It happens all the time - I literally just woke up to it again.  A Press Release from the Department of Justice Tax Division:Maryland Payroll Company Owner Pleads Guilty to Employment Tax Crimes and Embezzling from Employees’ 401(k) PlansSo what happens when a payroll company steals the payroll tax dollars meant for the government?  The employer still owes those payroll tax dollars to the IRS.  The fact that it was stolen by a third party does not relieve the employer of the payroll tax liability.True, we may be able to get penalty abatement due to the bad actor, but the taxes and interest will still be owed to the IRS.This is why I recommend using one of the big national payroll tax companies.  They are all publicly held behemoths that have more than enough resources to correct for any... 04/27/2024

Recently, the IRS and United States Department of Justice (“DOJ”) have been criminally prosecuting more payroll tax cases than ever before.  Several years ago the decision was made to focus on payroll tax cases for both civil and criminal enforcement, given the importance of payroll taxes to the federal income stream.When it comes to charging taxpayers criminally for the failure to account and pay over payroll taxes there are three main statutes the IRS and DOJ use: IRC § 7202 (the felony statute for payroll tax violations), IRC § 7215 (the misdemeanor statute for payroll violations) and IRC § 7201 (Tax Evasion).IRC § 7202 - Willful Failure to Collect or Pay Over TaxIRC § 7202 makes the failure of an employer to account and pay over the payroll taxes a felony.  IRC § 7202 was designed p... 04/21/2024

Businesses that fall behind with payroll taxes are the number one source of new clients for most tax rep professionals.  The IRS takes payroll tax debts very seriously, as it is a double whammy on the government: it does not receive the tax money, and yet it will be issuing refunds to the taxpaying employees when they file their 1040 tax returns.So the IRS has a letter it sends to employers, Letter 903, that outlines the number of enforcement actions that may occur if the employer does not change course and pay the taxes.  These include any and all of the following: File a Notice of Federal Tax Lien (NFTL) to protect the government’s interest. By filing this notice, we are making a legal claim to your property as security for the payment of your tax debt. An NFTL is a public notice to y... 04/21/2024

Businesses that fall behind with payroll taxes are the number one source of new clients for most tax rep professionals.  The major issue many of these clients has is confusion about what to do first.  Often we hear “I should make a payment against the oldest period first, that way the IRS knows we are serious.”No they don’t!The IRS does not think that way.  The first step to do anything with the IRS is to get into tax compliance first.What is “Tax Compliance”?In order for the business to have any chance of surviving the tax debt issue is being able to get back into tax compliance, meaning it is filing and paying the payroll taxes on time.  If the business is unable to do this, then it needs to shut down, or the IRS will force the issue by levying the bank accounts and effectively making... 04/21/2024

Businesses that fall behind with payroll taxes are the number one source of new clients for most tax rep professionals.  The first three issues that must be dealt with are: Can the business get into and maintain tax compliance? Is this business viable in its current form? If the business is not viable in its current form, can it be restructured to be a viable ongoing concern? Tax ComplianceIn order for the business to have any chance of surviving the tax debt issue is being able to get back into tax compliance, meaning it is filing and paying the payroll taxes on time.  If the business is unable to do this, then it needs to shut down, or the IRS will force the issue by levying the bank accounts and effectively making it impossible to operate.  The reason is that, if the business is not ... 04/21/2024

We frequently have taxpayers arrive in our office with collection notices for an IRS balance due that they believe they do not owe.  Whether due to not receiving the notice of proposed changes (CP-2000), or because they submitted records that were ignored by the IRS, these taxpayers are now facing balances with penalty and interest they should not have to pay.More often than not it is the Final Notice of Intent to Levy and Your Right to a Hearing (CP-90) that gets them to act and contact us.  Other times it is the Notice of Federal Tax Lien being filed that triggers the response. In either case, the first move is always to request the Collection Due Process hearing (“CDP”) and prepare for the hearing.  This will prevent any levy from being issued and allow us to work out a collection al... 04/21/2024

