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California Legislation pass housing-crisis tax relief
I’m not sure if you’ve heard this or not, but it may mean big savings for some people. According to a report by Cathy Bussewitz, AP writer, California Legislature passed a bill last week that could save thousands of dollars for California taxpayers who were hurt by the housing crisis.
“Currently, some types of debts that are forgiven can be considered as income and taxed by the government, meaning that homeowners spared from an overwhelming mortgage can face huge tax bills.”
"The mortgage debt tax relief provision in this bill will provide financial shelter for tens of thousands of Californians," said Sen. Ron Calderon, D-Whittier. "It's about time we gave these folks a helping hand. They've lost their homes and they've sat by fretting over a whopping state tax bill they can't afford."
I have to be honest and say that I’m not really for this. It raises taxes while rewards people for reckless and poor judgment. As we are coming out of the mortgage crisis, it seems we all have some kind of price to pay. Regardless, the most important thing we can do is help families get tax relief by working with the IRS to settle their debt.
How do you feel about this? Are you and your family affected by this new legislation? Is it helping or hurting?
Tax relief and social media?
I have to be honest; as we’ve taken the step into social media grounds it has been pretty interesting. One of the things I’ve noticed is that as “social” as social media is, not everyone who has tax problems are on there actually TALKING about them.
Tax problems are a very personal topic. Many of the clients we work with are generally embarrassed that they’re in this predicament to begin with, and different people are behind in their taxes for different reasons. Everyone has his or her own story. Everyone has his or her own experience.
We’ve heard many stories and we’ve helped hundreds of people get their tax issues settled for thousands less than what was originally owed. With our extensive network of CPAs, tax attorneys, and enrolled agents, we’re here to enforce your IRS and State mandated rights. We are passionate at helping people take care of their unfinished business.
Drexel Tax Relief will have your tax liability status updated to good standing and protect you from any tax levies including wage garnishments, seizures of your bank accounts, personal assets including your home.
We’ve been getting this message out for a while and that is a reason we’ve really taken to social media. We want to get the message out that there is RELIEF, despite the despair some people have experienced. Help us spread this message. Help us help you, your family, and your friends. Get out of tax debt TODAY!
The IRS And Other U.S. Efforts To Go After Tax Dodgers help
Several Americans with back tax problems are nervously running to Drexel Tax Advocates instead of the Internal Revenue Service.
Recently, Swiss banking giant UBS AG was forced to turn over to the IRS the details of 4,450 accounts suspected of holding undeclared assets by Americans, piercing Switzerland’s long-standing tradition of banking privacy.
IRS Commissioner, Doug Shulman said the accounts are to be believed to hold over $18 billion in assets. This will give the Internal Revenue Service thousands of long-sought account names, Shulman said, and is expected to provide even more information about UBS clients who do not voluntarily disclose their financial details to the agency. “This was a major victory for the Internal Revenue Service”, he stated.
“I believe this gives us what we wanted — access to information about account holders that most likely to have been involved in tax evasion,” Shulman said. This will set precedence for domestic cases as well.
Commissioner Shulman said the IRS reserves the right to a legal fight if any information is withheld or tax returns are not filed on time.
“This issue is not going away, people hiding assets and income will find themselves increasingly at risk due to our efforts in this area,” Shulman said.
Tax advisers at Drexel Tax Relief said they are seeing many more clients with unfiled and or undeclared assets seeking information about their legal options.
The IRS long has had a policy that certain types of tax evaders who come forward before they are contacted by the agency usually can avoid jail time as long as they agree to pay their back taxes, interest and hefty penalties. But with the representation of Drexel Tax Relief, if the money was earned legally, tax evaders can almost always avoid criminal prosecution, and can have their tax burden drastically reduced if not virtually eliminated.
The IRS has begun an amnesty program that offers reduced penalties for people with undeclared assets and unfiled taxes. Commissioner Shulman said the response is expected to be unprecedented, though he declined to say how many people can apply. It’s a limited time offer and once it’s over – it’s over!
