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

July 15, 2010 By

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.

Filed Under: Delinquent Tax Debts, Income Tax Problems Tagged With: , , , ,

With California’s Tax Rates, The Los Angeles Lakers Almost Lost Lamar Odom And A Repeat As NBA Champions

June 21, 2010 By

California’s tax almost cost the Los Angeles Lakers a star player and the chance to repeat as NBA Champions. An essential piece to their puzzle, Lamar Odom was on the verge of leaving LA and sign with another team in the off-season. After all, Lamar Odom soon married Khloe Kardashian and needed serious finances to support his beautiful young bride with expensive tastes. There has long been a dispute about why high-income people leave California. Some say that high taxation and regulation drive businesses and rich people out of the state. The Tax Resolution Institute has a business development side that is designed to address such concerns. Creative Arts Management helps wealthy individuals and companies with effective tax planning and business management. Such money-saving services could save Lamar Odom a tremendous amount of money.

Lamar Odom Almost Left To Avoid California Taxes

Lamar Odom Almost Left To Avoid California Taxes

Lamar Odom is an extraordinarily versatile player, capable of playing any position on the floor and has been invaluable to the champion Lakers. Odom almost did not re-sign with the Lakers: He and his agent were slow to respond to an initial contract offer from team owner Jerry Buss, who responded by pulling the offer. The contract negotiations were tense at best. Finally, he signed, but not with the smile he had on his face after they won their second championship last week. What Odom needed were reassurances from an experienced business manager and tax-planning expert that his finances would be properly handled. This is the exact focus of Creative Arts Management and the Tax Resolution Institute. Beyond helping clients in tax trouble, the business experts make sure long-term clients are in safe and profitable positions.

The Miami Heat launched an aggressive bid to steal Odom away. By all accounts, the Lakers offered more money than the Heat, but in California, Odom pays the highest rate of 10.55 percent. Florida has no state income tax. According to published reports, the Heat emphasized in negotiations that the California taxes negate much of the financial advantage of the Lakers’ offer. Here were the numbers: Odom accepted a big offer from the Lakers: $9 million a season for 4 seasons that could force Odom to pay state income taxes of more than $3.6 million. However, if Odom’s finances are handled by a tax professional with precise tax planning, such huge tax bills could be significantly lowered.

The Financial and Tax Planning of Creative Arts Management

The Financial and Tax Planning of Creative Arts Management

The Heat offer was less financially generous annually—a reported $34 million over 5 seasons. But its total value was higher because of the number of years – and because Florida has no state income tax. When considered on an annual basis, the California taxes cut the difference in value of each offer almost in half (though the Lakers’ offers was actually more generous on an annual basis). Luckily, Odom overcame his reluctance, signed with Los Angeles, and the Lakers beat the Celtics in an exciting seven game series to win the NBA Championship. Without Lamar Odom and a second championship title, Los Angeles Laker fans would have been angry – not only at their team but also at Sacramento. If Odom and other high income individuals comes to Creative Arts Management and the Tax Resolution Institute, there financial worries can be transformed into secure profitability and future viability.

An Essential Piece of the Champion Los Angeles Lakers

An Essential Piece of the Champion Los Angeles Lakers

Filed Under: Income Tax Problems, Tax Planning, Tax Relief Tagged With: , , , ,

Tax Relief Success in Sacramento: The California Franchise Tax Board Refunds Bank Levy To Taxpayer

June 11, 2010 By

For the Tax Resolution Institute, nothing is as satisfying as when we can provide real tax relief success for taxpayers that come to us for help. Before we dive into the true story, we want to note that certain details have been altered to protect the privacy of our client. The Tax Resolution Institute will never violate a client’s right to privacy and anonymity.

Recently, we received a letter from a happy Sacramento taxpayer who had received a large refund from the California Franchise Tax Board. What is so rewarding is that money that was previously levied by mistake was refunded in full to the client after the Tax Resolution Institute successfully handled his tax problem.

In the letter, the happy Sacramento client who had been facing huge income tax problems with both the California Franchise Tax Board and the IRS expressed his gratitude when he kindly wrote:

“I just wanted to drop you a line to let you know that the State of California has just sent us, not one, but two refund checks.  I take this to mean that the issue with them is resolved. Great job and thanks!”

