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Archive for Venar Ayar

How To Reduce Payroll Tax Penalties

How to Reduce Payroll Tax Penalties

Failure to submit payroll taxes to the IRS can result in penalties against you and your business.  If you have a valid reason as to why the taxes were not paid, the federal agency may consider waiving or reducing your penalties.  With the guidance of your tax attorney, you can try to get your penalties abated.  There are a few different ways to go about this: by showing reasonable cause for why the taxes weren’t submitted; by proving you didn’t pay taxes due to erroneous advice from a tax professional; or by paying the owed taxes.

Key Insights We Will Discuss
  • What qualifies as a reasonable cause?
  • What is a correction of service error?
  • Why paying your taxes is necessary to get penalties abated

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When Do You Need To File An FBAR?

When Do You Need To File An FBAR?

According to the IRS, a U.S. citizen, resident, corporation, partnership, limited liability company, trust, and estate, must file an FBAR if they meet certain criteria.  These requirements can include: if you have a financial interest in or authority over at least one foreign financial account and if the combined value of the foreign accounts exceeds $10,000 at any time during the calendar year.

When you have foreign bank accounts, there are certain situations in which seeking help from a tax attorney can be beneficial.  In addition to getting information on how to file an FBAR, a tax attorney can help you with the following:

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How To Appeal A Past Tax Audit

How To Appeal A Past Tax Audit

Finding out the IRS is auditing your tax return can be stressful enough, but what happens if you disagree with the federal agency’s findings on a previous tax return? No fear – you have options when trying to appeal an IRS tax audit.

With the help of a tax attorney, you can file for a reconsideration audit. Find out what an audit reconsideration is and how to qualify.

Key Insights We Will Discuss
What is an audit reconsideration?
How to qualify for an audit reconsideration.
Benefits of hiring a tax attorney.
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What Is an Audit Reconsideration?
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Penalties For Not Turning Trust Fund Taxes Over To The IRS

Penalties For Not Turning Trust Fund Taxes Over To The IRS

When you pay your employees, you are not paying them all of the money they earned. Instead, you are responsible for withholding part of their income for taxes. These can include income taxes and FICA (Social Security and Medicare).

Your employees trust that this money – referred to as trust fund taxes – goes to the treasury to pay their portion of taxes, and not to the company’s accounts.

But what happens if your business doesn’t submit this money to the treasury? Keeping this money can result in penalties from the IRS.

Learn what these penalties are and how you and your attorney can work the federal agency’s Special Agents to try to get the assessments reduced.

Key Insights We Will Discuss:
Possible penalties for not turning trust fund taxes over to the IRS.
Who are IRS Special Agents?
How a tax attorney can help you negotiate with Special Agents.
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How An Offer In Compromise Works

How An Offer In Compromise Works

Do you owe back taxes to the IRS? Until your debt is paid in full, the federal agency can assess penalties, interest, and more. Fortunately, you have options on how to settle your debt with the IRS. One solution is an Offer in Compromise. Read on to find out what an Offer in Compromise is, how it works, and how a tax attorney can help you qualify.

What is an Offer in Compromise?
An Offer in Compromise is a program to help you settle your tax debt with the IRS. If you owe the federal agency money in back taxes, you can work with an attorney to apply for this program to help reduce the amount of money you owe them. In some cases, the amount you agree to pay can be significantly less than what you originally owed. According to the IRS, the agency takes the following factors into consideration when determining if you qualify for the Offer in Compromise program:

-Ability to pay
-Income
-Expenses
-Asset equity

What it Means for You and Your Tax Debt
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How To Get A Bank Levy Released

How To Get a Bank Levy Released

When you owe the IRS money in back taxes, the federal agency can use a variety of ways to obtain the debt, including assessing a bank levy. This means the IRS can place a freeze on your accounts and seize the money until your tax debt us satisfied. To try to have the bank levy removed and to learn more about your options, you can work with a tax attorney. Learn more about how a tax attorney can help you negotiate with the IRS to try to have a bank levy removed.

If you owe the IRS money in back taxes, the federal agency may take action in several different ways to recoup the debt, including placing a bank levy on your accounts. This means the IRS will place a freeze on your bank account to seize the funds. This levy may stay on your account until your tax debt is paid in full.

Having a a bank levy placed on your accounts can put you in a hard spot, financially. To try to get a levy released, it is important to hire a tax attorney to represent you in your negotiations with the IRS. Some options an attorney can help you explore include:
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When Seeking IRS Penalty Abatement, What Qualifies As Reasonable Cause?

When Seeking IRS Penalty Abatement, What Qualifies As Reasonable Cause?

If you are facing penalties from the IRS for paying or filing your taxes late, you have some options to get those assessments removed. Reasonable cause is one method to getting penalty abatement. Learn more about reasonable cause and how to qualify for it.

Key Insights We Will Discuss

-What is reasonable cause?
-How to qualify for reasonable cause
-What Is Reasonable Cause?

Reasonable cause can be used when you have a legitimate excuse for not paying or filing your taxes on time. When claiming reasonable cause, you must be able to prove that it was out of your control to file or pay on time and that you tried to file but it wasn’t possible.