Shulman said taxpayers are free to take advantage of the program as long as they come forward before January 23 — and before the IRS begins any actions against them.
“You can expect us to continue to be much more aggressive, as we go after the average American.” he said.
If you’re in a position where you don’t know what your options are, call us today for a free consultation. We’ve helped hundreds of families save thousands of dollars and get their tax problems solved.
How the IRS is using Facebook-Special report from the Wall Street Journal
Tax debt is becoming one of America’s biggest growing issues, and the IRS is pulling no stops to finding you if you are one of those who owe money. Below was an article in The Wall Street Journal that may have you consider what type of activity you’re posting to your Facebook profile.
You might want to pay your taxes before posting a professional profile or making a financial boast on a social-networking site, the taxman’s new tool for tracking deadbeats.
Tax deadbeats are finding someone actually reads their MySpace and Facebook postings: the taxman.
State revenue agents have begun nabbing scofflaws by mining information posted on social-networking Web sites, from relocation announcements to professional profiles to financial boasts.
In Minnesota, authorities were able to levy back taxes on the wages of a long-sought tax evader after he announced on MySpace that he would be returning to his hometown to work as a real-estate broker and gave his employer’s name. The state collected several thousand dollars, the full amount due.
Meanwhile, agents in Nebraska collected $2,000 from a deejay after he advertised on his MySpace page that he would be working at a big public party.
In California, which has recently been so strapped for revenue it has had to pay some bills with IOUs, agents are also using social Web sites. When one delinquent was identified as a rigger of sails, a curious collection agent searched his name and the term online and found a discussion board used by local riggers. In one thread someone asked where the rigger was because his store had closed, and a reply was posted, “Oh, he moved across the bay.” The agent found the man and collected a four-figure sum.
An Internal Revenue Service spokesman declined to say whether its agents use social-networking sites to pursue delinquent taxes or assist audits.
Searches for tax dodgers typically begin with examinations of bank, employment, tax and motor-vehicle records. “These new supplements are often far more efficient than the older ones, such as reading the local newspaper or making inquiries at barbershops and church meetings,” said Jim Eads, director of the Federation of Tax Administrators.
Now, when a tax dodger can’t be found, said Nebraska tax official Steven Schroeder, agents often turn to Google. One agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high-ranking local marketing rep for a national firm.
If a Google online search isn’t productive, agents use social sites or chat rooms in a last-chance hunt for their quarry.
An agent for a ‘friend’
There are limits to what state agents can do on the Web. In Nebraska, agents are only allowed to use information that is publicly available online. So, MySpace — owned by News Corp., publisher of The Wall Street Journal — tends to work best because its users often post more public information than do those of sites like Facebook, Schroeder said.
The default settings for adults on MySpace create a public profile, while the default settings on Facebook create a profile only viewable by an approved list of friends.
“Agents are not allowed to ‘friend’ someone using false information,” Schroeder said. The same ethics rules hold in California, according to a spokesman for the state’s Franchise Tax Board.
Not all state tax departments are jumping on the trend. Massachusetts, long known for its aggressive tax collections, said it has “no systematic program” for trawling social media at the moment. According to Eads of the tax administrators’ group, many state tax authorities currently block social sites on workplace computers to prevent employees from spending personal time on them.
“They may change their minds,” he said.
“Using social media is something we will explore,” said Jessica Iverson, a spokesman for the Wisconsin Department of Revenue. A spokesman for Oregon’s revenue agency said his state is also “considering it.”
Other states are looking for ways use Internet information to enhance not only collections but also audits and negotiations.
A Minnesota tax official said that when firms try to negotiate payments by claiming to be strapped for cash, agents always check their Web sites. At the time one tanning business was crying poverty to the state, agents pointed out that its site boasted of supplying all the tans for participants in a big body-building contest.
This article was reported by Laura Saunders for The Wall Street Journal.
How do I get started?
