 tax deadline and Intuit (NASDAQ: INTU), the maker of [...]

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Adverse conditions may allow certain U.S. citizens to claim foreign earned income and housing cost exclusions [Rev Proc 2009-22]:  
Individuals who were forced to leave certain foreign countries in 2008 because of adverse conditions may still qualify as bona fide residents of that country for purposes of the IRC §911 foreign income tax exclusion.  Under [...]

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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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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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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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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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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 [...]

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Newly revised 2008 Form 5405, First-Time Homebuyer Credit, reflects Recovery Act IR 2009-14
Mike Habib, EA Tax Relief & Tax Problem Resolution
In a news release issued on Feb. 25, 2009, IRS has announced that it has posted a revised version of the 2008 Form 5405, First-Time Homebuyer Credit, to reflect recent improvements to the [...]

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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 business. Here’s a review of the more widely applicable provisions that could have an impact on you and your enterprise.
Mike Habib, EA Tax [...]

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Battle over UBS secret accounts is before US court

Associated Press

MIAMI_U.S. tax authorities should quickly gain access to the secret accounts of 52,000 wealthy Americans at Swiss bank UBS AG to stop continuing tax evasion, U.S. lawyers told a federal judge.

“The United States does not believe justice is served by delay,” said Justice Department tax [...]

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TIGTA assesses how well IRS Examination function scrutinizes all open tax periods during audits [Audit Report No. 2009-30-034]:

IRS Examination function employees do not always appropriately inspect and examine prior and/or subsequent year tax returns when warranted, the Treasury Inspector General for Tax Administration (TIGTA) said in a new audit.

Auditors reviewed [...]

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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 [...]

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Seventh Circuit classifies computer programmer as an independent contractor

Suskovich v. Anthem Health Plans of Virginia, Inc., (CA 7 1/22/2009) 103 AFTR 2d ¶2009-385

The Court of Appeals for the Seventh Circuit, affirming a district court, has concluded that a computer programmer was an independent contractor and not an employee.

Facts. Anthony Suskovich worked for WellPoint/Anthem (WellPoint) [...]

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IRS urged to issue pre-April 15 guidance for Madoff victims

An influential voice in politics, former New York State Governor George Pataki, has asked IRS to issue pre-Apr. 15 guidance for victims of the Ponzi scheme alleged to have been perpetrated by dealer and advisor Bernard Madoff and his firm. Separately, members of the Senate Banking [...]

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IRS Speeds Lien Relief for Homeowners Trying to Refinance, or Sell their house

Contact Mike Habib, EA to release your IRS Federal Tax lien

The Internal Revenue Service announced an expedited process that will make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of [...]

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As you can see from the article below, the IRS tax code is getting more complicated than ever. Further, the IRS’s reach of audits has no limits.
If you have a tax problem, can not pay your tax bill or is facing an IRS tax audit contact us now.
Tax problem complicates Geithner’s confirmation process
As reported by the [...]

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