Changes in Tax Laws Provide Tax Relief
By Michael Rozbruch | August 18, 2011
Recently I wrote a post for my other blog on the recent developments and changes in tax laws for consumers. Keeping up to date on the changing tax law climate is an important step in keeping yourself out of major IRS problems. Read the post below to get a great summary on this years tax regulation changes:
I came across an article called Individual Taxation: Digest of Recent Developments that summarizes recent changes and developments on individual taxation. The article goes into a good amount of detail to outline both last and this year’s tax regulation changes that will affect individual consumers. I highlighted some “best of’s” from the individual taxation article below. It is important to keep informed on tax law changes as most of these changes in taxation will affect the majority of consumers – that means you! You will also find information on changes in small business taxation, IRS cases and advice on filing.
Innocent Spouse – There are complexities behind joint tax returns and what the guidelines are for Innocent Spouse Relief if a consumer considers this as a tax relief option. There has been a good amount of recent debate and activity by the Tax Court, circuit court and the IRS regarding the two year rule, which states you must file for Innocent Spouse Relief within two years of when the IRS first began collection activity. Some circuit courts hold that the two year deadline is a valid limitation while others claim that the interpretation of the limitation renders it ineffective and inconsistent with the purpose of the statute itself. For examples of court cases analyzing this issue, read the full article at the American Institute of CPAs.
To summarize the court’s conclusions:
- the statute of limitations needs consideration of 1) all facts, 2) circumstances and 3) those that existed during the tax year when the liability was incurred.
- the limitation period is found to be inconsistent with the purpose of the statute.
The IRS, in noting the validity of the 2 year deadline, updated their policy as follows:
- the IRS will not settle the two-year deadline issue in any docketed case
- for consumers who are found eligible for relief (excepting if/when the request for relief under the two-year clause was filed late), the IRS will decide how to maintain the two-year deadline conflict
- if and when an appeal has been filed regarding the two-year deadline conflict, the IRS will then request the Tax Court to hold the case “in abeyance pending the resolution of the issue on appeal, or the parties may stipulate to be bound by the case on appeal in that circuit” as stated in the article: Individual Taxation: Digest of Recent Developments
Compensation for Injuries or Sickness - Analysis of a case where a consumer received a settlement of $350,000 from his employer as ‘noneconomic sickness damange’ in addition to regular wages. This sum was not reported as taxable income. The court concluded that half the sum was to compensate for a physical injury caused as a results of the workplace environment and is therefore not income, however the rest of the sum was for emotional distress, for which the consumer did not provide any medical care evidence (burden of proof) and was therefore taxable.
Medical Expenses - Analysis of a case between a mother and daughter in regards to their medical expenses. The court ruling involved income tax, gift tax and the respective deductions. Consumers should be wary when covering a person’s (such as a family member) medical expenses as both income tax and gift tax issues can arise. In this case from 2010, a mother paid her adult daughter’s medical expenses of over $24,000. The daughter deducted them, however the IRS disallowed these deductions, arguing that the daughter had not paid anything herself and the mother had no legal obligation to pay the expense. The court case ruled in favor of the daughter, stating with respect to medical expenses (Individual Taxation: Digest of Recent Developments):
- transferring funds to another consumer’s medical care provider is not considered a gift for gift tax purpose, therefore it is not tax deductible
- when substance over form indicates that payment was actually made, for income tax purposes, a deduction is entitled
To find out further changes in tax regulation regarding adoption expenses, qualified scholarships, charitable contributions and an array of tax regulation topics, read the article in full at the American Institute of CPAs.
The world of tax and tax regulation can be very intricate. If you owe back taxes, have unfiled tax returns or are seeking tax relief, you need expert tax assistance. It’s best to seek out professional help to determine your specific situation and needs. Increase your chances of attaining the tax help you need – contact a Certified Tax Resolution Specialist or qualified tax attorney who can offer specific advise for tax relief options, including Innocent Spouse Relief.
