Archives for January 2011

The IRS Begins The 2011 Tax Season Hardcore, Filing Tax Liens Against and Going After High Profile Individuals

Certainty of Death & Taxes and the IRS Wants You Alive and Paying

Certainty of Death & Taxes and the IRS Wants You Alive and Paying

The Internal Revenue Service began the 2011 tax season hardcore by going after the tax debts of several well-known celebrities with tax liens while continuing to punish the financially compromised and distressed middle-class. With the country still in economic crisis, IRS Revenue Officers are focusing on the collection of delinquent income taxes with a renewed vigor. Rappers and actors seem particularly to be under the microscope of IRS collections enforcement.

The Tax Resolution Institute believes that most high profile individuals and celebrities get in trouble with the IRS and delinquent tax debts because of poor business management. Not only does TRI offer the best in tax resolution services if you have back income taxes owed and unfiled tax returns, we also offer exceptional business management and tax planning services. Our game plan is simple: if you are in the spotlight and working hard to make your money, you should never find yourself in a tax crisis with the IRS.

The famous saying is that there are two certainties in life — death and taxes. To be blunt, a tax lien is only the beginning. the IRS does not want you dead because they want you working hard so you can pay them the taxes you owe, the penalties and the interest until you have nothing left. This is the job of an IRS Revenue Officer — to collect back income taxes at any cost. Don’t let this happen to you — contact TRI today to find real tax relief. Others say it: We do it! 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.

Some of the High Profile Individuals allegedly starting 2011 with tax liens and other tax- related problems include the following:

Val Kilmer — The actor had a nearly $500,000 IRS tax lien filed against him.

Wyclef Jean — Singer and Former Haitian Presidential Candidate has 2.1 million in IRS tax liens filed against him.

Teri Polo — Known as Pam Focker from the Meet The Fockers movie series, she has an outstanding IRS tax lien of $116,620.

Randy Quaid — The Independence Day actor and brother of Dennis Quaid owes over $1 million in back taxes to the IRS.

Xzibit —The former Pimp My Ride television host and West Coast emcee owes the IRS $959,523 in back taxes.

Lil Jon — The Rapper and Music Producer had an IRS tax lien filed against him for $638,937 lien in June 2008, listing a $1.9 million oceanfront South Carolina home as his address. Unfortunately, the home was foreclosed on and sold in August 2010.

Swizz Beatz — The Producer Husband of singer Alicia Keyes owes Over $2.6 Million To IRS.

IRS Tax Lien Like A Target On Your Back

IRS Tax Lien Is Like A Target Stamped On Your Back

A Hard Truth: Payroll Tax Cut Provides Zero Relief For Business Owners In Trouble And Hurts the Poor

Secretary Treasury Tim Geithner is leading an Administration effort to publicize in glowing terms the tax cut deal passed by Congress and signed by the President during the lame duck session in December. The Tax Resolution Institute wishes that the payroll tax cut actually was a positive that was going to help troubled business owners in a payroll tax crisis and impoverished workers, but it is not. Geithner claims that 159 million workers will benefit from the payroll tax cut, and there’s no reason to doubt him on that point.

Hard Truths About The Payroll Tax Cut

Hard Truths About The Payroll Tax Cut

But the analysis suffers because it avoids the two major negatives: Beyond omitting that the bill does not reduce the payroll tax benefit of the people who most need it — the lower middle class, the poor and the impoverished — the bill also fails to provide any tax relief for companies in crisis and businesses who are experiencing payroll tax problems due to the recession. If your company is having problems covering its portion of the payroll taxes and you find yourselves dipping into the trust fund to make up the difference due to the lousy economy, there is no relief in sight for you.

Geithner said that the payroll tax cut, totaling about $110 billion according to new estimates, will lead to an increase in take-home pay for the average worker by about $700 a year, and for the average working family about $1,000 a year. Not helping business owners with payroll tax problems, this payroll tax cut applies to every worker in America: Bill Gates, Alex Rodriguez, and Paris Hilton will get a payroll tax cut. However, any individual making under $20,000 a year or family making under $40,000 a year will see less of a benefit under the payroll tax cut. That comes out to roughly 50 million workers, or close to 1 in 3.