Tax Relief Success For A Sacramento Taxpayer

Tax Relief Success For A Sacramento Taxpayer

When the Sacramento taxpayer first came to us, he owed a bundle of taxes, penalties and interests for various unfilled personal income tax returns. By the time the Tax Resolution Institute became involved, the client’s bank accounts were being levied by the California Franchise Tax Board to cover the unpaid state tax bill. Right away, the Tax Resolution Institute took action to protect the future financial security of our client.

By taking action on the delinquent tax debts, we stopped the IRS and local state taxing agencies from further levying his bank accounts or garnishing his wages. Without this action, the enforcement actions eventually would have expanded into possible asset seizures. The Tax Resolution Institute went through and prepared the unfiled tax returns. The preparation and submission of the unfiled returns took place on both the Federal and the State level.

With the Federal Taxes, the Tax Resolution Institute negotiated a successful Installment Agreement for the delinquent tax debts. Wiping away the penalties and interests, the taxpayer received a payment plan that fit into his economic timetable. The Installment Agreement was workable and secure, satisfying all the parties involved.

California Franchise Tax Board Refund

California Franchise Tax Board Refund

The real tax resolution success came when the unfiled tax returns were filed with the California Franchise Tax Board. Upon accepting and processing the tax returns, the Tax Compliance Officer that not only did the client not owe any more money, but they actually were due a refund. In addition, the client’s bank accounts had been improperly levied and they were due a refund for the money that previously had been levied.

What a success for the Sacramento taxpayer! Thanks to the Tax Resolution Institute, no more enforcement actions were taken against them and they received two refund checks from the State of California. If you have a serious state or federal income tax problem, don’t you deserve to find out whether such positive tax relief is a real possibility for you?

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,

Kevin Mitchell, former San Diego Padres baseball slugger, owes $5.3 Million in Back Taxes to California

May 28, 2010 By

Homerun-bashing San Diego Padres bad boy Kevin Mitchell, a member of the 1986 World Series champion New York Mets and the 1989 National League MVP, owes more than $5.2 million in delinquent state taxes, records in California show. Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres. Kevin Mitchell needs today to find real tax relief in California.

San Diego Padres Slugger Kevin Mitchell Busted For Back Taxes By The California Franchise Tax Board

Kevin Mitchell Busted For Back Taxes By The Franchise Tax Board

Clearly, Mitchell mismanaged his baseball earnings with a combination of bad business management and poor tax planning. If Kevin Mitchell had come to the tax experts at the Tax Resolution Institute, he could have found a positive combination of preventive measures and tax relief solutions. Today, with the huge state tax debt and the bad publicity, Mitchell could still find real tax relief at the Tax Resolution Institute.

Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres.

Kevin Mitchell was known as a bad boy because he is the only known player to be accused of decapitating a cat. Mets pitcher Dwight Gooden wrote in his 1999 autobiography, Heat, that he witnessed Mitchell decapitate his girlfriend’s cat with a 12-inch knife. Mitchell denied it, but his bad karma could be catching up with him.

Kevin Mitchell, however, is not the only San Diego resident to wind up on California’s list of the worse tax debtors. In fact, when the California Franchise Tax Board released its list of major individuals and corporations with the largest tax delinquencies, three of the top eight are from San Diego County. They are Jeffry C. Howard, $5.4 million, fifth; Kevin Mitchell $5.2 million, sixth, and Michael Fanghella $4.1 million, eighth. Since they are all personal income tax delinquencies, Kevin Mitchell finds himself right in the middle of the list of San Diego’s worse delinquent taxpayers.

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Since San Diego is right in the Tax Resolution Institute’s backyard and some of our most respected tax experts work and practice in San Diego, San Diegans like Kevin Mitchell with severe tax problems should contact the Tax Resolution Institute. The tax experts at TRI can find tax relief and real tax solutions for severe tax problems.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , ,

Expansion of the Enterprise Zone in the San Fernando Valley Generates Unexpected Payroll Tax Problems

May 25, 2010 By

When California officials approved the request by Los Angeles to expand the city’s “enterprise zone” in the San Fernando Valley, they failed to foretell the challenges of business growth in a down economy. As new and existing businesses receive tax breaks, they can expand too quickly, leading to sudden financial challenges and payroll tax problems. Although supportive of business growth, the Tax Resolution Institute warns businesses to go slow upon receiving tax breaks in a down economy.

