Atlanta Tax Law Blog
On behalf of The Peck Group, L.C.
posted in Audits
on Thursday, May 23, 2013
We talk about tax audits on this blog quite a bit; and now that some time has passed since April 15, the Internal Revenue Service is picking out tax filers whose documentation does not add up. For some, this will mean an audit; while for others, it may mean nothing.
But there are likely more than a few Atlanta residents out there who will go through a tax audit in the coming months. They may be a little nervous at the prospect, or they may already be under investgation. In either case, there are a few steps that an audit target needs to remember when they deal with the IRS:
On behalf of The Peck Group, L.C.
posted in Back Taxes or Tax Debt
on Wednesday, May 15, 2013
Sometimes when a tax filer makes a mistake on their return, they may not even know it. It could be a misplaced number or decimal, or maybe the wrong paperwork was filed; but in some cases, the filer is overwhelmed by the convoluted tax process, leading to mistakes.
In other cases, the filer may slip into an unfortunate financial situation, leaving them short on funds to pay their taxes. As a result, they do not file their tax return one year; which can result in a snowball effect of many years without filing a return. In either scenario, it is important for the filer to address the tax debt issue; so here are some ways that Atlanta residents can go about that.
On behalf of The Peck Group, L.C.
posted in Tax Law Changes
on Thursday, May 9, 2013
Two federal lawmakers -- Max Baucus and Dave Camp -- are launching a bipartisan movement to try to simplify the U.S. tax code. Their goal is to make tax filing a more expedient and simple process, while also bolstering the economy. The details of their plan are not yet known, and the duo know they are in for a tough road, as they describe their task at hand as "very, very difficult."
Both Baucus and Camp will leave their federal posts in 2014, so they are taking on this joint venture now while they still have a chance. They want public input so that they can craft creative ideas to simplify the tax code. Ultimately, some tax laws would have to change if Baucus and Camp are successful.
On behalf of The Peck Group, L.C.
posted in Back Taxes or Tax Debt
on Thursday, May 2, 2013
A couple of major tax evasion stories recently made the rounds in the media, and some Atlanta residents have likely read about them; while many others will be interested in the lessons these stories teach.
In the first case, a 62-year-old man was accused of tax evasion because of an offshore bank account he inherited from his father. The man's father instructed his heir to keep the account a secret. So the man did -- to his detriment. He had to pay roughly $1 million in back taxes and had to retire from the military (for which he served 30 years) due to a felony conviction, which led to a 6-month prison sentence.
On behalf of The Peck Group, L.C.
posted in Back Taxes or Tax Debt
on Tuesday, April 23, 2013
Many Atlanta residents will recall last summer's episode that saw famed singer Lauryn Hill being accused of tax evasion for a three year period from 2005 to 2007. She pleaded guilty to this accusation, and agreed to pay $554,000 to the Internal Revenue Service in back taxes. Officials say that, to date, Hill has paid roughly $50,000 of that restitution.
A court hearing for Hill's back taxes case was recently postponed for two weeks, giving her that amount of time to pay off her tax debt.
On behalf of The Peck Group, L.C.
posted in Tax Liens
on Wednesday, April 17, 2013
Well, the tax deadline has come and gone; and with it in the rearview mirror, many people are now turning their attention to their finances to try and plan out how their refund from the government (or payment to the government) will impact their lives in the next few months.
For some Georgia residents, it will mean they have to cut back in certain areas. Maybe a few less nights out on the town because the payment they made took a chunk out of their "free spending" means. Maybe some residents can splurge on some new clothing or new equipment because of a sizeable refund.
On behalf of The Peck Group, L.C.
posted in Delinquency
on Tuesday, April 9, 2013
Tax day is next Monday, and there are many people out there who have waited to the last moment to fill out and file their taxes. Don't worry, there is nothing wrong with that approach. Everyone, at some point in their lives, has let something linger on; they procrastinate and wait until the deadline to do something about whatever task they have to complete.
Just so long as you have your tax filing in by April 15, and it is accurately reported, you have nothing to worry about. So make sure the math is correct; double check your W-2s and other financial documentation; and put an end to your tax season.
On behalf of The Peck Group, L.C.
posted in Audits
on Friday, April 5, 2013
On the one hand, a tax audit can be very scary for an individual. A tax audit means you could lose a lot of money; you may have to spend lots of time working with investigators to clear up the matter; and you fear how it could impact over aspects of your life.
On the other hand, though, a tax audit merely has this reputation -- when, actually, about 25 percent of audits impact the individual in no way. The Internal Revenue Service looks things over, decides no action needs to be taken and moves on.
On behalf of The Peck Group, L.C.
posted in Tax Law Changes
on Thursday, March 28, 2013
At the beginning of February, we wrote a post about the changes the state of Georgia was about to permit in regards to taxing car purchasers and leasers. The change caused a furor across the entire state as it punished leasers by essentially charging them with double taxation. Leasing a vehicle is one of the most common ways to obtain a vehicle, so this change seemed to be a mistake that needed a revision.
The law took effect on March 1st, applying a 6.5 percent tax on the person making the initial lease, and an additional 6.5 percent tax charge on every monthly payment made thereafter. Purchasers, however, only received a 6.5 percent tax for obtaining the title.
On behalf of The Peck Group, L.C.
posted in Delinquency
on Wednesday, March 20, 2013
Many Atlanta residents may think that it is basically impossible for employees at the Internal Revenue Service to owe back taxes, fail to file a tax return or to be delinquent with their taxes in some way. However, that is not the case -- roughly 1 percent of Treasury Department employees, which includes the IRS, are tax-delinquent.
That is part of a tax report by the IRS that looks at federal employees and their standing with the government regarding their finances. The report, focused on the end of the 2011 fiscal year, found that 3.17 percent of federal employees are tax-delinquent (compared to 2.85 percent in 2010). That accounts for more than 310,000 people who owe a combined $3.5 billion in back taxes to the government.
