Offer in Compromise – American Tax Havens

Tax season is safely behind us, so it’s time to breathe a sigh of relief. But if you paid more to the IRS than you feel you should have, maybe it’s also time to start thinking about doing things a little differently. Maybe it’s time to think about living in a state where the tax burden is less than it is where you are now.

Some states have low property taxes, low gasoline taxes and low sales taxes. Some have low income tax rates, and some expect not one cent of income tax revenue from its residents. Each of these states is the closest thing there is to an American tax haven, and there are many factors to consider for anyone thinking about relocating to one. (more…)

Offer in Compromise – IRS Reviews Tax-Exempt Status Revocations

Following a request from the United States Internal Revenue Service (IRS), the Treasury Inspector General for Tax Administration (TIGTA) reviewed its Exempt Organizations function’s implementation of the provisions of the Pension Protection Act of 2006 related to the automatic revocation of an organization’s tax-exempt status.

The Pension Protection Act of 2006 requires the IRS to maintain a list of organizations whose tax-exempt status has been automatically revoked for failing to file a return or notice for three consecutive years. (more…)

Offer in Compromise – Mass. tax collections fall short of goal in April

 Massachusetts tax revenue collections are continuing to fall short of projections.

The Revenue Department said Thursday that the state collected about $2.5 billion in taxes in April. That’s up $3 million or one tenth of one percent over the same month a year ago, but $93 million short of the estimate for the month. (more…)

Offer in Compromise – What To Do If You Filed Your Taxes Late

This year, your federal income tax return was due on Tuesday, April 17. That’s because the usual deadline, April 15, fell on a Sunday, and a federal holiday, Emancipation Day, fell on April 16. If you didn’t file your return on time despite the extra two days, here’s what to expect.

Interest and Penalties
When you file and pay your taxes late, the Internal Revenue Service (IRS) will charge you interest, compounded daily, on your unpaid tax. Interest accrues from the April 17 deadline until the date when you actually pay. (more…)

Offer in Compromise – How to Use the IRS as a Credit Card

Say your overall cash-flow situation is good, but you need to cover a short-term deficit over the next few months. In today’s still-strict credit environment, taking out a loan may not be much fun. It may not even be possible — unless you have access to an untapped home equity line of credit or a helpful relative. If that’s the case, great. If not, you may be able to turn to a surprising source for some help: (more…)

Offer in Compromise – Court says IRS has 3 years in tax shelter case

The Supreme Court has ruled that the Internal Revenue Service has only three years to impose additional taxes in a tax shelter case, instead of six years like the government wanted.

The high court on Wednesday ruled for Home Concrete & Supply, LLC, of Salisbury, N.C., in a fight over a tax shelter scheme.

The argument centered in part on “cost basis,” or the amount paid for an investment, which is the starting point for calculating the capital gain after selling the investment. The question is whether a large overstatement that then lowers taxes is grounds for extending the three-year limit to six years. (more…)

Offer in Compromise – RI lawmakers to examine income tax hike plans

Rhode Island lawmakers are set to review several proposals that would raise income taxes on the state’s wealthiest residents.

The House Finance Committee is scheduled to hold hearings on the legislation Tuesday at the Statehouse.

One of the proposals would impose a 1 percent tax increase on all personal income over $250,000. Another would impose a 2 percent tax increase on income over $250,000. A third proposal would also raise income taxes on the wealthy, but would automatically reduce tax rates whenever the state’s unemployment rate falls by a percentage point. (more…)