New Government Report: IRS Does Not Protect Taxpayers And Often Breaks Rules When Filing Tax Liens

When important tax news comes down the pipeline, the Tax Resolution Institute knows how essential it is to keep you informed. According to a new federal government report, the IRS does not always follow legal requirements when issuing liens and lien notices.  As a direct result, the report concludes that action is needed to protect taxpayer rights during the IRS lien process. The Treasury Inspector General for Tax Administration (TIGTA) issued the report.

The Treasury Inspector General For Tax Administration

The Treasury Inspector General For Tax Administration

A federal tax lien is issued when the IRS enters into the public record the extent of a taxpayer’s delinquent tax bill. What is most impressive is that the report details that the number of liens filed by the IRS more than tripled between 2000 and 2009, growing from 287,517 to 965,618. Yes, your eyes do not deceive you. In 2009 alone, the Internal Revenue Service filed just under a million tax liens in total. Many Americans clearly are in need of IRS tax relief.

As part of the lien attachment process, the IRS files a lien notice in the appropriate local government office to notify interested parties that an IRS tax lien exists on the funds and assets of the delinquent taxpayer. The IRS must notify the taxpayer within five business days of the filing of a lien notice that the lien has been filed. The taxpayer then has 30 days to request a hearing with the IRS Appeals office before the tax lien turns into a federal tax levy.

The Treasury Inspector General for Tax Administration (TIGTA) performs an annual audit to determine if the IRS is complying with the law regarding lien notifications and federal income taxes. This year’s audit, performed from Sept 2009 to March 2010, examined a statistically valid sample of actual lien notices sent during that period. Beyond several small statistical errors by the IRS, the study found that in 26% of the sampled liens, the IRS did not send lien notices to the taxpayers’ authorized representatives, usually a tax professional like the Tax Resolution Institute.

Federal law requires the IRS to provide the taxpayer’s representatives with copies of all correspondence sent to the taxpayer. In total, TIGTA estimates that 60.675 taxpayers may have been affected by not having their representatives properly notified of the filing of an IRS tax lien against the taxpayer. Since taxpayers in a tax crisis often do not pay proper attention to official correspondence from the IRS, it is essential that a Taxpayer’s representative be informed when a tax lien is filed.

IRS Mistakes And Federal Tax Liens

IRS Mistakes And Federal Tax Liens

Using a sample of 300 undelivered notices, TIGTA also found that 84% of the time IRS employees did not perform the required research within five business days to determine if the IRS had a different address on file for the taxpayer. The Treasury Inspector General for Tax Administration recommends that the IRS identify ways to correct these issues involving untimely and undelivered tax lien notices. The IRS already has responded by stating that it agrees with the recommendations and is planning corrective action.

If you have a Federal Tax Lien filed against you by the IRS, the time to take action is now before the lien becomes an IRS Tax Levy. Please contact the Tax Resolution Institute at (877) 829-8370 so we can examine your tax case and provide you with genuine tax relief if you fit into our guidelines. If we choose to take on your delinquent tax debt case, you will achieve the tax resolution you have been hoping to discover.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Tax Resolution Services Scams

This is an introduction by the Tax Resolution Institute to Tax Resolution Services Scams and our anger that predatory companies are illegally taking advantage of American taxpayers. Tax Resolution Services Scams is a major search term on Google and these scams by so-called tax resolution services companies are giving the essential business of tax resolution a bad name. Negative late night television advertising by such scam artists promotes tax resolution service programs that are non-existent. After being promised a miracle cure as opposed to actual tax relief, the taxpayer typically pays a retainer of $5,000 to $7500 to the tax resolution services firm, and receives little or nothing in return.

Beware Tax Resolution Services Scams!

Beware Tax Resolution Scams!

Tax Resolution Services Scams make it quite difficult to ever regain money lost. Does it make economic sense to pay an attorney a retainer of $10,000 or more to recover a $5,000 fee paid in a tax resolution services tax scam? Without question, tax resolution services scams are a national problem. Beyond the obvious evil of injuring taxpayers who get caught in such terrible misdeeds, tax resolution services scams prevent reputable firms like the Tax Resolution Institute from providing services that are greatly needed to resolve tax debt problems and challenges. Since the IRS can disqualify tax resolution scammers who repeatedly abuse taxpayers from practicing before, they should enforce the law and put the scammers out of business.

