TAX PROBLEMS

March 10, 2008

Tax Fraud-California Taxpayers Defend Against False IRS Tax Return

Los Angeles Tax Attorney – We serve California taxpayers with IRS or California State tax problem, tax audit, tax levy, tax lien, offer in compromise residing in the following areas: Alhambra Beverly Hills Burbank Carson Cerritos Culver City Downey El Monte Gardena Glendale Lawndale Lomita Long Beach North Northridge Palmdale Pasadena Pomona Rancho Palos Verdes Redondo Beach Rolling Hills San Gabriel San Pedro Santa Clarita Santa Fe Springs Santa Monica Sherman Oaks Studio City Torrance Valencia Van Nuys West Covina West Hollywood West Los Angeles and Woodland Hills.

All taxpayers should be aware of tax preparers such as Hazel Harris who according to government complaint targets elderly customers who receive Social Security benefits and generates fraudulent income tax refunds on their behalf.

The Government and IRS Tax complaint states that Harris tells her clients she is an accountant who specializes in refunds for Social Security recipients. In order to increase business, she is alleged to have advised potential customers to contact current clients who have received refunds as a result of her fraudulent return preparation.

Harris reportedly generates improper tax refunds by reporting only half of her customers’ Social Security benefits as taxable income, and by fabricating amounts of taxes withheld. Additionally, she has prepared the clients’ returns for multiple years at one time, regardless of whether a return has already been filed for those years.

The government alleges that Harris has prepared more than eight-thousand federal income tax returns for others since 2001. According to Internal Revenue Service (IRS) estimates, she has claimed over $3.5 million in fraudulent refunds.
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March 9, 2008

IRS Tax Refund-Hawaii and California Taxpayers Must File IRS Tax Return to Receive Tax Stimulus Payment or Tax Refund

by Victor J. Yoo, Attorney at Law

Los Angeles Tax Attorney – The Internal Revenue Service announced today that Hawaii and California taxpayers in Los Angeles, Long Beach, Honolulu, El Monte, Torrance, Pasadena, Santa Monica, Redondo Beach, Irvine, Santa Ana who normally do not file a tax return but must do so this year in order to receive their 2008 IRS tax economic stimulus payment.

IRS Taxpayers who haven’t filed tax returns in the past must have at least $3,000 of income from any combination of earned income, Social Security retirement or disability benefits, certain Railroad retirement benefits, or disability compensation, disability pension, or survivor benefits paid by the Veterans Affairs. The minimum economic stimulus payment is $300 for individuals and $600 for married couples. Contact your IRS tax attorney to verify your tax status.

To obtain a payment, all people who are eligible for payments of up to $600 for individuals ($1,200 for married couples) must file a tax return in order for the IRS to know their name, address and eligibility. Parents also may qualify for a $300 payment for each eligible child younger than 17. Valid Social Security numbers are required.
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March 6, 2008

IRS Tax Problem? Installment Payment Plan for California taxpayers in Los Angeles, Long Beach, Torrance, Pasadena, Gardena, Orange and Riverside County.

by Victor J. Yoo, Attorney at Law

Torrance Tax Attorney -The Internal Revenue Service(IRS) announced today that it has automated the user fee calculations for IRS taxpayers entering into an installment agreement throughout California including IRS taxpayers seeking payment plan in the Los Angeles, Long Beach, Pasadena, Torrance, Gardena, Garden Grove, El Monte, Sherman Oaks, Woodland Hills, Orange, San Jose.

Previously, IRS taxpayers were required to submit a paper IRS Form 13844 to request a reduced user fee. Now, eligibility for reduced fees is determined automatically by the IRS.

An IRS installment agreement allows IRS taxpayers who have tax problems to pay their full tax debt in smaller, more manageable amounts, though penalties and interest continue to accrue on the unpaid portion of that IRS tax debt. IRS taxpayers are charged a one-time fee to set up an installment agreement with the IRS. A reduced fee is available for qualifying taxpayers.

Contact a tax attorney if you have any tax problems (310) 788 9820.
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March 4, 2008

IRS Offer in Compromise – Resolve Tax Problem – Los Angeles, Long Beach California Tax Attorney

by Victor J. Yoo, Attorney at Law

Many Los Angeles, Long Beach, Orange, Riverside, San Jose area business owners and taxpayers who have IRS tax problems may not have been aware of the tax settlement program called offer in compromise. Tax attorneys who handle these type of cases should prepare a comprehensive tax and financial analysis in order to prepare the most favorable tax settlement proposal which would result in minimum tax debt being paid to the IRS.

Although the IRS discourages and may create obstacles to have your IRS taxes reduced, a good tax attorney will often be able to prepare legal arguments that would contest and challenges put forth by the IRS concerning the tax settlement proposal.

