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Posted on June 3, 2010 by steve
Development of Fraud Case by the Internal Revenue Service Key Question IRS will ask 1. The following actions should assist the IRS employee in establishing affirmative acts of tax fraud: 1. Interview the taxpayer to determine the reason or the intent of the taxpayer?s noncompliance. 2. Ask sufficient questions to determine the extent of the delinquency, including the periods and tax due. 3. Document verbatim, if possible, the questions asked and the taxpayer?s response or lack of response. 4. Identify any personal reasons that could affect the taxpayer?s ability to comply. 5. Attempt to get a definitive statement from the taxpayer regarding additional expenses not listed in the books and records. These expenses could include, but are not limited to, expenses paid in cash or “under-the-table ” payments to employees.Good luck. 6. Attempt to establish year-end cash on hand for each year under investigation. 2. Verify income from all available sources. Methods of income verification include, but are not limited to: 1. Currency, Banking, and Retrieval System Information 2. Information Data Retrieval System on the IRS’s own internal system 3. … Continue reading →
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Posted on June 2, 2010 by steve
Taxpayer Advocate Service is an independent organization within the IRS, that help taxpayers resolve their tax problems with the IRS and recommend changes that will prevent the problems.in the future Here are eight things things every taxpayer should know about Taxpayer Advocates Office 1. Taxpayer Advocate Office is your voice at the Internal Revenue Service. 2. The service is free, confidential, and tailored to meet your needs.on your particular case. 3. You may be eligible for TAS help only if you have tried to resolve your back tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just is not working as it should.You must have tried working through your problem and have has documented proof. 4. TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.They take all cases that cannot be resolved except for criminal activity. 5. TAS employees know the IRS and how to navigate though the maze of red tape . They will listen to … Continue reading →
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Posted on June 2, 2010 by steve
Overview of the Estate Tax Lien 1. Before the Federal Government files a federal tax lien on an estate tax case, the IRS gives careful thought to the advantages and limitations of each type of estate tax lien. 2. In many cases, the general lien is the best tool to protect the federal government’s interest. The Federal Estate Tax Lien is automatically created when any resident of the United States dies. No recorded notice is required for it to become effective. It attaches to all of the assets that are part of the decedent’s gross estate and are required to be reported on Form 706, United States Estate Tax Return, and is security for any estate taxes that may be determined to be due. If a probate asset is transferred or liquidated without payment of the tax, but for the exceptions detailed at IRM of the Internal Revenue Manual, the federal estate tax lien continues to attach to the asset. If a non-probate asset is transferred or liquidated without payment of the tax, a liability equal to the value of … Continue reading →
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Posted on June 2, 2010 by steve
The IRS can and will seize, levy or garnish your Social Security Retirement benefit. . If your monthly benefit is more than $750, the Internal Revenue Service may garnish 15% of your monthly benefit for taxes that are at least six months in arrears. (This doesn’t apply to certain Social Security Disability benefits and perhaps other types of Social security benefits, but it does apply to Social Security Retirement. You should contact IRS as soon as you receive a letter or notice to stop this event from taking place. If you have an IRS Problem or cannot afford to pay call us today. Do so before IRS sends out notices or federal tax liens or tax levies.to your bank accounts. IRS may send out multiple levy notices if they wish. The IRS is must and is required to notify you before it begins to garnish your Social Security. They do so by a telephone call, by letter or by certified mail. In many cases, you can settle, make IRS an Offer in Compromise, make a part pay agreement, or in … Continue reading →
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Posted on June 2, 2010 by steve
Asset Protection Strategies from Creditors and the IRS Our tax professionals will make sure that your asset protection plan is correctly designed and documented correctly and legally. Asset protection is not about trying to hide from legitimate creditors. It is about managing justifiable debts and protecting your assets by taking the appropriate steps now by planning for the future so you have money and funds to pay necessary bills and obligations. Whether it is the formation of a trust,a corporation, limited liability company ( LLC), a limited partnership, or some other type of structure is going to be right for you, Fresh Start Tax will give you options an asset protection strategy that is appropriate for your assets, and for your unique personal and business situation. It also will allow you to set up a payment plan or settle with the Internal Revenue Service or other creditors. It will also help against IRS tax levies and IRS tax liens. Fresh Start Tax believes that even though our clients may owe up to millions of dollars in past due taxes, our … Continue reading →
