Transferring Ownership in Home Health Care Agency
Location Schaumburg IL Background A series of LLC-formed, Home Health Care agencies was under Internal Revenue Service collection and Medicaid recuperation. Each agency was owned, in part, by one family. One agency had significant employment tax liability. This IRS back-tax was due to a long-term habit of only issuing net paychecks to employees, but failing…
$325K Discharged Taxes after IRS Audit
Location: Schaumburg, Illinois Background: IRS audited a financial services professional. The government discovered there was additional, misreported income, and considered examining future years. Because a substantial amount of business income was misreported, there was a finding of over $250,000 in additional IRS federal tax, penalty and interest, for multiple years. IRS collection began immediately thereafter….
How Smart Home Healthcare Agencies Fix IRS Problems
Hundreds of home healthcare agencies have tons of legal problems. We know that licensing compliance, Medicare and Medicaid audits, and state reimbursements are huge obstacles. Right now, let’s focus on how they avoid IRS tax problems. Two Main Tax Issues with Home Healthcare Providers Payroll Back Taxes Cash is short. On pay day, the owner…
IRS Revenue Officers Can (and Do) Make Unannounced Visits
Adapted from NATP, March 3, 2016 A good IRS tax attorney knows what the IRS can and can’t do. If you think they won’t visit you at your home or place of business, think again. IRS Revenue officers do visit individuals and businesses that owe taxes. They also call on businesses that have stopped making…
What’s Wrong with IRS Offer-in-Compromise
What’s Wrong with IRS Offer-in-Compromise For most tax practitioners, OIC tax reductions have only been available for individuals, and not for businesses. About 2/3 of their Offers are rejected by IRS. Of those offers accepted, even more crumble because of failed payments. Let’s start over. Large-dollar reductions of tax liability with the IRS Offer-in-Compromise (OIC)…
Saved Client $2.25 Million with IRS Offer in Compromise
IRS’s Offer in Compromise is Worth the Trouble One of my business tax clients enjoyed a major success with an IRS Offer. But the process was not simple. There were complications. In this case, along with a large federal liability, there was a large amount of state tax due as well. The offer process had to balance the…
Avoids 10+ Years in Prison and $200,000 Tax
Background: A business owner, after his IRS audit, closed his construction company and retired. His audit was referred to IRS Criminal Investigation. The government believed, and gathered evidence that the business owner defrauded the government of tax, by intentionally concealing unreported income during several years. After a grand jury hearing, the government sought conviction on…
Owner Avoids $500K IRS Trust Fund Penalty
Background: Contractor company employs over 150 union tradesmen. However, between union benefits, dues, and routine payroll, the employer amassed well over $1 Million in unpaid liabilities, including a substantial payroll tax debt. IRS began a federal tax levy against the contractor’s receivables. The ongoing levy further interrupted payroll and union payments. The levies also limited the owner’s…
Big Mistake in Handling IRS Audits!
IRS examinations are intimidating. Mistakes are made. That’s why it’s important to have the knowledge of an experienced IRS tax attorney at your disposal. Typically, during an IRS examination, the auditor wants to do a full review of items on (and off) your client’s tax return. Then, when the exam is nearly complete, the IRS agent…
3 Basics the Smartest Tax Preparers Know About Bankruptcy
Tax Preparers always manage to know something about everything in business. Take it from an experienced IRS tax attorney, extensive business knowledge is part of the tax profession. But what about bankruptcy for clients? You already heard that it’s bad for business! Right? And that bankruptcy is not even relevant to your clients? Any, isn’t…