Determining Eligibility Resolve Federal Tax Liability To be eligible to resolve an outstanding federal tax liability voluntarily (i.e., installment agreement or offer in compromise) with the IRS as opposed to having it forcefully resolved through collection action such as levies, garnishments, and the seizure of assets, the IRS has two basic requirements. IRS Requirement #1 […]
Preventing Identity Theft There’s a good chance you already know how to protect yourself against identity theft. But what about protecting yourself against tax-related identity theft? This fraud happens when someone uses your stolen SSN, name, address, date of birth, etc., to file a tax return. Regarding identity theft, the IRS recommends that you take […]
Defining Profits Interests An LLC’s profits interests are very similar to those of a corporation. They allow shareholders to participate in the company’s growth immediately upon formation. When the company begins to grow, the profits interests provide a way for shareholders to receive a portion of the income generated by the company without being taxed […]
Business as a Hobby If your business claims a net income loss for too many years or fails to meet other IRS requirements, the IRS may determine that it qualifies as a hobby. This could mean that you won’t be able to deduct any losses related to the business, and you won’t be allowed to […]
A Notice of Federal Tax Lien can provide several problems for a taxpayer. Recently, the IRS released the Notice of Federal Tax Lien when a taxpayer successfully has an offer in compromise accepted by the IRS and pays the offer amount. This is a beautiful benefit to the taxpayer as the IRS did not always […]
When business partners enter into a buy sell agreement, one of the pertinent issues or items for the partners to discuss is how the buy-out will be funded. The purchasing business entity or purchasing party can obtain the funds to purchase business interests from a variety of sources, which are discussed below. The purchaser always […]
When calculating an offer in compromise amount, one of the biggest issues is a taxpayer’s equity in assets. If a taxpayer owns a home the equity in the home will need to be accounted for calculating the offer amount. This brings about the pivotal question, how is real property or a home valued for the […]
IRS Form 14654 is used when submitting documents for the Streamlined Offshore Voluntary Disclosure Program. The video below has been prepared by a tax attorney at The McGuire Law Firm to provide additional information regarding the Form. You can contact The McGuire Law Firm to speak with a tax attorney regarding your tax matters, including […]
For many individuals, the Streamlined Offshore Voluntary Disclosure Program provided welcome relief in comparison to the “initial” Offshore Voluntary Disclosure Program. Many taxpayers with foreign accounts and assets contact wonder what forms and documents must be filed to apply for the Streamlined Offshore Voluntary Disclosure Program. In general, taxpayer’s must file the necessary FBARs, amend […]
When an offer in compromise is submitted to the IRS, the IRS may agree that the taxpayer is an offer candidate, but not agree with the original offer in compromise amount. Thus, can the initial offer in compromise be amended? Yes, the offer can be amended to reflect a different amount and terms. This issue […]