Real estate blog entries tagged with tax by Kent Brown, Your IRS Tax Attorney (Strong & Hanni)

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tax: WHAT’S UP WITH S-CORPORATIONS AND REASONABLE COMP PART - 1 - 03/16/24 11:44 AM

SALT LAKE CITY, UTAH – When it comes to IRS priorities and enforcement, Subchapter S-Corps and their owners/shareholders are at the top of its list. In a Treasury Inspector General for Tax Administration Report in 2021, the IRS reported that it will begin to turn up the heat on S-Corp owners who take little to no compensation. Why, with the federal government running financial shortfalls, the IRS has been charged with going after compensation tax so that the government can work on filling its coffers.
It's obvious why S-Corp owners want to take as little income as wages as possible, and … (0 comments)

tax: DON’T LET YOUR IN-LAWS TAKE YOUR HARD-EARNED ASSETS - 01/22/24 06:56 AM

SALT LAKE CITY, UTAH – Important things that most estate planning attorneys do not tell you. Most parents believe the inheritance they leave to their children will be protected from a child’s divorce. But in reality, this is often not the case. Children can easily lose their inheritance in a divorce.

The reason why this happens can be tricky to understand. As a general rule, the law in both Utah and Idaho says an inheritance is considered separate property. But as with anything in the law, there is the practical side of what children do with their inheritance.

Oftentimes, the inheritance ends up … (1 comments)

tax: EMPLOYEE RETENTION CREDIT 5 MYTHS – MYTH NO. 1 - 09/10/23 08:54 PM

SALT LAKE CITY, UTAH – If you are a business owner applying for the ERC, you may have been guaranteed $26,000 per employee by a third-party ERC preparer. The IRS recently cautioned taxpayers applying for the ERC to do so with their eyes-wide-open as to those to-good-to-be-true promises. It is important to get it right as to whether your business is eligible for this tax credit. The IRS recently published a 72-page training guideline for its tax examiners. So, time to sharpen your pencil and understand the five new myths about the ERC.
MYTH NO. 1: If you were affected by COVID … (2 comments)

tax: IRS PROBLEMS WITH NEW FUNDING AND THE ERC - 08/18/23 04:33 PM

Great article published by the Wall Street Journal about the IRS, the IRS's current problems in processing the ERC and ERC audit issues. Enjoy.
https://www.wsj.com/articles/irs-new-funding-covid-pandemic-federal-policy-law-ppp-werfel-erc-employee-retention-credit-3eef45b2?reflink=desktopwebshare_permalinkhttps://www.wsj.com/articles/irs-new-funding-covid-pandemic-federal-policy-law-ppp-werfel-erc-employee-retention-credit-3eef45b2?reflink=desktopwebshare_permalink
Tax problems are legal problems, and we solve both. If you or someone you know has an issue with paying their federal or state taxes and needs help to end their IRS nightmare, please contact Kent Brown at Strong & Hanni by either phone at (801) 532-7080 or email at: kbrown@strongandhanni.com or go to https://activerain.com/profile/kbrowndad for additional information, or my personal Strong & Hanni webpage at: https://strongandhanni.com/attorneys/attorney-kent-brown/

… (1 comments)

tax: WHAT HAPPENS IF I AM AUDITED AND I HAVE RECEIVED THE ERC? - 08/13/23 08:39 PM

Salt Lake City, Utah – Over the last few months I have blogged about the ERC and ERC mills that have been aggressively targeting taxpaying business owners. I have also blogged about tax audits and what does that mean if a taxpaying business owner has received the ERC. Today, I want to talk about the tax audit process.

Our office has been contacted by various taxpayers recently about the taxpayer receiving a tax audit letter from the IRS. If the taxpayer has received the ERC, it has been amazing to me to see the taxpayer panic. The panic comes from concerns … (1 comments)

tax: ERC CONTINUED – ERC INSURANCE - 06/29/23 07:22 AM

Salt Lake City, Utah - In my last Blog I discussed what I call the “Holy Grail” that most ERC Companies use to achieve ERC eligibility. Most ERC Mills couple the Supplier-Based Partial Suspension with the OSHA Position. Today I want to discuss “ERC Insurance”.
There are certain insurance companies that are willing to underwrite what is called “Tax Insurance”. Not surprisingly, a taxpayer who makes a claim for the ERC can also obtain Tax Insurance so that if the taxpayer has a tax problem with the ERC, the insurance company will cover the tax risk. In a nutshell, Tax Insurance is:
Designed … (2 comments)

