If you cannot come to an agreement to resolve your FBAR issue during the IRS examination stage, you may have a few options. The options available to you will depend on where you are in the penalty process, whether you were found to be in willful violation, and your history of compliance.
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What Living Expenses Does the IRS Allow?
Although a favorite saying of IRS revenue officers is that “The IRS is not a bank” and takes collection of taxes owed seriously, the IRS is prevented from collecting assets that a person needs to survive and meet their basic living requirements. The IRS does not have the best reputation of cutting delinquent taxpayers much slack, so that is why I wrote this article for you.
The Consequences of Running from the IRS
The consequences of running from the IRS are specific to federal tax laws that govern the ability of the agency to pursue and recover tax funds as well as those tax laws that govern your response to notices of tax deficiency.
Why Is the IRS Charging Me with a Tax Crime?
How do you think taxpayers decide it is in their best interest to avoid cheating on their taxes? The same way most children learn from watching other children try something they were told not to do, and see the precocious child get hurt or punished for the action.
Facts about Franchise Tax Board Settlements
The California Franchise Tax Board (FTB) has authority to settle administrative civil tax disputes. The civil tax disputes include those that arise out of protests, appeals or refund claims filed by taxpayers.
What Is a California Sales Tax Exemption?
If you own a business which produces and sells tangible goods, then you are obligated to pay sales tax to the CDTFA. There are, however, a number of exemptions to this rule, some of which apply to various types of goods and others which attach to certain buyers.
California Payroll Tax Appeals – Part Two
During an appeal, the taxpayer should prepare and file a pre-trial brief or memorandum of points and authorities, in which he or she describes the relevant law and its application to his or her case in support of of it.
The taxpayer may want to locate and interview helpful witnesses, including workers previously interviewed by EDD, principals of the business and its management employees.
California Payroll Tax Appeals – Part One
It is important to note that according to Unemployment Insurance Code (“UIC”) Section 1735, an officer, owner or any person in charge of affairs of any corporation, LLC or LLP, is personally liable for the amount of the contributions, withholdings, penalties, and interest unpaid by said business entity, if business entity willfully fails to pay the amount.
Assessments become delinquent if not paid before they become final, and subject to a penalty of 10%. UIC Section 1135, Sections 1222 and 1224 provide that assessments become final (and delinquent) after 30 days from an assessment date, or the taxpayer petitions or appeals assessment, within 30 days of an administrative law judge or appeals board decision date.
Therefore, filing an appeal generally extends the amount of time the taxpayer has to pay.
Get to Know California Income Tax Brackets
In California, state income taxes are generally among the highest in the country, but the burden is spread among different segments of the population. The rate of California income tax is arranged on something of a sliding scale, separated by income tax brackets.