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How Businesses Get in Trouble with Unpaid Payroll Taxes – 2 Key Examples From Philadelphia & Pittsburgh in Pennsylvania

January 28, 2012 By
Unpaid Payroll Taxes

The Problem Of Unpaid Payroll Taxes

In today’s tough economy, whether a result of ignorance, accident, or design, unpaid payroll taxes get plenty of business owners in trouble with the IRS. It is very easy for a business with large operating expenses and reduced sales to “temporarily borrow” from the payroll taxes account to keep the lights on. Payroll deductions are called a Trust Fund because you become a trustee of the IRS. Unpaid payroll taxes result from failing to make the required payroll tax deposits on time and in the correct amounts. Failure to collect and submit this money means you have committed a trust fund violation against the federal government. IRS Revenue Agents take such violations very seriously and responds harshly to the liable business owner.

Never forget that in addition to withholding the money from your employees’ wages, and depositing that money on their behalf, you also have the requirement to pay a matching amount for some of those taxes. And never confuse reporting with depositing. These are two entirely different processes. Reporting tells the government how much you owe. Depositing is the process of actually sending them the money in a timely manner and in the correct amount. If you mix up the two, you will be held liable for the unpaid payroll taxes.

A Business In Pittsburgh With Unpaid Payroll Taxes

The Tax Resolution Institute once helped a construction company in Pittsburgh with unpaid payroll taxes. The payroll tax crisis was caused by a misunderstanding by the owners. In a cash crunch, they had continued reporting while missing deposits. The construction company owners believed that by continuing to report the amount owed, they would not be penalized by the IRS and would be able to pay the rest later. This could not be farther from the truth. Luckily, the tax experts at the Tax Resolution Institute were able to negotiate a deal with the IRS that enabled the company to remain in business. They were given the opportunity to collect the funds needed to pay what was owed with interest and a small penalty. Without the help of TRI, their doors would have been closed and their assets sold.

Depending upon the size of your payroll, you are required to make payroll tax deposits either semi-weekly or monthly. The IRS makes this determination the first time you file your taxes. You do not choose. Business owners who get into trouble over payroll tax matters usually do so because they skip one or more deposits. And the IRS Revenue Agents do not care why you missed the deposit. Once you miss even one, you have a record of unpaid payroll taxes and you start receiving an automated series of letters. These letters quickly start threatening civil and legal penalties including interest, penalties, fines and, in extreme cases, criminal action.

IRS Officers Agents Will Not Stop Until The Trust Fund Is Recovered

IRS Revenue Officers Do Always Collect Unpaid Payroll Taxes

A Business in Philadelphia With Unpaid Payroll Taxes Helped

The Tax Resolution Institute once helped a financial services company in Philadelphia with an unpaid payroll tax problem. The previous company of the new accountant had monthly deposits. Although the construction company had to make semi-weekly deposits, the new accountant made the mistake of making monthly deposits. When the threatening letters started coming from the IRS, the owners of the construction company contacted the Tax Resolution Institute. In any tax situation with the IRS, it is always better to avoid going it alone. The Tax Resolution negotiated a positive resolution for the company with the IRS, resolving the problem of unpaid payroll taxes. Since monthly deposits had continued to be made, the trust fund recovery penalty was replaced with a small cautionary fine and a promise of future compliance.

If your unpaid payroll taxes are getting out of control, you need to engage an experienced tax professional to represent you before the IRS. The tax professionals at the Tax Resolution Institute can negotiate a payment arrangement or settlement between you and the IRS. In many cases, we are able to successfully remove or reduce the amount you have been assessed in fines, interest or penalties. Like we did with the two Pennsylvania businesses in Philadelphia and Pittsburgh, the Tax Resolution Institute can resolve an unpaid payroll tax problem and offer your company effective tax relief.

