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    Category: Tax Laws

    IRS Calls Practitioners over EITC Claims

    20 February, 2013 | Tax Laws

    IRS Calls Practitioners over EITC Claims The Earned Income Tax Credit, often called the EITC, is a tax credit that can help taxpayers keep more of what they earn.  It is a refundable federal income tax credit for individuals and families who earn low or moderate income.  When the EITC exceeds the amount of tax owed, there is a refund for taxpayers who claim and qualify for the credit.  In order to qualify, you must file a tax return and meet a set of r... CONTINUE READING

    The IRS, Tax Preparers and the US Supreme Court

    6 February, 2013 | Tax Laws

    The IRS, Tax Preparers and the US Supreme Court On March 13, 2012, three tax preparers filed a lawsuit against the Internal Revenue Service in the U.S. District Court for the District of Columbia.  They filed the suit because they believed that the IRS did not have the authority to license tax preparers. The plaintiffs claimed that Congress did not give the IRS authority to license tax preparers, and the IRS cannot give itself that power. Beginni... CONTINUE READING

    Tax Court and S Corporation Wages

    31 December, 2012 | Tax Laws

    Tax Court and S Corporation Wages A recent tax court case, David E. Watson, P.C. v United States, has upheld the IRS re-characterization of S corporation distributions as wages. The individual shareholder-employee in the case, David Watson, CPA, was a partner in an accounting firm.  Watson made a mistake in the level of compensation he was entitled to for his business.  In 2002, Watson received a salary of $24,000, but was receiving $203,... CONTINUE READING

    The Use of Mail Delivery Services to Timely File a Petition with Tax Court

    21 December, 2012 | Tax Laws

    The Use of Mail Delivery Services to Timely File a Petition with Tax Court A timely mailed petition to Tax Court can be treated as if it was timely filed, even if not received by the filing due date if mailed using an acceptable mail carrier. Therefore, a petition received by the Court after the 90-day period is considered to be received timely if the date of the U.S. Postal Service postmark was stamped on the envelope that is within the 90-day period.... CONTINUE READING

    NYS and IRS POA Forms

    4 December, 2012 | Tax Laws

    NYS and IRS Tax POA Forms When clients engage a tax attorney to help them resolve a tax problem certain tax forms need to be submitted to the Internal Revenue Service and New York State that show that we, as your tax professional, can act on your behalf. Below are the two forms that allow us to represent you before the Internal Revenue Service and New York State Tax Department. IRS Form 2848... CONTINUE READING

    When it Comes to Tax Reform, “Keep it Simple”

    25 November, 2012 | Tax Laws

    The debate on tax reform in this country has been around as long as there have been income taxes. The very first time a federal income tax was imposed was on August 15, 1861 as part of the Revenue Act of 1861 in order to help pay for the Civil War. The first peacetime tax was imposed in 1894 when Congress passed the Wilson-Gorman Tariff which imposed a 2% tax on all incomes over $4000 per year (that equals $107,446 in 2011 dollars) which meant that less than 10% of all households would pay any t... CONTINUE READING

    What Happens If You Owe the IRS More Than $10,000?

    A lot of people call our office and say, "I owe 10k in taxes what should I do?" First, it's important to note that you are definitely not alone. A lot of people owe $10,000 or more in back taxes, and the IRS has programs available to help you resolve your tax debt. However, it's also important to...