Didn’t File Tax Returns? The IRS Offers Solutions for Nonfilers

Whether on purpose or by mistake, taxpayers sometimes find themselves years behind on filing their tax returns.  Sometimes people are lucky and decide on their own to file past due tax returns and move on with their life.  Others have the decision made for them when an IRS agent knocks on their door.  Regardless, when you are significantly behind on your tax return filings, you should seek professional help to ensure you can minimize penalties and, hopefully, reduce the taxes you need to pay. Continue reading “Didn’t File Tax Returns? The IRS Offers Solutions for Nonfilers”

Taxes and Bankruptcy in Maryland

Despite common belief, taxes can be discharged sometimes through either a Chapter 7 or Chapter 13 bankruptcy.  In fact, bankruptcy is often the best option for many with tax debts.  A tax attorney will typically be familiar with both the tax law and non-tax law options available to you and should be able to point you toward the best solution. Continue reading “Taxes and Bankruptcy in Maryland”

Buy-Sell Agreements

Persons holding equity interests in a business can use a buy-sell agreement to ensure the continuity of the business and to solidify their expectations regarding the taxes, rights, and obligations of each party.  The buy-sell agreement can dictate the method by which a person’s equity interest will be purchased.  Buy-sell agreements can be used by nearly any type of entity, regardless of whether the entity is a corporation, LLC, or partnership.

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Maryland Divorce & Tax Issues

A divorce comes with many difficult challenges, but those involved also need to consider the tax consequences of the divorce.  Tax issues can result from a number of areas.  Of course, the parties will no longer be able to use their married status for their tax returns, but the divorce property settlement itself can cause problems if the tax consequences of the settlement are ignored. Continue reading “Maryland Divorce & Tax Issues”

Pennsylvania Tax Amnesty 2010 Summary

The 2010 Pennsylvania Tax Amnesty officially ended June 18, 2010. If you missed the deadline you may still be able to negotiate payments and reduce your penalties for past due taxes.   For instance, you may be able to use a Voluntary Disclosure Agreement. Please contact my office for more information.

Pennsylvania has joined the parade of states that decided to use a tax amnesty for an immediate boost to their state’s revenue.  The Pennsylvania tax amnesty begins on April 26, 2010 and ends June 18, 2010.  Included in the taxes eligible for amnesty are the corporate income tax, the individual income tax, and the sales and use taxes.  This can be an excellent opportunity for businesses and individuals located outside the state to become compliant with Pennsylvania.

The Pennsylvania tax amnesty relieves the taxpayer of all penalties and half the interest due…  Continue reading “Pennsylvania Tax Amnesty 2010 Summary”

Tax Installment Agreements – Payment Plans

If you are unable to pay the Internal Revenue Service for taxes you owe, you may be able to qualify for a tax payment plan.  The IRS calls such payment plans an Installment Agreement.   Your state, including Maryland, also may offer similar tax payment plans.

While most would prefer to obtain an offer in compromise, which reduces the total tax debt, many will not qualify because either their income is too high (by IRS standards) or the taxpayer has too many assets, which includes home equity.  Thus, that taxpayer’s only option may only be to request a payment plan. Continue reading “Tax Installment Agreements – Payment Plans”

Form a Maryland LLC for Real Estate Investments

When purchasing real estate for investment, you should be concerned about the liability your investment property can create.  Often, your biggest worry will be paying the mortgage, but don’t think that’s the extent of your possible liability.  A personal injury attorney could turn your retirement investment into a wealth destroying nightmare unless you protect your assets.

The most common way to minimize your potential liabilities would be to have your properties held by and managed by a separate entity with limited liability.  While you may consider the property to be separate from your personal assets, unless you proactively create that separation, an attorney will pursue your personal assets in addition to the value of the property itself… Continue reading “Form a Maryland LLC for Real Estate Investments”

Where Should You Form Your Entity?

When forming a new LLC or corporation many contemplate whether it’s better to form their entity in their home state or in another, such as Delaware or Nevada.  For most small businesses, the best state for formation is its home state.

Many believe their businesses will receive tax or legal benefits for forming in an alternative state, and legal document mills often perpetuate these beliefs to sell incorporation packages… Continue reading “Where Should You Form Your Entity?”

State Tax Nexus Reviews & Studies

Introduction

All states are becoming more aggressive in locating non-filing businesses, particularly those operating largely outside their state. Unfortunately, many businesses first realize their filing obligation to another state when visited by the state’s auditor. An analysis of your company’s connections, or “nexus”, to the states it touches, directly and indirectly, will be beneficial regardless of whether your business is a start-up or established, expanding or contracting.

Each state’s laws for determining whether your company has a filing obligation vary, but all states are limited by the “minimum contacts” standards established under the U.S. Constitution. Adding to many companies’ confusion, there are separate standards applied for sales and use tax nexus and income tax nexus. For instance, a company with a representative in a state may not have an income tax filing obligation but may have a sales tax obligation. Continue reading “State Tax Nexus Reviews & Studies”

Maryland Senate Proposes Tax Amnesty

Updated: I now provide a new article summarizing the final Maryland tax amnesty bill being sent to the governor and some policy issues the Maryland Comptroller will likely consider given the bill’s delayed implementation date. 

Continue reading “Maryland Senate Proposes Tax Amnesty”