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

If You Are A Millionaire, The Internal Revenue Service Is Much More Likely To Audit You

January 25, 2012 By
Millionaires Targeted By The IRS

1 In 8 Millionaires Targeted By The IRS For Tax Audits

If you earned over a million dollars last year, you were much more likely to be contacted by the IRS. An incredible one in eight people earning at least $1 million annually were audited by the Internal Revenue Service last year. In contrast, according to IRS data released and reported on in the Huffington Post, only 1 in 100 individuals earning less than $200,000 had their income tax returns examined by the IRS. The Tax Resolution Institute empathizes with wealthy taxpayers, and we understand how you suddenly feel as if you are under siege for no reason. If you need the best in effective and reliable tax resolution services, please contact us today.

The 12 percent of millionaire earners audited in 2011 was appreciably higher than the 8 percent who were audited in 2010. IRS officials said the high ratio was part of an effort to demonstrate that tax laws are applied fairly. As we all know from the State of the Union, President Barack Obama and congressional Democrats are seeking to boost taxes on the wealthy as a way to pay for jobs programs. President Obama announced an incredible tax hike against the wealthiest taxpayers of 30% of their annual income.

Between 2004 and 2009, the percentage of millionaire earners audited ranged between 5 percent and 7 percent. The auditing data is divided into only three categories of income: below $200,000, $200,000 and up, and $1 million and higher. About 1 in 25 people earning $200,000 and more was audited in 2011. With the United States economy still in crisis, the federal government clearly has decided to target the wealthy. In addition, the data shows that the IRS also audited a greater proportion of large corporations than smaller ones. Last year, only 1 percent of corporations with assets under $10 million were audited. Among corporations with assets of $250 million and up, 28 percent were audited.

The IRS Is Going After Your Money

The IRS Is Going After The Money Of Millionaires

The IRS said its enforcement efforts to collect all taxes owed — which include audits, court cases and other activities — netted $55 billion last year. That is nearly $3 billion less than the previous year, and the Obama White House is not happy about the fall-off. In total, the IRS audited nearly 1.6 million of the 141 million individual income tax returns that were filed. The agency collected a total of $55 billion from its enforcement efforts for the 2010 tax year. In 2011, according to the recent data, the Revenue Agents of the Internal Revenue Service garnisheed wages or seized money from bank accounts 3.7 million times, put tax liens on property 1 million times and seized 776 pieces of property.

The Tax Resolution Institute believes that all taxpayers should be treated equally without preferences or prejudices. If you are a wealthy taxpayer and you have been contacted by the IRS, do not delay in taking action. Contact us today for the best in tax resolution services.

Filed Under: Income Tax Problems, Tax Relief, Tax Resolution Services Tagged With: , , , , , ,

The Internal Revenue Service Files An Income Tax Lien Against Lindsay Lohan

January 13, 2012 By
Lindsay Lohan and the IRS Income Tax Lien

Lindsay Lohan and the IRS Income Tax Lien

Like so many celebrities in crisis before her, Lindsay Lohan is facing an IRS tax lien for nearly $94,000 that the federal government says she owes in delinquent income taxes. The Tax Resolution Institute has seen such celebrity cases again and again over the years as a result of poor financial management and zero tax planning. Records in Los Angeles County show the lien filed by the IRS at the beginning of 2012 seeking payment for the 2009 tax year.

According to Lohan’s publicist Steve Honig, the starlet’s finances are nobody’s business but her own. Then again, clearly the Internal Revenue Service has a very different perspective. If the actress knows what is good for her and learns from the dreadful experiences of Wesley Snipes and Nicholas Cage, she will hire a top tax professional and deal with the crisis at hand. Lohan is continuing to serve morgue duty to comply with her probation in a pair of misdemeanor cases so she has no more room for additional legal troubles.

Lohan claims that she thought her accountants were handling that sort of thing, and she says that she intends to pay the bill immediately. Her paycheck for recently posing nude in Playboy magazine ought to help. The Internal Revenue Service filed the tax lien against her home in Encino, according to E! Online. In full-tabloid mode for many years, clearly it is time for Lindsay Lohan to address her tax troubles and legal problems and put the bad news of the past behind her. Lohan found the time last week to go to the Chateau Marmont on Wednesday night and attend a party hosted by the Weinstein Co., to celebrate award season. If Lindsay Lohan wants to receive awards and not fines in the future, she should hire a proper financial management team and the tax experts at the Tax Resolution Institute to help her find the tax relief she clearly needs.

