IRS Announces Voluntary Worker Classification Settlement Program (“VCSP”)
Past Payroll Tax Relief Provided to Employers Who Reclassify Their Workers The Internal Revenue Service launched a new program on September 21, 2011 giving many employers an affordable option to resolve past and present worker classification issues by voluntarily reclassifying their independent contractor or nonemployee workers as employees. The Vountary Classification Settlement Program (“VCSP”) is part of...
U.S. tax-evasion probe turns to Israeli banks
See the article here. Though the deadline for participation in the 2011 Offshore Voluntary Disclosure Program passed September 9, 2011, and the unofficial deadline passed last friday, keep in mind that the standard Voluntary Disclosure Program remains in effect. Please give us a call at 415-781-4000 if you have concerns. (Reuters) – The U.S. pursuit of offshore...
Negotiate Your California Property Taxes
Recovering From the Shock Odds are that you just received notice of proposed assessment in the mail and, after a stiff belt from the closest bottle to calm your nerves, you popped online to see if there is anything you can do to lessen the burden. The good news is that you can appeal your...
Deadline Extension – 2011 Offshore Voluntary Disclosure Initiative
On August 26, 2011, the Internal Revenue Service extended the deadline for participation in the 2011 Offshore Voluntary Disclosure Initiative to September 9, 2011. My communications with the IRS during the past week indicate that the Service will be much more ridged during this 2011 Initiative than it was during the 2009 Initiative. The civil review...
California’s Voluntary Tax Compliance Initiative
As a follow-up to the Franchise Tax Board’s recent press release, I wanted to follow up with the details of California’s Voluntary Compliance Initiative 2 (VCI 2) that began August 1, 2011, and runs through October 31, 2011. If you’ve already taken part in the IRS’ Voluntary Disclosure program, or are considering doing so before the August...
IRS 2011 Offshore Voluntary Disclosure Initiative – Cost of Disclosure vs. Non-Disclosure
Are you Feeling Lucky? You may be on the fence as to whether you want to raise your hand and tell the IRS you’ve been moving money around overseas for the past 20 years. You may also be considering rolling the dice and betting that you won’t be caught. Of course, one risk you’re running...
The August 31 Deadline Is Fast Approaching for the Second Special Voluntary Disclosure Initiative of Offshore Accounts
Time is running out to avoid some major penalties and potential criminal liability. We’ve discussed this program in our posts here and here. We’re getting more and more phone calls of people trying to get in before this opportunity ends. There has been no indication from the IRS that there will be a third disclosure initiative....
New Opportunity for California Taxpayers Who Avoided Tax Bills
In concert with the IRS’ Voluntary Disclosure Program discussed here and here, California is also keenly interested in offering some amnesty to taxpayers who “avoided tax bills” if it mean capturing further state tax revenue. However, the program starts today and the deadline of October 31, 2011 to participate in California’s Voluntary Compliance Initiative is quickly approaching. The benefit of avoiding...
IRS Changes Deadline to Seek Innocent Spouse Relief
When a married couple elects their filing status for federal tax purposes, they may only have in mind which option saves them the most. Unbeknownst to many unwitting couples, however, is that, when filing jointly, each spouse also assumes liability for the total tax bill. By way of example… Say, for example, that Jack makes...
The Draconian – Why Do Taxes Matter
My step-brother Jeff Jones, of Jones & Company and the affiliated Draco Capital Management, publishes a newsletter called The Draconian. I am a fan of his work and I encourage you to check it out. Today he posted an insightful article, Why Do Taxes Matter, focusing on our current economic direction. What I like most about this...
How Do I Know If I Have a Passive Activity Loss?
What is a Loss From a Passive Activity Many people think that owning rental property is one of the best ways to hold an appreciating asset while generating losses for tax purposes. This is true in some circumstances, but many investors are in for a rude shock after they purchase the property and attempt to...