In this week’s podcast Heather Satterly, the Director of Education and Media for Woodard sits down with me to discuss the highlights of this year’s conference, and she and I discuss why the conference is such an unbelievable experience for both training and software solutions.Check out the podcast episode on spotify here: https://open.spotify.com/show/3wPwJovs3sbCQjczMxli3S  04/05/2024

Joining me, Eric Green, on this week's Tax Rep Network Podcast is the Director of IRS Collection Policy, Rocco Steco, to update everyone on where the IRS is right now in terms of turning back on the automated enforcement and what we and our clients can expect in the coming year.You can watch the video on YouTube here: https://www.youtube.com/watch?v=OWGerNZLAY8You can listen to the Tax Rep Network Podcast on all podcasting channels.  03/23/2024

I am a tax attorney in New Haven, Connecticut that help taxpayers dealing with IRS audits and back balances all over the country. For S Corporation owners having a grasp and making the right call on compensation is not just smart business practice—it's a vital part of following IRS rules. Reasonable compensation ensures that shareholder employees are fairly paid for their efforts while steering clear of tax complications. In this piece we'll delve into what reasonable compensation involves, its importance and how S Corporation owners can smoothly navigate IRS guidelines.Reasonable compensation as defined by the IRS refers to the pay that would typically be given for services in circumstances by comparable businesses. Essentially it's the salary a shareholder employee would earn for thei... 03/10/2024

I represent taxpayers with tax issues in New Haven, Connecticut as well as all over the country before the IRS, Department of Justice Tax Division and State Departments of Revenue.  The IRS knows there are more than 10 million non-filers and has known who they are for several years now.  Last week the IRS announced the long awaited move against the top 125,000 high-income non-filers is starting. For those who haven't filed their taxes there are a few initial considerations: How many years must they file? Should they just file or should they request Voluntary Disclosure? Compliance with tax regulations goes beyond avoiding penalties; it involves maintaining your filing and payment compliance and working out an arrangement on any back-taxes owed. Submitting tax returns on time is vital—ev... 03/09/2024

I am a tax attorney in New Haven, Connecticut that helps taxpayers struggling with tax debt all over the country.  Dealing with tax matters can feel overwhelming, for any taxpayer. Whether its dealing with mounting debts or the looming threat of IRS enforcement actions the financial strain can be quite daunting. Fortunately there are options to help individuals facing challenges one being the option to acquire Uncollectible Status, also known as Currently Not Collectible (CNC) status from the IRS.Uncollectible status offers a relief for taxpayers experiencing hardship and unable to fulfill their tax obligations. When granted status the IRS puts a pause on collection activities providing some respite from asset or income levies. Despite the tax debt remaining in place there are advantage... 03/02/2024

I am a tax attorney in New Haven, Connecticut that helps taxpayers struggling with tax debt all over the country.  Facing a tax debt can be a daunting experience, but the IRS offers options for taxpayers to manage their obligations through installment agreements. However, these agreements come with their own set of rules and considerations that taxpayers and practitioners must understand to navigate effectively.An installment agreement is essentially a structured payment plan between the IRS and a taxpayer to settle back taxes over a period of time, typically in monthly installments. While it offers relief by spreading out the payments, there are key points to grasp before initiating negotiations.Firstly, it's crucial to acknowledge the IRS's stance on installment agreements. The IRS ai... 02/29/2024

I am a tax attorney in New Haven, Connecticut that helps taxpayers struggling with tax debt all over the country.  If you are feeling overwhelmed by mounting tax obligations, you're not alone. Luckily there's a solution that could ease your burden; the IRS Offer in Compromise (OIC) program. This program offers hope to those facing hardship by providing a way to settle tax liabilities for less than the amount owed. In this article we'll take a look at the IRS OIC program discussing its eligibility requirements, application process and important factors to consider.The IRS OIC program is designed for taxpayers who may not have the ability to repay their tax debts in full. It allows qualifying individuals to negotiate a reduced settlement amount with the IRS under conditions. A key aspect ... 02/27/2024