According to the IRS, some examples of reasonable cause can include:
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Tax Professionals: Your Guide For Tax Audits

TaxConnections, Guide For Tax Audits, Venar Ayar

This Guide For Tax Audits was prepared by Tax Lawyer Venar Ayar. The Guide covers the many notices that the Internal Revenue Service sends to individual taxpayers regarding tax audits. This is an excellent guide for tax professionals and taxpayers alike and we thank Ayar Venar for compiling this information and reference guide for our readers.

Please be advised that all tax audits should be handled by an experienced tax professional. Please refer to the guide below:

IRS NOTICE NUMBER DESCRIPTION – VENAR AYAR’s ADVICE

CP11Audits   This notice states that your return has been changed because the IRS believes there was a miscalculation. This means you owe money on your taxes because of this. Double-check the numbers on your tax return to confirm that you actually did make a mistake.  If there was no mistake on the original return, you need to respond to the notice with an explanation.

CP14- Balance Due   The IRS has sent this notice because you owe money on unpaid taxes. This is the first letter sent in the collection process. It is the initial tax bill sent.  The letter gives you an opportunity to pay the tax in full to prevent any collection actions.  If you ignore the letter, the IRS will continue sending notices that get more and more threatening, and will eventually start taking collection actions.

CP16-Audits This notice was sent because we have found a miscalculation in your return that affects your refund. The IRS records show that you owe other tax debts, and we used all of part of your refund to pay them. Double-check the numbers on your tax return to confirm that you actually did make a mistake.  If there was no mistake on the original return, you need to respond to the notice with an explanation, otherwise the IRS will keep all or part of the refund you claimed.

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Penalties You Can Face For Unpaid Payroll Taxes

Penalties For Unpaid Payroll Taxes

As an employer, you are required to pay employment taxes to the IRS for each of your employees. Failure to do this can result in penalties from the IRS.

Find out what taxes you should be paying to the IRS, what penalties can result from unpaid taxes, and how an attorney can help.

Key Insights We Will Discuss

-Types of payroll taxes you need to pay
-Penalties for unpaid payroll taxes
-How a tax attorney can help

Types of Payroll Taxes You Need to Pay

-Employers are mandated by law to submit payroll taxes to the state and federal governments.

Some of these taxes can include:
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5 Tax Crimes And Their Penalties

5 Tax Crimes: Venar Ayar

Knowingly not filing your taxes, providing false information, and other tax crimes can have serious consequences for taxpayers. While some penalties may come in the form of fines, some punishments can be as severe as prison time. Take a look at five tax crimes and their penalties and learn why you need a tax attorney to represent you.

Key Insights We Will Discuss
-Consequences of filing a fraudulent return
-Tax evasion charges
-Penalties for not filing your taxes
-Charges for knowingly not paying your taxes
-Penalties for willingly not disclosing offshore bank accounts
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What To Do If You Default On Your IRS Payment Plan

What To Do If You Default On Your IRS Payment Plan

When you owe money to the IRS, you can typically set up a payment plan. But what happens if your financial situation changes before you’ve completed your payments, and you default on your plan? Find out what to do if you default on your IRS payment plan, and how a tax attorney can help.

Key Insights We Will Discuss

What to do when you default on your IRS payment plan
Consequences of defaulting on your payment plan
How a tax attorney can help you explore options when you default on a payment plan

Steps To Take When You Default On Your IRS Payment Plan

When you owe money to the IRS, you might not have enough cash on-hand to cover it. In those cases, you can work with the IRS to set up a payment plan. The IRS recommends calling the agency as soon as you default or when your financial situation changes to discuss your options. One option can be reducing the amount of your monthly payment to an amount more affordable based on your current financial situation. The IRS may ask you to submit proof of changes to your income or finances when making changes to your payment plan.

Consequences Of Defaulting On Your Payment Plan
If you have an existing IRS payment plan, defaulting on payments can cause the IRS to terminate the plan. Terminating this plan can result in the IRS taking collection actions, including imposing a tax lien.

The IRS typically waits about 60 days before terminating payment plans, but it can decide to terminate the agreement without notifying you.

The IRS can also end your payment plan if you accumulate another tax debt while you’re repaying the previous debt. Even if you have been making regular payments, the IRS can still terminate the payment plan under these circumstances.

If you need to correct the default, you can consult with a tax attorney on how to pay the amount of the missed payments and how to reinstate the plan. A tax attorney can also help you renegotiate the payment plan, which can include lowering your monthly payments and submitting information to show how your finances have changed.

Have a question? Contact Venar Ayar.

3 Reasons The IRS Can Keep Your Tax Refund

3 Reasons The IRS Can Keep Your Tax Refund

When you file your income taxes and it shows that you are owed a refund, it doesn’t necessarily mean you will get the money. There are certain situations where the IRS will keep your refund.

Key Insights We Will Discuss

-The IRS will keep your refund if you or your spouse owe federal or state taxes.
-If you or your spouse owe other debt, the IRS can keep your refund.
-The IRS can keep your refund if it thinks you made an error on your return.

You Owe Federal Or State Taxes

-One reason you may not receive a refund from the IRS is if you – or your spouse – owe back taxes. The IRS will keep the refund and apply it towards the past debt.

-If your spouse accumulated an IRS debt before you were married, the agency will still keep your joint refund to pay the past taxes he or she owes.
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