With a sterling reputation and countless success stories, the Tax Resolution Institute is proud to be able to state that there is not a single tax scam report or complaint regarding our tax resolution services on the internet. We truly believe a good reputation is more valuable than money, and once we enter into a tax resolution contract with a client, we follow through until your case is resolved. In addition, the Tax Resolution Institute has a first-class record with our business clients, providing excellent tax resolution services when it comes to IRS payroll tax problems. The focus of our tax resolution services is to protect your financial security and future viability.

The Sterling Reputation of The Tax Resolution Institute

The Sterling Reputation of The Tax Resolution Institute

Please do not let tax resolution services scams by criminal firms stop you from taking the appropriate actions. When it comes to a tax debt crisis, the worst thing you can do is get stuck and do nothing. Contact the Tax Resolution Institute today and start the process of actual IRS tax resolution today.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Nevada Tax Amnesty Program Does Not Effect IRS Payroll Tax Debts And Back Income Taxes

On June 30th, the Governor of Nevada announced the 2010 Tax Amnesty Program that ends on September 30, 2010. The program was authorized by the Nevada Legislature and signed into law by Governor Gibbons. For eligible taxes due and payable to the Department prior to July 1, 2010, the program provides for a one-time waiver of penalty and interest if the outstanding tax liability is paid in full during the amnesty period.

Nevada Tax Amnesty Program And The Ticking Clock

Nevada Tax Amnesty Program And The Ticking Clock

The tax amnesty only affects Nevada State taxes and not Federal taxes like IRS payroll tax debts and back income taxes. The problem is when an amnesty is announced, everyone with a tax problem, whether it is state or federal, seems to breathe a sigh of relief. If you have serious income tax debts or your business has been spending the trust fund and missing payroll tax payments, you should not be relieved. This state amnesty has no effect on your problems. If you want to find real IRS tax relief, contact the Tax Resolution Institute today and we can begin to find a resolution to your tax debt crisis.

Since Nevada has no state income tax, the amnesty only effects very specific tax debt problems. The tax types included in the amnesty program are as follows: Sales & Use Tax, Modified Business Tax, outstanding Business License fees payable to the Department due on or before September 30, 2009 (The Secretary of State now administers the business license fee), Cigarette Tax, Other Tobacco Products Tax, Liquor Tax, Bank Branch Excise Tax, Insurance Premium Tax, Tire Tax, Live Entertainment Tax (non-gaming), Short-term Lessor (Passenger Car), and Exhibition Facilities Fees, Property Tax that are Centrally Assessed, and Net Proceeds of Mineral Tax.

The Weight of IRS Tax Debt Problems

The Weight of IRS Tax Debt Problems

Although the clock is ticking on being able to take advantage of the Nevada Tax Amnesty Program, it is ticking even louder for Nevada residents with serious IRS tax problems. Please remember that the IRS never forgets. As the largest collection agency in the world, IRS debts always continue to accrue penalties and interest. In other words, that is one expensive clock and it has your name on it. Your personal income tax problems and your company’s payroll tax debts with the IRS will never just go away. If you want to find real IRS tax relief, contact us today for the very best in tax resolution services.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Tax Resolution Services Complaints

This is an introduction by the Tax Resolution Institute to Tax Resolution Services Complaints and our frustration with the second-rate and even criminal services provided by our competition. Tax Resolution Services Complaints  is a major search term on Google and these complaints by American taxpayers against tax resolution services companies can be found on complaint sites across the Internet. These negative review sites with Tax Resolution Services Reviews and Tax Resolution Services Complaints include the classic examples like the The Complaints Board and The Rip-Off Report to the more recent additions like My 3 Cents and The Pissed Consumer. Of course, the founding father of these excellent review sources remains the Better Business Bureau.

The Excellent Reputation of the Tax Resolution Institute

The Excellent Reputation of the Tax Resolution Institute

With a sterling reputation as the gold standard of the tax resolution services business, the Tax Resolution Institute is proud to be able to state that there is not a single complaint regarding our tax resolution services on any of these review sites. To prove this claim, we have provided you with the above links to all of these sites. Take the time and check out our record for yourself. After all, our word is our bond, and once we enter into a tax resolution contract with a client, we follow through until your case is resolved with both the IRS and, if necessary, the State taxing authorities as well like the California Franchise Tax Board. Although we cannot help everybody, if your tax problem is within the guidelines of what we offer, we will do our best to help you and offer specific options for real tax resolution services.