Topics: IRS tax relief, Innocent Spouse Tax Relief, Tax Tips, hiring a tax attorney or Certified Tax Resolution Specialist, tax attorney, tax help | No Comments »
Need Tax Relief? Do Your Homework Before Hiring A Specialist
By Michael Rozbruch | August 15, 2011
The reason I got into this business was to help people with their tax issues. Our clients found that dealing with the IRS directly often made their situation harder to resolve and more difficult to understand. The nature of tax problems is inherently complicated and we sought to simplify that process by providing expert guidance that resulted in getting the best possible tax settlement on behalf of our clients.
Tax Resolution Services is a pioneer in the tax problem resolution industry – when we first started, there weren’t any firms helping individuals to resolve these issues. Now, there are so many claiming to offer tax relief services, that you don’t know who to choose. The video (below) filmed in our corporate offices; serves as an advisory to tax stressed individuals who may need to hire a tax resolution expert. Not all “specialists” who claim to deal with tax resolution are equal. Do your homework and research the firms who have proven success with your particular issue.
The video highlights important points when researching a tax resolution specialist listed below:
Certification and education show credibility
Look for someone who is a Certified Tax Resolution Specialist (CTRS). These licensed professionals (including tax attorneys, CPA’s and enrolled agents) must meet educational, experience and examination requirements prescribed by the American Society of Tax Problem Solvers (ASTPS). There are only about 200 Certified Tax Resolution Specialist in the country.
Determine the nature of your tax issue
What type of tax issues are they? Personal income tax, business tax problems?
Does the IRS know about the issue yet or have you just discovered it? If so, will the firm have the staff on hand to help resolve this particular issue?
Are your records organized and can you attempt a true reckoning of what happened?
Google it! – Check the firm’s credentials
Google the company name with the words “complaint,” “rip-off” and “scam.” If the firm has a tax attorney (or several), check with your state’s bar to see if there are complaints rendered against them. If they are not ASTPS Certified, consider the following: How many years is the firm in practice? Does he or she have references? Is he or she licensed? Google their professional trade affiliations and associations and check up-to-date status.
Google the founder’s name and check his/her credentials. Find out whose trust you are employing.
Check their social media efforts (hopefully, they have them) like Facebook and LinkedIn. Check the posting activity. The more reputable the company the more content and information will be posted. You will be able to see all comments both good and bad.
Better Business Bureau: a measure of good business practice
Check out a potential tax attorney or tax resolution specialist/firm with the Better Business Bureau’s website: bbb.org. Make sure to note the grade rating (example: B-) and read all the BBB analysis and Trust Link reviews for this company. These reviews will give helpful feedback from previous client experiences and give you an idea of the satisfaction and service this company provides.
Don’t be penny-wise and dollar-foolish with your taxes
Look for value and the number of services you get from a firm. Don’t just lock onto a tax attorney or tax resolution firm’s low price. Instead, determine what their success rate is for situations similar to yours and how much they saved their clients.
After conducting your research, and narrowing down your list, pick up the phone and contact the company(s) directly to make an appointment for a consultation. Armed with your research information, you will be able to articulate details and ask relevant questions. Endeavor to put your tax issues in the hands of a tax resolution specialist with the most incredible results who will confidently help to put your IRS problems behind you.
Topics: Tax Tips, hiring a tax attorney or Certified Tax Resolution Specialist, tax attorney, tax help | No Comments »
Tax Relief News: Most Americans Pay Zero Federal Tax
By Michael Rozbruch | August 12, 2011
A new report by the Tax Policy Center states that almost 50% of Americans will not have to pay federal taxes this year. The report was brought to my attention via an article titled Why do half of all Americans pay no federal income taxes? by Ezra Klein of the Washington Post. The article is great at summarizing the key points of the report and explaining why it is that so many people go without paying any federal tax.
For half of the 46% that do not pay income tax, the break comes from the basic exemptions built into the income tax structure for a lower level income with dependents. An example of from the article states “a couple with two children earning less than $26,400. They get an $11,600 standard deduction and four exemptions of $3,700, and that takes their liability to zero.”
