Archives for December 2010

Tri-State Tax Resolution —Innocent Spouse Relief Saves Greenwich Wife From Husband’s Income Tax Evasion

With a focus on Tri-State tax resolution in the New York area, the Manhattan office of the Tax Resolution Institute on Fifth Avenue recently saved a Greenwich, Connecticut Housewife from losing her home and financial safety net on account of her husband’s income tax evasion. By qualifying the housewife for Innocent Spouse Relief, the tax experts at TRI helped the woman protect her children, their home and other assets from the collection efforts of IRS Revenue Officers.

Innocent Spouse Relief In Greenwich

Innocent Spouse Relief In Greenwich

The real challenge was to show that she did not benefit from the extra money that her husband acquired while trading on Wall Street. Since he stowed the profits in offshore bank accounts, the money was never actually used to improve the family’s living conditions. In addition, she came to the marriage with extensive financial resources, and the couple bought their Greenwich home prior to the income tax evasion. Even though the home is not fully paid off, the IRS decided that she qualified for Innocent Spouse Relief because previous economic resources covered the ongoing mortgage payments.

Still, it was challenging, however, to prove that the extra money that was a result of the tax fraud did not benefit the Greenwich family. By helping the woman fill out the extensive IRS questionnaire to verify her story, the tax experts at TRI helped her find real tax relief. At the Tax Resolution Institute, we have extensive experience helping Innocent Spouses properly and successfully fill out such questionnaires in order to gain the Innocent Spouse designation by the IRS. Without question, the long-term consequences of her husband’s criminal actions have deeply affected the family, but at least their future remains safe and secure.

In the difficult economic times since the onset of the recession, many well-off Tri-State business owners have chosen to cut tax corners to cover their investment losses on Wall Street and beyond. Often, it seems such actions are taken without the partner’s spouse being aware of what is happening. As the economic well being of the family is maintained at home, such tax evasion can become deadly when the IRS catches up with these poor choices. As the largest collection agency in the world, the Internal Revenue Service ultimately will track you down and catch you if you choose to evade your income taxes. As for the consequences, just ask Wesley Snipes what a criminal sentence of three years in jail feels like.

Greenwich Tax Resolution Services

Greenwich Tax Resolution Services

If you have evaded your income taxes and you believe your family is in danger of being overwhelmed by the collection efforts of IRS Revenue Officers, please contact the Tax Resolution Institute today. Doing nothing, staying stuck and keeping such a dangerous secret is nothing less than the bell of doom ringing for your family. If you ask for whom the bell of the IRS tolls, it rings for you. At TRI, we can help you by possibly providing Innocent Spouse Relief for your partner and helping you with the very best in tax resolution services. Like the family in Greenwich, we can help you maintain your lifestyle in a tax crisis, protecting your children and their financial safety. Our goal at the Tax Resolution Institute is to help you like we helped the Greenwich innocent spouse and provide freedom for your family.

California Payroll Taxes Raised 24%, Hurting Struggling Companies & Resulting In Delinquent Payroll Tax Problems

Reflecting a trend in cash-strapped states across the United States from News York to Nevada, California payroll taxes have been raised 24% this year over last by the Employment Development Department. The highest payroll tax increase in the nation — an incredible 168% increase — happened in Hawaii. As Californian employers try to combat the high unemployment rates by increasing their workforces, they are being subverted by states desperate to raise taxes in order to cover staggering debts unemployment related to unemployment benefits.

Distressed States In The Res Raising Payroll Taxes Like California & New York

Distressed States In The Red Raising Payroll Taxes Like California & New York

Nothing less than a vicious cycle, the Tax Resolution Institute realizes that many companies, in attempts to help the economy by hiring the unemployed, suddenly are experiencing serious payroll tax problems. In addition, The higher the unemployment goes, the higher the payroll tax to fund it, damaging company’s ability to hire and leading to huge delinquent payroll tax crises with both state taxing agencies and the IRS. Employers in as many as 26 states will face tax increases of between $21 and $84 per employee per year if their state governments don’t repay Washington by November 2011. Choosing anonymity, once thriving business owner in Orange County shook her head: “If I go under, there are a bunch of other people that lose profits also, it’s not just myself.”

Across the country, state governments are borrowing heavily from the federal government to keep paying unemployment insurance benefits Even with the weak job market, the Wall Street Journal notes that most states are raising payroll taxes to pay off the loans. In fact, thirty-one states have borrowed nearly $41 billion from the federal government, and California alone has borrowed nearly $8.8 billion as of mid-November, according to the Labor Department. As these states try to replenish the funds and begin to repay the loans, employers are facing increases in state and federal payroll taxes, a potential barrier to new hiring. Payroll taxes levied by states fund unemployment benefits for up to 26 weeks — longer in some states like California, but those laws are under siege. It is just too expensive.