In addition, the Tax Resolution Institute has a golden record with our business clients as well, providing excellent tax resolution services when it comes to IRS payroll tax problems, helping to keep the doors of your business open.  The focus of our tax resolution services is to protect your financial security and future viability. If we can help you maintain productivity and increase profitability, then we have help to  transform a payroll tax debt nightmare into a minor payroll tax debt headache. Once again, although we cannot work miracles and help every company with payroll tax problems, we will analyze your case and figure out specifically if we can help you. The Tax Resolution Institute does not take on a case unless we know that we can find a workable solution for you.

Tax Resolution Services Complaints

Tax Resolution Services Complaints

Despite our mission statements and sterling record, we consistently see that our tax resolution clients are scared when they enter our offices or speak with us over the phone in the beginning. With so many second-rate operators ripping off honest taxpayers in times of crisis, it is no wonder that American business owners and American consumers have become wary when it comes to choosing a tax resolution services company to help them.  In contrast, we are proud of our tax resolution record and the excellent tax relief services that we provide at the Tax Resolution Institute.

If you need tax resolution services, check out our sterling record of excellence for yourself. In addition, read the Success Stories section on our website where actual clients explain how the Tax Resolution Institute helped them resolve serious tax problems. Most importantly, do not let tax complaints against second-rate firms stop you from taking action. When it comes to a tax crisis, the worst thing you can do is get stuck and do nothing. Contact the Tax Resolution Institute today and start the process of real and effective tax resolution.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

California Franchise Tax Board Agents Arrest Tarzana Man For Filing Fraudulent State Income Tax Returns

California Franchise Tax Board special agents arrested a Tarzana man on five counts of filing fraudulent state income tax returns. Nicholas A. Francisco (59), the owner of a check cashing business, allegedly failed to report more than $3.5 million in income on his 2003 – 2007 state income tax returns. At the present time, Francisco owes the state more than $735,000 in unpaid tax, interest, and penalties. The cost of the tax investigation, however, will be added to this amount and sought as restitution. In addition, each tax count carries a maximum sentence of three years in state prison.

California Franchise Tax Board

California Franchise Tax Board

By avoiding paying California the taxes due and filing fraudulent returns, Francisco turned a financially difficult situation into a criminal offense. Criminal solutions are never the right answer to serious tax debt challenges. If you have a huge delinquent income tax bill with the California Franchise Tax Board and need help finding tax relief, contact the Tax Resolution Institute for help.

Prosecuted by the Los Angeles County District Attorney’s Fraud Interdiction Program, Nicholas Francisco came to the FTB’s attention during the investigation of an unrelated criminal case involving a medical doctor who utilized Francisco’s check cashing business as part of his medical fraud scheme. Like the IRS, the FTB is a powerful collection agency that will not stop until state taxes are paid in full. California is in financial crisis, and the tax gap is a major reason why. The failure to report income is part of the $6.5 billion tax gap California faces each year. The tax gap is defined as the difference between the tax that is owed and the tax that is paid.

If You Steal From California, FTB Agents Will Catch You!

If You Steal From California, FTB Agents Will Catch You!

After being booked in Los Angeles, Francisco’s bail was set at $737,000. The following week when his case came before a judge, Francisco pleaded not guilty to all five of the counts of filing fraudulent state income tax returns. If convicted on five counts of state income tax fraud, he could serve up to 15 years in prison. The case is the result of a joint investigation between the Los Angeles District Attorney’s office and FTB. If you want to keep the District Attorney far away from your finances, never file a fraudulent claim that avoids the payment of your state tax debt. Even if you do not have the funds to cover your tax debt, contact the Tax Resolution Institute, and our tax experts will find a workable solution for you. By negotiating an Offer in Compromise or an Installment Agreement with the California Franchise Tax Board, TRI can provide you with state tax relief.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

5 Key Points Regarding Payroll Taxes For Business Owners in San Francisco, San Jose, and Silicon Valley

As the Northern California economy slowly comes back from the recent downturn and business starts picking up, it is essential that business owners in Northern California are aware of five essential points in regards to the IRS and payroll taxes. Since San Francisco, San Jose and Silicon Valley have traditionally been the high tech business centers of Northern California, they were hit the hardest by the recession. If a business cut corners when it came to paying their payroll taxes in the form of the trust fund, there are five points that are essential to know. Since the Revenue Officers at the IRS is increasing their focus on payroll tax compliance, knowing this key information could help your business avoid an audit or, even worse, a federal criminal investigation.

