Paladini Law

Paladini Law Blogs

Latest from Paladini Law

From December 22, 2018, until January 25, 2019, the U.S. federal government was partially shut down. Now that it’s ended, the leading question for many New Jersey residents seems to be “When will I get my tax refund?” The Internal Revenue Service (IRS) was among the government agencies impacted by the closure. It retained approximately 12.5% of its staff during the shutdown, which was the longest in U.S. history, but these employees were primarily focused…
Tax law is by far one of the most complex facets of US law. In fact, the US tax code runs over 2,000 pages in length. To make matters more complicated, laws and regulations are constantly changing year over year and state tax laws vary greatly from state to state. Failing to properly understand tax can lead to an audit, which can result in very undesirable consequences. Such a complex system is bound to…
LinkedIn Twitter Facebook If you have just received a notice from the Internal Revenue Service (IRS) stating that they intend to enact a tax levy, you’re going to be alarmed. Your biggest questions will likely be “Can they actually do this?” and “What can they take?” The answer to the first question is “Yes.” When you owe back taxes, the IRS can legally seek payment by seizing any property equal to the value of your…
If you fail to file your tax returns or the Internal Revenue Service (IRS) notes any mistakes or irregularities on the returns that you do submit, it may initiate an audit, which is an in-depth examination of your financial records and transactions. Although people dread the idea of an IRS audit, they don’t happen often. The agency estimated on its website that nearly 1.1 million of the tax returns filed for the 2016 calendar year…
One of the most common types of matters I handle is the nonfiler—the individual or business that has not filed taxes in one or more years. One in every ten people who has a filing requirement does not file a return. Some common reasons people don’t file: An illness or family death around tax season Decline in business and inability to afford bookkeeping Fear of not being able to pay the IRS the tax due…
On December 6, 2018, the IRS announced that both overpayment and underpayment interest rates for the quarter beginning January 1, 2019, were increasing over the previous quarter. The new rates will be: 6% for noncorporate taxpayer overpayments (5% for corporations) 6% for noncorporate underpayments (8% for large corporations) 3.5% for a portion of a corporate overpayment exceeding $10,000 How the Overpayment and Underpayment Interest Rates Are Determined Interest rates are determined on a quarterly basis…
Tax and tax law can be extremely complex. In fact, there are nearly 10.1 million words in the US tax code. Moreover, tax law is constantly evolving. There were nearly 5,000 changes alone between 2001 and 2012, and there have been even more changes in the past 6 years since 2012. Being able to make tax payments on time can be difficult enough, but determining how much tax is owed and navigating complex tax laws…
Trust fund tax is money that you legally withhold from an employee’s paycheck and hold “in trust” until it’s time to pay the funds to the Treasury via the Federal Tax Deposit system. This withholding enables your employees to make contributions to their income taxes and retirement benefits (Social Security and Medicare). Any employer who intentionally neglects this obligation can incur a Trust Fund Recovery Penalty (TFRP) from the government. It is presently one of…
LinkedIn Twitter Facebook The Internal Revenue Service (IRS) once estimated that millions of workers were victims of tax misclassification, being defined as independent contractors when the terms and conditions of their work actually defined them as employees. While some employers do so in genuine error, others misclassify their workforce deliberately for reasons like the following: They are not required to pay Social Security and unemployment insurance taxes for independent contractors, saving them up to 40%…
If your company is struggling with tax debt, the good news is that it is possible to make an arrangement with the IRS to reduce what you owe and establish a sustainable repayment plan, using the IRS Offer in Compromise (OIC) program. When economic times are tough, business owners can reach the point where they have to decide whether they will pay their employees, suppliers, and utility bills or try to make a dent in…