On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Back Taxes or Tax Debt on Thursday, February 16, 2012
Taxpayers in North Carolina may be interested to learn about a policy change at the IRS that could be a big relief to people whose spouses intentionally deceived them about their tax filings. Known as the innocent spouse defense, many people in recent years may have had difficulty getting relief if they did not request it in time. However, the IRS is being more lenient about the rule.
As a result, innocent spouses who might have otherwise been on the hook for unpaid taxes would still be liable for them on what was essentially a technicality. The national taxpayer advocate, however, has been urging that the IRS take a look at the policy because it might be hurting those whom it was supposed to be helping.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Back Taxes or Tax Debt on Wednesday, February 8, 2012
When people get in trouble with the federal government for not paying their taxes, serious penalties often follow. Whether inadvertent or deliberate, when someone finds himself as the subject of an IRS audit or investigation, it can be extremely stressful. If the apparent intent by a taxpayer is to defraud the IRS and circumvent tax laws, the results can be catastrophic.
A man who had businesses in Wilmington, North Carolina, now has to experience for himself what those penalties will be. The 65-year-old was sentenced on income tax evasion charges last month in federal court. The man had been accused of owning and operating three video gambling establishments, which were illegal under North Carolina law.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Property Taxes on Tuesday, January 31, 2012
Property taxpayers who have fallen behind in one North Carolina county might find their bank accounts drained by the county. People in Cleveland County who have delinquent tax bills might have their money taken by a process called bank account attachment.
While the county tax administrator says that the process is a last resort, after garnishing wages and redirecting state tax refunds, to collect the money owed to the county. However, more than 300 tax debts were satisfied last year by this method. It seems as though this particular municipality is using all the tools it has available via tax laws to collect money from property owners.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Tax Controversy on Wednesday, January 25, 2012
Much has been made of the current presidential candidates' tax rates--and their hesitance to release their returns. Of the apparent frontrunners for their respective parties' nominations, Mitt Romney has attracted the most attention.
While the candidates, because of their relatively large salaries, pay a relatively large dollar amount in income taxes, the tax controversy stems from the fact that the Romneys' effective tax rate is relatively low compared to most Americans.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Back Taxes or Tax Debt on Saturday, January 21, 2012
Sometimes the federal government takes a different tack in its efforts to recover back taxes aside from prosecution. A program was restarted earlier this month that permits Americans who conceal their assets abroad to pay the back taxes and penalties they owe but exempt them from criminal prosecution.
The effort has paid off so far, quite literally: Earlier efforts in 2009 and last year to get people to voluntarily pony up has netted about $4.4 billion from 33,000 reluctant taxpayers, more than $130,000 per person. Officials are hoping for an even bigger windfall with this year's program, not just from the funds that will go directly to the coffers of the government. They also hope to prevent future situations by encouraging people not to keep their money in offshore tax shelters.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Audits on Friday, January 13, 2012
In many cases, the best defense against something is to not encounter it at all. Such is the case with being audited, as anyone who has been audited can tell you. If you can avoid an audit, you should. Being subjected to the pain of an audit is not out of the question for anyone, although people who make less than $200,000 a year have a smaller chance of being audited than those who make more.
In fact, last year only about 1 percent of all individual returns were audited, about 1.6 million, out of a total of 141 million returns that were filed. However, about 80 percent of those who are audited are subjected to paying more taxes.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Back Taxes or Tax Debt on Friday, January 6, 2012
Oftentimes, when Greensboro residents hear about someone getting into trouble over back taxes, the person tends to be someone like "The Queen of Mean" Leona Helmsley or some sort of shyster. It would be understandable, then, if people thought that those who let back taxes build up are villains or bad people.
But the fact is, everyday people can easily fall into trouble with back taxes, too, oftentimes over an innocent mistake. In fact, so can elected officials, accountants and financial professionals -- people whom you think would know better.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Back Taxes or Tax Debt on Tuesday, January 3, 2012
A Greensboro businessman was recently convicted of large-scale tax fraud. The man failed to pay more than $15 million in federal taxes and hid pay from thousands of his employees between 2004 and 2006 and also in 2009.
The man ran temporary staffing businesses under several different names, including U.S.A. Staffing and Compensation Management, Inc., and operated these businesses in nine states. Those companies promised employers they would assume full responsibility for paying the workers' wages and transmitting taxes related to those workers' wages to the IRS.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Tax Controversy on Monday, December 19, 2011
It is not uncommon for states or municipalities to enact tax incentives to attract or keep companies (and the jobs they provide) in the area. These days, when there are far fewer jobs than there are job-seekers, every politician is interested in doing what can be done to ensure that his or her voting district can maintain a decent employment rate. That includes altering the tax law in such a way as to make doing business in a certain area more attractive.
In a recent report assessing these sorts of program, North Carolina's was singled out as one of the best. While other tax incentive programs were criticized for not asking enough of the companies that take advantage of the benefits, North Carolina's won praise for requiring that participating companies offer their workers healthcare coverage and for demanding that they pay part of the premium. The state's program also mandates that tax-subsidized facilities stay open for a certain period of time and has a wage standard that goes a long way toward making sure living-wage jobs are the end result of the incentive program.
On behalf of Ivey, McClellan, Gatton & Talcott, L.L.P. posted in Property Taxes on Wednesday, December 14, 2011
Given how dismal the economy has been for quite some time, it's fair to assume that pocketbooks all across Greensboro are feeling a little lighter these days. But one entity isn't feeling a pinch in its bank account. That entity is the state of North Carolina itself.
Earlier this fall, the state announced that it had a $140 million tax revenue surplus. That is about three percent above where lawmakers had been told the state balance sheet would even out. That money, collected from things like state property taxes and sales taxes, came as something of a surprise to elected officials, who were not thinking such good news could ever pierce the current economic gloom.
