Pennsylvania Tax Legal Professional Weblog

September 28, 2021U.S. Tax Court Rejects Offer In Compromise

Tax Court Rejects Proposed Offer in Compromise to Settle Possible Federal Tax Lien

Suddenly receiving a marvel tax invoice inside the mail isn’t always some thing everybody seems ahead to. However, taxpayers who face economic problems paying their back taxes can be able to settle the whole amount due for much less than the amount owed through the Offer in Compromise (OIC) program.

To be eligible for an OIC, a taxpayer need to have filed all preceding years’ tax returns and made all necessary expected tax payments for the maximum recent tax yr. Taxpayers who’re currently concerned in a financial disaster proceeding are also ineligible for an OIC.

February 1, 2021Understanding Federal Tax Liens and Levies in Pennsylvania During the Pandemic

Federal tax regulation gives the IRS a couple of tools for gathering unpaid taxes. Several of those do not require the IRS to document some thing with a courtroom earlier than acting. A federal tax lien makes the tax debt a rely of public file and may have a widespread effect on a taxpayer’s financial pursuits. The IRS may additionally levy a taxpayer’s belongings in lots of instances, which means it can seize any assets no longer exempted under federal law. In the early days of the COVID-19 pandemic, the IRS offered taxpayers a respite from series activities. While that respite ended last summer season, a few kinds of relief may additionally still be available for Pennsylvania taxpayers who owe the IRS.Tax Liens vs. Tax Levies

The phrases “lien” and “levy” sound truly comparable, and people on occasion get them harassed with one another. The two procedures are related, however they’re also very unique from one another. Understanding the difference could be very important.Federal Tax Liens

A lien is a sort of felony proper over a person’s belongings, which creates a protection interest for a creditor. In order to collect a lien over a taxpayer’s assets, the IRS should send a note to the taxpayer informing them of the amount of tax they owe and creating a call for for payment. Ten days after the IRS demands fee, the lien attaches to the taxpayer’s property in the event that they have no longer paid the quantity demanded.

See also  Kaczmarek & Jojola - Scottsdale Tax Legal Professionals - Audit, Litigation, Recommendation

November 19, 2020What Pennsylvania Employers and Employees Need to Know About the Trust Fund Recovery Penalty During the COVID-19 Pandemic

Federal tax regulation requires employers to withhold certain taxes from their employees’ wages, and to remit those quantities to the IRS. These are referred to as “trust fund” taxes, for the reason that organisation holds them in accept as true with for the worker. In the event an employer fails to withhold these taxes, or fails to remit them, the results can be massive, so a communication with a Pennsylvania tax attorney can be beneficial for all concerned. The Trust Fund Recovery Penalty (TFRP) is one in all the largest penalties legal by way of the Internal Revenue Code (IRC). The COVID-19 pandemic has harmed agencies in Pennsylvania and everywhere in the usa. Despite the problems many employers are dealing with, the IRS is not likely to offer any range within the price of trust fund taxes.What Is the Trust Fund Recovery Penalty?

Section 6672 of the IRC lets in the IRS to evaluate and gather a penalty from anybody who’s obligated to accumulate and pay consider fund taxes when they “willfully” do the subsequent:– Fail to acquire the specified tax;– Fail to “honestly account for and pay over such tax”; or– Try “to stay away from or defeat the sort of tax or the charge thereof.”The penalty is equal to the whole quantity of tax that the individual failed to accumulate, didn’t account for and pay, or attempted to prevent.What Taxes Are Covered through the Trust Fund Recovery Penalty?

Trust fund taxes generally consist of private earnings tax and the taxes that cross towards Social Security and Medicare below the Federal Insurance Contributions Act (FICA). Employers have to withhold an expected amount of each worker’s wages for federal income tax, based on facts supplied on Form W-4. FICA requires employers to withhold 7.65 percent of an employee’s wages from each paycheck — 6.2 percentage for Social Security and 1.forty five percent for Medicare. Most employers have to put up withheld quantities every month, and record quarterly returns with the IRS.