Filed Under: California Tax Relief, Tax Lien Problems, Tax Planning, Tax Relief Tagged With: , , , , ,

5 Essential End Of The Year Tax Planning Tips From The Tax Resolution Institute

December 27, 2011 By
End Of The Year Tax Planning Tips

End Of The Year Tax Planning Tips

Recognizing the importance of tax planning as 2011 ends and 2012 begins, the Tax Resolution Institue offers you this handy guide of 5 essential end of the year tax planning tips. Some may apply to you and some may not, but we are certain that there is at least two or three tips in this document that will help you with your tax planning. After all, although the Tax Resolution Institute focuses on helping individual and companies resolve delinquent tax debts, we also believe in providing techniques and strategies as a form of prevention to help you avoid such serious tax problems.

1) Sell Losing Stocks By The End Of The Year To Offset Capital Gains

One strategy you can use to reduce your taxes is to examine your investment portfolio and make sure to offset any capital gains by selling the stocks with capital losses. Capital losses offset capital gains in the year that the investments are sold off. However, if your losses exceed your profits, then the net loss is tax deductible but only up to $3,000 in net losses for that year. Still, the remainder of those losses carry over to the subsequent year as what is described as a “Capital Loss Carryforward” by the Internal Revenue Service

In addition, you must be careful when timing the sale of any losing positions. Any purchase of “substantially identical stock or securities” (from Publication 550) within 30 days of selling a security at a loss will be deferred. The key is to sell one investment at a loss, and purchase a similar (but not “substantially identical”) investment that helps build your portfolio. Always get the advice of a tax planning professional when making such a decision.

2) Be Fully Aware Of Tax Credits You Can Use To Lower Your Tax Bill

Yes, when it comes to tax credits, it often seems that the qualifying rules for each program  are both complex and overly specific.  Nevertheless, you should explore any or all of the options to see if they can be used to lower your overall income tax debt for that calendar year. Here are some of the tax credits used most often:

A. Child Tax Credit + Child and Dependent Care Credit:

The child tax credit provides you with a tax credit of $1,000 per qualifying child under the age of seventeen.  This credit is phased-out for taxpayers with modified adjusted gross incomes (AGI) in excess of $110,000 for married-joint filers, $55,000 for married filing separately, and $75,000 for all other taxpayers. In addition, if you’re paying someone else to care for a child under age 13 so you can work, then you may be able to claim the child and dependent care credit.

B. Hope and Lifetime Learning Credit:

If you are paying secondary education expenses, then the American Opportunity Credit, Hope Credit and Lifetime Learning Credit provide tax credits up to $2,500 for each qualifying student enrolled in a qualifying institution of higher education.

C. Helping The Environment - Hybrid Car Credit + Energy Saving Devices:

If you buy or lease a new hybrid car or truck, then you may be eligible for a tax credit of $250 to $3,400 per car depending on the fuel economy of the vehicle.  New car manufacturers will provide you with the details of these tax savings programs and you can also can find them online. In addition, if you have installed some of the newer energy saving devices in your home such as air conditioners, water heaters, furnaces, boilers or solar panels, then you may be eligible for a tax credit of up to $2,000.  Check with your utility company to find out which energy saving devices provide tax credits or rebates.

3)  Place Funds In Your 401k Retirement Account

401k Contributions Key For Tax Planning

401k Contributions Key For Tax Planning

If you are looking to lower your tax bill, one of the most effective ways to keep more of your gross income is to have it directed into a 401k retirement account. The 401k rules are quite generous when it comes to lowering income.  On a pre-tax basis you can invest up to $17,000 in 2012 (16,500 in 2011), and your contributions are often matched by your employer. Such an investment for your future security is nothing less than a win-win.

