Liberty Tax Service Alleged “Crack for Tax” Scandal

In Florida Tax Issues, IRS Tax Help, Tax News, Tax Planning by Daniel Friedel

Last week I spoke about the raid and bust of On Time Tax Consultants for allegedly scamming low income taxpayers.  Unfortunately, On Time Tax Consultants are not the only local tax preparation service targeting lower income individuals in our community.   Liberty Tax Service, located at 3320 Southwest 35th Boulevard, Gainesville, Florida, has also been under investigation for preying on low …

Tax Q & A – I Currently Can’t Pay the IRS because of an Economic Hardship

In IRS Tax Help by Daniel Friedel

QUESTION:  What happens if I owe the IRS money but after paying my living expenses/bills, I currently can’t afford to pay my tax liability? ANSWER:  Depending on your particular situation, there are several options.  If you are going through a financial hardship, the IRS may be willing to suspend collection activity to allow you the opportunity to get back on …

Tax Q & A – 2010 Filing Deadline

In IRS Tax Help, Tax Planning, Uncategorized by Daniel Friedel

QUESTION:  Did the IRS really change the filing deadline from April 15th to April 18th? ANSWER: Yes! Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15.   By law, District of Columbia holidays impact …

Tax Day Countdown Q & A

In IRS Tax Help, Tax Planning by Daniel Friedel

QUESTION: I Know My Tax Return is Due, but I Cannot Pay the Taxes…Should I Still File on Time? ANSWER: YES, YES, and YES! Even though you will not be able to pay the full amount of your taxes when you file your Income Tax Return, you should still file on time to prevent the 5% per month Late Filing …

IRS Audits and Letters…AUGH, what does this mean?!

In IRS Tax Help by Daniel Friedel

If you just received a letter from the IRS, you may be freaking out and envisioning the IRS breaking down your door – swat team in tow – to raid your house for valuables to satisfy your tax debt.  Before you shred the letter in hopes it will magically disappear forever, take a moment to educate yourself on what’s going …

The Dreaded IRS Audit: Will Your 2010 Tax Return Get Flagged for an Audit?

In Tax Planning by Daniel Friedel

With “Tax Day” right around the corner, most people are scrambling to put together and file their 2010 tax return before April 18, 2011 (yes, the IRS has graciously provided us a few extra days this year).   Accordingly, I have put together some information and pointers to help you decrease your chances of having the IRS audit your return. “Red …

IRS Incorrectly Records 73,000+ Purchase Dates for Taxpayers Claiming the First-Time Homebuyer Credit

In Tax Planning by Daniel Friedel

Those of you lucky enough to take advantage of the First-Time Hombuyer Tax Credit might be getting a not-so-lucky tax assessment.  Somehow the IRS managed to record the wrong purchase date for 73,000+ homebuyers cashing in on the credit. This IRS screw-up could be costly for the unfortunate taxpayers affected.  When the First-Time Homebuyer’s Tax Credit appeared in 2008, it …

Asbestos, Acutane, Vioxx, Paxil Settlement? You may need a Tax Attorney!

In Tax Planning by Daniel Friedel

We have all seen the ads for asbestos exposure and “bad” prescription drugs… “have you or someone you know taken the drug Acutane… if so, you may be entitled to cash compensation… call 1800-bad-drug…” So what are the tax consequences of receiving compensation for your damages? Well, it depends… Some damages and settlement proceeds are tax exempt under IRC § …