November 29, 2010

IRS Audit Guide

The IRS made 10 videos entitled "Your Guide to an IRS Audit" to provide basic information about the small business audit process.

Those tax audit videos cover the following 10 topics:

1. What is an IRS audit?

2. You've been contacted - what should you do next?

3. Should you get a representative?

4. How do you prepare your records for the audit?

5. What happens when you have an audit at the IRS office?

6. What happens when the IRS audit occurs at your location?

7. What happens after your first appointment?

8. What happens when you agree with the audit findings?

9. What happens when you disagree with the audit findings?

10. If you owe, what are your payment options?

If you have any questions about your audit, you may wish to consult an income tax professional. Call tax attorney Mitchell A. Port at (310) 559-5259.

November 15, 2010

"Last Known Address" And Claim For Innocent Spouse

Pamela R. Terrell appealed the Tax Court's order dismissing her petition for lack of jurisdiction. The Tax Court found it lacked jurisdiction because Terrell filed her petition more than ninety days after the Commissioner of the Internal Revenue Service sent her a Notice of Final Determination. Terrell argued that because the Commissioner did not send the Notice to her “last known address,” as required by the Internal Revenue Code, the Federal Appeals Court should find her petition timely as it was filed within ninety days of the Internal Revenue Service mailing the Notice to her correct address.

The IRS was on notice that its address on file for Terrell was incorrect, because the United States Postal Service had already returned three of the IRS's prior mailings to Terrell as undeliverable. The IRS thus had a duty to exercise reasonable diligence to search for her correct address, but failed to do so before sending the Notice.  The Notice sent on April 6, 2007 was, therefore, not sent to her “last known address,” and became null and void when it was subsequently returned as undeliverable.  Terrell's ninety days began to run only after the IRS re-sent the Notice to her correct address on May 14, 2007.   Because Terrell filed her petition with the Tax Court within ninety days of the May 14th Notice, her petition was timely.   Accordingly, The Fifth Circuit Court of Appeals reversed the ruling of the Tax Court and sent the case back to the Tax Court for a determination of the petition's merits.

Have a similar tax problem? Call a California tax lawyer to discuss fixing your tax questions. Call Mitchell A. Port at (310) 559-5259.

November 11, 2010

Tax Information For Same Sex Married Couples In California

Same-sex couple marriages performed in California on June 16, 2008 and before November 5, 2008 will be treated as valid marriages for California purposes. Same-sex married couples (SSMCs) have the same state tax benefits and requirements as any married California taxpayer.

To learn more, read California's Franchise Tax Board's Publication 776.

Married couples must file their California income tax returns using either the married filing jointly or married filing separately filing status. However, federal laws do not permit SSMCs to file federal tax returns as married filing jointly or married filing separately.

November 9, 2010

California's Tax Collection Manual

Here is a step-by-step description of the California Franchise Tax Board's tax collection procedures for delinquent and unpaid income and other taxes. If you have a tax question because a tax problem has arisen, speak with a qualified tax attorney or tax lawyer in Los Angeles who can help.

The Collection Procedures Manual covers these tax topics:

Introduction Section

Responsibility Section

Case Administration Section

Case Processing Section

Debtor Asset Location Section

Voluntary Case Resolution Section

Involuntary Case Resolution Section

Case Servicing Section

Special Processes Section

Glossary

Call Mitchell A. Port now to solve and fix your tax problems. Call (310) 559-5259.

November 1, 2010

Tax Collection Of Unpaid Taxes By The IRS

When you have a tax debt the IRS has many tools to use to collect the delinquent tax. For example they can:

Seize and sell your car, or even your home

Serve an IRS tax levy on your wages

Serve an IRS tax levy on your bank account

File an IRS tax lien

Seize your state income tax refund to satisfy your IRS tax debt

Serve an IRS tax levy on your brokerage account

Hire a private debt collector working on commission to collect your tax debt.

The IRS can take all of the money in your bank or brokerage account to pay your tax debt. They can even serve a tax levy and seize your life insurance policy, your pension, or your IRA. If you have a business the IRS can contact your customers, tell them that you have an IRS tax debt, serve a tax levy and take your accounts receivable.

If the IRS serves a tax wage levy on your employer, not only is it a personal embarrassment but your employer is required to begin paying your salary to the IRS. Depending on the number of dependents you have you could be left with very little to live on. If your employer doesn't pay the money to the IRS he could be held personally liable for your tax debt.

You have rights, including the right to consult an IRS tax lawyer, or tax attorney to help you obtain tax relief. As tax lawyers with IRS tax experience Mitchell A. Port can help you solve your tax problems. Possible solutions for your tax problem may include:

Negotiating a reduced tax due to IRS errors involved in a prior tax audit

Having your tax debt declared currently uncollectible so you can have a tax holiday from your old IRS tax debts

Negotiating an Installment Payment Agreement so that you can pay your IRS tax debt over as long as 10 years or more

Submitting an Offers in Compromise to reduce your tax debt

Determining whether your IRS tax debt can be wiped out in bankruptcy

Determining whether the time the IRS has for collecting your tax debt has expired, or will expire soon

Obtaining a short-term deferral of your IRS tax debt so that you can have time to get back on your feet

Negotiating releases of IRS tax liens so that you obtain a loan to pay-off your tax debt

Filing claims for interest and penalty abatement

Negotiating innocent spouse relief to reduce or eliminate or your IRS tax debt

Obtaining releases of a tax levies

Reviewing your IRS tax accounts to determine whether or not the IRS has correctly calculated your taxes

If your IRS tax debt is over $50,000, you can benefit from tax lawyers and tax attorneys reviewing your tax debt to decide on the best solution for you. Don't wait until the IRS has served a tax levy on your wages or seized your bank account. Call attorney Mitchell A. Port now at (310) 559-5259 or contact him online to make an appointment and find out how a former IRS tax attorney can help.