Business or Hobby Determination for IRS Taxes

You love planning parties.  Over the last few years, friends and family asked for your assistance on planning various celebrations: open house, graduation party, baby shower, wedding reception, and birthdays.  After awhile you started to think, could I start a party planning business?  Why not?  You may or may not earn money doing this.  It does not matter to you.  You have a normal full time job.  The party planning will be a side business for fun.

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IRS Issues a New Phone Scam Warning

The IRS issued a warning to the public about phone scams.  The scammers are making unsolicited phone calls to individuals falsely claiming to be the IRS.  The scammer will claim taxes are owed and request an immediate payment by wire transfer or debit card.  The calls are typically hostile and abusive.

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Michigan Offer in Compromise is Good for Taxpayers

Michigan will join over 40 other states that provide an Offer in Compromise program to its taxpayers.  The bill HB 4003 was placed into law on July 16, 2014.  Michigan has offered “Amnesty” programs in the past.  The Amnesty program allowed taxpayers to fully pay the tax only.  The penalties and interest were waived.  However, an Offer in Compromise program is different.  Taxpayers who are unable to pay their back taxes or legitimately do not owe the taxes, will be able to negotiate the tax, penalties, and interest.

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New Michigan Offer in Compromise Program

Governor Snyder signed into law HB 4003. HB 4003 allows the State of Michigan to negotiate Michigan taxes. This is exciting news for Michigan taxpayers! For the first time ever, Michigan residents will be able to negotiate Michigan taxes for less. The new law will start in 2015.

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Health Care IRS Tax Penalty

You do not like the new Affordable Health Care for America Act, AKA Obamacare. A decision was made not to purchase health insurance. You rather pay the tax penalty to the IRS. We will review how to calculate the tax penalty for not purchasing health insurance.

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What will the IRS do when you owe back taxes?

You’re expecting a large tax bill.  You are afraid of the big bad IRS.  The IRS will take your car in the middle of the night.  The IRS will possess your home and leave you with no place to live.  The IRS will wipe out your bank account and garnish your wages.  The IRS will make it impossible for you to earn a living.  How does the IRS expect you to pay the taxes owed if you can’t earn a living?

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