According to the IRS complaint the tax return preparers committed tax fraud by filing fraudulent tax returns, and fraudulent amended tax returns claiming deductions for bogus mining development costs. Interestingly the IRS complaint alleges that 7 of the customers who had fraudulent tax returns prepared were NFL football players. The IRS complaint does not reveal the names of the players, and there is no indication in the complaint that the players knew that tax fraud had been committed.

If you are a tax preparer who has been accused by the IRS of tax fraud, tax evasion or violation of the tax return preparer penalty rules under Internal Revenue Code § 6694 contact the Southern California tax lawyers at Brager Tax Law Group, A P.C. Our tax lawyers represent clients throughout California, including Orange County, the Inland Empire, San Bernardino County, and Riverside County including the cities of Newport Beach, Laguna Beach, San Juan Capistrano, San Clemente, Mission Viejo, Laguna Niguel, Laguna Hills, Dana Point, Huntington Beach, Long Beach, Costa Mesa, Anaheim and Santa Ana.

Horovitz illustrates the principle that more than one person can have liability for the trust fund recovery penalty. The CFO was deemed to be a responsible person since he had the full authority to sign checks, could hire and fire employees, signed payroll tax returns, was a corporate officer, and a 20% owner. The CEO was also held liable for the trust fund recovery penalty since he invested several million dollars in the business, owned 80% of the stock, had unlimited hiring and firing ability and check writing authority, and served as the CEO with day to day involvement in the business.

If you have payroll tax problems, and the IRS is threatening to impose the trust fund recovery penalty contact the Los Angeles, California tax litigation lawyers at Brager Tax Law Group, A P.C.

The Tax Court pointed out that Internal Revenue Code § 6330(a)(2) provides that the CDP notice must either be given in person, left at the person’s dwelling or usual place of business, or sent by certified or registered mail to the person’s last known address. Since the IRS failed to send the CDP notice to Mr. Kennedy’s last known address the CDP notice was invalid. By the time the case got to the Tax Court the IRS realizing this and had refunded the money seized by the tax levy. That, however, was not sufficient. In order for the IRS to serve any additional tax levies the Tax Court required that the IRS issue a new CDP notice, and give Mr. Kennedy an opportunity for a hearing first in the IRS’ Appeals Division, and then if Mr. Kennedy was not satisfied with the result he would be entitled to a brand new hearing in the Tax Court.

If you have received a tax levy, have tax debts, or other tax problems call the tax controversy lawyers at Brager Tax Law Group, A P.C.

Whatever the merits of the argument, small and medium size business need to be aware of the increased risk of a tax audits

If your small or medium size business has an IRS, SBE, FTB or EDD tax audit, and you need help contact the Los Angeles, California tax dispute attorneys at Brager Tax Law Group, A P.C.

If you have tax debts and don't want to be convicted of tax evasion call the tax attorneys at Brager Tax Law Group, A P.C.

Publication 971 points out the time periods for filing for innocent spouse relief. Requests for innocent spouse relief must be filed on IRS Form 8857 no later than two years from the date the IRS first attempts to collect the tax due. IRS attempts to collect the tax due are limited to:

• The filing of a claim for by the IRS in a court proceeding, including a proof of claim in a bankruptcy proceeding.
• An IRS offset of a refund claim for a different year, as long as the IRS notified the taxpayer about her right to file for innocent spouse relief.
• The filing of a lawsuit by the IRS to collect the tax due
• The issuance by the IRS of a collection due process (CDP) notice pursuant to Internal Revenue Code §6330.

The California Franchise Tax Board (FTB) has similar rules to the Internal Revenue Service for taxpayers who are requesting innocent spouse relief for taxes owed to the State of California.

If you have a tax problem, and believe that you may be entitled to innocent spouse relief , and wish to have one our tax lawyers represent you please contact us.

To make matters worse the IRS tried to notify the Wests about the impending default of the their offer in compromise, but the Wests had moved, and failed to notify the IRS of their new address. The Wests tried to rely on the failure of the IRS to notify their representative that their offer in compromise was in danger, but the Tax Court held that the IRS had no duty to notify their representative.

Points to Remember:

• If your offer in compromise has been accepted don’t forget to pay and file your taxes on time for at least the next five years.
• If you are involved in any type of tax dispute with the IRS make sure that you keep them updated with your current address.

If you have a tax dispute and need a tax lawyer call the tax attorneys, at Brager Tax Law Group, A P.C.

The TIGTA report also noted that the IRS failed to follow its own internal guidelines for sending copies of the tax lien notices to the taxpayer’s representatives in 40% per cent of the cases it sampled. Tax attorneys must be alert to the possiblity, that the IRS is not sending copies of all tax lien notices and other required documents to them. Taxpayers need to send copies of all important notices to their tax lawyers even if they think the IRS should be sending the notices directly to their representatives.