1)  Due to the 100% Trust Fund Recovery Penalty, Payroll Tax penalties Increase at a rapid rate.  Beyond the 100% Trust Fund Recovery Penalty which can bankrupt a business on its own, the IRS also apply three additional penalties — failure to file, failure to deposit, and the failure to pay. Even if you plan to pay but are just two weeks behind, these penalties will kick into action, adding up to over 33% of your original bill.

Unpaid Payroll Taxes Threaten Business Owners

Unpaid Payroll Taxes Threaten Business Owners

2)  The failure to file and the failure to pay your Payroll taxes can be classified as federal crimes. If the IRS believe you intentionally avoided your payroll tax responsibility as a business owner, consciously used the Trust Fund to cover your own bills and deems it necessary, both the Criminal Investigations Unit and the Department of Justice can be called on and the case taken to the next jurisdictional level.

3)  Small to mid-sized businesses are the most likely targets of Payroll tax audits by IRS Revenue Officers. Why is this the case? Simply because it has been proven that small to mid-sized businesses are the biggest sources of uncollected payroll taxes. Even mid-sized businesses are in better shape than the small business owner. With a small business with limited resources, the IRS is more likely to be able to resolve and close the case. As the largest collection agency in the world, the heart of their business is to close cases.

Silicon Valley Hit Hard By The Recession

Silicon Valley Hit Hard By The Recession

4)  The IRS can come after a business owner individually for outstanding payroll tax debts. Once again, this is another reason why small businesses are targeted. If you own a small high tech company that was hit hard by the recession and you are a start-up, you are considered a prime candidate by the IRS for a payroll tax audit. As a result, the Tax Resolution Institute understands how many companies in Silicon Valley, San Jose and San Francisco could be facing serious payroll tax problems in this tough economy.

5)  Let’s be clear and simple on this point — No matter what the situation, no matter what the circumstances, borrowing from payroll taxes, using the trust fund to cover any external costs whatsoever, is against the law. The money collected from employees to pay their share of federal withheld tax, FICA and Medicare (Social Security) does not belong to the business and must be accounted for and paid to the government. You are not borrowing from your company; rather you are seen as someone who is stealing from the federal government. Owing back payroll taxes is serious business. This is why the trust fund recovery penalty is a 100% penalty.

The Tax Resolution Institute understands how hard many small to mid-sized companies in Northern California were hit by the recent recession. If your company made the mistake of using the Trust Fund to cover your debts and failed to properly cover your payroll tax debts to the IRS, please contact us right away. We have worked with companies in San Jose, San Francisco and Silicon Valley, and we know how to find real tax resolution for a payroll tax crisis.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Avoiding Income Tax Problems For Nevada Gamblers in Las Vegas and Reno: Gambling Revenue and IRS Taxes

In Nevada, particularly in the Gambling Meccas of Las Vegas and Reno, gambling revenue often proves to be a land mine when it comes to federal income taxes. High rollers tend to incredible swings when it comes to winnings and losses, resulting in problems when it comes to covering their income tax debts. Although Nevada has no state tax, federal taxes still apply across the board with no exceptions. The IRS treats taxpayers in Nevada in the same fashion that they treat taxpayers across the country.

All Gambling Revenue is Taxable By The IRS

All Gambling Revenue is Taxable By The IRS

If you are unable to pay your tax debt on major gambling winnings, contact the Tax Resolution Institute, and we can help you find tax relief. Serious income tax debt can be resolved by a capable tax professional through the negotiation of an effective Offer in Compromise or an Installment Agreement. Here are the rules, adapted directly from the Internal Revenue Service website, when it comes to gambling winning and losses.

The following rules apply to casual gamblers as well as professional gamblers. Gambling winnings in Nevada are fully taxable and must be reported on your tax return. All gambling winnings are fully taxable. There is a widespread misconception that only winnings above a certain amount are taxable, and that simply is not true. This incorrect assumption comes from the fact that official tax documents are not issued in every situation of gambling success.

Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. If there is a question about a claim or prize, please contact the Tax Resolution Institute for clarification of the problem. Too many gamblers end up in hot water with the IRS because they fail to declare all their winnings.

