Los Angeles California Tax Attorney Blog

California Franchise Tax Board lists names of individuals and businesses that owe taxes to the state. Top 250 who owe taxes to California FTB

According to the FTB, there are several notable individuals owe a lot of taxes to FTB.
Among the list are O.J. Simpson, the comedian Sinbad, and Dionne Warwick, who owes over $2.7 million.

At the top of the list is a $6.1 million corporate tax delinquency. One other corporate delinquency is in the top 10 highest tax amounts, owing $2.7 million. The remaining eight of the top 10 amounts owed are for personal income tax delinquencies, owing from $2.1 million to $4.4 million. Six of the top ten have California addresses, and four are located out of state.

FTB is required by law to post a list of the 250 state income tax debtors who owe the largest amounts greater than $100,000 in tax, after first notifying them that their delinquencies will become public. Since January 2008, the State has received approximately $4.2 million in payments from taxpayers desiring to keep their names from being posted. More than $500,000 was collected last year when the original list was posted in October.

Taxpayers who do make the list can have their information removed by paying the tax in full, or agreeing to pay by installment. Tax liabilities under appeal, litigation, in bankruptcy proceedings, or under consideration for an Offer in Compromise are not included on the list.

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IRS Selects Tax Attorney From Los Angeles California

Los Angeles Tax Attorney – Internal Revenue Service Tax Attorney Donald L. Korb has selected David Hasen as the 2008-2009 Professor in Residence.

The IRS professor in residence reports directly to the IRS chief counsel and provides tax advice and assistance on a wide array of tax related legal issues within the scope of his or her legal expertise.

Hasen has been an assistant professor at the University of Michigan Law School since 2002. Also during the spring 2008 term, he has been a visiting faculty member at the University of Southern California - Los Angeles, Gould School of Law. Previously, he taught as a visitor at Hastings College of the Law in California concerning IRS tax problems.

Hasen has written about the taxation of financial instruments, the tax consequences of unwinding transactions and the taxation of advance payments. Hasen worked as an associate in the tax law groups of national tax law firms based in San Francisco. He holds a J.D. from Yale Law School, a Ph.D. from Harvard University and a B.A. from Reed College.

The IRS Office of Chief Counsel revived its Tax Professor in Residence program in 2006 after being dormant since the late 1980s. The program provides some of the nation's top tax legal academicians the opportunity to contribute to the development of IRS' legal tax policy and IRS tax administration.

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Orange County Tax Attorney — National Taxpayer Advocate Nina E. Olson announced today that the IRS will accept applications for a part-year Low Income Taxpayer Clinic (LITC) matching grant from qualified organizations that will provide IRS tax services to qualified taxpayers in the following areas: Los Angeles, California; Central Oregon; Boise, Idaho; Minneapolis, Minnesota; Reno and Las Vegas, Nevada; St. Louis, Missouri; Brownsville and Laredo, Texas; Southwest Florida; New Mexico; Colorado; Mississippi; and Northeast Pennsylvania.

The supplemental application period for this grant will run from March 24, 2008, until April 24, 2008. The grant will cover the balance of the 2008 grant cycle (the 2008 grant cycle runs January 1, 2008, through December 31, 2008), and successful applicants may be eligible for a regular full-year grant for the 2009 grant cycle.

LITCs are qualifying organizations that provide representation for free or for a nominal charge to low income taxpayers involved in tax disputes with the IRS. They also provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language.

The LITC grant program is a federal program that is administered by the Taxpayer Advocate Service. The Taxpayer Advocate Service is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

The program is now in its tenth year and continues to expand. To date in 2008, the LITC Program Office has awarded LITC grants to 154 organizations in all 50 states, the District of Columbia, Puerto Rico, and Guam.

To be considered for a supplemental 2008 LITC grant, a qualifying organization must be in a position to provide qualified services to taxpayers in the aforementioned areas. Qualifying organizations can apply for matching grants for the remainder of the 2008 grant cycle if they either provide representation for free or for a nominal fee to low income taxpayers involved in tax disputes with the IRS or provide education on taxpayer rights and responsibilities to taxpayers for whom English is a second language.

Examples of qualifying organizations include: (1) clinical programs at accredited law, business or accounting schools, whose students may represent low income taxpayers in tax disputes with the IRS, and (2) organizations exempt from tax under I.R.C. § 501(a) which represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives.

