Orange County tax attorneys will tell you that most Americans get a tax refund from the IRS each year. But if you weren't so lucky this year and owe taxes, the IRS has some tips on paying.
In my last post, I discussed the new rules requiring taxpayers with business income to issue 1099 forms to any vendor from whom they purchased over $600 of goods and services in that year. There is more to discuss on this issue, such as what it will really mean to small businesses.
New regulations that will take effect in 2012 require all taxpayers with business income to issue 1099 forms to all vendors from which they purchased more than $600 of goods or services that tax year.
Recent IRS actions indicate that non-disclosure of foreign accounts by U.S. citizens now goes far beyond scrutiny of those with offshore accounts in UBS AG, Switzerland's largest bank. According to various sources, the IRS is now conducting a criminal investigation - the extent of which is not yet known with certainty, but believed to be deep and wide-ranging - into the holdings of certain clients of the Hong Kong Shanghai Banking Corporation ("HSBC").
A Los Angeles County worker was arrested this week for tax fraud. Trang Van Dinh, 62, allegedly used personal information of welfare applicants to fraudulently file for almost $2 million in tax refunds.
If you know of something in your tax records that would, rightly or wrongly, get the attention of the IRS, you should start thinking about your defense tactics. Ask any Orange County tax fraud defense attorney, and they'll tell you it's better to make a plan and take some action before an investigation by the IRS even begins.
It's received wisdom that fighting the IRS is an uphill battle. That there's almost nothing you can do, even if right is on your side, to win against such a powerful opponent. And they certainly will never pay your attorneys' fees!
Desperate employers who misclassify workers as contractors in order to avoid paying taxes and benefits could find themselves audited by the IRS and end up paying substantial penalties for failing to pay employment taxes and payroll taxes. Orange County IRS audit attorneys are going to be defending taxpayers more frequently this year over contractor misclassification. The IRS says it will audit 6000 random employers to see how many of them misclassify workers.
As discussed in the previous post, one may consider simply surrendering when the IRS comes calling with news of a tax audit and/or informs you that you owe money to the federal government. Just because the IRS says you owe money, however, it does not mean they are right.
If the IRS comes calling, you will probably wonder whether you should simply surrender or put up a fight. While listening to your gut instincts could help, you'll definitely want to think your next moves through before taking action -- or inaction.