tax: ERC CONTINUED – THE HOLY GRAIL FOR ACHIEVING ERC ELIGIBILITY - 06/26/23 08:18 AM

Salt Lake City, Utah - In my last Blog I briefly discussed the “OSHA Position”. Today I want to look at what I call the “Holy Grail” that most ERC Companies use to achieve ERC eligibility. Most ERC Mills couple the Supplier-Based Partial Suspension with the OSHA Position.
Think back to when COVID restrictions started to subside. In nearly all states, including California and New York, social distancing requirements lapsed by July 1, 2021, which just so happens to coincide with the first day of the last potential ERC quarter for businesses (except for “recovery startup businesses”). Because of the lifting … (0 comments)

tax: ERC CONTINUED – SUPPLIER-BASED PARTIAL SUSPENSION – THREE AREAS OF EMPHASIS - 06/11/23 05:43 PM

Salt Lake City, Utah - In my last Blog I briefly discussed that most taxpayers who have claimed the ERC did so based on one of two concepts. The first is supply-chain disruption or impact and the second is CDC/OSHA restrictions or modifications. In speaking with prospective clients who have made a claim for the ERC based on supply-chain disruption, I have heard from the prospective clients that “I was told I was eligible because of supply chain disruption for all eligible quarters.” To be eligible based on supply-chain disruption, here are a few considerations:
Knowledge of the supplier's “full or … (0 comments)

tax: ERC CONTINUED – SUPPLIER-BASED PARTIAL SUSPENSION - 06/05/23 08:34 PM

Salt Lake City, Utah - In my last Blog I briefly discussed that most companies that have claimed the ERC did so based on one of two concepts. The first is supply-chain disruption or impact and the second is CDC/OSHA restrictions or modifications. In the next few Blogs, I will discuss supply-chain disruption or impact and what the IRS is looking for in determining eligibility for the ERC based on supply-chain disruption.
In claiming the ERC, I have heard from many taxpayers that “we were eligible (or told we were eligible) because of a supply chain disruption.” Often, we see this eligibility … (0 comments)

tax: EMPLOYEE RETENTION CREDIT CLAIMS – IRS GUIDELINES??? - 06/04/23 01:33 PM

SALT LAKE CITY, UTAH – Starting last week, the IRS commenced sending out Audit and Exam Notices to Taxpayers. Most of the IRS notices given to me by potential clients have dealt specifically with payroll tax issues. With this increase in audit activity, one thing I have noticed is that most of the taxpayers receiving these audit or exam notices are businesses that received the ERC. In addition, the quarter or quarters being audited are the same quarters where the taxpayer qualified for the ERC.
Over the next few weeks, I will be blogging about and highlighting what the IRS is looking … (0 comments)

tax: TAX ALERT!!! - IRS ENFORCEMENT RESTARTING – UPDATE FROM WASHINGTON DC - 05/22/23 08:08 PM

Salt Lake City, Utah – I recently attended a Zoom Meeting with the past chair of the American Bar Association Tax Section’s Subcommittee for the Small Business/Self-Employed Division who had a one-on-one meeting with the IRS Commissioner of the Small Business/Self-Employed Division. The meeting was with Commissioner Amalia Colbert and Deputy Commissioner Darren Guillot. At that meeting Commissioner Colbert and Deputy Commissioner Guillot provided an updated on the status of IRS Enforcement and when a deluge of enforcement notices will begin again since being paused during the pandemic.
This is what we were told:
The backlog of mail is now caught up; … (1 comments)

tax: WHEN WILL THE IRS STOP HOUNDING ME????? - 05/16/23 08:17 AM

Salt Lake City, Utah - As Benjamin Franklin said: “In this world nothing can be said to be certain, except death and taxes.” So, the simple answer about the IRS hounding you is that the IRS will not stop hounding you for tax revenue while you are alive – and maybe sometimes when you are dead. The real concern for most people is when will the IRS no longer be in the rear-view mirror for past taxes paid. Invariably, when I meet with a prospective client, I will eventually hear from them: “How much time does the IRS have to collect … (1 comments)

tax: UPDATE FROM WASHINGTON DC – IRS ENFORCEMENT RESTARTING - 05/08/23 09:05 AM

Salt Lake City, Utah – Over the last few months I have provided warnings/updates on IRS Enforcement issues. Many of the warnings had to deal with the increased funding for the IRS. Last Week, Commissioner Amalia Colbert and Deputy Commissioner Darren Guillot, with the Small Business and Self-Employed Division of the IRS, provided the following update on IRS Enforcement:
The backlog of mail is now caught up; The CP-14 Notices (Balance Due Letters) that have been paused will go out at the end of May to roughly 8 million taxpayers; The taxpayers who owed balances before and are due for enforcement … (0 comments)