Call 1-800-344-0551 to speak to a tax professional today. When you call, you will be assigned a Tax Mitigation Attorney or Enrolled Agent who will hand-hold you from beginning to end. Working with the brightest tax minds in the industry, they will outline the specifics of your case and map out the best solution possible based on your current situation. Fighting for your mandated rights!
How much does it cost?
Unlike expensive CPA’s or local Tax Attorneys who charge by the hour, we charge a simple, one time, flat fee for each case. That means no per-call charges or hidden fees like “cheaper” services. As each case varies in complexity, fees will vary accordingly.
How does the process work?
Our staff of tax professionals has spent years perfecting the art of being able to achieve superior results in a fraction of the time while still giving you the individual attention you deserve. We begin the process by assigning each case a team of tax professionals who will work on your case from beginning to end utilizing our proven work-flow system and world class customer service. Our attorneys and case managers know the current tax code and know your rights as a taxpayer. Once a personalized case strategy is charted out we redirect most correspondence with the IRS through our office and continue to negotiate with the IRS until your case is settled. How long does the IRS have to collect back taxes from me?
The IRS generally has 10 years to collect back taxes. The Statute of Limitations on Collections is the amount of time that the Internal Revenue Service (IRS) has to collect a tax liability. According to the Internal Revenue Code, Section 6502, the IRS generally must collect the tax owed, within 10 years after the assessment of the tax. Depending on your situation, the assessment of tax may be the date you filed the tax return, or the date that the IRS filed the tax return for you. Thus, the Statute of Limitations will begin once the tax has been assessed by the IRS.
Can the IRS hold me personally responsible for unpaid payroll taxes?
Yes. Failing to properly file and pay payroll taxes is a serious matter. If an employer fails to timely file and pay payroll taxes, the IRS is authorized to collect these taxes from the business or even a person who was responsible for withholding and paying these payroll taxes to the IRS.
The IRS looks at many factors in determining whether someone is responsible for a payroll tax liability. However, one of the most important factors is control. Generally, the IRS considers anyone who has the authority to sign checks or the authority to operate the business on a day-to-day basis as someone who would have control over the business. Therefore, owners, officers, executives and payroll personnel may be considered responsible parties.
Can the IRS/state garnish my wages without giving me prior notice?
Yes. The IRS has the ability to take extreme actions to collect past due taxes. This authority includes the ability to garnish the wages of taxpayers with past due liabilities. Before the IRS can garnish your wages, the law requires them to send you a letter called a Final Notice. After that the IRS can move forward with enforced collection action, including a wage garnishment taking up to 98% of your paycheck. The IRS only needs to send the final notice once. They do not need to send the notice every time they want to garnish your wages or take other collection action. Because of this rule, years can go by after the Final Notice is sent. Many taxpayers are taken by surprise when they are suddenly garnished after months or years of hearing nothing from the IRS. Also, some taxpayers never receive the Final Notice because the IRS sent it to an old address. Unfortunately, this is completely legal.
Can the IRS garnish all of my wages?
Many taxpayers think that the IRS can take only a small percentage of a taxpayers income. In fact, the IRS only leaves taxpayers with a certain dollar amount depending on the taxpayers filing status. Thus, there could be two taxpayers that are single with no dependents with one earning $2,000.00 per month and the other earning $10,000.00 per month. Both taxpayers will be left with the same amount of money in their check after the garnishment. Therefore, regardless of your income level, a wage garnishment can have a devastating impact on your personal finances. The IRS can and will take up to 98% of your paycheck without concern for your welfare or well being.
Who is the Automated Collection Service (ACS) of the Internal Revenue Service (IRS)?
The Automated Collection System (ACS) is a division within the IRS that focuses on balance due accounts and non-filer cases. In other words, those taxpayers that owe the IRS money and/or have not filed tax return(s). ACS handles incoming and outgoing phone calls, generates wage and bank levies and sends out collection notices. Additionally, ACS monitors and tracks taxpayers accounts. Based on our experience, ACS can be very aggressive with their collection efforts.