San Fernando Valley Enterprise Zone Leads To Both New Tax Breaks and Payroll TaxProblems

San Fernando Valley Enterprise Zone Leads To Both New Tax Breaks and Payroll TaxProblems

When financial pressure rises in a recession, a company will often make the mistake of stealing from Peter to pay Paul by withholding their mandatory Payroll Tax payments and holding on to the employee Trust Fund. Rarely a criminal act, the belief by the business owner is that they will make up the payments that they have missed in the future. Since the Trust Fund Recovery Penalty of the IRS is 100% of the Trust Fund, such illegal acts can lead to the closing of the doors of a once successful business. Although expanding and building on existing businesses is important, it is essential not to allow a government stimulus package to foster undue optimism. Rather, the Tax Resolution Institute recommends a careful and balanced approach to financial management and tax planning.

The California Enterprise Zone Program targets economically distressed areas, providing tax breaks and other incentives to attract new businesses and foster job creation. Under the program, firms can earn state tax credits for hiring additional employees, receive sales tax credits on purchases of $20 million per year of machinery, receive preference on state contracts and receive a 35% cut in city utility rates for five years. The expansion area includes portions of Chatsworth, Canoga Park, the Van Nuys Airport area, Woodland Hills and the northeast Valley.

William Roberts, director of the San Fernando Valley Economic Research Center, supports the idea of enterprise zones. However, in a recessionary economy, encouraging job creation can lead to other problems for struggling companies. Roberts believes that the problem is, “…when you get down to the fine print, how much freedom you have. That’s really where the meat of how well it works is going to show up.”

Enterprise Zone in Woodland Hills and the Possibility of Payroll Tax Problems

Enterprise Zone in Woodland Hills and the Possibility of Payroll Tax Problems

Bruce Ackerman, president of the Valley Economic Alliance, disagrees, estimating that several hundred jobs have been saved in the east value by helping distressed companies: “This is a coup for the Valley. With the economy softening and their opportunities to relocate elsewhere, there will be a great opportunity for them to keep their companies in the area and an incentive for them to grow.”

Companies in the zone will also get sales and tax income credits for buying machinery or equipment as well as faster expensing of equipment. Interest on loans will be decreased and they will get priority bidding on state contracts. “Any time you’re giving a business an incentive to move to an area, it happens, and it works,” said Stuart Waldman, president of the Valley Industry and Commerce Association. “If somebody is looking at moving to Burbank or an area without an enterprise and an area with enterprise, they’re going to move where they can get the best bang for their buck.” Clearly such trends had been happening. The Woodland Hills business district, which is home to a large number of finance, insurance and real estate companies, was particularly affected as those industries posted a 10 percent drop since 2008, according to the American Community Survey by the U.S. Census Bureau.

California Enterprise Zones in a Recessionary Economy

California Enterprise Zones in a Recessionary Economy

The Tax Resolution Institute Agrees with Bruce Ackerman when he explains that the expansion of the Enterprise Zone “…gives us the ability to retain existing businesses that may be considering moving from the Valley and enhances our ability to attract new businesses from outside of the state.” At the same time, with Payroll Tax cases rising, both the IRS and California Employment Development Department are  going after delinquent payroll taxes with a renewed focus, businesses that receive tax breaks must be careful to expand with a plan based in careful financial management and tax planning.

Filed Under: Payroll Tax Problems, Tax Relief Tagged With: , , , , , , , , ,

With A Tax Lien Filed Against Him In 2009, Rush Hour Star Chris Tucker Has A $3.6 Million Tax Bill In California

May 13, 2010 By

According to the Detroit News, less than a year ago, Chris Tucker, the Rush Hour star, had a $3,594,409 tax lien filed against him by California tax officials in Sacramento County Court. Tucker owes the taxes for the years 2001-02 and 2004-07 when he was actually making movies. Since he has not made a film since Rush Hour 3, it is hoped that Tucker saved enough from his $20 million dollar pay days to cover the tax lien. If not, the Rush Hour star with a criminal history could find some of his expensive luxury assets seized or he might have to have an auction like boxer Thomas Hearns to cover the tax bill. With a criminal history, Tucker needs to put these problems behind him.