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Posted on May 17, 2010 by steve
WASHINGTON ? The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage. Notice 2010-44 provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit. The notice also requests public comment on issues that should be addressed in future guidance. Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time … Continue reading →
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Posted on May 17, 2010 by steve
The Internal Revenue Service today released the spring 2010 issue of the Statistics of Income Bulletin, which features data on high-income individual income tax returns filed for tax year 2007, gift tax returns filed in 2008 and trust income from the 2002 through 2006 period. For example, taxpayers filed over 4.5 million returns with adjusted gross income of $200,000 or more for 2007, up from over 4 million returns in the prior year. These high-income returns represent over 3 percent of all returns filed for 2007. This issue of the quarterly Bulletin also contains articles about the following: Individual taxpayers who itemized reported $59 billion in deductions for noncash charitable contributions in 2007. Of these nearly 24 million taxpayers, almost 7 million reported close to $53 billion in deductions on Form 8283, Noncash Charitable Contributions. The number of Form 8283 filers increased 12 percent from 6 million in 2006, and the amount claimed in donations increased to nearly 13 percent from $47 billion. About 257,000 gift tax returns were filed in 2008, 96 percent were nontaxable. The reported total amount … Continue reading →
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Posted on May 4, 2010 by steve
Number: IR-2010-055 Inside This Issue Open House on Saturday May 15 to Help Small Businesses, Individuals Solve Tax Problems WASHINGTON ? The Internal Revenue Service will host a special nationwide Open House on Saturday May 15 to help small businesses and individuals solve tax problems. Approximately 200 IRS offices, at least one in every state, will be open May 15 from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through their problems and walk out with solutions. ?Our goal is to resolve issues on the spot so small businesses and individuals can put any issues they have with the IRS behind them,? IRS Commissioner Doug Shulman said. ?If you have a problem filing or paying your taxes or resolving a tough tax issue, we encourage you to come in and work with us.? IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS Open House on March 27, approximately two-thirds of taxpayers … Continue reading →
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Posted on April 19, 2010 by steve
The Internal Revenue Service this week began mailing postcards to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently enacted small business health care tax credit. 66R2KZ4F8TVW Included in the Patient Protection and Affordable Care Act approved by Congress last month and signed into law by President Obama, the credit is one of the first health care reform provisions to go into effect. The credit, which takes effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. ?We want to make sure small employers across the nation realize that ?? effective this tax year ?? they may be eligible for a valuable new tax credit. Our postcard mailing ?? which is targeted at small employers ?? is intended to get the attention of small employers and encourage them to find out more,” IRS Commissioner Doug Shulman said. ?We urge every small employer to take advantage of this credit if they qualify.? In general, the credit is … Continue reading →
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Posted on April 5, 2010 by steve
IRS has issued important tips for Tax Exempt Organizations and they are: Six Important Facts about Tax-Exempt Organizations Every year, millions of taxpayers donate money to charitable organizations. The IRS has put together the following list of six things you should know about the tax treatment of tax-exempt organizations. Annual returns are made available to the public. Exempt organizations generally must make their annual returns available for public inspection. This also includes the organization?s application for exemption. In addition, an organization exempt under 501(c)(3) must make available any Form 990-T, Exempt Organization Business Income Tax Return. These documents must be made available to any individual who requests them, and must be made available immediately when the request is made in person. If the request is made in writing, an organization has 30 days to provide a copy of the information, unless it makes the information widely available. Donor lists generally are not public information. The list of donors filed with Form 990, Return of Organization Exempt From Income Tax, is specifically excluded from the information required to be made … Continue reading →
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