 

4) Please Do Not Forget Or Ignore Your Gambling Earnings And Losses

In this modern age of high-stakes poker online, in the casinos, and on television, more and more people are gambling each year with tremendous losses and some excellent earnings. Whether you play poker or back your favorite college team with a bookie, shoot craps or bet on the horses, all gambling winnings must be reported as taxable income. In addition, gambling losses may be claimed as deductions, up to the amount of your winnings. What is essential to remember is that gambling winnings and losses must be reported separately. If you file a tax return with with the IRS and do not report such figures, it is considered to be tax evasion.

5)  Organize And Maintain Your Paperwork And Records

Yes, we know this seems like a hassle, but it is a necessity as well? The IRS recommends that you keep all tax-related records for 3 years in case of an audit. But some old tax documents, such as last year’s W-2′s, can come in handy when you are filling out your tax return this year.

Where Are All Of My Financial Papers?

Where Are All Of My Financial Papers?

Here are examples of tax-related documents you should organize:

  • W-2 forms
  • Pay stubs for the year
  • Mortgage payment stubs and/or home purchase closing statement
  • Receipts from anything you might claim as an itemized deduction
  • Receipts from donations given to any charity, including text message donations
  • Any receipts for business travel expenses + your car mileage log for business use
  • Credit card statements and bank statements, including canceled checks
  • Medical bills (particularly if exceeding 7.5% of your income)
  • 1090G form (for deducting state or local income taxes)
  • 1090 forms (from any dividends or other income paid to you)

To make your mountain of documents easier to store, try scanning them and keeping them as PDF files. This way you can print them out if you need them. If you do this, always remember to back up your computer. The IRS will not take kindly to the excuse that you scanned your financial documents and your hard drive failed. Always be careful!

That covers many of the bases for now. The Tax Resolution Institute are not only experts when it comes to tax resolution services, but we also have extensive experience in tax planning and tax prevention strategies. Contact us today for a free consultation so we can help you ensure the profitability of your financial future.

Filed Under: Tax Planning, Tax Relief, Tax Resolution Services Tagged With: , , , , , , , ,

A Christmas Present Of Essential Tax Information For California Taxpayers From The Tax Resolution Institute

December 25, 2011 By

Christmas should be a universal holiday for everyone, a time of seasonal relief and family love and financial support. The Tax Resolution Institute knows how many California taxpayers are in trouble this year as 2011 comes to a close. We want to provide with a Christmas present of essential tax information to help make 2012 a wonderful year for you and your family. Although the statute of limitations for Federal Tax Collection tends to be ten years, the statute of limitations for California Franchise Tax Board is twenty years. In this economic crisis, they are going after ancient tax debts with a particular vengeance these days.

Christmas Awareness - Extended Statute of Limitations

Christmas Awareness - Extended Statute of Limitations

The California Franchise Tax Board is not just going after delinquent income tax bills of current California residents. If you once lived in California and failed to pay your state income taxes, they are coming after you in Michigan and New York, Connecticut and Ohio, Illinois and Florida, Nevada and Pennsylvania. It does not matter what state you now live in, if the California Franchise Tax Board comes after you, they will levy your bank accounts and take tax collecting actions against you. California is in economic crisis with a huge deficit so the revenue agents from the Franchise Tax Board have been given a mission to dig up and collect all past due income tax debts to the state.

The statue of limitations for Federal tax collection in the vast majority of cases is ten years. The statute of limitations limits the time during which an action can be brought by the IRS for a tax audit and the time for IRS tax collection measures and attempts. In general, there is a 3-year SOL (statute of limitations) for IRS audits of your tax returns and a 10-year SOL for IRS collection attempts. There are some exceptions, particularly in cases involving criminal activity and illegal tax evasion. If you knowingly filed a false tax return in order to avoid paying taxes on taxable income, the statute of limitations is waived by the IRS because it becomes a criminal matter.