An IRS Offer in Compromise allows taxpayers to settle their tax liabilities for less than the full amount. The objective of the IRS Offer in Compromise program is to accept a compromise when it is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.

Major Changes to the IRS Offer in Compromise Program
The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), created major changes to the IRS IRS Offer in Compromise program as it relates to lump sum offers, periodic payment offers, and a determination as to when an offer is accepted. These changes affect all offers received by the IRS on or after July 16, 2006.
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March 3, 2008

IRS Tax Interest and Penalties – Los Angeles California Tax Attorney

by Victor J. Yoo, Attorney at Law

Los Angeles Tax AttorneyLos Angeles – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2008, will drop by one percentage point. The new rates will be:

• six (6) percent for overpayments [five (5) percent in the case of a corporation];

• six (6) percent for underpayments;

February 26, 2008

California IRS Offices to Contact Third Parties for IRS Tax Audit and IRS Tax Collection

by Victor J. Yoo, Attorney at Law

California IRS Offices to Contact Third Parties for IRS Tax Audit and IRS Tax Collection

Los Angeles Tax Attorney – In 1998, the Congress amended Code Section 7602 to prohibit Internal Revenue Service employees including IRS Agents and IRS Auditors from contacting third parties with respect to the taxpayer’s IRS tax liability without providing reasonable advance notice to the taxpayer that third-party contacts may be made.

Most IRS tax attorneys and tax lawyers who resolve tax problems were concerned that (1) that such contacts by the IRS may have negative effect on the taxpayer’s business and could damage the IRS taxpayer’s reputation in the community, and (2) that taxpayers should have the opportunity to resolve his tax problems through his tax attorney before the IRS contacted third parties.

February 25, 2008

IRS Tax Savings for Los Angles and California Business and Taxpayers

by Victor J. Yoo, Attorney at Law

IRS Tax Savings for Los Angles and California Businesses and Taxpayers:

Los Angeles Tax Attorney – The Internal Revenue Service released additional information today about the upcoming economic stimulus payments in a specially designed section for Los Angeles and California IRS taxpayers.

Most IRS taxpayers just need to file a 2007 tax return in order to automatically receive the stimulus payment.

Internal Revenue Service provides extensive set of information for all taxpayers with questions about the IRS tax stimulus payments, commonly referred to as rebates. The questions and answers include important information for low-income workers and certain recipients of Social Security, Railroad Retirement benefits and veterans’ benefits.

IRS also provides extensive examples of how much Los Angles, Orange, Long Beach, Torrance, Woodland Hills, Pasadena, Sherman Oaks taxpayers can expect to receive in tax stimulus payments. The page includes more than two-dozen payment scenarios affecting different types of taxpayers.
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February 13, 2008

IRS Tax and Penalty Collection to increase in Los Angeles and California metro regions.

by Victor J. Yoo, Attorney at Law

IRS Tax and Penalty Collection to increase in Los Angeles and California metro regions.

IRS Tax Attorneys and lawmakers advising Congress are likely to endorse giving Internal Revenue Service more tools to improve IRS tax debt collection, compliance and boost revenue.

Internal Revenue Service faces congressional pressure collect additional $290 billion per year in taxes which go uncollected each year.

February 12, 2008

Los Angeles IRS Tax Audits Rise in High Cash Volume Businesses

by Victor J. Yoo, Attorney at Law

Los Angeles has one of the nation’s highest number of self employed or small business operations. IRS is increasing its enforcement and compliance activities with respect to these taxpayers. IRS Tax Audits overall have increased every year over the last three years. IRS targets many of these businesses which its believes are involved in high cash volume business including the garment, restaurant, travel, tour and numerous other service related sectors where compliance and reporting requirements may be lacking.

In addition, IRS will continue to monitor single cash transactions involving more than $10,000.00. The Tax Reform Act of 1984 required businesses that receive large cash payments to report them to the Internal Revenue Service. The statute was designed to help the Service “identify taxpayers with large cash incomes.” In addition, the Patriots Act and other collateral legislation allows increased surveillance on transfer of funds including cash. A bank or a business who in the coarse of his trade or business is paid more than $10,000 in cash in one or more related transactions must file a return with the Service. It is common that such filings would trigger an IRS Audit or investigation.

February 11, 2008

IRS Taxes Los Angeles Gamblers

by Victor J. Yoo, Attorney at Law

Betting on the Los Angeles Lakers to win the NBA title this year? How about the Los Angeles Dodgers winning the World Series? If you have gambling winnings, IRS wants to tax you.

Payors of $1,200 or more on winnings from bingo or slot machines, or $1,500 or more from keno, must file information returns on Form W-2G with the service center by February 28 following the calender year in which the winnings were paid.

Beginning this year the Internal Revenue Service will require all poker tournament sponsors to report tournament winnings of more than $5,000. Casinos will also implement federal withhold 25 percent taxes from gambling winnings.