IRS tax laws

One of the penalties imposed when an individual fails to pay his or her taxes is the garnishment of wages or a lien against any property that person might own. Sometimes an individual doesn't have any assets that may be seized by the IRS, and in such circumstances a "hardship" status might apply to that taxpayer.

To determine whether an individual may qualify for hardship status, a simple examination by the IRS will occur. The taxpayer's monthly gross income will be compared against the expenses that the IRS considers basic necessity. These expenses are referred to as "allowable expenses."

The way in which these allowable expenses are defined is through a national average for basic needs like food, shelter, medical expenses, and insurance. The amount that an individual may claim as allowable expenses depends on the size of his or her household. Some local economic considerations associated with geographic location might come into play.

When attempting to obtain IRS tax relief, a taxpayer will need to prove his or her uncollectible status by submitting Form 433A, which allows the individual to outline basic needs and expenses. The IRS will also require supporting documentation submitted with this form.

Supporting documentation may mean the difference between obtaining hardship status or being denied tax relief. Even if a person is slightly over what the IRS would consider for hardship status, those... ...read full post

Numerous benefits exist to enlisting a tax attorney to help handle filing your tax forms for you. They know all of the latest laws and regulations in the world of taxes, which are things that the average taxpayer may not be aware of in the first place. If you were using a piece of software to do your taxes for you, there would be no way that you could ask the software any questions you have about your current financial situation. Nothing compares to speaking with a professional in real life, which is why many individuals flock to a tax attorney to handle their problems for them.

Benefits to Hiring a Tax Lawyer
When it comes time to hiring a Salt Lake City tax lawyer, you will want to make sure and choose someone you can trust. The amount of knowledge they have to offer you is priceless. If you have a good attorney on your side, you will be aware of all the ins and outs of the vast majority of tax laws that you may be dealing with for your particular case. As you prepare to complete the application process, you can rest assured that a tax attorney can handle the paperwork for you or help you with all of the formalities of it.

If you make the decision to work on your own, any of the problems or issues surrounding your tax forms would rest entirely upon your shoulders. Even though the government might not punish you as severely... ...read full post

In 2006, Will Smith starred in a movie called "The Pursuit of Happiness" - a true story about Chris Gardner and his 5-year old son who end up homeless in San Francisco. Smith was nominated for an Academy Award and a Golden Globe Award for his part in this inspiring film, which tells with an unblinking eye the real-life story of a man's struggle with a string of back luck coupled with questionable decisions.

One of the most gripping moments in the film is when Gardner (played by Smith), after being evicted from his apartment, sells an expensive piece of medical equipment for which he and his former girlfriend had spent their life savings, in order to pay for the bill for the cheap hotel room he and his son were living in. His excitement, to be able to pay for the room now, turned to horror as he realized that the IRS has levied his bank account to satisfy a tax debt from the previous year.

As Smith's character scrambles to a pay phone to call the IRS, he exclaims incredulously "You Can't Do That!"

Those are words that I hope never enter your mind in dealing with the IRS. You can sense the utter disbelief in his voice that a government agency could actually "hijack" a person's bank account and take their money at will.

But that's exactly what the IRS has the power to do - legally.

The story spirals downward as Gardner and his son... ...read full post

Ogden Standard-Examiner’s Editorial Board recently published an article titled “OUR VIEW: The Double Irish tax swindle” (November 10, 2010). There, the editorial board hammered Google, Facebook and Microsoft for using what they called “legalized tax theft” saying that these firms and others use an “unconscionable tactic” in avoiding taxes and suggest it somehow contributed to the current recession.

Local CPA Steve Carver responded to the newspaper article saying he was still incredulous over the assertions made in it. He used a personal experience explaining how he recently took a trip with his family to Hawaii having paid $50 each for tickets. He also explained that others that traveled in the same plane paid as much as $3,000 and as little as zero (buddy-pass). Applying the anecdote by analogy to the newspaper’s article, everyone made the trip legally but there were many different prices paid.

Depending on who you ask, some people say tax avoidance is “smart business” while others say it’s “immoral”. One thing it clearly is NOT, however, is illegal. Several ways a person can legally decrease his or her tax liability legally are:

1. Claiming deductions


2. Incorporating


3. Setting up charitable trust(s) or foundation(s)

More complicated and controversial methods include setting up a company, a trust, or a foundation in an offshore jurisdiction.

Tax evasion, on the... ...read full post