Los Angeles California Tax Attorney Blog

March 11, 2008

California and Hawaii Taxpayers Struck by IRS Payroll Tax & Income Tax Problems Created by IRS Tax Evasion and Tax Avoidance Schemes

California and Hawaii Taxpayers Struck by IRS Payroll Tax & Income Tax Problems Created by IRS Tax Evasion and Tax Avoidance Schemes.

Los Angeles – San Jose Tax Attorney: According to the Internal Revenue Service, lawyers from the IRS with the support of tax attorneys from DOJ announced that IRS has obtained civil injunctions against more than 100 tax promoters of illegal IRS tax avoidance schemes and fraudulent IRS tax return preparers in an ongoing crackdown that began in 2001.

Many of the illegal tax promoters targeted taxpayers in Los Angeles, Alhambra Burbank Carson Cerritos Downey El Monte Lawndale Lomita Long Beach Oakland Palmdale Pasadena Pomona San Jose Santa Monica Studio City Van Nuys West Los Angeles and Woodland Hills with income tax and payroll tax avoidance schemes. These taxpayers along with the tax promoters may receive IRS tax audit notice as part of the ongoing IRS tax investigation.

March 10, 2008

Tax Fraud-California Taxpayers Defend Against False IRS Tax Return

by Victor J. Yoo, Attorney at Law

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 8, 2008

US News and World Report Law School Rankings

by Victor J. Yoo, Attorney at Law

Los Angeles Tax Attorney – According to Concurring Opinions US News & World Report has a list of top 20 US Law Schools. These rankings may be a spoof but the list stays pretty much the same year to year with few shuffles here and there.

For those interested in the Los Angeles area law schools- UCLA, USC, Loyola, Southwestern, Pepperdine and Whittier, the the complete rankings will list all the nationally accredited law schools.

The rankings will also post information on LLM programs for specialist areas inclduing tax and bankruptcy law.

March 7, 2008

IRS Tax Audit Increase for Los Angeles Taxpayers and Businesses

by Victor J. Yoo, Attorney at Law

IRS Tax Audit Rate Increase for Los Angeles area Taxpayers and Businesses.

Long Beach Tax Attorney -The IRS continues to make strong progress in a number of key tax collection, IRS tax audit and tax enforcement areas. Taxpayers in the Los Angeles area including Pasadena, Long Beach, Sherman Oaks, Woodland Hills, Santa Monica, Redondo Beach, Torrance, Gardena, Santa Ana, Irvine, Anaheim, El Monte and Palmdale received more IRS Tax audit notices than in prior years.

The IRS tax audit, tax collection and IRS tax enforcement efforts increased again last year. IRS audited 84 percent more returns of individuals with incomes of $1 million or more than during 2006. Overall, IRS tax enforcement revenue reached $59.2 billion, up from $48.7 billion in 2006 and nearly $34.1 billion in 2002.

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

Los Angeles Home Foreclosure Attorney – Michael Jackson’s Home set for Foreclosure

by Victor J. Yoo, Attorney at Law

Michael Jackson Behind on Mortgage Payments

Los Angeles Tax Attorney- Los Angeles County Public documents shows Los Angeles based superstar Michael Jackson has failed to make mortgage payments on a Los Angeles home that he has used for many years. Documents do not show whether he is behind in his tax payments.

Foreclosure documents filed with the Los Angeles County Recorder’s Office by his mortgage lender indicate Michael Jackson has been delinquent with his home mortgage payments over the last several months. Michael Jackson’s Los Angeles home is located in Encino, an area in the San Fernando Valley of Los Angeles County.

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;

March 3, 2008

IRS Offer in Compromise – Tax Settlement Los Angeles Tax Attorney

by Victor J. Yoo, Attorney at Law

Los Angeles, California Tax Attorney – Most common questions asked by our Los Angeles, Orange County, Riverside and San Francisco area tax payers regarding IRS Tax Settlement – Offer in Compromise to resolve IRS tax problem.

1. What is the Tax Increase Prevention and Reconciliation Act ?

The Tax Increase Prevention and Reconciliation Act of 2005 was signed into tax law on May 17, 2006. Section 509 of this law creates significant changes to the IRS Offer in Compromise (OIC) program by amending Internal Revenue Service Code 7122.

2. When did the IRS Tax Increase Prevention and Reconciliation Act law go into effect?

The law went into effect for all offers that are submitted to the IRS on or after July 16, 2006.

3. How did IRS Tax Increase Prevention and Reconciliation Act , Section 509, impact the OIC program?

IRS Tax Increase Prevention and Reconciliation Act , Section 509, amends Internal Revenue Service Code 7122 by creating a new subsection (c), titled “Rules for Submission of Offers in Compromise.” The new subsection (c) requires that offers submitted on or after July 16, 2006, (and not subject to the waiver with respect to low-income taxpayers or offers filed under doubt as to liability only) must be accompanied by partial payments of the proposed offer amount. The form of these partial payments depends on the taxpayer’s proposed offer and terms of payment. The law also establishes a time period after which an offer would be deemed accepted by the IRS.
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