Tax Lien Filed Against Chris Tucker

Tax Lien Filed Against Chris Tucker

Tucker is the latest celebrity to be named and shamed as indebted to the already financially struggling state. Finding fame in Friday with Ice Cube and the Rush Hour films with Jackie Chan, Tucker became infamous for being extremely difficult to work with on a movie set, throwing tantrums and screaming fits. Even though he has made millions in earnings he has failed to be compliant with California tax laws for several years now and that has just all caught up with him.

Since California is in such a drastic financial crisis, they are coming after delinquent taxpayers with a vengeance. The California Franchise Tax Board has been given a mission to collect all delinquent tax bills owed so they can help the state rescue itself from the financial crisis. Supposedly, Tucker has been talking to Ice Cube about starring in a third movie to complete the Friday. In addition, it has been rumored that Quentin Tarantino wants to make a war movie with Tucker and Brett Ratner is developing a film with Tucker about the personal valet to Frank Sinatra.

Chris Tucker Owes Back Taxes To California FTB

Chris Tucker Owes Back Taxes To California FTB

Without question, Tucker should hop on one of these movie roles and restock his finances. In addition, he should contact a tax professional like the tax experts at the Tax Resolution Institute. Beyond having experience helping high profile celebrities with tax problems, TRI knows how to provide wealthy individuals with effective financial and tax planning so nothing bad happens in the future. With a strong hand at the wheel, Chris Tucker’s financial life can steer right back on track.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , , , , , , , ,

Titanic Star Billy Zane Has A State Tax Lien For Over $115,000 Filed Against Him In California

May 11, 2010 By

Although Billy Zane achieved world-wide fame for playing the bad guy opposite Leonardo Dicaprio and Kate Winslet in the blockbuster James Cameron film, Titanic, the actor is sinking after crashing into a California Franchise Tax Board iceberg. California tax officials filed a state tax lien against Billy Zane after he fell behind on his payments concerning a back tax debt. As a result, the actor is in a serious tax crisis in regards to his delinquent state tax bill to the California Franchise Tax Board.

California Tax Lien Filed Against Billy Zane

California Tax Lien Filed Against Billy Zane

The Titanic co-star has had the state tax lien filed against him, accusing the actor of owing $116,578 in delinquent taxes. The demand was submitted by California tax bosses in the Los Angeles County to the LA County Recorder of Deeds on March 10, 2010. First reported by Perez Hilton on his tabloid gossip site, the tax lien against Billy Zane is one more example of Hollywood royalty failing to cover their tax bills and having their delinquent taxes lead to legal action by the state tax authorities.

Having recently starred in the ABC series, The Deep End, and rumored to be preparing for his directorial debut, Zane has made no comment in response to the tax lien. In a recent appearance at an Awards Ceremony in Los Angeles, Billy Zane was happy to discuss his debut behind the camera, but avoided answering any questions about the tax lien.

On April 16, speaking at the opening night of the Beverly Hills Film Festival, the Titanic star revealed he was directing a film set in France. He said: “I’m just putting the final touches to [my] directorial debut. [It's] about a French farce diamond-heist.” Although he was willing to discuss a fictional heist, he would not venture an opinion on his tax heist against California when the state is in real financial crisis.  When asked about the debut of his film, Zane laughed: “Hopefully we’ll see it shortly, I don’t know if it’ll be here, but somewhere.”

The Weight of a State Tax Lien

The Weight of a California FTB Tax Lien

If Billy Zane does not contact a tax professional like the tax experts at the Tax Resolution Institute, his California Tax Lien could be turned into a bank levy. As a result, he might not be able to show his film in the United States since it could even be seized as a possible asset, although such an asset seizure remains unlikely. Since the bill is not beyond the actor’s ability to pay it, Billy Zane should have the Tax Resolution Institute negotiate an Offer in Compromise on his tax debt and pay the delinquent tax bill off so the state tax lien can be removed. Only then, can Billy Zane avoid the tax iceberg of his nightmares and sail into the clear waters of future success as both an actor and a director.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , , , , , , , , , , , , ,

Orange County Billionaire’s Son Owes Over Two Million Dollars In Delinquent Income Taxes

