In this most interesting presidential election primary season, many different issues have dominated the news. Perhaps no candidate has dominated the airwaves more than Donald J. Trump, the leading candidate in the Republican primaries. Unsurprisingly, Mr. Trump has made a number of controversial statements, antagonizing a variety of groups and countries alike. It is no surprise then that Trump is again in the center of the latest controversy – the release of his tax returns.
Congratulations on your New Home Purchase…Oops! You’re liable for Seller’s Taxes!
Congratulations on your New Home Purchase…Oops! You’re liable for Seller’s Taxes!
As a buyer, no more rude shock can intrude on your new home celebration than finding out you are liable for Seller’s taxes. Understandably, by the time of your closing, you may have nearly depleted your bank account, paying the purchase price plus the myriad fees and charges for your new home. When the IRS comes calling soon afterwards, asking you to also pay Seller’s taxes, you can be excused for being very astonished. Yes, this can happen; this scenario is not as far-fetched as it may sound.
WHAT IS AN OFFER-IN-COMPROMISE?
Taxpayers that are unable to pay their tax bill have several options. All is not lost. Taxpayers who can’t pay their tax liability or who create a financial hardship by paying this liability may take advantage of a federal tax program in which they utilize a mechanism known as an “Offer In Compromise” to resolve and settle these tax problems with finality. The Offer in Compromise (or “OIC” in IRS and legal jargon) program is not for everyone and the IRS advises that taxpayers explore all other payment options before submitting an OIC. An experienced tax professional is absolutely essential in all steps of the process of formulating, making, and awaiting the IRS to accept, an OIC.
PAYROLL TAX: THE TRUST FUND RECOVERY PENALTY
Employers must deduct taxes from
their employees’ wages. Employers must make tax deposits and payments on time or they are subject to a Trust Fund Recovery Penalty (“TFRP”). To avoid the TFRP, employers must make sure that all employment taxes are collected, accounted for, and paid to the IRS when required . There are three parts or types of payroll or employment taxes withheld from the employee and reported on form 941, filed quarterly:
TAX IDENTITY THEFT VICTIMS MAY OBTAIN COPIES OF FRAUDULENT RETURNS
A victim of identity theft or a person authorized to obtain the identity theft victim’s tax information may request a redacted copy (one with some information blacked-out) of a fraudulent return that was filed and accepted by the IRS using the identity theft victim’s name and Social Security Number.
Due to federal privacy laws, the victim’s name and SSN must be listed as either the primary or secondary taxpayer on the fraudulent return or otherwise the IRS cannot disclose the return information. For this same reason, the IRS cannot disclose information about any tax return to any person listed only as a dependent. Partial or full redaction will protect additional possible victims on the return. However, there will be enough data provided for the taxpayer to determine how his or her personal information was fraudulently used.
OWE THE IRS? YOU MAY LOSE YOUR PASSPORT
The Internal Revenue Service, probably the most-hated government agency in America, just became more powerful, and probably more ominous. As everyone knows, IRS is the only agency that can, without going to Court, seize your asses and empty your bank accounts – one of the reasons they earned the title of being the most feared agency. Now, the IRS has been empowered to seize American passports of delinquent taxpayers, maybe even preventing those taxpayers from domestic flights.
When Married, To File Jointly or Separately
IS IT BETTER TO FILE SEPARATELY OR JOINTLY WHEN MARRIED?
Under the tax laws, if you are legally married, when filing your tax returns, you have a choice of filing jointly with your spouse, or filing separately. The tax laws generally expect married couples to file jointly though they may legally elect to file separately.
Most times, it is more to the advantage of the filing couple to file jointly. Where married taxpayers file separately, most deductions and exemptions are generally halved for each tax return. In rare cases, married taxpayers may be able to file separately and claim higher deductions and get bigger refunds on their returns.
Mayor of London pays US taxes for selling London Home
One would not normally think that the US could impose taxes on a home that was sold in London, especially when the home was sold by the Mayor of London. However, this is exactly what happened late last year.
Originally, London Mayer Boris Johnson said that he would not be paying the tax lien that was placed on him by the United States, but earlier this year changed his mind. Now, reports say that he plans to pay the fee just before he takes a planned trip to the Boston area.
The Benefits of Hiring A New York City Tax Attorney
Facing taxation problems is not at all uncommon for the American population. It is not at all surprising, given the complexity of the economic system of the United States, which is a leading superpower in the whole world. Economic opportunities abound and one such opportunity is the availability of multiple jobs for its citizens. This, of course, is by itself good. Except that for many individuals, holding multiple jobs and thereby having a multiple source of income can get to be a headache when it comes to taxation. Some barely have enough time for fulfilling their work obligations, and it is such a real trouble when the IRS runs after them for unintentional tax miscalculations.
How Can A New York Tax Lawyer Help You?
Just recently, an entertainment company in New York that is in the business of distributing TV shows throughout the state and the country was involved in a tax case before the state’s highest court. This stemmed from the said company’s charging of sales tax from its customers who lease their satellite dish, which is needed to receive signals for TV shows, for a monthly fee. After four years of operating the business, state auditors found out that the company have committed violations of the state’s tax laws. State auditors argued that the company’s parent company should have paid sales tax for acquiring the satellite dishes, but it did not and instead passed the sales tax payment to its customers. The case is still pending with the state’s Court of Appeals.