Though citizenship relinquishment’s have happened on and off over the years, they have risen recently from 742 relinquishment’s in 2009 to over 1,854 this year. Many politicians and tax professionals are attributing the IRS’s onerous international tax compliance headaches and draconian tax penalties as the cause.
The United States requires citizens and resident aliens to pay taxes on worldwide income. In 2010, to combat tax evasion, Congress passed the Foreign Account Tax Compliance Act (FATCA). FATCA requires US taxpayers holding foreign financial assets with an aggregate value exceeding $50,000.00 at years’ end to notify the IRS about the account(s). Continue reading →
Have you received a phone call from a person identifying themselves as an IRS employee, claiming you owe the IRS money? The IRS is warning taxpayers of a fraudulent phone call scheme, designed to trick you into wiring money to the scammers running it. Continue reading →
Because Congress failed to approve a 2014 federal budget, the IRS has curtailed its operations.
If you have a question, do not bother contacting the IRS. The IRS website states that no customer service will be available and IRS walk-in assistance centers are closed.
If you have a scheduled tax audit, meeting with a revenue officer, follow up call with ACS or the Taxpayer Advocate, your meeting is cancelled. The IRS website states that personnel will reschedule those meetings at a later date.
If Congress fails to approve a 2014 federal budget or short-term funding bill, then it is expected that Treasury and the IRS will reduce their operations.
To date, Treasury has not announced a plan in the event of a government shutdown. In 2011, the government had been faced with the similar situation. At that time, Treasury announced that the IRS would halt non-automated collections and tax processing. Therefore, Revenue Officers, local investigators in charge of tax collection and tax compliance, would be out of work until a resumption of operations. This is not a smart move considering the overwhelming deficit and that 6 billion dollars of back taxes is waiting to be assigned to collection personnel. Treasury had further stated that the IRS would also halt taxpayer services involving customer care. Continue reading →
Governor Christie announced that tax relief will be provided for New Jersey businesses that suffered damage from the Seaside Heights and Seaside Park fire.
The tax relief allows NJ businesses to postpone the filing of the 3rd quarter sales and use tax returns, due on October 21, 2013,without a penalty. The tax relief announced is similar to the relief afforded to NJ taxpayers after Hurricane Sandy.
Todd S. Unger, Esq. is a tax attorney whose practice is devoted to assisting New Jersey residents with the resolution of state and federal tax issues. If you have any questions regarding Governor Christie’s announcement of New Jersey tax relief, please contact the Law Offices of Todd S. Unger, Esq. today.
The IRS is cracking down on the underreporting of cash transactions. Recently, IRS Letter 5036, IRS Letter 5039, and IRS Letter 5043 were sent to approximately 20,000 small business owners. The IRS letters have the heading of “Notification of Possible Income Underreporting.” The letter(s) notify small businesses that their gross receipts may be underreported based on the tax return and the Form 1099-K, Merchant Card and Third Party Network Transactions. Continue reading →