Christmas Present of Tax Awareness

A Christmas Present of Tax Awareness

Our Christmas present to you is one of awareness if you live in California and you believed you have avoided any back income tax problems because the IRS 10-year SOL has passed. This is not the case. When it comes to collecting income taxes, unlike the vast majority of states in the union, the California Franchise Tax Board can come after you for twice as long as the Internal Revenue Service. Just because the Federal statute of limitations has passed, it does not mean that you are out of trouble and in the clear. California will not stop until they collect your tax debt. If you need professional tax help and the best in tax resolution services, please contact the Tax Resolution Institute in the coming year. We are here as a valuable resource to help you find the financial freedom you deserve!

 

 

Filed Under: California Tax Relief, Income Tax Problems, New York Tax Resolution, Tax Relief, Tax Resolution Services Tagged With: , , , , , , ,

Could An ETF Investment Cause Problems With The IRS? The Wall Street Journal Advises You To Ask Questions

December 15, 2011 By

As the economy tightens and investors look for new opportunities, the exchange-traded fund has become more and more popular.  As an investment fund traded on stock exchanges that contains viable assets such as stocks, commodities, or bonds, ETFs, when used appropriately, are really an extension of the index mutual fund. What is enticing is that they offer investors a myriad of opportunities otherwise not available with traditional mutual funds.

Wikipedia explains how an exchange-traded fund functions and why it often makes sense for an investor.  By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. The structures of the funds, however, are sometimes not examined fully, and they can be taxed quite differently from your everyday mutual funds. As result, the Tax Resolution Institute has noticed that there are specific taxation potholes with ETFs that need to be addressed before taking the leap. Luckily, the Wall Street Journal came to the rescue.

The Traditional Experts of American Finance

Wall Street Buddha: The Traditional Experts of American Finance

Laura Saunders and Jason Zweig of the Wall Street Journal outline some key questions to ask regarding such investments in What to Ask Before Buying. Keeping one step ahead of such investment imbroglios can save you some serious tax problems when it comes time to filing your tax returns later this year. Here are a few pertinent questions to ask in the beginning so you avoid an IRS tax crisis in the end:

1) When it comes to this kind of investment, are there tax potholes that I don’t know about? 

And the Wall Street Journal’s answer is that there are many such quirks in the world of exchange-traded products. For example, there are several ETFs that focus on precious metals like SPDR Gold Trust and iShares Silver Trust. As you can see, they are designed as Trusts.  An investors in such a trust can be caught off-guard when they find out their long-term gains are being taxed at 28% rather than 15%. That’s  not fair! Why is the IRS doing that to me? Well, to put it simply, the metals are deemed “collectibles” by the IRS and subject to higher taxation rates. Sorry.

2) By investing in these complicated funds, will I really have to make multistate tax filings? 

If you own a publicly traded partnership, you may have to file a tax return in more than one state. If income is generated in other states that is above a certain level, you will have to pay taxes in that state as well. For example, if you invest in one of those surprise oil fields in Southern California and they hit a gusher,  you’ll have to pay California state taxes even if you live in Chicago, Illinois. In addition, even if the payout on that one particular investment is below a certain threshold, the total payout from your investments across the board may put you over the limit. Although you are not being taxed on those external investments, they can effect whether you are taxed on

Read The Full Menu And The Fine Print Before Making Your Decision

Read The Full Menu And The Fine Print Before Making Your Decision

3) Will I be surprised by the ‘cost basis’ of my investment when I sell it when I am doing my taxes next year?

When you sell such an investment that is taxable and needs to be fully examined, the overall gain or loss of the income source is measured from the purchase price, known as the “cost basis.

Tracking cost basis is difficult to say the least, especially when there are adjustments from different sources. An Exchange-traded fund can include multiple investment sources. When it comes to such investments, your tax professional better be clear about the return of capital and exactly how the dividends were reinvested. If mistakes are made, the innocent taxpayer can end up, either looking like a criminal or a fool. The Tax Resolution Institute have seen clients that have both overpaid such taxes to the extreme without knowing it or underpaid to the point where the IRS came after them for the delinquent tax debt.

