If you owe a debt to a bank or any other creditor and they agree to forgive or reduce the balance of the debt, the canceled amount of the debt may be taxed by the Internal Revenue Service.
Based on the numerous last minute IRS Voluntary Disclosures most tax attorneys expect a surge of US TAX COURT filings against the Internal Revenue Service to challenge the IRS tax and penalty assessments which may be proposed in the next several months. We’ll update you with any new procedures or news concerning IRS audits which may be initiated through the IRS Voluntary Disclosure application submission.
Internal Revenue Service IRS Voluntary Disclosure Program
Internal Revenue Service IRS TAX has set a deadline for reporting offshore bank accounts and other offshore income activities through its voluntary disclosure program. Voluntary disclosure may eliminate risk of IRS criminal prosecution and reduce or eliminate assessment of tax penalties.
Even taxpayers who do not have offshore activities but have unreported income, fraud, unpaid taxes or unfiled tax returns will benefit from the IRS Voluntary Disclosure program.
Today is tax day – the 15th of April. If you need any last minute information you can find a lot of information here at Internal Revenue Service’s website IRS TAX. Hope everyone got their IRS 1040 and California 540 tax returns filed on time. Our current income tax system has been in effect since the United States Congress (website) ratified the 16th Amendment in 1913. The following single sentence in our constitution is the genesis of the most dreaded day for most Americans:
The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
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
IRS Tax Audit Rate Increase for Los Angeles area Taxpayers and Businesses.
Long Beach Tax Attorney -The IRS continues to make strong progress in a number of key tax collection, IRS tax audit and tax enforcement areas. Taxpayers in the Los Angeles area including Pasadena, Long Beach, Sherman Oaks, Woodland Hills, Santa Monica, Redondo Beach, Torrance, Gardena, Santa Ana, Irvine, Anaheim, El Monte and Palmdale received more IRS Tax audit notices than in prior years.
The IRS tax audit, tax collection and IRS tax enforcement efforts increased again last year. IRS audited 84 percent more returns of individuals with incomes of $1 million or more than during 2006. Overall, IRS tax enforcement revenue reached $59.2 billion, up from $48.7 billion in 2006 and nearly $34.1 billion in 2002.
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.