This is part three of the Do not let your taxes snowball out of control series. Name and location changes to protect client confidentiality are in effect. See Part One relating Sally’s real life tax example and Part Two George’s real life tax example. Continue reading…
Do not let your taxes snowball out of control (Part Two)
Having discussed Sally’s tax delinquencies and the corrective action taken by ALG Tax Solutions in Do not let your taxes snowball out of control (Part One), the following narrative is about an independent contractor named George. Name and location changes to protect client confidentiality are in effect. This is another real life example demonstrating how back taxes can become as threatening as an out-of-control snow ball rolling down the hill. Continue reading…
Do not let your taxes snowball out of control (Part One)
I have helped a considerable number of clients resolve their back taxes. One thing that surprises most of my clients is the sheer amount of taxes, interest, and penalties owed. How do people get into this situation? Owing taxes can be compared to a snowball that starts to roll from the top of a hill and gets increasingly larger as the snowball progresses down the hill toward the bottom. Given a long ride, that snowball gets too big to handle. The following narrative, which includes name and location changes to protect client confidentiality, demonstrates how back taxes can erupt out of control. Continue reading…
What is a Substitute for Return (SFR)?
In any year when an annual income tax return is not filed, the IRS files a Substitute for Return (SFR) on your behalf to your IRS account. The IRS does this to estimate the taxes owed and to start the collection process. Continue reading…
IRS Guardian
Coming soon is the IRS Guardian. Stay tuned!
Recommendations
I highly recommend A.J. He is extremely trustworthy and can be counted on, not only to accomplish the task, but get it done at the highest level of quality. He takes tremendous pride in going the extra mile to take care of customers and insure he is fully up on the latest technologies and that he understands his products at an expert level. Time and time again he has proven he is up to any challenge. February 14, 2012, John.
Are you a real estate professional?
If you own rental property, the rental activity is generally treated by the IRS as a “passive activity.” This is important to understand because if you operated rental property and sustained a loss, the loss can be claimed against active income, such as wages. This loss deduction is limited to $25,000 for the claimed tax year. The $25,000 loss deduction may be further limited by Adjusted Gross Income (AGI). However, if you are a bona fide real estate professional, the rental activity is treated as an “active activity.” Therefore, there is no limit on the amount of losses that can be deducted. Continue reading…
How does a tax resolution company find out about your tax problem?
Taxpayers with IRS problems are being cold-called or are receiving letters from companies urgently seeking contact and promising that your tax problems can be easily resolved. Some companies are being creative, sending out letters to taxpayers that contain personal information which often mimic official IRS letters. Companies gain access to personal information due to a tax lien being filed by the IRS.
Can I really settle my taxes for less than I owe?
The simple answer to this question is maybe. The more accurate answer, it depends on your current financial situation because not all taxpayers qualify. Even if you are qualified by IRS criteria, the resolution process can be lengthy and expensive.
Another nationwide firm bites the dust
JK Harris, a nationally advertised tax resolution firm, recently filed for federal bankruptcy protection and has ceased business operations. JK Harris was forced into bankruptcy due to legal action taken by Attorney Generals from several states. Thousands of taxpayers may be left helpless and without proper representation. JK Harris is the third nationwide firm to have ceased operations due to unfair business practices involving consumers in several states.