Business Tax Attorney

Irs Levy Case Studies

Wage Garnishments
Glen H. (Philadelphia, PA)
His Social Security payments were being garnished. Instant Tax Solutions (ITS) was able to have the garnishment released by qualifying his IRS account to be placed in a Currently Non-Collectible status. Subsequently, ITS submitted an Offer in Compromise for Glen and settled his $40,700 tax debt for $1,000.

Robert R. (Lynn, MA)
As a 1099 subcontractor, 1099 invoices due him had been frozen. ITS was able to prove to the IRS that his monthly expenses exceeded his monthly income. The levy was released enabling him to pay his current living expenses. Robert is currently pursuing an Offer in Compromise with ITS representation.

Barbara D. (Virginia Beach, VA)
Barbara is a government employee. Her government wages were being garnished for 15% of her paycheck through the Federal Payment Levy Program. ITS negotiated with the IRS to set up an Installment Agreement for her and release the garnishment. It took several weeks of wading through government red tape before the garnishment was lifted.

John S. (Abbottstown, PA)
John is a subcontractor for a large home improvement chain, installing carpet. Previous to retaining ITS services, John had his 1099 invoices garnished repetitively. ITS was able to work with his payroll department educating them that a 1099 garnishment is a one-time levy against the current unpaid invoice only. As a result, future 1099 invoices were not affected. ITS then assisted John by setting up an Installment Agreement and removing $7,300 in penalties from his tax liability.

Joseph H. (Longview, WA)
Joseph owed over $100,000 due to a failed business and unfiled tax returns. The IRS had filed SFR returns for him. ITS was able to negotiate an Installment Agreement for Joseph with his Revenue Officer and get his levy leased before his next paycheck. ITS later filed original returns for 2 of the tax years, reducing his tax liability by approximately $90,000.
Bank Account Levies
Bryan H. (Wichita, KS)
His father’s checking and savings accounts were levied for $4,000 due to Bryan’s outstanding tax liability. ITS was able to prove that Bryan was an authorized signer only on these accounts and the funds did not belong to him. As a
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result, the IRS released the bank levy. ITS then submitted a request for Offer in Compromise that is pending IRS acceptance.

Robert S. (Pleasantville, NY)
The IRS levied his checking account for $8,600. ITS was able to obtain a partial release of $4,000 to enable him to pay his immediate living expenses. ITS then set up an Installment Agreement for Robert with the IRS to pay off the remaining tax liability.

Marissa L. (Las Vegas, NV)
Her bank accounts were levied for $4,100. ITS obtained a release of the levy by submitting a promise from Barbara to pay the account off in 60 days. She was unable to meet the 60-day deadline. ITS was able to prevent another levy by negotiating with the IRS to set up an Installment Agreement that was affordable for her.

Dave N. (Burbank, CA)
Two of his personal bank accounts were levied for $4,200. ITS was able to get a full release by proving Dave needed the money to meet his payroll obligations. ITS then set up an Installment agreement for Dave.

IRS Tax Attorney

By: Catey Hamilton

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For more information on IRS Tax Attorney , please click here.

Knowledge and Experience

The biggest reason to consider hiring a tax lawyer to negotiate a tax debt settlement with the IRS is because of the knowledge and experience they bring to the table. Tax attorneys may spend years studying the IRS tax code and honing their negotiation skills. They usually have experience in successfully helping taxpayers resolve their debts. Negotiating a settlement will require a lot of knowledge of complicated IRS laws and tax codes. Therefore, if you are going to do it on your own, then you will need to spend a decent amount of time researching tax law before you begin. You might even want to purchase a few books on tax debt resolution so that you can be as familiar as possible with the process.

Convenience

Another reason to consider hiring a tax attorney is the convenience it brings. Not only can negotiating with an IRS agent be stressful, but it also requires a lot of work. In order to qualify for most tax settlement programs, you will need to present the IRS with full financial disclosure and convince them you cannot afford to pay for basic living expenses in addition to a tax payment. Compiling all of this data, calculating the correct expenses, and presenting a case to the IRS is a very complicated process, and can easily take weeks of effort to complete.