A payer of winnings like a casino or poker house is required to issue a gambler a Form W-2G when any gambling winnings are subject to Federal income tax withholding.

A Form W2-G is issued for winnings of:

$1,200 or more in gambling winnings from bingo or slot machines;

$1,500 or more in proceeds (the amount of winnings minus the amount of the wager) from keno;

More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament; or

$600 or more in other gambling winnings where the payout is at least 300 times the amount of the wager.

The Up and Down Gambling Tide on the Las Vegas Strip

The Up and Down Gambling Tide on the Las Vegas Strip

The federal income tax withholding from your payout is generally a 25 percent rate, but it could at the backup-withholding rate of 28 percent if a gambler refuses to provide the payer like a Nevada casino with their federal identification number. All gambling winnings must be reported, however, including those that are not subject to withholding. In addition, you may be required to pay an estimated tax on your gambling winnings in Las Vegas and Reno.

Any losing wagers can be used to offset any winning bets. But bad bets cannot be used to produce a loss. They count only up to the amount of your winnings. A gambler may deduct gambling losses only if the deductions are itemized. Gambling losses can be claimed as a miscellaneous deduction that is not subject to the 2% limit on Form 1040, Schedule A.

It is important for a gambler, particularly Nevada professional gamblers in Reno and Las Vegas, to keep an accurate diary or similar record of gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. The IRS requires the same thing as it does with any deduction: good records.

Don't Place Your IRS Tax Crisis On The Wheel

Don't Place Your IRS Tax Crisis On The Wheel

On 2007 federal returns, the latest year for which data are complete, the IRS says more than 1.6 million taxpayers reported almost $27 billion in gambling income. This includes winnings from casinos and horse tracks, lottery and raffle jackpots, as well as the fair market value of cars, houses and other non-cash prizes. 987,000 of those taxpayers who reported gambling income also claimed as deductions almost $19 billion in bad bets.

Although such deductions can help soften the sting of a gambling loss by offsetting the federal income taxes owed on winnings, they often are not enough. When a professional gambler in Las Vegas or Reno experiences swings in fortune, they tend to splurge on the upside and end up broke on the downside. As a result, when it comes time to pay their federal income taxes, they find themselves in a tax debt crisis with the IRS. If you owe significant income taxes to the IRS as a result of your gambling winnings and your tax debt is growing, contact the Tax Resolution Institute. Our tax experts can provide with solutions like an Offer in Compromise and an Installment Agreement for real and workable tax relief. If you need tax resolution services, feel free to call the Tax Resolution Institute at 800-401-5926 or fill out our  tax resolution form.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

Payroll Tax Problems On the Rise For New Jersey Business Owners From Newark To Atlantic City

As New Jersey continues to face a challenging economic crisis and wealthy taxpayers abandon the state to avoid rising taxes, New Jersey business owners find themselves treading dangerous waters. From the big city streets of Newark to the casino-run boardwalks of Atlantic City, traditional avenues of revenue are drying up and profits are harder and harder to come by. As a result, when faced with a monetary crisis and lacking funds to cover the usual bills, business owners are choosing more and more to cut corners when it comes to paying their payroll taxes.

Payroll Taxes and the Trust Fund Recovery Penalty

Payroll Taxes and the Trust Fund Recovery Penalty

By failing to cover the trust fund and ensure that the Internal Revenue Service receives the money it is owed, New Jersey business owners across the state are placing their futures in real jeopardy. If you own a small to medium-sized business in New Jersey and you are having payroll tax crisis, the Tax Resolution Institute can help you find the tax relief you need to save your business. We have helped multiple business clients in New Jersey that have been facing major problems with both the IRS and the New Jersey Department of Taxation.

Whether it was the owner of several gaming arcades in Atlantic City who had lost a fair sum when several of his video games were vandalized or a small catering business in Newark that saw its profits vanish almost overnight with the onset of the recession, the Tax Resolution Institute provided the tax relief needed to avoid the final closing of the doors. The Atlantic City Arcade Owner did not realize that the Trust Fund Recovery Penalty was a 100% Penalty when he decided to use his employee’s trust fund to cover repair costs.

Atlantic City Business Owner in Need of Payroll Tax Relief

Atlantic City Business Owner in Need of Payroll Tax Relief

The Atlantic City businessman figured his decision was justified because he was the victim of a criminal attack. However, as the largest collection agency in the world, the IRS does not care what happens to you beyond their jurisdiction. All they care about is being paid what they are owed. Luckily, the Atlantic City business owner came to TRI and his penalty was negotiated down to just the actual Trust Fund amount originally owed.

