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McFARLANE LAW-A Tax Law Firm is now a virtual law firm! Send any mail or correspondence to: PO BOX 30405, PHOENIX, ARIZONA 85046-0405 Our phone number and email address remain the same. With over 30 years of experience in Tax Audits, Appeals, Tax Court Litigation, Collection, and Payment Plan Negotiations, we can assist you or your clients resolve tax problems. Referrals: We regularly work with attorneys, CPAs, and bookkeepers. We are especially respectful of your…
Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. Contact your local tax attorney for advice and answers to help you through the process of starting a new business. Here are five tips for new business owners. Choose a business structure. The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:…
Several of my clients received IRS Notices with due dates that already expired by the time I received the Notices because the mail date stated on the Notices was months ago-this despite being recently mailed!! The pandemic shutdown really messed things up with all agencies. The National Taxpayer Advocate stated that the IRS generated more than 20 million notices that were printed but not immediately mailed. As a result, the notices bear dates that now…
Taxpayers need to keep a careful eye on their IRS Notices. Many IRS Notices, many with statutory deadlines were dated during the IRS shut-down due to COVID-19, but not immediately mailed. Consequently, there are many IRS Notices with expired action dates. The TaxpAyer Advocate stated that during the shutdown, the IRS generated more than 20 million notices, many of which were not mailed.  As a result, the notices bear dates that now have passed, some…
Generally, the answer is no. The exception is if the taxpayer owes child support arrearages. Under the CARES Act guidelines and subsequent direction, Economic Impact Payments/recovery rebates/stimulus checks cannot be offset to pay any debt except child support. However, “normal” federal tax refunds remain fair game in the absence of an Offset Bypass Refund (OBR) request. NOTE: OBRs may be slightly easier to come by in these coronavirus times. If you will have a refund…
A: Taxpayers should file on time even if they cannot pay their full tax bill You should file your tax return by the deadline even if they cannot pay the full amount due. Otherwise, you will be assessed a late filing penalty and end up owing even more. If you owe tax, but cannot pay by the July 15, 2020 deadline, you should: File your tax return or request an extension of time to file.…
In previous blogs The Honeymoon is Over – It’s Time to Think Taxes! and It’s Time to Prepare and File your 2019 Tax returns, I discussed the upcoming, looming tax return filing and payment deadline of July 15. You can extend the time to file, but not to pay – so budget accordingly. Other extension, deffal or benefits bestowed to Taxpayers due to COVID-19 also expire July 15 or the end of this month.…
The IRS continues its pursuit of “US Citizens” who own a foreign bank account, foreign real estate, interests in a foreign company, and other assets such as brokerage accounts with credit card access. They are looking for US Citizens with foreign based assets who fail to report the existence of those assets. US Citizens are required to report their worldwide income, but also report their assets such as real estate or business interests on informational…
There has been stories that nursing homes and other care facilities have been taking their resident’s/patient’s Economic Impact Payments (EIPs). If you have a loved-one in a nursing home or other care facility, check to see that the facility has not absconded with the EIP. If so, you may to hire an attorney to send a demand letter to recoup the EIP. Under the IRS guidelines, the EIPs belong to the recipients, not any organizations…
If you or your spouse collects social security benefits and have been assessed past due taxes or have other debts, those SS benefits may be subject to collection action by the Internal Revenue Service (IRS) and the Arizona Department of Revenue (ADOR). This can be particularly distressing if you are retired and in debt and your only source of income is social security. The IRS has statutory authority, via the Federal Payment Levy Program, to…