As noted, the supplemental application period will begin March 24, 2008.

Applications for grants must be electronically submitted or postmarked by April 24, 2008. Grant decisions will be made by June 1, 2008, and funds awarded can only be used for the remainder of the 2008 grant cycle. Grant funds may be awarded for start-up expenditures incurred by new clinics during the grant cycle.

Taxpayers with IRS tax problems in the following communities may contact tax attorney here.: Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Dana Point East Irvine El Toro Foothill Ranch Fountain Valley Fullerton Garden Grove Huntington Beach Irvine La Habra Ladera Ranch Laguna Beach Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Monarch Beach Newport Beach Newport Coast Orange Placentia Rancho Santa Margarita San Juan Capistrano SantaAna Seal Beach Tustin Westminster Yorba Linda

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Tax Attorney Advice - Each year there are over 10 million IRS taxpayers who haven't filed their taxes or IRS 1040 tax return.

Taking the following action may save a lot of taxes and avoid criminal prosecution by the IRS. If you are being contacted by the IRS or are receiving threatening letters from the Internal Revenue Service, you may need to contact a tax attorney for guidance.

File All Tax Returns

Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved.

Facts About Filing Tax Returns

Failure to file a return or filing late can be costly. If taxes are owed, a delay in filing may result in penalty and interest charges that could increase your tax bill by 25 percent or more per year.
There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund.

In order to receive a refund, the return must be filed within 3 years of the due date. If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later.

Taxpayers who are entitled to the Earned Income Tax Credit must file a return to claim the credit even if they are not otherwise required to file. The return must be filed within 3 years of the due date in order to receive the credit.

If you are self-employed, you must file returns reporting self-employment income within three years of the due date in order to receive Social Security credits toward your retirement.

Taxpayers who continue to not file a required return and fail to respond to IRS requests for a return may be considered for a variety of enforcement actions. Continued non-compliance by flagrant or repeat nonfilers could result in additional penalties and/or criminal prosecution.

Documents Required to File Your Taxes - IRS Tax Return Form 1040:

Forms W-2 – Forms from employers showing wages for the year.

Forms 1099 – Forms from banks and other financial institutions showing interest and dividends. Forms 1099 also report self-employment income.

Information on expenses to claim on the return, such as itemized deductions, child care expenses, or employee business expenses.

Social Security numbers for dependent children and any other person claimed as a dependent

A copy of the last tax return filed.

We are tax attorneys and serve our clients in the following areas: New York, Los Angeles, Chicago, Houston, Philadelphia, Phoenix, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Baltimore, Fort Worth, Charlotte, El Paso, Milwaukee, Seattle, Boston, Denver, Washington DC, Las Vegas, Portland, Oklahoma City, Tucson, Albuquerque, Long Beach, Atlanta, Fresno, Sacramento, New Orleans, Cleveland, Kansas City, Mesa, Virginia Beach, Omaha, Oakland, Miami, Tulsa, Honolulu, Minneapolis, Colorado Springs, Arlington.

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Tax Attorney Analysis of Potential IRS Tax Court Ruling-Tax Audit or Tax Problem From Plastic Surgery Expense Deductions.

Los Angeles - San Franciso Tax Attorney - The rate of plastic surgery in California especially in Los Angeles, Beverly Hills, Malibu, Pacific Palisades, Manhattan Beach, Palos Verdes, Newport Beach, Orange County, San Jose, San Franciso have seen dramatic increases over the last decade.

As tax attorneys, we are often asked by our clients in the entertainment industry whether certain surgical enhancements may be claimed as a deduction or expense.

Most tax lawyers are aware of the IRS Tax Court case involving “Chesty Love.” To generate more revenue from her profession as a stripper, Chesty Love decided to get breast implants to make her a size 56-FF and expensed the cost of the surgery. IRS tax court judge allowed Chesty to write off the cost of her operation equating her breast enhancement as a necessary expense alas “stage prop” to generate revenue.

However, can ordinary IRS taxpayers deduct breast implants or eye surgery and not run into tax problems in the event of a tax audit?

