The Blog

  Beware of IRS Penalties at Tax Time! Tax time is a good time for taxpayers to be reminded of some of the penalties that can be assessed by the IRS and State Tax Agencies for failure to comply with set deadlines for the filing of tax returns and the payment of tax amounts due. Since penalty amounts accumulate over time and are usually combined with interest charges on any outstanding tax balances, they can result in significant increases to the amounts owed to the collecting tax agencies. Outlined below are some of the penalties that come into play at this time of year: Penalty for a Bounced Check The penalty for a disallowed check or money order made payable to the United States Treasury is … Continue reading →

Many taxpayers pay income taxes in excess of what they actually owe by failing to take advantage of all of the tax breaks they can legitimately claim.  The use of tax deductions to reduce taxable income and tax credits to reduce net tax liability can significantly reduce the total amount of income taxes owed for any given year. Failure to use available deductions and credits in addition various tax exemptions and tax incentives automatically means that you will overpay your tax bill. Therefore, as you get ready to file your 2013 tax return, you may want to review the list of available tax breaks to ensure that you are using the provisions of the tax code to your maximum tax advantage. Listed below are some … Continue reading →

Foreign Banks Take Advantage of Tax Amnesty Offer:  In its latest attempt to tackle the problem of offshore tax evasion, the United States Department of Justice offered Swiss banks that are not currently under criminal investigation the chance to apply for tax amnesty. Banks that chose to accept the offer were given until December 31st to turn over information on any undeclared foreign accounts and to provide information as to how they helped United States citizens hide their foreign assets. A recent report indicated that over one third of the 300 banks that were extended this recent amnesty option have accepted the terms and agreed to cooperate. Under the terms of this latest tax amnesty program, foreign banks must pay penalties equal to a certain … Continue reading →

 Extended Tax Provisions 2014 – It is common knowledge that tax law is constantly changing and it seems that Tax Year 2014 will be no exception. Every year the government makes some changes to the tax code in an attempt to make it fit the current economic climate. These changes include doing away with existing tax laws, initiating new laws and either renewing temporary tax provisions or allowing them to expire. When the American Taxpayer Relief Act was signed into law in January of 2013, it established some new tax laws as well as extending some temporary provisions through the end of the year. Fifty-five of those temporary provisions expired on December 31st. Although some of those measures are sure to be renewed, there is … Continue reading →

  Wishing you a Happy New Year from Professional Tax Resolution!   Wishing You a Happy, Healthy & Prosperous 2014 …   Professional Tax Resolution! If you have tax questions or a tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com or call us at 877.889.6527. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.

  Although tax planning is important for investors year round, it is most important as the calendar year draws to a close.  While investment decisions are made throughout the year, they are particularly critical at year end because of the potential tax implications. The United States tax code provides many tax planning opportunities for investors but the majority neglect to use what is available to their maximum advantage. The failure of investors to implement end of the year tax planning strategies (summarized below) can have a significant negative impact on overall investment performance. Realizing Capital Losses Consider the following points related to selling investments at a loss before the end of the year: Up to $3000 in capital losses can be used to offset ordinary … Continue reading →

Taxpayers Beware – IRS Scams! Every year the IRS publishes a list of the most popular tax scams so that taxpayers will be better able to protect themselves against schemes that develop in an around the preparation of tax returns. With the 2014 tax season fast approaching, it is a good time to be reminded of the some of the items that were on the list published by this past March. Although the IRS is aware of these problem areas, it is likely that some of these same issues will surface again once tax season gets underway at the beginning of the year. Summarized below are three of the culprits that appeared last year’s list of the “Dirty Dozen Tax Scams” published by the IRS: … Continue reading →

    Although the requirement for filing an annual Report of Foreign Bank and Financial Accounts (FBAR) has technically been on the books since 1970, the compliance rate was less that 20% until 2001.  Since that time, the United States government has stepped up its efforts to identify and punish those individuals who are guilty of concealing foreign assets and income as well as the foreign banks who have participated in the cover up. Beginning in 2008, the IRS and the United States Department of Justice stepped up their game in the area of offshore tax evasion. In June of that year, the IRS issued a statement reminding taxpayers of their reporting obligations and the consequences of not meeting them. John DiCicco of the Justice … Continue reading →

FBAR Changes… Things are changing as the consequences of the FBAR Noncompliance are becoming stricter. Up to this point, the sentencing of offshore tax evaders has been fairly lenient. Although judges must attempt to follow sentencing guidelines written to ensure consistent punishment for defendants convicted of similar crimes, they have been given considerable leeway. Within these guidelines, the judges in these cases have been weighing such factors as the amount of financial loss or gain involved, whether the tax evader has assumed responsibility for the crime and whether they have provided information that has helped to build a case against others. They have also taken into account the defendant’s age, health and previous contributions to society.  The following high profile cases shed some light on … Continue reading →

Beware… IRS Tax Phone Scam: The IRS has identified a widespread phone scam that has popped up in nearly every state. Taxpayers who are victims of this scam receive phone calls from individuals impersonating IRS agents. During these calls, they are often told that they have a back tax balance which needs to be paid instantly either by charging the amount on a prepaid credit card or transferring the funds by wire. If the taxpayer disputes the request for payment, the scammers will often threaten to confiscate their business or their driver’s license or have them arrested or deported. These bogus IRS calls can be convincing due to the fact that the scammers use caller ID spoofing, which makes the toll-free phone number of the IRS show … Continue reading →