Taxpayers who file joint tax returns are jointly and severally liable for any liability arising from that tax year. This means each spouse is 100% personally liable for any tax, interest, and penalties owed so one spouse may be held responsible for all the tax due. This is true even if they later divorce and even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. However, in certain circumstances, the IRS allows Innocent Spouse Relief for qualifying joint filers. [Read more…]
Sales tax is typically applied to certain transactions for tangible goods that occur between a merchant and a consumer. Merchants act as agents of the government collecting sales tax from consumers and remitting it to the proper taxing authority. [Read more…]
The Internal Revenue Service (IRS) recently announced that it plans to close the Offshore Voluntary Disclosure Program (OVDP) on Sept. 28, 2018. In general, U.S. taxpayers have an obligation to disclose offshore accounts or assets. The OVDP allows taxpayers to voluntarily resolve their past noncompliance. Over $11.1 billion in back taxes, interest and penalties has been collected to date under the OVDP. [Read more…]
Did you know that in certain cases the IRS can hold an individual personally responsible for a business’s outstanding IRS liabilities? The IRS can assess a “Trust Fund Recovery Penalty” (TFRP) against individuals associated with the business who meet specific criteria. When a business or employer fails to remit to the IRS the income taxes, social security taxes, and Medicare taxes withheld from employee paychecks, the IRS can seek to collect a portion of these taxes (referred to as “trust fund taxes”) from certain individuals. If a taxpayer is held personally responsible for non-remittance of these taxes, the IRS could pursue the individual’s personal assets to collect, including using liens and levies. Furthermore, a TFRP is nondischargeable in the bankruptcy of the responsible person. [Read more…]
Have you failed to file a tax return or underpaid your taxes to New York State?
New York’s Voluntary Disclosure Program can help you. The Program is designed to entice taxpayers back into the system by allowing non-filers and under-filers to come forward and avoid criminal prosecution and steep late filing and late payment penalties.
Who is eligible?
The program is open to any eligible taxpayer, including individuals and businesses, for all types of tax administered by the New York State Department of Taxation and Finance (NYSDTF). The main catch is that you must beat the state to the punch and come forward before the State comes after you. If you are already under audit or investigation, you cannot participate. That includes if you are a party to a criminal investigation (even if you have not yet been notified); if NYSDTF has already identified the disclosed deficiency; or if you participated in a tax avoidance transaction that is a Federal or New York State reportable or “listed” transaction.
In addition, the following are not eligible for the Voluntary Disclosure Program: [Read more…]