The other half of the 46% is tax free because of tax expenditures; most of which come are tax relief deductions for senior citizens and children which most often effect lower income households. Other deductions and tax relieving expenditures, such deductions for education, often effect more middle income earners.
And while deductions can help taxpayers save lots on their tax bill come April 15, and keep consumers out of IRS tax problems, many politicians believe that these extra expenditures could add up to major unearned revenue for the government in these times of budget crisis. TRS blogged about how this could affect tax breaks in the future here. Staying up to date on changes in the tax climate is a great way to stay out of trouble with the IRS and avoiding back taxes or other penalties.
To read Klein’s full article on the report by the Tax Policy Center click here.
Topics: IRS tax relief, Tax Tips, tax help | No Comments »
Former Banker Guilty of Helping Americans Evade Taxes With Foreign Accounts
By Michael Rozbruch | August 9, 2011
I recently came across an interesting article on Bloomberg regarding a former banker charged with assisting consumers evade taxes by hiding funds in foreign offshore accounts.
I mentioned this case of tax evasion on my Tax Resolution University blog earlier this week. Martin Lack who is a former banker at UBS AG and independent investment adviser was recently charged for helping wealthy U.S. citizens hide their funds from the IRS in secure accounts at UBS and other smaller Swiss banks such as Basler Kantonalbank.
Lack was indicted in federal court in Florida. Additionally, Renzo Gadola, another former banker at UBS pleaded guilty in federal court in Miami for conspiring with Lack. Read the full story on Bloomberg.
These cases highlight that no offshore bank accounts are safe or secure from the IRS. In recent years the IRS has been flexing it’s muscles in breaking down on offshore tax evasion teaming up with the U.S. government and foreign banks around the world. Banks are willing to disclose the names of their U.S. clients in an attempt to protect themselves from an investigation. Don’t take risks when it comes to your taxes; it is only a matter of time until the IRS catches up.
If you have a foreign bank account you must disclose this account to the IRS. I’ve spoken about the necessity of doing so, especially with the amnesty deadline for disclosure coming up at the end of this month (August 31st).
Take action now! If you have an undeclared offshore account ensure the IRS doesn’t come knocking on you door. Disclose your accounts with the offshore account disclosure program.
For help with your offshore taxes, contact a tax professional or Certified Tax Resolution Specialist to help you claim your offshore accounts today.
Topics: Business Services, IRS tax evasion, Offshore Tax Evasion Defense, back taxes, tax attorney, tax help | No Comments »
Complicated Tax Rules for Same Sex Couples
By Michael Rozbruch | August 8, 2011
Same sex marriage is now legally recognized in six different states including New York. The new law has been hitting the headlines and more and more same sex couples are tying the knot. But with the new state laws comes some complicated backlash in the rules for filing taxes, especially since the federal government is not recognizing the unions as legal and require the couples to file individual federal income tax returns.
Headaches for Same Sex Couples by Kelly Greene of the Wall Street Journal summarizes some of the roadblocks and important tax tips that same sex couples should be aware of. Here are a few key points regarding taxes and same sex couples from the article:
-Individuals must file separate federal tax returns: This means extra work in terms of the number of returns that same sex couples must file; ” …many same-sex couples wind up filling out tax forms no fewer than four times: Separately with the federal government, then a “dummy” joint federal return, and finally a married-filing-jointly state return based on the pretend federal one…”. Filing that many returns can be tricky and expensive, so make sure a tax professional is there to help.
-Community Property States: States such as California are community property states which look at income and property acquired during a marriage as being split evenly between the couple regardless of which spouse earned it. This can get complicated for same sex couples filing separate federal returns who must split the joint assets down the middle. “Simply writing half of your income on a single return could trigger an audit, says Melissa Labant, a tax expert with the American Institute of CPAs. Say the couple earns $10,000 in interest income, reported on a 1099 form. That means each individual would have to report $5,000. However, “if the $10,000 on the 1099 doesn’t match up with the amount on the tax return, it will kick out an examination letter,” she warns.”
