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”

Personal Liability for Maryland Business Taxes

Unlike most business debts, employees and owners of a Maryland business can have personal liability for the company’s tax debts. Similar to how the IRS pursues responsible persons and owners for payroll taxes, states, including Maryland, also pursue responsible persons and owners for certain state taxes. A person that normally would be protected from business liabilities by a personal liability shield, such as the corporate or LLC entity, will not be able to similarly avoid these tax liabilities.

The state of Maryland will pursue employees, managers, officers, and owners for unpaid taxes. The person does not need to Continue reading “Personal Liability for Maryland Business Taxes”

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”

Maryland Sales Tax Audit Defense

With Maryland tax audits increasing, you should ensure your company is prepared. An ongoing, organized approach to preserving necessary documents will streamline a sales tax audit and may even lead to tax refunds. First, beware, a state auditor visiting your office for a sales tax audit isn’t required to keep the focus solely upon sales taxes. A typical audit may cover other area such as your payroll taxes, and information obtained through the audit can lead to income tax adjustments as well. So, while a sales tax deficiency may only cause a minor sales tax adjustment, the revenue and expense information obtained can lead to sizable state income tax adjustments. Further, since states share their income tax adjustments with the IRS, you may trigger a federal income tax audit and adjustment as well. Continue reading “Maryland Sales Tax Audit Defense”

10 Ways to Spot Tax Settlement Scams

Many unscrupulous tax debt settlement companies swindle consumers using the legitimate IRS offer-in-compromise process.  A recent Inc. magazine article lists tax relief services among its “7 Businesses To Watch Out For”.  I do not doubt it!  As a Maryland tax attorney I have received countless calls from taxpayers who previously fell victim to scam tax relief companies that claimed they could resolve any tax problem through the IRS tax debt settlement program, the Offer-In-Compromise.

Conversations with clients previously cheated by these companies provide me the following tell-tale signs of an unethical tax settlement company:

Continue reading “10 Ways to Spot Tax Settlement Scams”