It's easy to get into a habit of not filing your taxes. If you happen not to file one year because you owe money, and then the next year you do the same thing because you're afraid you'll get into trouble, the years can add up quickly, and so can the severity of the need to file. The first answer you'll get from the IRS or any accountant is to file right away! Not filing your taxes is a crime known as tax evasion and there are penalties that you can receive from delinquent filing as a result.
Why It's Serious
We've all heard that if you don't file your taxes, you could go to jail, and as unbelievable as it sounds, it is true. However, the IRS cares more about getting the money they owe and very rarely send anyone to jail unless they find blatant fraud. However, they can punish you with some costly penalties. If you haven't paid your taxes, the IRS has much more power to try to get you to comply and get your taxes paid depending on how long... read article
An IRS lien is a legal claim that the government places on your property. If you do not pay your taxes, then the IRS will place a lien on your property. This is typically a last resort. The IRS will give you a Notice and Demand before they place a lien on your property.
If you do not respond within the specified amount of time, then the IRS will issue a silent or statutory lien. The reason that it is often referred to as a silent lien is because no one will know about it. However, if you do not respond to the IRS, then they will eventually place a federal lien on your property.
Keep in mind that the IRS is considered a supercreditor. Unlike other creditors, the IRS does not need a judgment to collect the money. It is important to note that a lien is not the same thing as a levy. The government will seize your property if there is a levy placed on it.
How a Lien can Ruin you Financially
If you have a lien on your property, then this is not something... read article
It’s almost tax season, and if you want to make yours as simple and easy as possible, you’ll want to get started on preparing your taxes well before the deadline. The 2017 tax season is also going to introduce some changes, so it’s important to be aware of those and plan accordingly. There are a few steps you can follow to make sure that filing your tax return this year goes smoothly.
Learn the New Filing Deadlines
While the filing deadline for taxes is the same for personal tax returns and many business tax returns, there are two notable deadline changes: business partnerships and C corporations.
Business partnership tax returns were previously due by April 15th, but legislation in 2015 changed that, and the new deadline is March 15th. If you have a business partnership tax return, don’t end up filing it late because you forgot about the deadline change. If your partnership isn’t run on a traditional calendar year, then you must send in your Form 1065 by the 15th day of the third month after your partnership’s year closes.
C corporation tax returns were previously due on March 15th, but are now due on... read article
With the rapid growth of technology and changing standards in building out a digital global economy, domestic laws surrounding new forms of convertible currency can be almost as dynamic as its value in the markets themselves. It is important for investors and any other applicable parties who may be interacting with these new forms of currency in the virtual economy to understand tax laws involved with these new systems of money and how it all translates to the paperwork at tax time.
The volatile virtual currency bitcoin, which trackers like CoinDesk show can sometimes have spikes in price of hundreds of dollars in a matter of weeks, peaked at a value over $1,000 in early January 2017. This is a dramatic contrast to the virtual currency’s humble beginnings several years ago. Small amounts purchased at its inception in 2009 are now worth hundreds of thousands of dollars.
This revolutionary new form of currency has become perhaps surprisingly widespread and useful. Unfortunately, in doing so it also became a concern for taxpayers, and particularly for those individuals or entities who may now owe taxes on past virtual transactions.
During the holiday season, it's pretty common to see businesses give their employees a gift as a way of saying thank you for all that you do. The bonus here is that in return, the IRS will deduct the cost of these gifts from taxes. Before you go shop crazy, though, it's wise to look into the limits of this business gifts tax deductable. There are certain limits to what you can and can't deduct.
In this article, we're going to take a look at how the system works in order to figure out what you can and can't do when it comes to holiday gift price deductions. Let's get started by taking a look at the general rules.
The General Rules
The IRS will allow your business to deduct up to $25 for business gifts that you give to one person per year. There's no limit opn how many people you can get gifts for, just as long as the total per person is $25. That means that if you give someone a $50 present, you can only expect a $25 deduction.
If you end up giving a customer two gifts--one of $15 and one... read article
FBAR means Foreign Bank Account Report. It is a report showing financial information of foreign bank accounts in form of a FinCen Form 114.