-Inheritance Issues: Same sex married couples are entitled to inherit assets regulated through the state, however, retirement plans are regulated by the government and therefore can be much more tricky when it comes to dealing with inheritance.
Same sex marriage is complicated when it comes to tax laws. To read the rest of the Greene’s article Headaches for Same-Sex Couples click here.
Educating yourself on new tax laws and tax relief news is a great way to help prevent back taxes and other IRS tax problems. As always, consult a tax professional or Certified Tax Resolution Specialist if you or someone you know is experiencing tax debt.
Topics: IRS tax relief, Tax Tips, hiring a tax attorney or Certified Tax Resolution Specialist, tax attorney, tax help | No Comments »
Recent Changes in Consumer Tax Laws
By Michael Rozbruch | July 31, 2011
I recently came across an interesting article on Individual Taxation: Digest of Recent Developments and summarized a few key points on my Tax Resolution University blog. The article discusses changes from last year and this year in regards to individual taxation. Check out some of the points below for updates on tax regulation, including innocent spouse changes, medical expenses and more.
Innocent Spouse – The guidelines for Innocent Spouse Relief and joint tax filing are quite complex. Recently there has been a lot of debate specifically in regards to the two year rule, which states consumers must file within two years of when the IRS first begins collection activities. The court made the following conclusions:
- All facts, circumstances and existing circumstances during the tax year in question need to be considered for the statute of limitations
The limitation period was found to be inconsistent with the statute, therefore the IRS updated their policy to refelct these conclusions, stating they will not settle the two-year deadline issue in a docketed case and for those consumers who are found eligible for tax relief, the IRS will agree on how to maintain the two year conflict (Individual Taxation: Digest of Recent Developments).
Read my blog post for an update on cases analyzing changes in medical expenses and compensation for injuries and sickness. Consumers should be wary when it comes to taxes. It is very important to keep informed on tax law changes as the majority of these changes in taxation affect consumers. For more IRS cases, advice on filing and recent changes in small business taxation check out the full article at the American Institute of CPAs. For expert tax relief, including help on back taxes or unfiled tax returns, contact a qualified tax attorney or Certified Tax Resolution Specialist who can offer specific advise for tax relief options, including Innocent Spouse Relief.
Topics: General Business, IRS back taxes, IRS tax relief, Innocent Spouse Tax Relief, back taxes, tax attorney, tax help | No Comments »
IRS One Step Closer to Preventing Offshore Tax Evasion with Global Resolution
By Michael Rozbruch | July 14, 2011
I recently discussed on my blog, the Tax Resolution University an article from PRWeb on The Global Resolution. What is The Global Resolution? It is the negotiations between foreign banks and the U.S. Government towards an agreement that will, once finalized, help put a stop to offshore tax evasion. This agreement will accomplish this by investigating foreign banks and fining them. Banks will be required to disclose the client names of their U.S. clients in order to stop the investigation against them. The U.S. Government will in turn, take it’s investigation against the clients.
The main force of The Global Resolution is that it requires the release of U.S. taxpayer’s names to the government, allowing for a criminal investigation.
The news of this certain new resolution were not unexpected. The IRS has been trying for years to put an end to offshore tax evasion and has been allowing taxpayers to come forward with their offshore accounts through their recent voluntary disclosure programs (2011 Offshore Voluntary Disclosure Initiative and the 2009 Voluntary Disclosure Program).
There is no guarantee that there will be another voluntary disclosure program after this year’s amnesty program for offshore accounts. If the Global Resolution is finalized next month, as expected, this will be the last chance for taxpayers and consumers to disclose their accounts, come into compliance and avoiding pending criminal prosecution. Check out the Tax Resolution University Blog for more details.