tax: WHAT IS ALL THIS BALLYHOO ABOUT THE EMPLOYEE RETENTION CREDIT - 05/06/23 07:41 AM

Salt Lake City, Utah – By now we have all heard about the Employee Retention Credit (“ERC”) and how a business can receive tens of thousands of dollars in a refundable tax credit. In a recent news release by the IRS, the IRS spelled out which employers are eligible - https://www.irs.gov/coronavirus/employee-retention-credit
Employers who sustained a full or partial suspension of operations; or Employers who experienced a “decline in gross receipts”; or Employers who qualify in the third or fourth quarters of 2021 as a “recovery startup business.” It was interesting to me to see that the IRS, in this particular … (2 comments)

tax: EVERYONE WANTS A PILLOWCASE FULL OF CASH $$$ - 04/25/23 08:17 AM

Salt Lake City, Utah - Let’s pretend that upon your death you leave your assets to your children. All of them have good jobs, manage their finances well, and are happily married.

A few years go by after your death and one of your children ends up going through a divorce. Then a couple of years later, one of your children is in a car accident and is sued. Then a couple of years after that, one of your children gets into a bad business deal and ends up filing for bankruptcy.

The question then arises, does your trust protect the assets you’ve … (2 comments)

tax: THE FIRST STEP IN TAX RESOLUTION IS TO GET TAX COMPLIANT! - 04/23/23 12:37 PM

Salt Lake City, Utah - As a tax attorney, one of the biggest legal trends I have seen this year is that many of my friends, acquaintances, family members, or friends of family members, tell me that they know someone who has a tax problem. This legal trend is not surprising. The IRS recently published a news release explaining that 1 in 6 taxpayers have some form of tax debt. These individuals then tell me about a cool fresh start or tax program the IRS has that allows a taxpayer to discharge most if not all of the tax debt. You … (3 comments)

tax: TIME IS RUNNING OUT TO CLAIM $1.5 BILLION IN REFUNDS FOR TAX YEAR 2019 - 04/21/23 08:19 AM

Salt Lake City, Utah – July 17, 2023, is the deadline for claiming your 2019 tax refund. The IRS announced that 1.5 million people across the country have unclaimed refunds for tax year ending in 2019. IRS Commissioner Danny Werfel stated: “[t]he 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds . . . . We want taxpayers to claim these refunds, but time is running out.” Here is a link to the IRS News Release webpage for more information: https://www.irs.gov/newsroom/time-running-out-to-claim-1-point-5-billion-in-refunds-for-tax-year-2019-taxpayers-face-july-17-deadline
To claim the 2019 refund, the taxpayer who has overpaid … (1 comments)

tax: DANGERS OF "PAY ON DEATH" ACCOUNTS - 04/20/23 09:04 AM

Salt Lake City, UT - Twice a week I try and post something about taxes and tax controversy issues. Today I am changing it up a little based on a recent experience that I had with one of my clients. When I meet with individuals and we start looking at their assets, we always discuss their bank accounts, credit union accounts, savings accounts, money market accounts, etc. After we look at these accounts, invariably a question will arise about what is called a “Pay on Death” account or “POD Account”. Based on my experience, you may have a POD account of your … (0 comments)

tax: ARE YOU BEHIND ON PAYROLL TAXES - 04/18/23 06:46 AM

Salt Lake City, Utah - You have a good business, but sometimes your cash flow gets a little low and the payroll tax deposit is not made on time. Or maybe you just were busy and missed your quarterly payroll tax return filings – surprisingly this is the excuse I hear the most.
Whatever the reason, you are now behind in your payroll tax filings or payments or both.
You might feel like you are temporarily borrowing the money from the IRS until your business gets back on track, but the IRS does not see it that way. The IRS needs … (1 comments)

tax: THE DIRTY DOZEN – IRS WARNINGS ABOUT THE EMPLOYEE RETENTION CREDIT - 04/14/23 11:59 AM

Salt Lake City, Utah - The IRS issued a news release about the Employee Retention Credit (the “ERC”). Go to this link for the release: https://www.irs.gov/newsroom/irs-opens-2023-dirty-dozen-with-warning-about-employee-retention-credit-claims-increased-scrutiny-follows-aggressive-promoters-making-offers-too-good-to-be-true
Every day we are inundated with advertisements and commercials about the ERC. You have heard the ads – “call us today about the little-known ERC – where you can get up to $26,000.00 for each employee.” You then hear that “we helped XYZ Corporation legally obtain $6,900,000. If we can successfully help XYZ Corporation we can help you.” I have had numerous people ask me if this credit is a real credit and how can they … (0 comments)

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