If the IRS has filed a tax lien against you contact Los Angeles, California tax attorney Dennis Brager.

Like all employers Crabbe was required to file payroll tax returns, and to withhold income income taxes, social security taxes and Medicare taxes from employee paychecks, and to pay those amounts over to the IRS. When he failed to do so he exposed himself to both criminal tax liability, and to the trust fund recovery penalty (TFRP) as well. Once Crabbe has been sentenced it is likely the IRS will go after him to pay the unpaid payroll taxes. In general, responsible corporate officers who willfully fail to pay payroll taxes become personal liable pursuant to IRC § 6672 to pay those taxes. While many business owners get stuck paying corporate payroll taxes out of their own pocket, not too many go to jail for failure to pay. Nevertheless the case is a reminder that in appropriate situations the IRS can and does criminally prosecute people for failure to pay.

If you have payroll tax problems contact the tax attorneys at Brager Tax Law Group.

Claims to be a registered tax preparer but is not listed on CTEC’s Website.
Fails to give you a name, address, phone number, and bond information.
Refuses to sign your tax return.
Asks you to sign a blank tax form.
Refuses to provide copies of any documents you have signed.
Promises a refund, without even looking at your tax information.
Charges a fee based on a percentage of your refund.

If you are a tax return preparer who has been unjustly accused by the IRS or the Franchise Tax Board of filing improper tax returns call Los Angles, California State Bar Certified Tax Specialist Dennis Brager.

If you have a tax problem and would like to have your case heard in the United States Tax Court, call tax litigation attorney Dennis Brager.

The facts in Dell indicated that the service contracts were optional, and that they were priced separately from the underlying computer equipment. For example, a consumer purchasing a computer could check a box on Dell’s website to add a service contract for an additional $x. The amount would be added to the purchase price but the invoice issued to the customer would indicate a lump sum price for the computer and the service contract. Everyone agreed that if sold separately the service contracts were intangible property, not subject to California sales tax. It was also agreed that if the Dell service contracts were sold with computers they would not be subject to California sales tax provided that the price of the sales contract is separately stated in the invoice or other contract of sale.

The BOE argued, however, that in the absence of a separate statement of the charge for the service contracts they are subject to California sales tax. The Court disagreed, and found that the transaction was a “mixed transaction” involving separately identifiable transfers of goods and services. It differentiated the sale from a “bundled transaction” involving goods and services that are inextricably intertwined in a single sale. As such as long as the value of the separable identified parts can be established then the value attributable to the transfer of intangible property or services is not subject to California sales tax.

If you have California sales tax problems contact Los Angeles, California State Bar Certified Tax Specialist Dennis Brager.

If you are a tax preparer, and believe you may have been targeted by the IRS for a tax preparer penalty investigation contact California State Bar Certified Tax Specialist Dennis Brager.

The court also dismissed the unauthorized collection action because the couple hadn’t exhausted their administrative remedies. Internal Revenue Code § 7433 allows a taxpayer to sue the IRS if it has engaged in unlawful collection actions such as an improper tax levy; however Treas. Reg. § 301. 7433-1(d) bars a suit until after a claim has been filed with the IRS. Even though the couple had notified the IRS of their claim the court held that the format they used was incorrect since they didn’t address the claim to the right individual at the IRS, list their current home address and telephone number, or meet several other formalities.

The results in this case were not particularly surprising. It does, however, once again point out the importance of completely understanding all of the IRS rules and tax procedures. It also once again illustrates that the IRS can and does seize taxpayers’ homes, and those who assume it can’t happen are mistaken.

Tax problems need to be dealt with at an early stage. It is possible that an offer in compromise or an IRS payment agreement could have saved this couple’s home. If you need help with a tax problem of any kind contact the tax lawyers at Brager Tax Law Group, A P.C.

1) Whether or not the one employed is engaged in a distinct occupation or business;

(2) The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of a principal or by a specialist without supervision;

(3) The skill required in the particular occupation;

(4) Whether the employer or the worker supplies the instrumentalities, tools, and place of work for the person doing the work;

(5) The length of time for which the person is employed;

(6) The method of payment, whether by the time or by the job;

(7) Whether or not the work is part of the regular business of the employer;

(8) Whether or not the parties believe they are creating an employer-employee relationship; and

(9) Whether the principal is or is not in business.

Although the EDD has supplied information from its payroll tax audits to the IRS for many years, the IRS has not been particularly efficent at using this information to start its own payroll tax audits. Whether or not this new agreement foreshadows an increased degree of enforcement by the IRS is unknown. However, it underscores the risk of not contesting an EDD payroll tax audit. For more information about filing an appeal of an EDD payroll tax audit see our article

If your company has been contacted the EDD for a California payroll tax audit or has other California payroll tax problems contact the California tax lawyers at Brager Tax Law Group, a P.C.