Taxes & Limited Liability Companies

Taxes & Limited Liability Companies

A Limited Liability Company (“LLC”) is a popular business entity choice for entrepreneurs and small business owners. It offers the flexibility of a partnership or sole proprietorship, while also providing limited liability protection for its owners. Once formed, LLC owners have the ability to determine how the entity is taxed for Federal income tax purposes,…

IRS Private Tax Debt Collection Agencies

Irs Private Tax Debt Collection Agencies

The IRS spends a considerable amount of time and money trying to collect unpaid tax debts. There has been some thought that private collectors would have better results. Congress recently enacted Section 6306 to allow the IRS to assign certain delinquent tax accounts to private collection agencies. The new law and how it is implemented…

Colorado Tax Penalty Only Applies to Compliance Employees

State Vs. Federal Tax Court Litigation

The state tax authorities can be more aggressive than their federal counterparts when assessing and collecting taxes, particularly in collections. It is often advised to pay state taxes while haggling with the IRS about federal taxes. This does not necessarily mean that the state will always prevail, as there are cases where they do not,…

Estate Tax Valuation vs. Income Tax Valuation

Estate Tax Valuation Vs. Income Tax Valuation

Valuation often becomes a point of contention in tax disputes where the taxpayer asserts one value while the IRS puts forth another. The preferred valuation in disputes can vary depending on the circumstances. For instance, a higher valuation for buildings and building structures is advantageous when claiming depreciation deductions, while a lower valuation for real…

IRS Recalculation Doesn’t Justify Abating Interest

Recent Texas Tax Case Is An Example Of Why Taxpayers Should Hire A Tax Attorney

Taxpayers may sometimes request the IRS to recalculate their tax liability, and the IRS may grant such a request, but this does not necessarily mean that the IRS accepts all the tax positions set out or omitted from the return. If the IRS subsequently recalculates the amount of tax due again and increases the amount…

The IRS Announces an Online Tax Payment Agreement System

The Irs Announces An Online Tax Payment Agreement System

The IRS recently announced that it will be launching a system to allow “tax professionals” to apply online for tax payment agreements or tax installment agreements for their clients. IRS Online Pro’s & Cons  While this is a step in the right direction, it does present yet another opportunity to consider whether the IRS should…

Deposits vs. Payments: How to Pay the IRS

Deposits Vs. Payments: A Distinction Taxpayers Must Understand Before Making Payments To The Irs

Paying taxes is an essential part of being a responsible citizen. The IRS has specific rules and procedures for taxpayers to follow when submitting their tax payments. However, many taxpayers may not be aware that there is a difference between making a payment and a deposit when paying the IRS. The two are not the…

Missing Form 1099 May Establish Reasonable Cause

Missing Form 1099 May Establish Reasonable Cause

In general, if you do not receive a Form 1099 to report income to you and you omit it from your tax return, you may still be liable for penalties if the IRS later notices the issue and makes an adjustment. This is because taxpayers have a responsibility to report all their income, regardless of…

IRA Beneficiary Designation Planning Opportunities

More On Ira Beneficary Designation Planning Opportunities

Designating a beneficiary for an IRA may not be a top priority for most IRA owners, and even those who do give it some thought may not have planned it correctly due to the complex rules surrounding IRA beneficiary designations. However, as investments held in IRAs grow tax-free, it’s important to structure affairs so that…

IRS Looks at Improving Informants Rewards Program

Irs Looks At Improving Informants Rewards Program

The IRS using paid informants to identify noncompliant taxpayers may seem controversial, but it has not generated much controversy as the program has been poorly administered. In this article, we will discuss the IRS Informants Rewards Program, its eligibility requirements, and the recent changes to the program. About the IRS Whistleblower Program The IRS Whistleblower…