What the Tax Resolution Institute advises you to do is to read the fine print and check out the entire menu before making a major investment. Yes, exchange-traded funds have manageable costs and are flexible. In fact, if handled properly, they can even be tax efficient. For example, mutual funds are required to pay out all dividends and capital gains annually. If your mutual fund portfolio has lost value, there remains a tax liability on the capital gains that are less than a shadow. ETFs typically do not have this problem, but, as we discussed, they have other questions that need to be addressed before buying. But make sure you have covered the bases before you write the check.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Planning, Tax Resolution Services Tagged With: , , , , ,

A Surprise Early Christmas Gift From The Tax Resolution Institute — No New IRS Levies Until January 2, 2012

December 12, 2011 By
IRS Christmas Gift - No Tax Levies Or Liens Until 2012

IRS Christmas Gift No New Tax Levies 'Til 2012

Since the holiday season is a time when everyone should be able to celebrate with family without the fear of an IRS Tax Levy, here is a gift of essential tax relief information and a surprise reveal that the Internal Revenue Service has a heart. Everyone is still hurting from the tough economy over the past few years, and the IRS is giving American citizens with tax problems a bit of a breather. Mind you, the policy for the IRS has always been never to file a new Tax Levy during the oficial holiday season from December 22 to January 2.

It is something of an unwritten rule that no new IRS Tax Levies are filed or acted upon during this period. This year, the Tax Resolution Institute has heard rumblings through the grapevine that no IRS tax levies are going to be filed for the rest of December 2011. Although they are the largest collection agency in the world, the IRS understands that the American taxpayer needs a little extra relief this time around. Yes, the IRS respects the family spirit of the Christmas season every year so this year they are giving you a little something extra in your stocking, Please use the bonus and make a New Year’s Resolution to take action on your delinquent income tax debt. Contact a tax professional for honest and effective tax relief.

If you owe a back tax bill and have been receiving notices and warnings from the IRS, you have the freedom to plan your course of future action. The goal of tax resolution is to protect the future security and financial freedom of you and your family over the next two and a half weeks. Even with the knowledge of this holiday breather, a majority of delinquent taxpayers,will remain stuck in a state of procrastination and do nothing. It is kind of the Internal Revenue Service to give you this breather, but they will be right back at it in 2012 as the largest and most effective collection agency in the world. If the IRS is a gift horse, please don’t look it in the mouth and get bit. Instead, take the action and feed the horse what you owe and restore your financial integrity.

Once you have received a Notice of Intent to Levy from the IRS, you have 21 days to act before all financial accounts levied are frozen. You will not receive that notice before 2012, but if you are behind in your income taxes, watch out come this January. If you have already received an IRS tax levy, this gift of a holiday lull by the IRS is the perfect time to take constructive action. An IRS Levy has to be addressed by a tax professional before a dire situation sets in where your future financial freedom is lost. Still, at the Tax Resolution Institute, we are happy and grateful that the IRS has extended that unwritten period of holiday relief because we know you need a breather.

The IRS Gift Horse Cannot Be Ignored

This IRS Gift Horse Cannot Be Ignored

No New IRS Tax Levies will be filed for the rest of 2011. The goal of the Tax Resolution Institute is to help effectively resolve your delinquent tax problems and restore your financial freedom. So please do not look a gift horse in the mouth this time around! Take advantage of the generosity of the Internal Revenue Service by contacting TRI and saving your ability to take care of your family and be truly self-supporting in a tough economy. The IRS has opened the door to future freedom; the Tax Resolution Institute can help you through and find the tax relief you desperately need and desire. That is our Holiday wish for you!

Filed Under: Delinquent Tax Debts, IRS Tax Levy, Tax Relief, Tax Resolution Services Tagged With: , , , , , , ,

Small To Mid-Sized Companies With Delinquent Payroll Tax Debts Need A Tax Professional In Their Corner

December 6, 2011 By

The Tax Resolution Institute has seen payroll tax problems close a business overnight and lead to criminal sanctions against the owners, including prison time. Due to the economic downturn, the IRS has been increasingly aggressive in their collection attempts for past due payroll taxes. For example, if you are a struggling business owner in Orange County with delinquent payroll taxes, you need to know right away how to protect your company and livelihood. Why stick your head in the sand and let the IRS levy your funds and take control of your cash flow and your incoming finances Peter Stephan and the Tax Resolution Institute can help you resolve payroll tax penalties with the best in tax resolution services and avoid any long-term devastation to your company and your reputation.