May 3, 2010 By

When the California Franchise Tax Board released the annual list of the top 250 taxpayers with the highest state income tax liens, former Grand Prix Racing champion Steve Bren finished in the 18th spot. The son of billionaire Irvine Co. chairman Donald Bren, Steve and Cynthia Bren owe $2,209561.23 in personal income tax to the state of California and the state tax lien was filed on March 20, 2009. With California in a financial crush, the Franchise Tax Board is going after delinquent taxpayers with a renewed focus. By failing to contact a tax professional like the tax experts at the Tax Resolution Institute, Steve Bren allowed his private tax problem to become a public tax crisis. Now Steve Brin needs real tax relief.

STEVE BREN — NO STRANGER TO CRISIS

Steve Brin Finishes As The 18th Top Delinquent Taxpayer in California

Steve Brin Finishes As The 18th Top Delinquent Taxpayer in California

Then again, Steve Bren is no stranger to crisis, and he has put his family through their fair share of scandal in the recent past. Although Bren’s Irvine-based Bacchus Development firm billed itself as “one of the premier commercial real estate firms in Orange County, they were forced to file for Chapter 11 bankruptcy last September. In addition, bad boy Steve Brin was facing drug possession, domestic violence and trespassing charges in Malibu. Since he is turning 50 next year, Steve Brin has gone from being a bad boy to being the black mark that stains the legacy of his family name.

AN AVENUE TO SUCCESS AND TAX PROBLEMS

Steve Bren felt abandoned by his successful father as a boy, and he once told an interviewer, “We were brought up without anything — anything.” He found his own success on the car racing circuit, becoming a two-time Long Beach Grand Prix winner. Although he qualified for the Indianapolis 500, he could never find a car for a qualifying run, and the billionaire father would not support the car-racing hobby of his son. Although he briefly worked for his father, Steve Bren found his own avenue to success when he opened the Newport Auto Center luxury car dealership in 1987.

LEGAL PROBLEMS AND BUSINESS SUCCESS

The legal troubles of Steve Bren developed side-by-side with his newfound business success. He was caught with eight street-illegal Porsche Speedsters on the dealership back lot and was tagged for violating environmental laws. Eventually, the lot was sold to a company owned by billionaire Wayne Huizenga in 1994.

SYMPATHY BUT NO HELP FROM BILLIONAIRE FATHER

Billionaire Donald Bren's Son In Tax Trouble

Billionaire Donald Bren's Son In Tax Trouble

After the recent bankruptcy of Bacchus, Donald Bren announced in a statement issued by the Irvine Co: “I sympathize with Steve… like many fellow Americans, overwhelmed by these extremely challenging financial circumstances…. I wish Steve nothing but the best as he works though this very difficult period.” The father remained silent in terms of the recent criminal charges. The Malibu court sentenced Steve Brin to both domestic violence counseling and drug counseling. If he finishes those counseling programs successfully, the charges will be dropped.

PROBLEMS WITH THE CALIFORNIA FRANCHISE TAX BOARD

The same result cannot be said to be a possibility when it comes to the Franchise Tax Board. As California’s 18th most delinquent taxpayer, Steve Bren will have to find a way to cover his tax bill in order to have the state tax lien lifted. Without the removal of the lien, his financial future and business life remain in permanent limbo.

THE POSSIBLE HELP OF THE TAX RESOLUTION INSTITUTE

By relying on the tax experience and the tax expertise of a company like the Tax Resolution Institute, Steve Bren could find actual tax relief and a solution to his tax problems. Since his billionaire father clearly is not swooping in for the rescue, Steve Brin will have to reach out for professional tax help.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , , , , , , , ,

The California Franchise Tax Board Is Coming After You To Cover $18.9 Billion In Wasted Your Tax Dollars

April 15, 2010 By

If you have a tax debt in California, you should be ready to take action. With the state treasury nearly bankrupt, the California Franchise Tax Board has been directed to go after delinquent tax bills. Why is this modern witch-hunt taking place today? The state government of California squandered $18.9 billion over the past 10 years due to government waste, fraud and mismanagement. The $18.9 billion figure comes from a new California Taxpayers’ Association Research Bulletin, “A Decade of Waste, Fraud and Mismanagement,” which is based on the media’s investigative reporting, government audits, court documents and other sources of information.

