In order to provide the best advocacy for our clients, our Connecticut tax law firm closely follows proposed changes in state and federal tax law. A recent federal proposal may impact a company’s choice of business structure.
A majority of workers have federal, state and FICA taxes withheld from their paychecks. The withholding consists of the employee’s contributions and the employer’s matching share. For those who are self-employed or receive payments via a Form 1099, however, there are no withholdings. Instead, such professionals pay estimated taxes four times each year.
Mediation is becoming a buzzword in more than just civil and divorce litigation. The IRS has also joined in this trend with its IRS Revenue Procedure 2016-57, titled Fast Track Mediation-Collection.
A new ruling by the U.S. Tax Court might be of particular interest to small business owners.
In last week’s post, we talked about new tax rules that may increase the risk of audits to general partnerships. Yet the tax obligations of LLC members may also be confusing.
One of the advantages of consulting with an attorney regarding an IRS tax controversy or dispute is the settlement angle. An attorney’s training in negotiating may prove useful in estimating the litigation hazards and providing a ballpark settlement figure that would be reasonable under the specific fact pattern.
Even a municipality can get into trouble with the Internal Revenue Service. In a recent example, the city of Scottsdale agreed to a $750,000 settlement to resolve a tax dispute.
A taxpayer that amends a tax return may be attempting to do the right thing. Yet before taking this action, an individual might benefit from a consultation with a tax attorney.
Tax controversies that go to trial may result in favorable precedents, possibly even impacting IRS procedures. In a recent example, commentators question whether a federal tax refund lawsuit brought by Wells Fargo & Co. may spur other refund claim filings and/or reforms. The dispute involved the application of underpayments and overpayments from a business unit that Wells Fargo had acquired by merger.
There are certain things that may tempt a person into inaction after missing filing their tax returns. Fear of the Internal Revenue Service and a desire to not have to deal with the agency could potentially lead a person to decide to ignore the problem and just hope it goes away on its own. Or, a misconception that failing to file a tax return doesn’t have much in consequences could lead a person to think that taking action isn’t that important.