Tax Laws

The Internal Revenue Service (IRS) directs federal tax regulations and collecting taxes in the United States. Navigating IRS processes can be complex, especially for those facing tax-related issues. Among the tools designed to make this process easier is Form 2848, which allows taxpayers to designate an official representative to act on their behalf.

The Use of Mail Delivery Services to Timely File a Petition with the U. S. Tax Court When a taxpayer disputes an IRS determination—such as a notice of deficiency or liability—the U. S. Tax Court provides a structured avenue for resolution. However, strict filing deadlines apply, and missing them can permanently forfeit a taxpayer’s right to challenge the IRS in court.

On March 13, 2012, three tax preparers filed a lawsuit against the Internal Revenue Service in the U. S. District Court for the District of Columbia. They filed the suit because they believed that the IRS did not have the authority to license tax preparers. The plaintiffs claimed that Congress did not give the IRS authority to license tax preparers, and the IRS cannot give itself that power.

The Earned Income Tax Credit, often called the EITC, is a tax credit that can help taxpayers keep more of what they earn. It is a refundable federal income tax credit for individuals and families who earn low or moderate income. When the EITC exceeds the amount of tax owed, there is a refund for taxpayers who claim and qualify for the credit.

Choosing the wrong status can mean you pay more tax than necessary, miss out on credits, or trigger an IRS or state audit. It may also cause delays in refund processing or lead to penalties if you overstate deductions or claim credits you’re not eligible for.

The U. S. is one of the few countries that taxes its citizens and resident aliens on all income, regardless of where it is earned. Expatriates must declare earnings from wages, self-employment, investments, rental income, pensions, trusts, and any other sources, whether domestic or foreign. Failure to report all worldwide income can result in severe IRS penalties or criminal charges.

As Tax Attorney's located in New York, we often receive inquiries from clients who have a number of unfiled tax returns on whether a loss is a business loss or a Hobby loss when they contact us needing a IRS Attorney. If the loss is a Hobby loss, in general it can not be used to offset other forms of taxable income.

1. You are afraid to deal with the New York State Tax Department or the Internal Revenue Service about your tax issue and you want a tax attorney to handle the matter. Our clients have the peace of mind knowing their case is being handled by a licensed professional with a tax law firm that has a A+ BBB rating.

A taxpayer may petition the United States Tax Court (www. ustaxcourt. gov) if they have received a Notice of Deficiency, a Notice of Determination Concerning Collection Action, or a Notice of Determination of Worker Classification from the IRS. Once the IRS issues a Notice of Deficiency, for instance due to an unfiled tax return, the taxpayer only has 90 days to petition the Tax Court.

Individual taxpayers should be aware of major changes that will be implemented this year for their 2018 return. Even though it seems still like a long time to April 2019, it is necessary to have some impression about the new Tax Act and how it might affect you. Due to changes in the tax brackets, itemized deductions, and personal exemptions, etc this is one of the most significant changes in the tax rules since 1986.

Being a small business owner is something that many people strive for and want to achieve, as they don’t want to rely on others and there is more potential in being a small business owner. Having your own business has many advantages but there are also many things you must be aware of and deal with.

Today our NY Tax Lawyers want to share with you the 9 worst ways that you can spend your tax refund this year. Here they...

IRS Notice CP2000 is sent to taxpayers who have underreported their income, resulting in additional tax liability. This may be due to unreported income, errors, or identity theft.

Tax time is one of the most dreaded times of the year. Even though it’s relatively easy to file your taxes with the help of accountants and online tools, many people put off filing until the last possible moment. In extreme cases, people may choose not to file at all.

Surviving spouses may be responsible for their deceased spouse's tax debt if they filed a joint tax return or live in a community property state.

If you have a business tax concern, we can help. At the Timothy S. Hart Law Group, we understand the complex range of problems and concerns faced by New York business owners. Whether you're just getting ready to launch or ready to shut down operations, we can help you.

An alter ego levy is when the IRS seizes assets owned by your alter ego to cover your tax debt. If you've received notice of an alter ego lien or levy, you need to take action – this is not routine tax debt collection, and generally, the IRS only pursues this route when they believe you are hiding assets or they have the right to pierce the corporate veil due to co-mingling.

Tax reform is a broad term that can describe almost any major change to federal or state tax law. Some reforms lower tax rates. Others eliminate deductions, phase out credits, tighten reporting rules, or change how income is taxed. Because tax laws evolve over time, the real issue for most people is not whether tax reform exists, but how a new law changes the amount of tax they owe, the records they need to keep, and the planning steps they should take before filing their return.

A divorce decree may clearly state who's responsible for unpaid taxes, but unfortunately, it doesn't override the law. When you file a tax return jointly with your spouse, you are both liable for the tax due – regardless of what the divorce decree says.

The home office deduction has been a source of confusion for years. Many taxpayers have heard that working from home automatically creates a deduction, while others assume the deduction is too risky to claim at all. The truth is more nuanced. The deduction can be valid and useful, but only when the taxpayer meets the legal requirements and applies the rules correctly.

S corporations are often promoted as a smart way for business owners to reduce self-employment tax, but that tax benefit has an important limit. If a shareholder works in the business, the IRS generally expects that shareholder-employee to receive reasonable compensation before the company makes significant non-wage distributions.