California Raising Taxes & Going After Delinquent Payroll Tax Debts

California Raising Taxes & Going After Delinquent Payroll Tax Debts

In addition, the federal government requires states to pay benefits even if their unemployment funds run out of cash. As a result, a strapped California has entered a serious financial crisis. As a result, the Employment Development Department is going after payroll tax debtors with a renewed vengeance. California has borrowed billions from the federal government to pay unemployment benefits. Now, in order to pay the money back, the state is leaning on businesses in the form of higher payroll taxes. As businesses across the state hang on by a thread, California has been hit really hard in the economic crisis, and things seem to be getting even worse. Richard Chapman of Kern Economic Development Corporation explains: “The state owes about $9 billion to make up for the money they spent on unemployment benefits and to make that up they are going to have to raise the payroll taxes.”

California business owners complain they’re helping shoulder budget deficits, and many are resistant to pay their payroll taxes, taking from the trust fund to cover additional costs. Unfortunately, this can be the death knell of a once thriving business, leading to complete disaster. The Tax Resolution Institute empathizes with business owners placed in such a precarious financial position with both state taxing agencies and the Internal Revenue Service. If you are experiencing a serious payroll tax crisis, please contact us today. The recession that is profoundly affecting both California and the United States as a whole should not lead to the closing of the doors to your business. Our goal is to keep your doors open and help companies across the nation survive payroll tax problems and delinquent tax debts.

Unexpected Payroll Tax Problems Arise As A Result Of New Homeland Security & ICE Enforcement Policies

United States Immigration and Customs Enforcement (ICE), the largest investigative agency in the Department of Homeland Security is taking federal enforcement of immigration and hiring policies to the next level, resulting in financial trouble and sudden payroll tax problems for a multitude of employers across the country. Recently, the owners of Hi-Tech Trucking and SeaLands Food were sentenced to 18 months jail and 2 years probation on top of forfeiting $1.2 million. In October 2010, retailer Abercrombie and Fitch was fined $1.1 million for technology-related deficiencies in its electronic I-9 verification system. In San Diego, the federal government is seeking to seize the property of a bakery owner who has been charged with hiring illegal immigrants.

ICE Enforcement of Hiring Policies Leads To Payroll Tax Probelms

ICE Focus On Employers Leads To Payroll Tax Problems

Although the fines, seizures and jail sentences were in relation to immigration and hiring violations, the Tax Resolution Institute (TRI) recognizes the financial pressure these changes have put on employers. Challenging economic times combined with an increased government focus on employers as the scapegoats can result in sudden tax difficulties Fixing violations and revamping hiring policies can lead an employer to borrow from the Trust Fund to cover unexpected costs.

The problem is that not depositing your payroll taxes is a potential death sentence for a business, resulting in bigger problems with the Internal Revenue Service like the Trust Fund Recovery Penalty. By becoming compliant with Homeland Security, an employer can create a whole new set of payroll tax problems. In business, it is never wise to steal from Peter in order to pay Paul. If this is what happened to you and your company, contact the Tax Resolution Institute today.

Robbing Peter (IRS) To Pay Paul (ICE)

Robbing Peter (IRS) To Pay Paul (ICE)

The revised enforcement approach by Immigration Customs Enforcement (ICE) has been in effect since July 2009 after John Morton, assistant secretary of U.S. Immigration Customs Enforcement, announced a change in strategy with a focus on employers. This revised strategy includes utilizing Notices of Inspection that allow enforcement agents to inspect immigration documentation, including I-9s. This shift in strategy echoes the words of Homeland Security Secretary Janet Napolitano, who in January of 2009 stated, “You really have to look at the demand side for illegal labor and go after the employers as strongly and as effectively as you can.”

Since this announcement, more than 2,500 employers have received Notices of Inspection and had their paperwork audited. From these audits, over $35.7 million in fines and penalties have been levied against employers. It is not difficult to envision how such steep penalties could result in delinquent payroll tax problems as an employer steals from Peter to pay Paul. The Tax Resolution Institute is ready to help companies who have been placed in such jeopardy by the pressures of policy changes. If you have a payroll tax problem because you have dipped into the Trust Fund for any reason and you need help, contact the Tax Resolution Institute today.