When the recession hit, the well-regarded Newark catering business that specializes in weddings saw its business evaporate overnight. Although a majority of its workers were part-time, it maintained a permanent staff and still was responsible for the Trust Fund payments for both the full-time and part-time workers. The Newark business owner chose to use the Trust Fund money to buy supplies that were needed for upcoming weddings. After the payments for the catering jobs, she believed the Trust Fund could be paid back in full.

The Payroll Tax Crisis of New Jersey Wedding Caterers in Newark

The Payroll Tax Crisis of New Jersey Wedding Caterers in Newark

When two out of the three weddings fell through, the Newark catering company owner was caught holding the bag for both the supplies and the Trust Fund Recovery Penalty. Like the Atlantic City business owner, she called the Tax Resolution Institute, and we helped keep her business in business. If you are a business owner in New Jersey and you are experiencing a serious payroll tax problem, the Tax Resolution Institute is your positive answer for real tax relief.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.

A Shifting Economy In Las Vegas Results In Payroll Tax Problems For A Growing Business

As the Las Vegas economy shifted from full-speed ahead to a downturn reflecting the overall economy, numerous business owners found themselves in financial difficulty. A client of the Tax Resolution Institute with a number of small business ventures found himself with serious payroll tax problems. Originally the owner of a small motel on the outskirts of the main strip, the client had expanded his business to include a theme restaurant and a novelty store during the recent boom.

Las-Vegas-And-Payroll-Tax-ProblemsWhen hard times arrived, the client chose to rob Peter to pay Paul by using the Trust Fund from his employee’s Federal Payroll Tax Withholdings to cover business costs. He figured he had plenty of time to make up the difference when the time came to actually deposit the payroll taxes with the Internal Revenue Service. Unfortunately, other financial problems arose, and the business owner found himself unable to cover the funds owed. With the IRS enforcing payroll tax cases with real severity and the Trust Fund Recovery Penalty, known at the 100% penalty, being so extreme, the business owner found himself in dire straits. When he contacted the Tax Resolution Institute, it looked likely that his payroll tax debts would lead to the closing of his business ventures and eventual bankruptcy.

Mind you, even if the business owner had ended up declaring bankruptcy, the trust fund amount he owed in the payroll tax case would not have been dischargeable. Trust Funds Recovery Cases are so severe because bankruptcy does not apply as a protection. Once you have taken money owed by your employees from the Internal Revenue Service and the Federal Government, there is no easy way to avoid paying it back in full. When the Trust Fund Recovery Penalty and the Interest Compounded are added to the total, it often leads to the end of many viable business ventures. Luckily, our client in Las Vegas came to the Tax Resolution Institute before his payroll tax problem turned into a fatal catastrophe for his business ventures. By being able to take action quickly and knowing the ins and outs of the Internal Revenue Service, the tax experts at TRI can provide our clients who have either payroll tax problems or income tax problems with true and effective tax relief.

Payroll-Taxes—Stealing-From-Peter-To-Pay-PaulPeter Stephan effectively negotiated with the Internal Revenue Service to reduce the amount owed to the actual existing Trust Fund. Raising funds from the equity in his business ventures, our Las Vegas client was able to put together the funds to cover everything he owed. Like any collection agency, the focus of the IRS is to close cases and get the base amount owed recovered.

When the Tax Resolution institute offered to have the client pay that amount in full, the rest of the penalty and interest was waived so the case could be closed. Rather than having to close his doors, our client merely chose to sell off the novelty store, keeping his theme restaurant and his motel open and profitable. Without question, his mistaken choice to use his employee’s Trust Fund to cover his bills could have led to disaster. Thank to his decision to reach out for help, a bad decision did not grow into a fatal blow for his company.

Since Nevada has no state tax, many business owners in Las Vegas and Laughlin, Reno and Carson City, make the mistake of taking a casual approach towards their Federal payroll taxes. Such an approach is nothing less than deadly when it comes to the future success of any business venture. If the downturn in the Nevada economy has led to serious payroll tax problems, if you have taken from Peter to pay Paul, then please contact the Tax Resolution Institute, and we can help you to find the tax relief that you need to ensure the future viability of your business.

Peter Y. Stephan

About Peter Y. Stephan

Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.