According to the IRS Attorney Tax Revenue Ruling #200357 issued by the IRS ,amounts paid by individuals for breast surgery, breast implants, vision correction surgery, and teeth whitening medical care expenses within the meaning of IRS Code § 213(d) may be deductible under § 213 of the Internal Revenue Code?

Hypothetical IRS Tax Court Case Scenario 1- Breast Implants and Tax:
Taxpayer A undergoes mastectomy surgery that removes a breast as part of treatment for cancer and pays a surgeon to reconstruct the breast.

Hypothetical IRS Tax Court Case Scenario 2 - Lasik and Tax:
Taxpayer B wears glasses to correct myopia and pays a doctor to perform laser eye surgery to correct the myopia.

Hypothetical IRS Tax Court Case Scenario 3 - Teeth Whitening and Tax:
Taxpayer C’s teeth are discolored as a result of age. C pays a dentist to perform a teeth-whitening procedure. A, B, and C are not compensated for their expenses by insurance or otherwise.

IRS Tax Court Rulings:
General IRS Tax Law or Tax Code Applicable to Medical Expenses:
Section 213(a) allows a deduction for expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, spouse, or dependent, to the extent the expenses exceed 7.5 percent of adjusted gross income. Under § 213(d)(1)(A), medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.

Medical care does not include cosmetic surgery or other similar procedures, unless the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. Section 213(d)(9)(A). Cosmetic surgery means any procedure that is directed at improving the patient’s appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Section 213(d)(9)(B).

Tax attorney would argue that A’s cancer is a disfiguring disease because the treatment results in the loss of A’s breast. Accordingly, the breast reconstruction surgery ameliorates a deformity directly related to a disease and the cost is an expense for medical care within the meaning of § 213(d) that A may deduct under § 213 (subject to the limitations of that section).

Tax Attorney would argue that cost of B’s laser eye surgery is allowed under § 213(d)(9) because the surgery is a procedure that meaningfully promotes the proper function of the body. Vision correction with eyeglasses or contact lenses qualifies as medical care. See Rev. Rul. 74-429, 1974-2 C.B. 83. Eye surgery to correct defective vision, including laser procedures such as LASIK and radial keratotomy, corrects a dysfunction of the body. Accordingly, the cost of the laser eye surgery is an expense for medical care within the meaning of § 213(d) that B may deduct under § 213 (subject to the limitations of that section).

In contrast, IRS tax attorney would argue that the teeth-whitening procedure does not treat a physical or mental disease or promote the proper function of the body, but is directed at improving C’s appearance. The discoloration is not a deformity and is not caused by a disfiguring disease or treatment. Accordingly, C may not deduct the cost of whitening teeth as an expense for medical care.

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California and Hawaii Taxpayers Struck by IRS Payroll Tax & Income Tax Problems Created by IRS Tax Evasion and Tax Avoidance Schemes.

Los Angeles - San Jose Tax Attorney: According to the Internal Revenue Service, lawyers from the IRS with the support of tax attorneys from DOJ announced that IRS has obtained civil injunctions against more than 100 tax promoters of illegal IRS tax avoidance schemes and fraudulent IRS tax return preparers in an ongoing crackdown that began in 2001.

Many of the illegal tax promoters targeted taxpayers in Los Angeles, Alhambra Burbank Carson Cerritos Downey El Monte Lawndale Lomita Long Beach Oakland Palmdale Pasadena Pomona San Jose Santa Monica Studio City Van Nuys West Los Angeles and Woodland Hills with income tax and payroll tax avoidance schemes. These taxpayers along with the tax promoters may receive IRS tax audit notice as part of the ongoing IRS tax investigation.

Many of the IRS Tax related injunctions, obtained in cooperation with the tax attorneys at Department of Justice, also order the IRS tax promoters to turn over taxpayer lists and to cease preparing IRS federal income tax returns for others.

Signaling a renewed fight against tax fraud and tax evasion, the IRS stepped up the use of injunctions to stop the tax evasion and tax fraud schemes designed to avoid income tax and payroll tax debt.

The IRS becomes aware of abusive tax promoters through a variety of means, including ongoing IRS tax audit, state of California tax audits,or referrals from external sources such as tax professionals.

The IRS is currently investigating more than 1,000 additional tax avoidance promoters for possible referral to the Justice Department and conducting individual and business tax audit on thousands of IRS tax scheme participants.