Payroll Tax Cut Fails To Help Poor & Unemployed

Payroll Tax Cut Fails To Help Poor & Unemployed

Ultimately, the payroll tax cut ends up a worse deal for low-income workers, who would spend the money, and a better deal for high-income workers, who probably won’t. Whether you live in Los Angeles or San Diego, Las Vegas or New York City, this highly touted payroll tax is going to provide zero relief for the workers who truly need it while even hurting business owners who needed a payroll tax cut in order to stimulate the economy and hire the unemployed. The phony use of “average tax cut” belies the fact that it’s a worse deal for 1 in 3 workers. Under the logic of the administration, the payroll tax cut effectuated a tax increase for 50 million workers while leaving business owners in the lurch.

The Administration and leading economists are sticking to their predictions that the economy will grow 3-4% in 2011. They hope that this so-called universal package, in the words of Geithner, will add at least 1.5 million jobs. So far, economic indicators are decidedly mixed on that front. If your company is experiencing a payroll tax crisis, contact the Tax Resolution Institute. Rather than offering you big words and faulty promises, we can provide actual tax relief to resolve your payroll tax problems.

Important Payroll Tax Update – The Implications of the New Tax Relief Bill of 2010 on Companies and Individuals

The Tax Resolution Institute always stays on top of the latest developments in tax laws, particularly when it comes to shifts in Payroll Tax policy that can alter the bottom line of  your business. If you know what is happening in advance, you are better able to adapt to the shifts in policy. At the end of 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  The bill’s total cost to the US Treasury is $858 billion. Individual taxpayers will receive the bulk of the benefit as the bill targets some $700 billion in tax breaks toward them.

Payroll Tax Update: How The 2010 Tax Relief Act Affects You

Payroll Tax Update: The Affects of the Tax Relief Act

In terms of affecting your business, one of the key tax provisions included is a Payroll Tax Credit for 2011 only. This Payroll Tax Holiday gives everyone a 2% raise. For 2011, there will be a 2% reduction in the amount you pay towards Social Security that can result in up to $2,136. This tax credit reduces the employee’s portion of Social Security (FICA) taxes from 6.2% to 4.2%. 
What is positive for an employer is that the employer portion of Social Security (FICA) tax will remain the same. For once, the government does not expect employers to shoulder the weight of financial stimulants that benefit their employees.

Employees earning the maximum amount subject to Social Security tax ($106,800) will see their FICA tax reduced by $2,136. Married couples with both husband and wife working and earning 
the maximum can see double the benefit. Self-employed persons currently pay 12.4% in FICA taxes; this will be reduced to 10.4%. Although this new law is designed for employers to bear the burden of adjusting their withholding payroll calculations in adherence to the new payroll tax relief act, the IRS encourages everyone ahead of the payroll tax cut to determine if their withholdings are correct.

Genuine Tax Relief In 2011

Genuine Tax Relief In 2011

What our clients and potential clients should know is that the Tax Resolution Institute has your back when it comes to keeping current with the shifts in a difficult and challenging economy. For detailed information about the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act, you can visit the IRS website at

Here are further specifics details of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

A Summary of Additional Tax and Financial Provisions:

Extension of Individual Income Tax Rates – Individual tax rates had been scheduled to increase from their current rates of 10, 15, 25, 28, 33 and 35 percent to 15, 28, 31, 36 and 39.6% in 2011. The current rates have been extended for 2011 and 2012.

No Marriage Penalty – The so called “marriage penalty” was scheduled to return in 2011. This bill extends relief from the marriage penalty by increasing the standard deduction for married couples and increasing the size of rate brackets. This extension will last through 2012.

Bonus Depreciation – Bonus depreciation for qualifying investments made after September 8, 2010 through December 31, 2011 will be eligible for 100% bonus depreciation. Property placed in service in 2012 will be eligible for 50% bonus depreciation. Bonus depreciation is generally not limited to use by smaller businesses or capped at dollar levels.

Itemized Deduction and Personal Exemption Limitation – Both itemized deductions and personal exemptions will not be subject to phase out in 2010, 2011 and 2012.

Investment Income – Long term capital gains and dividends are currently taxed at a maximum rate of 15%. This act extends these rates beyond their expiration date to 2011 and 2012.

Research Tax Credit – The research tax credit had expired as of December 31, 2009. This has been extended for 2010 and 2011.

Alternative Minimum Tax – The bill contains a two-year patch for the AMT. This is retroactive to January 1, 2010, thus reducing the AMT burden for tax years 2010 and 2011.

Estate Tax – For 2011 and 2012, the maximum estate tax rate is 35% with an exemption amount of $5 million.