The focus of my practice is civil and criminal tax representation, including helping taxpayers seek innocent spouse relief from the IRS.Navigating the complexities of tax law can be a daunting task, especially when it comes to joint tax returns and the potential liabilities they entail. Married taxpayers who file jointly with their spouses often find themselves in situations where they are unfairly held responsible for tax liabilities that they believe should not be their burden to bear. However, relief may be available through the IRS Innocent Spouse Relief provisions outlined in Internal Revenue Code (IRC) Section 6015.When considering Innocent Spouse Relief, the first crucial step is determining whether a joint tax return was filed. This seemingly simple question can sometimes lead t... 02/22/2024

Welcome, pizza aficionados! If you're on the hunt for the most outstanding pizza places in New Haven, CT, you're in luck. In this article, we reveal five must-visit pizzerias that have secured spots among the best pizzas in America. Believe us, these heavenly slices are not to be missed! Having experienced all these pizzerias personally, we can attest to their exceptional quality, with Pepe's topping our list of favorites.1. Frank Pepe Pizzeria Napoletana: The Undisputed ChampionFrank Pepe Pizzeria Napoletana holds the crown for the best pizza in the United States. Established in 1925, this legendary pizzeria has delighted taste buds with its mouth-watering pies for nearly a century. Their most renowned creation is the white clam pizza, an unconventional yet delectable treat that's a mu... 03/21/2023

Whether you are in New Haven, Connecticut or not, what is "Reasonable Compensation" is a critical issue for S Corporation owners.  We have defended both taxpayers and tax preparers on this issue before the IRS.  The answer to this question depends on a variety of factors and can be complicated. This blog post will explore the concept of reasonable compensation for an S-Corp owner and provide some basic guidelines to help you better understand how to support the wage number on that 1120-S Return.Tax ImplicationsThe Internal Revenue Service (IRS) requires that S-Corporations pay their owners “reasonable” compensation" in order to avoid tax penalties. Reasonable compensation is defined as any amount that is considered fair and consistent with the industry standard for similar services prov... 01/18/2023

As an estate planning attorney in New Haven, Connecticut, clients often come to me and say they want to avoid probate. This usually occurs after they have been through the probate process for a parent or other family member and have learned the hard way just how much of a nightmare it can be.  Fortunately, with proper planning, much of the probate process can be simplified or avoided entirely with the use of trusts. In Connecticut, the probate process is used to settle estates and transfer a decedent’s property. The use of a will does not avoid going through the probate court. To the contrary, if the decedent had a will, the will must be “probated” through the probate court.  Some people make the mistake of thinking that titling their assets jointly will solve the problem. While holding... 11/02/2022

I am an estate administration legal assistant in New Haven, Connecticut, and frequently help clients probate estates. In my last post I provided an overview of the probate process. This may have compelled some of you to start thinking about whether you need to retain a probate attorney. If you have been appointed the fiduciary of an estate, navigating the probate process alone can be particularly difficult after just losing a loved one, as well as stressful and time consuming. As a fiduciary the probate process can become even more complicated if the decedent owned numerous assets, and by the involvement of potential creditors and possible disputes with beneficiaries. If you have decided that retaining a probate attorney is the right decision for you, successful planning for your first ... 11/01/2022

My latest column is out on Bloomberg Tax: Are You a Non-Filer? How to Come in From the Cold With the IRSIn it I walk you through whether the tax returns can just be filed, how many years to file, and when the taxpayer should consider making a voluntary disclosure with the IRS.Check out the column here and let me know if you have any questions or comments: https://news.bloombergtax.com/tax-insights-and-commentary/are-you-a-non-filer-how-to-come-in-from-the-cold-with-the-irs Thanks, EricEric L. Green, JD, LL.M.Green & Sklarz LLC1 Audubon Street, 3rd FlNew Haven, CT 06511egreen@gs-lawfirm.comhttps://gs-lawfirm.com  08/19/2022

My most recent column on the new enforcement focus on unpaid payroll taxes is out on Bloomberg Tax:https://news.bloombergtax.com/tax-insights-and-commentary/unpaid-payroll-taxes-just-became-more-dangerous-for-ownersIf you or your client has a payroll tax problem please contact me at either (203) 285-8545 or by email at egreen@gs-lawfirm.com.    07/08/2022