Posts Tagged ‘Tax Problems’
Thursday, May 21st, 2009
The IRS is planning more employment tax audits and examinations over the next three years. A national research project is underway right now and the IRS has announced that it will conduct detailed employment tax examinations of certain taxpayers. The selection process for taxpayers has begun and the program will last for three years.
The IRS estimates there will be over 3000 examinations and audits. Although the IRS may look at any line on an employment tax return during the examination, it will primarily focus on the following issues: (1) worker classification (employee vs. independent contractor), (2) fringe benefits, (3) officer’s compensation, and (4) reimbursed expenses.
Often the IRS will receive Form SS 8 from a worker who wants a determination of whether he/she is an independent contractor or employee. The IRS will collect information from the worker and from the company involved. The IRS will either conduct a compliance check, make a determination based on the information collected or conduct a detailed employment tax examinations. If the IRS determines the worker is and was an employee, there are serious tax implications for the employer. It could be costly for the employer in terms of back taxes.
There are several ways to challenge the IRS’ decision about whether the worker is an independent contractor or an employee. It is best to consult a tax professional if you have been contacted about an employment tax matter.
Bill Lowrance
Lowrance Law LLC
McLean, VA
703 506 1600
Tags: collect tax, Employee, employment tax, Independent Contractor, tax collection, Tax Problems
Posted in Attorney, Collections, Controversy, Employee, Independent Contractor, Tax Attorney, Tax Problems, employment tax | No Comments »
Monday, May 18th, 2009
Okay. Get ready. The IRS is gearing up and has announced jobs for hundreds of critical jobs nationwide. Most of these jobs are for internal revenue agent positions (look for series number 0512). At least 30 hours of college-level accounting coursework is required for revenue agent jobs.
What does this mean? IRS will hire revenue agents to conduct audits and examinations. There will be more tax enforcement. It takes about a year for the IRS to hire and train a revenue agent before the agents start with tax audits. The future?
Read it all at Here
Bill Lowrance
Tags: IRS, Tax Attorney, Tax Authorities, tax crimes, Tax Problems, taxes
Posted in IRS, IRS Audits, Tax Attorney, Tax Crime, Tax Liens, Tax Litigation, income tax, tax news | No Comments »
Thursday, May 7th, 2009
Here are a couple of the FAQs the IRS published yesterday on its web site regarding offshore accounts:
1. Why did the IRS issue internal guidance regarding offshore activities now?
The IRS has had a voluntary disclosure practice in its Criminal Manual for many years. Once IRS Criminal Investigation has determined preliminary acceptance into the voluntary disclosure program, the case is referred to the civil side of IRS for examination and resolution of taxes and penalties. Recent IRS enforcement efforts in the offshore area have led to an increased number of voluntary disclosures. Additional taxpayers are considering making voluntary disclosures but are reportedly reluctant to come forward because of uncertainty about the amount of their liability for potentially onerous civil penalties. In order to resolve these cases in an organized, coordinated manner and to make exposure to civil penalties more predictable, the IRS has decided to centralize the civil processing of offshore voluntary disclosures and to offer a uniform penalty structure for taxpayers who voluntarily come forward. These steps were taken to ensure thattaxpayers are treated consistently and predictably.
3. Why should I make a voluntary disclosure?
Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. Making a voluntary disclosure also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues. Taxpayers who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.
Remember the IRS deadline for this voluntary disclosure deal is September 23, 2009.
Tags: cirme, foreign bank accounts, income tax, IRS, Offshore, Offshore Accounts, secret bank accounts, Swiss Accounts, Tax Attorney, Tax Crime, tax havens, Tax Problems
Posted in Attorney, Controversy, IRS, IRS Audits, Offshore Accounts, Tax Attorney, Tax Crime, Tax Litigation, Tax Problems, income tax, tax news | No Comments »
Monday, October 6th, 2008
Lowrance Law LLC is a private law firm in McLean, VA, specializing in tax problems. I represent people having tax problems with the IRS. I focus on tax controversy matters (civil and criminal tax matters), and tax disputes for small businesses, individuals and other attorneys.
Today is the first posting to the Lowrance Law Firm’s Blog. In fact, the Lowrance Law website, Lowrance Law LLC, is online today. The purpose of this Blog is to discuss tax controversy issues, news about taxes, the Internal Revenue Service and the tax code. I will write about these subjects in ordinary, non-technical and understandable language. Discussing taxes can be very dry and technical, but I hope to add new insight to various tax issues.
For example, how do you feel when you receive a letter from the IRS? You probably feel queasy, nervous and dread opening the envelope. When you receive that letter you are involved in a tax controversy whether you realize it or not. The IRS will tell you they are examining your tax return regarding certain matters. They will ask you to provide more information, and they may invite you to come into the office to explain your tax return. Sometimes this starts a long road to solving your tax problems. Your particular tax problem may be “no changed” by the examining agent. If so, you are lucky. That means the IRS accepts your return as filed. If the IRS disallows your deduction or adds more income to your return, you may start on various appeals within the IRS perhaps leading to litigation.
In future posts, I will discuss the many ways of dealing with the IRS or the state taxing authorities. I will explain about IRS collection procedures, appeal procedures, how to deal with the Revenue Agents and how to find someone to represent you if needed.
You can read about the details of my experience as a tax attorney with the Office of Chief Counsel, IRS, on my website, Lowrance Law LLC. I worked with and advised IRS agents in many types of cases. I litigated many tax cases in the United States Tax Court, and I assisted the US Department of Justice in tax cases. My tax attorney experience combined with my litigation and investigative experience (former Special Agent, FBI) provides me with unique skills to deal with tax controversy matters.
This Blog will evolve over time with research links, links to other tax blogs and discussions that will help you understand how to deal with the IRS and other tax authorities.
Contact me with any questions.
Bill Lowrance
Tags: FBI, IRS, Office of Chief Counsel IRS, Tax Attorney, tax law, Tax Problems
Posted in Attorney, IRS Audits, Tax Attorney, Tax Litigation, Tax Problems | No Comments »
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