Worker misclassification is a perennial issue for the Internal Revenue Service and state taxing authorities due to the perception that many employers are not properly classifying their workers. By avoiding labeling their workers as employees, employers also avoid paying minimum wages, overtime, payroll taxes, worker’s compensation, unemployment, Social Security contributions, health benefits, paid leave, 401(k) […]

Boxer Floyd Mayweather Jr. is asking the Internal Revenue Service for a temporary reprieve on his tax debts until he fights Conor McGregor in an upcoming bout. Mayweather reportedly filed a petition with the U.S. Tax Court, according to the legal news website Law 360, claiming his funds are not accessible and asking for an […]

You may qualify for relief from penalties if you made an effort to comply with the requirements of the law, but were unable to meet your tax obligations, due to circumstances beyond your control. If you received a notice, be sure to check that the information in your notice is correct. If you can resolve […]

The IRS has loosened the rules for people who are struggling to pay their taxes. The goal is to make it easier for individuals and small businesses to pay back taxes and to avoid IRS tax liens. The IRS’ new rules are part of its “Fresh Start” program. If you qualify, the “Fresh Start” can […]

IRS Warns about Fake Tax Notice Scam The Internal Revenue Service is alerting tax professionals and taxpayers alike about a new scam involving fake CP2000 notices that are being sent to unsuspecting taxpayers, billing them for unpaid taxes related to the Affordable Care Act. The IRS is issuing the alert in conjunction with its partners […]

Fresh Start Installment Agreements You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate a number of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill […]

Estimated Taxes Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your […]

An offer in compromise is an agreement between a taxpayer and the IRS that settles and resolves the taxpayer’s tax debt. The IRS has the authority to settle, or “compromise,” federal tax liabilities by accepting less than full payment under certain circumstances. A tax debt can be legally compromised for one of the following reasons: […]

A taxpayer can appeal most collection actions. If the request for appeal is timely, in most cases, all collection activity will stop during the appeals process.  The main options for appeals are the following: Collection Due Process (CDP) The purpose of a Collection Due Process hearing is to review collection actions that were taken or […]

My client and Mr. X purchased an automobile repair shop, which they owned 50/50. Initially, Mr. X ran the business. My client was the signatory on the company checking account, but signed few checks and was generally not kept apprised of business matters. Suddenly, Mr. X disappeared.  A few weeks later, he was arrested in […]