Helpful Tips & Tax Advice

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IRS Offer in Compromise – A Review of Eligibility Guidelines

We get a number of calls inquiring about the IRS Offer in Compromise Program. While an IRS Offer in Compromise is a very effective tax settlement option for a very well defined group of taxpayers, it is definitely not the optimum solution for anyone with an unresolved tax debt. The acceptance criteria for an Offer in Compromise are very specific, the application process is lengthy and the rejection rate can be high. Amazingly the IRS can also take up to two years from the date it receives the initial application to accept or reject an Offer in Compromise. With this timeframe in mind, it is often advantageous to enlist professional help when considering this tax settlement option. An experienced tax settlement professional will be able … Continue reading

IRS Tax Debt Who Has it? Tax Lien Statistics Give Some Clues

Feel like you are the only one with a tax debt problem? Ever wonder where in the US more people have the tax debt issues? Is this a problem of the rich or is the problem of incurring Tax Debt affecting everyone? A recent 2010-2011 analysis of tax liens from across the U.S. found that New York City, which happens to have some of the wealthiest neighborhoods in the nation, was actually the country’s leading geographic area for federal tax liens. According to the data,New York City accounts for nine, or 18 percent, of the top 50 U.S. zip codes with the most liens recorded over the past 12 months ending in September. Is this a problem of the rich of New York trying to skirt … Continue reading

Research Before You Hire. Protect Yourself From Tax Settlement Scams

You may have read about some recent tax relief scams in the news.  Although there is no doubt that a competent tax professional can be a huge asset in reducing a tax bill or resolving an outstanding tax debt, taxpayers should be aware that there are tax settlement companies out there that actually compound existing tax debt issues. The bottom line is that, if advertised promises seem too good to be true, they probably are. While it is true that the IRS offers numerous tax settlement options for taxpayers who have outstanding tax liabilities, these options have specific qualifying criteria and are not granted automatically. Several tax settlement scams have made the news recently. Among them is American Tax Relief of Beverly Hills, a tax … Continue reading

Prison Inmate Scams IRS by Preparing False Tax Returns for Other Prisoners

An inmate held at Riverfront State Prison in Camden, New Jersey pleaded guilty to aiding and assisting in the preparation of false and fraudulent tax returns on June 27. The inmate faces three additional years in prison and a $250,000 fine at sentencing, which is scheduled for October. He admitted that he helped other inmates prepare and file false tax returns designed to trigger tax refunds for several tax years, to which they were not entitled. The prisoner told inmates that employment taxes were held from the wages they earned while working in the prison, and they were entitled to claim refunds. However, the prisoners were paid no more than $5 per day, from which no taxes were withheld. The fraud scheme resulted in a … Continue reading

Potential Tax Debt for Los Angeles Religious Center

The tax-exempt Kabbalah Centre and many of its charities is being investigated by the Internal Revenue Service for financial improprieties. Many of the charities are backed and supported by celebrities. Madonna had even replaced the CEO of one of the charities, Raising Malawi. The singer later moved the charity out of the Kabbalah Centre’s office after learning plans of building a girl’s school in Malawi were abandoned despite raising millions of dollars for that purpose. The former CFO has accused the Centre of financial improprieties and plans on coordinating with the IRS in bringing the group down. Several instances of tax fraud had been uncovered that could potentially bankrupt several directors due to tax debt and penalties. If you have incurred business tax debt, Professional … Continue reading

Survey Finds Financial Stress of Employees is Decreased

According to a survey by workplace financial education provider Financial Finesse, roughly 34 percent of employees reported having high to overwhelming financial stress in 2009. Since then, the percentage has dropped significantly to 21 percent in the first quarter of 2011. Financial stress was reported as higher for woman than men. While 9 percent of women claimed to have overwhelming financial stress, merely 3 percent of men reported the same. Women, employees ages 30-44 and middle-income Americans making between $60,000 and $74,999 per year, are the key demographic group most vulnerable to having financial stress. Despite finances being cited as the number one cause for divorce, married employees reported less stress than single employees. Many times financial stress can stem from our IRS tax debts. … Continue reading

FAQ about the IRS Notice of Deficiency

If you received an IRS Notice of Deficiency, the following article outlines some frequently asked questions about what a ‘Notice of Deficiency’ is, what the letter states about your situation, and both how and when you should respond. Continue reading

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