Payroll Tax Borrowing Is Criminal Theft From The IRS

Payroll Tax Borrowing Is Criminal Theft From The IRS

In these difficult days in a questionable California economy, TRI has seen a couple of past clients in Orange County and Irvine go under. Luckily, they went under on their own terms and not in the clutches of the IRS. We warn every business client that delinquent payroll taxes can be the downfall of an otherwise successful company. Payroll tax problems can cause long-term damage that your business may never recover from while staining your professional reputation. None of your clients who owe you incoming invoices wants to be contacted the IRS and told to pay the money to them directly. But this is what will happen if you are not careful and smart.

It makes sense that in tough times a small business may find themselves in a cash crunch with a lack of financial resources. It is no surprise that you might be tempted to borrow from the money they collect from employment taxes to pay operating expenses. Not stealing the money, just borrowing it for a short period until things improve and invoices are paid and that big deal happens. This is a huge mistake because what many businesses don’t know is that the IRS views non-payment of payroll taxes as a criminal act of theft. The Internal Revenue Service does not care about your cash flow crisis. The payroll taxes you hold are called a trust fund because the federal government trusts you to make your payments. If you don’t, the penalties and consequences are quick and severe.

Collecting Payroll Tax Debts Is The Top IRS Priority

Collecting Payroll Tax Debts Is Now A Top IRS Priority

With highly effective collection methods, the IRS is ruthless and the biggest risk that business owners with payroll tax problems can take is incurring their focus. They will levy your customers and clients, and they will use every tool in the book to collect that delinquent payroll tax debt. In addition to having your cash flow cut off, you will also risk permanently losing valued customers because your payroll tax problems can damage your reputation. After being contacted by the IRS, your clients may no longer want to do business with you. Can your company afford in these times to lose any ongoing source of revenue. Even worse, if they can’t be paid, the IRS will close your doors, shut you down and start criminal proceedings against the responsible party, the signer on the payroll tax bank statements.

Do you want to find the doors to your company padlocked overnight while you face such charges and a possible prison sentence. And the Federal Government needs money. They need to fund deficit-reduction strategies as well as close the growing tax gap. As a direct result, the IRS is making the collection of delinquent payroll taxes their top priority. The IRS Revenue Officers are taking a closer look at employment tax returns and other possible reveals of a delinquent payroll tax problem.

If you have a payroll tax debt, the time to take action is today. You do not have the luxury to wait. Contact the Tax Resolution Institute and we will give you a free consultation that lays out possible methods of paying off the tax and avoiding the penalties. To protect the future of your business, you need a respected tax professional like Peter Stephan in your corner!

 

Filed Under: California Tax Relief, Delinquent Tax Debts, Payroll Tax Problems, Tax Relief, Tax Resolution Services Tagged With: , , , , , , , ,

Bankruptcy And Tax Debt In California: What Debt Is Dischargeable? Can I Discharge IRS Tax Debt?

November 21, 2011 By
Tax Resolution and Bankruptcy

Tax Resolution and Bankruptcy

There are many misconceptions about bankruptcy. People fail to understand and realize that there are specific rules about what types of debt can be discharged under Chapter 7 bankruptcy. Luckily, in an effort to help our potential clients and bring clarity to a confused mess, the Tax Resolution Institute offers this illumination. Since we are based in Southern California, we have seen the problems you are experiencing first-hand and we know how to help. We are the best at tax dischargability analysis.

In general, most kinds of consumer debt can be eliminated under a Chapter 7 bankruptcy filing. If you qualify and the court rules the debt is dischargeable, you can eliminate consumer debt such as:

1) Credit Card Debt

2) Medical Bills

3) Secured Loans like a Car Loan

4) Tax Debt if…

Can I discharge all of my tax debts?