If you are currently being audited or think that you might be under IRS tax investigation, you may contact our offices located in Oakland, San Jose, San Mateo, Long Beach, Pasadena, Torrance, Los Angeles and San Francisco to speak with an experienced IRS tax attorney.

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Los Angeles Tax Attorney - We serve California taxpayers with IRS or California State tax problem, tax audit, tax levy, tax lien, offer in compromise residing in the following areas: Alhambra Beverly Hills Burbank Carson Cerritos Culver City Downey El Monte Gardena Glendale Lawndale Lomita Long Beach North Northridge Palmdale Pasadena Pomona Rancho Palos Verdes Redondo Beach Rolling Hills San Gabriel San Pedro Santa Clarita Santa Fe Springs Santa Monica Sherman Oaks Studio City Torrance Valencia Van Nuys West Covina West Hollywood West Los Angeles and Woodland Hills.

All taxpayers should be aware of tax preparers such as Hazel Harris who according to government complaint targets elderly customers who receive Social Security benefits and generates fraudulent income tax refunds on their behalf.

The Government and IRS Tax complaint states that Harris tells her clients she is an accountant who specializes in refunds for Social Security recipients. In order to increase business, she is alleged to have advised potential customers to contact current clients who have received refunds as a result of her fraudulent return preparation.

Harris reportedly generates improper tax refunds by reporting only half of her customers’ Social Security benefits as taxable income, and by fabricating amounts of taxes withheld. Additionally, she has prepared the clients’ returns for multiple years at one time, regardless of whether a return has already been filed for those years.

The government alleges that Harris has prepared more than eight-thousand federal income tax returns for others since 2001. According to Internal Revenue Service (IRS) estimates, she has claimed over $3.5 million in fraudulent refunds.

Continue reading "Tax Fraud-California Taxpayers Defend Against False IRS Tax Return" »

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Los Angeles Tax Attorney — The Internal Revenue Service announced today that Hawaii and California taxpayers in Los Angeles, Long Beach, Honolulu, El Monte, Torrance, Pasadena, Santa Monica, Redondo Beach, Irvine, Santa Ana who normally do not file a tax return but must do so this year in order to receive their 2008 IRS tax economic stimulus payment.

IRS Taxpayers who haven’t filed tax returns in the past must have at least $3,000 of income from any combination of earned income, Social Security retirement or disability benefits, certain Railroad retirement benefits, or disability compensation, disability pension, or survivor benefits paid by the Veterans Affairs. The minimum economic stimulus payment is $300 for individuals and $600 for married couples. Contact your IRS tax attorney to verify your tax status.

To obtain a payment, all people who are eligible for payments of up to $600 for individuals ($1,200 for married couples) must file a tax return in order for the IRS to know their name, address and eligibility. Parents also may qualify for a $300 payment for each eligible child younger than 17. Valid Social Security numbers are required.

Continue reading "IRS Tax Refund-Hawaii and California Taxpayers Must File IRS Tax Return to Receive Tax Stimulus Payment or Tax Refund" »

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Torrance Tax Attorney —The Internal Revenue Service(IRS) announced today that it has automated the user fee calculations for IRS taxpayers entering into an installment agreement throughout California including IRS taxpayers seeking payment plan in the Los Angeles, Long Beach, Pasadena, Torrance, Gardena, Garden Grove, El Monte, Sherman Oaks, Woodland Hills, Orange, San Jose.

Previously, IRS taxpayers were required to submit a paper IRS Form 13844 to request a reduced user fee. Now, eligibility for reduced fees is determined automatically by the IRS.

An IRS installment agreement allows IRS taxpayers who have tax problems to pay their full tax debt in smaller, more manageable amounts, though penalties and interest continue to accrue on the unpaid portion of that IRS tax debt. IRS taxpayers are charged a one-time fee to set up an installment agreement with the IRS. A reduced fee is available for qualifying taxpayers.

Contact a tax attorney if you have any tax problems (310) 788 9820.

Continue reading "IRS Tax Problem? Installment Payment Plan for California taxpayers in Los Angeles, Long Beach, Torrance, Pasadena, Gardena, Orange and Riverside County." »

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Many Los Angeles, Long Beach, Orange, Riverside, San Jose area business owners and taxpayers who have IRS tax problems may not have been aware of the tax settlement program called offer in compromise. Tax attorneys who handle these type of cases should prepare a comprehensive tax and financial analysis in order to prepare the most favorable tax settlement proposal which would result in minimum tax debt being paid to the IRS.