California Tax Dollars Wasted

California Tax Dollars Wasted

Here are some glaring examples of the extreme waste of your tax dollars in California. The state auditor actually discovered that more than 400 state workers were improperly receiving free parking, costing the taxpayers $2.1 million. The Department of Health Services made $2.5 million worth of incorrect payments to pharmacies. In addition, they also paid $1.2 million more than it should have in Medi-Cal claims for wheelchairs and other medical equipment.

In total, the report includes 127 specific examples – and this is just the tip of the iceberg. There were another 138 cases of waste that cannot be quantified in dollars and cents. As a result, they were not included in the report.

The California state government needs to actively address the bevy of problems pointed out by auditors and investigative reporters. Every penny wasted is a penny of revenue that could be used to pay for education, public safety, improved roads and other government services that taxpayers expect.

Will Arnold Schwarzenegger address these problems by refusing to allow such wasteful spending to continue? Such spending has placed California in the current budget crisis and increased the pressure for higher state taxes. In addition, it has led to the California Franchise Tax Board removing the gloves and going after delinquent tax bills like a Salem witch hunt.

California Franchise Tax Board Witch Hunt

California Franchise Tax Board Witch Hunt

If you have a large delinquent tax bill owed to the state of California, contact the Tax Resolution Institute. It is time to take action today before that dreaded knock comes to your door in the form of a tax lien. Such tax problems with the ruthless collection officers at the California FTB will lead directly to wage garnishments and asset seizures. On account of years of wasteful spending, California is coming after you with a vengeance. Protect yourself and your financial future before it is too late.

Filed Under: Tax Relief Tagged With: , , , , , , , , , , ,

10 Mistakes To Avoid When Doing Your Taxes

April 12, 2010 By

With tax right around the corner, the Tax Resolution Institute is happy to provide you with a list of 10 common mistakes to avoid when preparing your taxes. If you owe over $50,000 in taxes this year or a back tax bill and you cannot pay, please contact TRI so we can find a solution for you.

1. Forgetting of not knowing about the “making work pay” credit. This was President Obama’s tax-cutting pledge on the campaign trail. It is now a reality, worth up to $400 per worker. People haven not learned how to claim the credit properly. As a result, it pops up as the most common mistake cited by the IRS this year. (As of April 2, the agency had notified more than 575,000 Americans of this error.) Open up “Schedule M” and grab those savings.

2. Rushing to “get it over with.” If you’re uncertain about a tax issue, it is better to file for an extension than to rush your taxes into the mail with the thought that you can amend it later if it is wrong.

3. Thinking that filing for an extension exempts you from paying. You still have to pay your taxes by April 15 (or you’ll owe a penalty). It is just the tax forms that can wait.

April 15 is Tax Day

April 15 is Tax Day

4. Not attaching W-2 forms. Staple the forms to the front of your return, if you are a wage earner.

5. Not taking the home buyer tax credit. The housing market has been tough. It is even tougher if you bought your first home in 2009 and don’t take advantage of a tax credit worth up to $8,000.

6. Passing up the opportunity for tax-free retirement savings. April 15 is not just tax day; it is also the deadline for making contributions to an IRA (individual retirement account) for 2009. Build that nest egg if you can – and also report those IRA contributions as required by the IRS.

7. Letting your refund go astray. Double-check the routing numbers if you are seeking direct deposit of a tax refund. An incorrect account number or financial institution routing number can cause your refund to be delayed and even deposited into the wrong account.

The Tax Day Mouse Trap

The Tax Day Mouse Trap

8. Not adding enough paperwork with your state income-tax return. Some forms from your federal return may be required as add-ons. If you had capital gains, for example, you may need to enclose the federal Schedule D with your state return.

9. Mixing up where things are deductible. Income from US Treasury securities, such as Treasury bonds, is tax-exempt at the state level, but not at the federal level. Municipal bonds are exempt from federal taxes.

10. Failing to sign and date the return. If you file jointly, both individuals must sign. And if you owe money, remember to enclose payment. (If you pay by check, adding a memo “For Form 1040, tax year 2009″ can help ensure that your payment gets properly credited.)

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , ,
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