Can I discharge all of my tax debts?

But when it comes to delinquent IRS tax debt, there are very specific rules that need to be followed. Income tax debt can often be eliminated under Chapter 7 if you have filed your tax returns and sufficient time has passed since the tax debt was assessed. If you owe a substantial amount of federal or state tax debt, you may not need to file for bankruptcy.

By examining your records and providing a free consultation, the Tax Resolution Institute can come up with the solution that works the best for you. Whether it is an Offer in Compromise or an Installment Agreement, Currently Not Collectible Status or Bankruptcy, the Tax Resolution Institute will help solve your IRS delinquent tax problem and find a way to help you back on the road of prosperity and success. If you live in California and you are in serious tax trouble and considering bankruptcy, do not hesitate. Call the Tax Resolution Institute today for help and the best in tax resolution services at 877.829-8370.

 

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

After Newport Beach Tax Return Is Filed In The Filing Cabinet, TRI Abates $188,000 In IRS Penalties And Interest

November 14, 2011 By

The Tax Resolution Institute has experienced so many examples of high income clients with serious IRS income tax problems where the client truly is not at fault. Yes, they did not pay their taxes, but not because they were evading them or did not have the money to cover their tax bill. Instead, they were victims of stupidity and foolishness by people who work for them. A perfect example is when a Newport Beach Entrepreneur finished his taxes, wrote the check, then gave the papers with check attached to his assistant with the express request to file the return. Did the assistant file the taxes on time with the Internal Revenue Service? Nope. Foolishly, he filed them in the office filing cabinet, and no taxes were ever paid.

The Newport Beach Entrepreneur Needed To Stay One Step Ahead!

Tax Crisis of a Newport Beach Entrepreneur

When you are a successful entrepreneur, you always have to everything to stay one step ahead of the game. In today’s challenging Orange County economy, the Newport Beach Entrepreneur had a lot of projects on the table and a lot to do every day to keep the proverbial balls in the air. The tougher the economic climate, the harder the juggling. As a result, when he asked his personal assistant to do something as simple as file his personal income taxes with the IRS, he expected the task to be done. You cannot imagine how surprised he was when he received a notice from the IRS months later. Since he thought the taxes had been filed, he ignored the first notices, even responding that it was a mistake. Finally, when he asked the assistant if the taxes had been filed, he said that they certainly had a showed him the packet in the filing cabinet. Naturally, he was handed his walking papers.

When the Newport Beach Entrepreneur realized that his IRS income tax crisis was out of control, he asked a close business associate for help. The business associate recommended that he go to the Tax Resolution Institute because of their proven history of expertise. Taking a free consultation with Peter Stephan, the Newport Beach Entrepreneur became aware of how extreme his income tax problem had become. Since the interest on delinquent tax debts compound daily and the penalties continue to increase, the Orange County man now owed an additional $188,000 to the IRS. If he was forced to pay the full amount, the future of hus business and the security of his family would be placed in crisis.

Contact TRI today for help!

Contact TRI today for help with the IRS!

Luckily, Peter Stephan and the Tax Resolution Institute had a viable solution to the Newport Beach Entrepreneur’s serious income tax problem. Although it made sense to apply for a Penalty Abatement, the traditional channels would not work because the mistake made by the assistant could not be proved. Nevertheless, by taking a chance and hiring TRI, the Orange County man made the right move. Peter Stephan was able to find a hole in the tax code that allowed for a Penalty Abatement to be filed successfully with the Internal Revenue Service. Illustrating the nature of the problem to the IRS Revenue Officer, Peter Stephan had all the penalties and interest abated in exchange for full payment of the original tax bill.

If you have a serious IRS income tax problem and you need help, contact the Tax Resolution Institute today. If we can help you, we will find a viable option and solution. Whether it is a Penalty Abatement or Offer In Compromise or Installment Agreement, Peter Stephan provides the best in tax resolution services!

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