The only exception is if you are trying to get placed on a Streamlined Installment Agreement, which does not require a financial disclosure as long as the taxpayer’s debt is under $25,000 and they intend to repay the entire tax liability within five years. Therefore, if you meet the conditions for a Streamlined Installment Agreement then you may be able to negotiate your own settlement. However, if you are hoping to qualify for an Offer in Compromise or a standard Installment Agreement then you might want to consider speaking with an attorney.

IRS Communications

When you hire an attorney the IRS will need to direct collection efforts to the attorney. However, if you are going to negotiate your own settlement then you will need to communicate directly with the IRS. Meaning you will need to respond to their letters and calls, which can be scary and confusing.

Probability of a Mistake

Unfortunately when you are dealing with tax debts, a small mistake can quickly turn into a big mistake. If you are working with a tax resolution law firm, then it is likely either a lawyer or legal assistant will catch all potential mistakes. However, if you are submitting your own financial disclosure and make a small miscalculation then you could end up with a payment plan that you cannot really afford.

The Tax Lady Roni Deutch and her law firm Roni Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.

Article Source:

http://EzineArticles.com/?expert=Roni_Deutch

Tax Returns For Child Actors: To File Or Not To File

The first question that needs to be answered usually is whether or not your child even has to file taxes this year. The answer is this: A child who earns more than $5,350 as an employee (that is, as reported on W-2s) and whose parents claim him as a dependent must file. If that child claims himself as a dependent, he must file if he earns more than $8,750 in W-2 income. If, however, the child works as an independent contractor, he must file (because of self-employment taxes) if he earns more than $400.

Children who earn less than the above are not required to file, but often should because they can get all withheld income taxes refunded.

If your child earns money and chooses to file a return, he files separately from you. The parent can decide whether to claim a child actor as a dependent or to allow the child to claim himself. In basic terms, this decision should be based on income levels. If the child earns more than the combined income of the parents, it is more to the family’s advantage to let the child claim himself. Otherwise, it benefits the parents to claim him. Be advised however, dependency issues are highly complex, and can have legal ramifications beyond tax matters. So before a child claims himself, it is prudent to consult with your tax and/or legal advisor.

Many parents wonder if their taxes will be affected because they have a working child. This is rarely the case as the parents cannot claim expenses they accrue for the child, except under highly unusual circumstances.

Maximize Your Deductions

I’m often asked “What is the one most important piece of advice you can give to actors,” and the answer is simple: keep excellent records and receipts. Doing so will help you maximize your deductions, lower your taxes, and satisfy the IRS if you should get audited.

The record-keeping can be done in a variety of ways, but one thing is essential – it has to be regular. I believe once a week works well for recording your child’s and your own expenditures. You can use a ledger, a computerized spread sheet or a program such as Holdon Log’s, ActorTrack 2.0 – the choice is yours.

You also need some way to make notations in the car. Otherwise, you will forget h
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ow many miles were driven and who and what amount you paid for parking. Of course, a minor who doesn’t own a vehicle can’t take mileage on her own – but she can pay you the mileage cost of driving her as a local transportation expense. This year, the IRA is permitting a mileage rate of fifty and a half cents a mile.

Bear in mind that the IRS does not require written receipts for individual expenditures under $75, so long as you have made a written notation of the expense in a business diary or log (which can be any of the devices listed above or even your weekly or monthly calendar).

Find a good way to keep the receipts accessible and in order. An accordion style file with multiple slots works wonderfully – just label each slot with the category of the expense, such as “Acting Lessons” or “Office Supplies,” then group expenses from each category in each slot with the oldest in the front and the newest in the back.

Also remember that a lot of bad advice is given by good people – people who mean well, but don’t really know their subject. We find this particularly true in tax issues. Here’s one myth we commonly hear: all an actor’s clothing is deductible. Sorry — just not true. The tax law is very clear: to be deductible, clothing must not be suitable for street wear. So you are limited to genuine costumes: clown outfits, cowboy suits, period pieces, formal wear and other similar articles of clothing.

By: David Rogers

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David Rogers founded of Actors Tax Prep in 2000. He’s a member of the National Association of Tax Professionals, the National Society of Accountants, and has been registered with the California Tax Education Council since 2000. In simplest terms, Actors Tax Prep can expertly handle tax preparation for any entertainment pro, regardless of income or degree of complexity, for federal and any required state and/or local returns.

For more information on David or children in show business, visit ActorsTaxPrep or ChildrenInFilm.com.

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