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Archive for Anthony Parent

Latest Podcast Guest: Tax Attorney John Richardson

Anthony Parent, Tax Advisor, Wallingford, USA, TaxConnections

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What Every Small Business Owner Needs To Know About Payroll Tax Relief

TaxConnections Picture - small businessIf you have unpaid payroll taxes — well, as crazy as it sounds, there could be a silver-lining. While the Internal Revenue Service will undoubtedly get into your business rather quickly and intensively, there is a way to make this work to your benefit.

Hiding from the truth about your problem is not going to help you by any means. Instead, accept the truth. As it may offer a solution to recover from this difficult event that’s happening in your business life.

Let’s be blunt: You have a crises. But this crises now gives you the legal and moral authority you need to make difficult choices you haven’t been able to do  before.

Like:

♦ laying off employees

♦ end an unprofitable line or service

♦ hire a turn-around specialist

♦ hold employees accountable

♦ hold yourself accountable Read more

The Added Threat Of FBAR Penalties — Limited Due Process Protections

TaxConnections Picture - GavelIn a just-published paper “FBAR Penalties, IRS procedures for collecting on taxes due, and how they (don’t) relate” by FBAR Attorney Amy L, Holbrook, she discusses what will be nasty surprise for many US taxpayers hit by an FBAR penalties during a tax audit. That is, unlike regular tax penalties, there is no right to tax court, nor any of the collection due process protections normally available for standard Internal Revenue Service tax increases and penalties.

The reason for this is difficult to understand. She explains:

The complicated answer to this question starts with the dual nature of the FBAR form itself. The FBAR is not a tax form, nor is it required by any provision of the Internal Revenue Code (Title 26). The FBAR filing requirements and associate penalties arise instead under Title 31, §§ 5314-5321. Originally, the filing requirement and its enforcement was the province of the Financial Crimes Enforcement Network (FinCEN), the Treasury Department bureau tasked with combating money laundering and similar operations. Despite having no ostensible link to issues of taxation, at some point the focus of FBAR penalties shifted to foreign bank-related tax evasion, at which point FinCEN delegated investigation and enforcement authority to the Internal Revenue Service.

So, Title 26 laws that the IRS is in charge of enforcing, have well-known and established lines of administrative review. And just in case there is a failure for those avenues to find a suitable settlement with the IRS, there exists a right to tax court where, for a relatively lower price and quicker resolution, a petition may be filed to seek relief against any IRS assessment or collection action. Read more