Tax Issues and Problems Information
When you're going through bankruptcy, dealing with tax issues can take on added complexity. It's essential to work with a qualified tax attorney who understands the complexities of bankruptcy laws as well as federal, state and local tax codes. An experienced attorney can assist you by:
- Discharge your Tax Debt
- Representing you before the IRS, as well as state and local taxing authorities.
- Filing appeals on your behalf.
- Submitting an Offer in Compromise.
- Assisting with tax liens.
- Communicating with local, state or federal tax agencies.
- Preparing and submitting legal forms and documentation.
- Keeping you apprised of all options.
If you owe a significant federal tax debt that you cannot pay, a qualified tax attorney can assist you in determining whether bankruptcy is an option. Below, you'll find blog posts on a variety of tax-related topics.
The Internal Revenue Service (IRS) determines the standard mileage rates each year to be used when calculating the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Dating back to the beginning of the year (January 1, 2018) through December 31, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 5 cents for every mile of business travel driven, up 1 cent from the rate allowed in 2017. 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate allowed in…Read More
It’s tax season and millions of Americans dream all year of how they are going to spend their refunds. With tax refunds becoming more substantial over the years due to certain exemptions that can be claimed, many people plan on using their refunds from year to year to catch up on delinquent debts, pay medical expenses, make repairs to homes or cars, or even use the funds to take a vacation. The mindset for most Americans receiving a tax refund is to spend it rather than save it, because many people have been planning for months to receive the refund…Read More
It is estimated by the Internal Revenue Service that 1 million taxpayers have yet to file their 2014 tax return and claim their refund. They further estimate that the refunds could exceed $1 billion. However, to claim any refund due, you must file your 2014 federal tax return by April 17, 2018. This is the same date that your 2017 federal tax return is due. Claiming Your 2014 Refund What happens if you don’t file the return? There is no penalty for filing a late return if you are going to receive a refund, but the law does provide that…Read More
Tax Day is nearly upon us! Have you filed your 2017 tax returns yet? This year’s tax due date is April 17, 2018, only a few weeks away. I’ve found that many people put off filing their tax returns for many reasons. One of those reasons is that they cannot afford to pay a tax preparer or certified public accountant to help them and don’t have the resources or access to try and file the returns on their own. Free Assistance with Filing your Taxes If you need help, the Internal Revenue Service (IRS) offers a free program to help…Read More
If you own an Individual Retirement Arrangement (IRA) you still have until April 17, 2018 to make your contribution to be eligible for a tax credit or deduction on your 2017 tax return. If you are wondering why that particular date, this year’s tax-filing deadline is April 17th. So make sure your file your 2017 tax return or extension on or prior to then as well. IRA’s and How They Work An IRA is designed to enable employees and the self-employed to save for retirement. Most taxpayers who work are eligible to start a traditional or Roth IRA or add…Read More
The tax deadline this year is April 17, 2018. Filing your taxes can be complicated, but simple mistakes can lead to an audit by the Internal Revenue Service. The IRS may randomly select a taxpayer’s return and compare the return to other similar returns to check for anything out of the ordinary. Other ways taxpayers are selected for audit is that they are linked to a family member or business partner who is already being audited. The IRS can audit returns for up to three years old. If there is incorrect reporting information found, the penalty charges could be 20%…Read More
Many of our clients come to see us after they have visited their accountant or tax preparer, believing they were going to receive a nice refund only to find out they owe Uncle Sam money instead. Not only did they think “I have money coming,” they frequently have borrowed thinking “I can pay this right back with my refund.” So now, they are doubly in trouble with both a loan to pay back as well as a tax bill. What? I encourage you to fix the problem now so you will not have this issue next year. We are at…Read More
The answer to that question depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitation runs out for that tax return. What Is the Period of Limitations? The period of limitation is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The 7 limitation periods listed below are confusing and reflect the periods of limitation that apply to…Read More
As if tax payers don’t have enough to worry about, there is a new income tax refund scam that the IRS is warning filers about. This time, however, the scam is likely originating out of the office of your tax preparer. The gist of the scam is that identity thieves are hacking into the data systems of a tax preparer using an email phishing scam. For example, if an attachment in a scam email is opened, hypothetically let’s say at an H & R Block office, malicious computer viruses can insert themselves into the data program which generates your tax…Read More
It is at about this time each year when advertising on television and radio increases by various companies stating they can help you if you owe back income taxes.
I am often asked if back income taxes can be discharged, that is gotten rid of, in bankruptcy and the answer is not always an easy one. BUT please remember that even if they are not dischargeable in a straight (chapter 7) bankruptcy case, you can include the tax debt in a chapter 13 reorganization and repay the what you owe over time.