Category Archives: Internal Revenue Service (IRS)

Wesley Snipes’ Lowball Offer in Compromise Rejected in Tax Court

Wesley Snipes was once best known for his work as an actor, particularly for his role as the vampire-hunting Marvel superhero, Blade. Unfortunately, when Snipes makes headlines these days, it’s usually due to his ongoing tax battle with the IRS. Continue reading

IRS Terror Tale of the Month: Paul Manafort

Political Powerhouse Tries to Leave IRS in the Dark

Unless you have been living under a rock, you’ve probably heard of Paul Manafort and the millions he failed to pay the IRS in taxes. Due to the brief time Manafort spent as President Donald Trump’s campaign manager during the 2016 election, Manafort’s tax fraud and other crimes were often spun based on political leanings. However, the fact remains that the millions Manafort owed and the lengths to which he went to defraud the IRS are astonishing. Here are a few of the highlights that make this story so Extraordinary. Continue reading

Paul Manafort and Tax Resolution

What does Paul Manafort and tax resolution have in common?
A lot actually…

As we all know, if you’ve been reading the news stories online or watching the evening news, Paul Manafort, Donald Trump’s former campaign manager, was found guilty on five counts of tax fraud, one count of failing to report his foreign bank accounts (FBAR) and two counts of bank fraud.  Robert Mueller’s Special Counsel went after him over the alleged Russia collusion with Donald Trump.  But that’s not what he was found guilty on; he was found guilty of tax fraud.

Your tax resolution clients need to know that when they come to you, and they’ve filed fraudulent tax returns, or haven’t filed legally required income tax returns which they will more than likely disclose to you, there can be major consequences they face for these actions.

You know what I used to tell clients that would ask, “Mike, it’s not that bad is it?” What this week’s video to get a great strategy of how to answer that question if your client asks you the same thing.

michael rozbruch tax and business solutions academy

Learning From Someone Who Has Built a $20 Million Dollar Tax Resolution Firm From Scratch

I think it’s important to ask yourself…where else can you go to learn from someone who has built a $20 million dollar firm from scratch? The answer is nowhere.

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New Tax Breaks and New Tax Breaks Book

On Friday, December 18th, the Tax Extender Bill was passed by the Senate and President Obama signed it. The bill, officially called the “Protecting Americans from Tax Hikes Act of 2015” (the PATH Act), extended over 50 tax breaks that were due to expire at the end of this month. For a summary of the bill and it’s key provisions, click here.

Screen Shot 2015-12-22 at 10.49.18 AMSpeaking of tax breaks, my friend and colleague, Eva Rosenberg (aka”TaxMama“), who is an expert in avoiding trouble with the IRS, will be releasing her latest book called “Deduct Everything: Save Money with Hundreds of Legal Tax Breaks, Credits, Write-Offs, and Loopholes” (preorder your copy on Amazon today).

This is a comprehensive guide to legal deductions, loopholes, and tax-reducing strategies available to individual tax filers.

Eva was even able to include the latest relevant tax changes so you will have the most up-to-date strategies at your fingertips when you file!

 

IRS Penalties Can Often be Reduced to ZERO in 2 Ways

Getting_IRS_Penalties_RemovedThe IRS has over 148 different penalty types they can hit your clients with. Worse, the IRS can also charge interest and additional penalties on the original penalty. Penalties can be such a high percentage of overall tax debt – it generally makes sense to consider requesting the IRS remove or reduce penalties for your clients…in certain situations.

IRS penalties can often be reduced to ZERO in two ways which I share below and in my FREE downloadable report: 9 Secrets To Getting IRS Penalties Removed.


IRS Penalties Can Often be Reduced to ZERO in 2 Ways:

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1.“First Time” Penalty Abatement.
This is a request for penalty relief under the IRS’s “fresh start initiative”.

2. Reasonable Cause Argument.
You can also request relief from penalties due to “Reasonable Cause”. The major ones include economic hardship, death or serious illness of a love one, unable to obtain records, and bad advice from a tax preparer, to name a few.

FIRST TIME PENALTY ABATEMENT
– Updated May 3, 2013 – (Generally Applies to 1040 tax)
– One-time consideration available only for taxpayers with a “clean” compliance records
– Must not have incurred Failure to File or Failure to Pay penalties for 3 years preceding the year you are requesting FTA on. (must review ROA)
– Can only request one period.
– You can request it verbally with ACS or to a Revenue Officer; Does not have to be in writing;
– If granted by ACS, it is usually approved on the spot.
– All returns must be filed, paid, or arranged (I.A.) to pay.
Practice Tip: Request it whenever you are setting up a streamline (Under $50,000 in liability) Installment Agreement.

REASONABLE CAUSE ARGUMENTS
Per the Internal Revenue Manual (IRM) Section 20 there are 9 main “Reasonable Cause” arguments to get penalties removed:

1. Death, Serious Illness, Unavoidable Absence
2. Fire, Casualty, Natural Disaster
3. Unable to Obtain Records
4. Mistake was made
5. Erroneous Advice or Reliance
6. Written/Oral Advice from the IRS
7. Ignorance of Tax Laws
8. Reasonable Cause/Ordinary Business Care and Prudence
9. Undue Economic Hardship

PENALTY ABATEMENT CHECKLIST
– Reasonable Cause (Per IRM Sec. 20) requests must be in writing
– Timing – the event must correlate to the tax years involved; and
– Supporting Documentation is Essential!

Get ALL my penalty abatement tips in my FREE downloadable report: 9 Secrets To Getting IRS Penalties Removed.