Although the IRS discourages and may create obstacles to have your IRS taxes reduced, a good tax attorney will often be able to prepare legal arguments that would contest and challenges put forth by the IRS concerning the tax settlement proposal.

An IRS Offer in Compromise allows taxpayers to settle their tax liabilities for less than the full amount. The objective of the IRS Offer in Compromise program is to accept a compromise when it is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.

Major Changes to the IRS Offer in Compromise Program

The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), created major changes to the IRS IRS Offer in Compromise program as it relates to lump sum offers, periodic payment offers, and a determination as to when an offer is accepted. These changes affect all offers received by the IRS on or after July 16, 2006.

Continue reading "IRS Offer in Compromise - Resolve Tax Problem - Los Angeles, Long Beach California Tax Attorney" »

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Los Angeles Tax AttorneyLos Angeles – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2008, will drop by one percentage point. The new rates will be:

• six (6) percent for overpayments [five (5) percent in the case of a corporation];
• six (6) percent for underpayments;
• eight (8) percent for large corporate underpayments; and
• three and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000.

These rates relate to interest on IRS taxes but not on the IRS Tax penalties. Often times, our clients in Los Angeles, Long Beach, Torrance, El Monte, Pasadena and San Jose California area taxpayers are inundated with IRS tax, interest and penalties. Depending on your case, some of your interest and much of your penalties may be reduced. If you require more information contact us at 310 788 9820.

Under the Internal Revenue Code, the rate of interest on IRS tax is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment of tax rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation tax, the underpayment tax rate is the federal short-term rate plus 3 percentage points and the overpayment IRS tax rate is the federal short-term rate plus 2 percentage points.

The rate for large corporate tax underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

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California IRS Offices to Contact Third Parties for IRS Tax Audit and IRS Tax Collection

Los Angeles Tax Attorney - In 1998, the Congress amended Code Section 7602 to prohibit Internal Revenue Service employees including IRS Agents and IRS Auditors from contacting third parties with respect to the taxpayer’s IRS tax liability without providing reasonable advance notice to the taxpayer that third-party contacts may be made.

Most IRS tax attorneys and tax lawyers who resolve tax problems were concerned that (1) that such contacts by the IRS may have negative effect on the taxpayer’s business and could damage the IRS taxpayer’s reputation in the community, and (2) that taxpayers should have the opportunity to resolve his tax problems through his tax attorney before the IRS contacted third parties.

IRS third party contact notice provides a general tax notice to the taxpayer before most third-party contacts are made, and then to periodically (or upon the taxpayer’s request) provide the taxpayer with a record of the persons contacted by the Internal Revenue Service. If you are a taxpayer located in Los Angles or California with IRS tax problems, IRS tax audit or IRS tax levy collection, make sure you contact IRS tax attorney so that your IRS tax rights are protected.

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IRS Tax Savings for Los Angles and California Businesses and Taxpayers:

Los Angeles Tax Attorney — The Internal Revenue Service released additional information today about the upcoming economic stimulus payments in a specially designed section for Los Angeles and California IRS taxpayers.

Most IRS taxpayers just need to file a 2007 tax return in order to automatically receive the stimulus payment.

Internal Revenue Service provides extensive set of information for all taxpayers with questions about the IRS tax stimulus payments, commonly referred to as rebates. The questions and answers include important information for low-income workers and certain recipients of Social Security, Railroad Retirement benefits and veterans’ benefits.

IRS also provides extensive examples of how much Los Angles, Orange, Long Beach, Torrance, Woodland Hills, Pasadena, Sherman Oaks taxpayers can expect to receive in tax stimulus payments. The page includes more than two-dozen payment scenarios affecting different types of taxpayers.

Continue reading "IRS Tax Savings for Los Angles and California Business and Taxpayers" »

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As the housing market and the mortgage businesses continue to crumble, even the once wealthy mortgage lenders are facing tax problems. Los Angeles Tax Problems for Mortgage Brokers With the wave of recent foreclosure filings and bankruptcy filings in Los Angeles, Long Beach, Pasadena, Torrance and other area