Read more about The Global Resolution and the fight against foreign bank accounts. Take advantage of this year’s amnesty program by disclosing your foreign funds in accordance to FBAR requirements. The amnesty program ends next month – act now while you have the chance. For expert tax help with your IRS problems, including foreign bank accounts, contact a professional tax attorney.
Topics: Banking & Finance, IRS tax evasion, IRS tax relief, Offshore Tax Evasion Defense, tax attorney, tax help | No Comments »
Tax Help Tips for the Self-Employed, Small Businesses and More
By Michael Rozbruch | June 29, 2011
If you own a small business or a self-employed, check out these quick tax tips as well as some general advice for filing your tax returns. It’s never too late to learn these great tax-filing habits!
Home-based businesses – protect your business against an IRS audit by tracking your expenses. Save a copy of all business transactions and deductions! And if the IRS decide to audit your business, you can show proof of every deduction and expense you’ve claimed.
Unfiled Tax Returns – if you have any delinquent tax returns you must file your latest tax return immediately. You should then file any prior tax returns you missed out on. File your returns and state what you owe. Not filing your returns can cause serious problems as time goes on and will quickly attract the attention of the IRS.
Self-employed consumers - create a ‘tax’ account for yourself and place 30% of every dollar for Social Security, Income Tax and FICA into that account. Then use this account to make quarterly payments from it. Make your life easier and avoid filing problems!
Tax Return Extensions – an extension grants you extra TIME to FILE, not extra TIME to PAY. It’s your right as a consumer to file for an extension on your tax return, but you still have to pay all taxes owed on time!
Check out more great tips on 365 Ways to Keep the IRS at Bay. You can access tax advice at the Tax Resolution University blog where you can keep up with daily tax tips and news. For specific answers to your IRS questions, check out our FAQ Page and don’t forget: If you owe back taxes or are being audited, contact a qualified tax attorney for expert tax help!
Topics: Business Services, General Business, IRS back taxes, IRS tax audit, IRS tax relief, Tax Tips, back taxes, tax attorney, tax help | No Comments »
Tax Help: Year Round Tips for Good Tax Practices
By Michael Rozbruch | June 20, 2011
It’s never too late to start practicing some tax self-help. Keep yourself on top of your taxes by adopting these great tax tips year round:
- Good Record-Keeping – get yourself organized and make some room in your wallet! Keep track of your receipts by using credit cards and checks for expenses. Or go the extra mile with scanned receipts! No more paper receipts fluttering around the house!
- Jury Duty & taxes – get in the know on what you can claim as tax deductions if you have to take time off work for jury duty!
- Business trip mileage logging keeping you grounded? Keep track of your mileage deductions with fun and easy ‘automilez’ app from your iPhone.
- Don’t let an audit sneak up on you! Track all expenses for your business as proof of transaction.
You can browse more tax tips on 365 Ways to Keep the IRS at Bay. For tax advice, check out the Tax Resolution University blog where you can find daily tax tips and news or for specific answers to your IRS questions, check out our FAQ Page. Don’t forget, if you owe back taxes or are facing an audit, seek expert tax help with a qualified tax attorney!
Topics: Banking & Finance, Business Services, FAQs, General Business, IRS back taxes, IRS tax audit, IRS tax relief, Tax Tips, back taxes, tax help | No Comments »
Stevie Awards Nominates Michael Rozbruch as Finalist for Executive of the Year
By Michael Rozbruch | May 30, 2011
I’m excited to share with you that I have been announced as one of the finalists for the Executive of the Year by the Stevie Awards! I invite you to read more about this exciting news at the Tax Resolution University blog.
It is such an honor to be distinguished by such a prestigious award and alongside industry leaders like Maryann Von Seggern of Cisco.
Throughout my years of helping consumers with IRS tax problems, I have always valued the mission of putting the customers’ interests and needs first. I’m happy to be recognized for my dedication to providing high-quality tax relief to Americans year after year.
Winners will be announced at the ninth annual awards banquet in New York City on June 20. Stay tuned for the exciting updates!
Topics: tax attorney, tax help | No Comments »