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IRS Criminal Investigations Division

August 12, 2024October 20, 2021 by Brotman Law

Introduction to the IRS Criminal Investigations Division

The IRS Criminal Investigation Division is responsible for handling tax cases that are the subject of fraud and misinterpretation of the law. According to the IRS, “Criminal Investigation (CI) serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.”

The IRS Criminal Investigations Divisions examines potential criminal activity that is specifically related to tax crimes and makes recommendations for prosecution to the United States Department of Justice – Tax Division. As an example, tax fraud cases are typically referred to the IRS Criminal Investigation Division.

Divorce and Taxes Owed: Who is Responsible for Tax Debt in a Divorce?

August 12, 2024October 15, 2021 by Brotman Law

Joint and Separate Liability for Taxes Between Divorced Spouses

When a taxpayer files separately, it is clear who will bear the burden of any tax liability assessed by the IRS. However, it may not be as intuitive when a tax return is filed on behalf of two taxpayers.

If a joint return is filed, the liabilities linked to this return are held joint and several between both taxpayers. (Internal Revenue Code, IRC 6013(d)(3)). This means you are both on the hook for the entire tax liability, until it is paid or released.

Ultimate Guide to Franchise Tax Board Collections

August 12, 2024October 13, 2021 by Brotman Law

Guide to Franchise Tax Board Debt Collection

Franchise Tax Board–– An Overview

What Is an Employment Development Department (EDD) Audit?

August 12, 2024October 1, 2021 by Brotman Law

The Employment Development Department, or EDD, is one of the largest California state departments and is responsible for administering the payroll tax regulations for California businesses and individuals

How Long Does the IRS Have to Collect on an IRS Balance Due?

August 12, 2024September 24, 2021 by Brotman Law

The IRS cannot chase you forever and, due to the 1998 IRS Reform and Restructuring act, taxpayers have a little relief from the IRS collections division’s pursuit of an IRS balance due.

Generally, under IRC § 6502, the IRS will have ten years to collect a liability from the date of assessment. After this ten-year period or statute of limitations has expired, the IRS can no longer try and collect on an IRS balance due.

However, there are several things to note about this ten-year rule. First and foremost, the statute is carefully crafted to read: ten years from the date of assessment. The assessment date is April 15th of the year that the taxes were due or the date the return was actually filed, whichever occurs later.

This means several things. First, there’s no way to reduce the IRS’s statute of limitations by filing your return before April 15th. Second, there’s a pretty severe penalty for late filing in that the ten-year period does not kick in until you actually file your return. Failing to file a return or attempting to hide from the IRS does not relieve you from liability.

Finally, the assessment date can change if you file an amended return or if the IRS has filed a substitute return on your behalf and you file a return to correct it. In addition, if you tried to conceal income or have filed a fraudulent income tax return, the statute of limitations does not apply on trying to collect on an IRS balance due.

How Do I File my Taxes if I am Getting Divorced?

August 12, 2024September 17, 2021 by Brotman Law

So you have passed the brink of no return in your relationship and decided to file for divorce. Before you do, it’s wise to make some financial preparations ahead of your court date. Getting pictures of assets, copies of bank statements and any retirement accounts is a good start.

Common Tax Issues for Small Businesses

August 12, 2024September 10, 2021 by Brotman Law

Small businesses, of which there are thousands in California, spend the highest percentage of time of any business entity preparing and submitting taxes. Federal, state, and local tax requirements are extremely complex and change every year.

Can Currently Non-Collectible (CNC) Status Stop the FTB?

August 12, 2024September 8, 2021 by Brotman Law

Sometimes your financial fortunes take a turn for the worse, and you find yourself owing back taxes to the Franchise Tax Board. You don’t even have two coins to rub together, much less make installment payments, yet you are looking for an alternative to filing for bankruptcy. An Offer in Compromise is also off the table; you just don’t have the money.

How to Request an EDD Installment Agreement

August 12, 2024September 1, 2021 by Brotman Law

There are many individuals – including famous ones – that don’t pay or haven’t paid their taxes in years. Take for instance the late Anthony Bourdain. Before he became a household name with “Kitchen Confidential,” he hadn’t paid his taxes in ten years. He lived with the unrelenting anxiety of the IRS finding out and taking the little money he had to live on.

California Payroll Tax: SUI, ETT, SDI & PIT Employer Guide

November 4, 2024August 13, 2021 by Brotman Law

The California payroll tax structure for an employer in this state is based on four distinct taxes, commonly referred to as the CA SUI, ETT, SDI, and PIT payroll taxes. There are different rates for each of these taxes and the calculation methods are different as well.