See also  Irs Lawyer & Tax Legal Professional Longview, Tx

October 17, 2018Philadelphia Voluntary Disclosure Program

There is good news for those taxpayers with Philadelphia Tax Problems.  Currently, the City of Philadelphia maintains an option for tax borrowers called the Voluntary Disclosure Program.  Taxpayers with Philadelphia tax debt can observe for Voluntary Disclosure once they are equipped to make complete price for the taxes owed. For organizations, a common instance of tax owed is the Business Income and Receipts Tax previously referred to as the Business Privilege Tax. The Voluntary Disclosure Program consists of organizations now not registered with the City of Philadelphia for a commercial enterprise tax account or Commercial Activity License.

For individuals, a few common examples of taxes owed are: Wage Tax, Earnings Tax, Net Profits Tax, School Income Tax, and Real Estate Taxes. In order to be ordinary into the Department of Revenue Voluntary Disclosure Program the following requirements ought to be satisfied:The taxpayer can’t have been contacted via the City of Philadelphia Revenue or Law Departments, or any collection organization engaged via the City concerning the unpaid taxes.The taxpayer should make a complete disclosure of all Philadelphia taxes owed for the beyond six years.Taxpayers that require an installment settlement to repay their tax debt aren’t eligible for the Voluntary Disclosure Program.The taxpayer need to pay a hundred percent of the tax and hobby owed inside 60 days of receiving billing from the Department of Revenue.

May sixteen, 2016Streamlined Domestic Offshore Procedures

If you preserve or have maintained an offshore financial institution account without disclosure on your federal tax go back and feature also didn’t nicely report the Report of Foreign Bank and Financial Accounts, additionally called the FBAR, you could face good sized civil and crook sanctions. The failure to file an FBAR can carry a civil penalty of $10,000 for every non-willful violation. If your violation is observed to be willful, the penalty will be the more of $one hundred,000 or fifty percentage of the amount in the account for each violation. A taxpayer convicted of tax evasion can face a prison term of as much as five years and a great of up to $250,000.

See also  Earnings Range For Model Domestic Designers

Fortunately, for those taxpayers whose noncompliance was non-willful, the Streamlined Offshore Compliance Procedures (“Streamlined Procedures”) offer appreciably decreased consequences and the avoidance of criminal prosecution. On June 18, 2014, the Internal Revenue Service announced Streamlined Procedures. There are two sets of Streamlined Procedures, one for U.S. taxpayers dwelling in the United States, and the alternative for U.S. taxpayers dwelling out of doors america.

Streamlined Procedures For Taxpayers Residing In The United States

June 23, 2014Marcellus Shale Sales Tax Gold

The gold rush is on!  The rush for sales tax gold, that is.  For those involved in the mining of natural fuel, a massive opportunity exists for a sales tax refund beneath the Pennsylvania Sales Tax Mining Exemption.  The Mining Exemption gives an exemption to Pennsylvania’s sales tax for certain equipment and offerings used within the extraction of herbal fuel.  Because many companies are wrongly applying sales tax to objects blanketed through the Mining Exemption, it’s miles essential for companies that mine the Marcellus Shale location in Pennsylvania to carefully look at their purchases for possible refunds beneath the Mining Exemption.

The Pennsylvania Department of Revenue has described the extraction of natural fuel as an excluded mining hobby.  Pennsylvania law defines mining to include exploration, drilling, extracting and refining of herbal assets including herbal gasoline.  The actual mining manner is taken into consideration initially the drilling of the wellbore and ending with closing physical change of the gas previous to being sold and transferred. Continue analyzing

October 10, 2013How Do I Handle An IRS Audit?

So, you’ve just received a letter from the IRS informing you that you are being audited.  Stay calm, and don’t panic!  IRS audits aren’t as terrible as you would possibly think.  That is, in case your’re well prepared and geared up for the mission that awaits you.  An crucial attention will be the selection of whether or not or not to keep counsel for illustration in the audit.

Check Also

Irs Attorney Georgia Loose Consultation

If you’re seeking out a Georgia IRS attorney, probabilities are you’ve acquired a word from …

Leave a Reply

Your email address will not be published. Required fields are marked *