Who Should File a FBAR:
US citizens or Non-citizens with green cards;
Persons who own or control foreign accounts;
Persons whose foreign accounts are worth over $10,000 in the past year
What Accounts are Disclosed in a FBAR?
Bank, financial instruments, securities
Mutual funds where the one holding the account is entitled to a share of the funds
Foreign annuities and life insurance with cash surrender value
Foreign online gambling accounts
The Essence of an Attorney When Filing an FBAR: Self Incrimination and Attorney Client Privilege
Everyone has the right to protect themselves from self-incrimination. You are not required to talk to the police or authorities like DOT, IRS, or DOJ. Even though you do not accept to be interrogated or questioned by authorities, it does not mean that you are guilty. If the IRS or any other authority intends to talk to you directly, you should have an FBAR attorney present. Anything you say can be easily used to your disadvantage.
Even if your attorney knows all the facts about your condition, your lawyer... read article
Many people are wondering what effect a Donald Trump administration may have on their taxes. It is important to note that every plan that a president proposes has to go through congress, and that process alone can often greatly affect any legislation. However, if this plan is approved by congress in it's entirety, then many people would be able to save a lot of money on taxes. In fact, experts are stating that this proposed tax cut will be the largest one since Ronald Reagan, the sustainability of such large tax cuts however remains a matter of debate.
People who make between $48,000 and $83,000 per year will save about $1,000 on their taxes per year. Those who are making over $3.7 million, which are considered to be in the top 0.1 percent, will save $1 million per year. Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, is a man who has studied Trump's proposed plan in detail. Gleckman stated that the proposed tax plan will affect many people who may have been against Trump during the election.
Howard Wagner, managing director at Crowe National Tax Services, stated... read article
If you owe back taxes, the IRS has the authority to do any number of unpleasant things such as seizing your bank accounts, personal assets, future federal and state income tax refunds, and anything else that has value and thus could be sold to pay off your tax debt.
Most people who have found themselves faced with this situation have negotiated an IRS Installment Agreement under which the back taxes will be paid in monthly installments. As long as the monthly payments are made, the IRS will agree to forego any further collection efforts.
Any tax attorney will tell you that the best way to avoid further troubles with the IRS is to, of course, make your installment payments on time and in accordance with the conditions specified in your agreement. There will be times, however, when unforeseen circumstances will make it difficult for you to make your payment. The IRS is aware that you might have such a problem, and even has policies that it will follow to help you through these rough times.
For whatever reason, or reasons, if you should breach the terms of your agreement with the IRS then that agency will exercise its right to declare the installment... read article
Bert Martinez is a wildly successful and highly sought after marketing and business strategist. He is CEO of Bert Martinez Communications (BMC), hosts a weekly radio show on business and money matters, is a best-selling author, is in high demand as a public speaker and the list goes on and on. He and his business are worth millions today.
Three years into being an entrepreneur, Martinez nearly lost it all due to irresponsibility with his payroll taxes.
The year was 1999 and Martinez' business was booming. He had an office space, several full-time employees and 8 big accounts secured for the year. He'd recorded exponential financial growth from one year to the next since he started his business. This particular year, despite how well everything looked on paper, he had cash flow problems due to untimely payments from his clients. Martinez decided that he would skip out on payroll taxes and pay up once his clients paid him. In actuality, once all of the money came in that was owed to him, he had more than enough to pay his employees salaries, his payroll taxes, his business expenses and still turn a significant profit. He... read article
The IRS is not an agency of which most people speak favorably. They are a source of fear and anxiety for many. The tax problems that people face, for the most part, are avoidable and cause unnecessary stress in their lives by avoiding them.
My name is Mary E. King and I am more than just a tax lawyer who has a solution and plan for your tax problems, but I am here to help, counsel and educate you on how to better handle your taxes in the future.
I began my journey in 1988 at the University of Florida where I earned a Bachelor of Science in Business Administration Degree. In 1990, I studied at Babcock Graduate School of Management (at Wake Forest University) where I earned a Master of Business Administration Degree in Finance. Finally, in 1993 I graduated from Stetson University's College of Law and began my career as an attorney.
While tax defense representation has been the majority of my focus, I am well versed in all aspects of tax law. The services of my law office can be broken down into 3 main areas of tax strategy.
1. IRS Tax problems.
There are a multitude of IRS tax problems that... read article