In California and other states, if you plan on selling a business or investment property and have already identified a replacement property, the Internal Revenue Service (IRS) allows you to defer capital gains from the sale using a like-kind or Internal Revenue Code 1031 exchange. With this method, instead of using some of the sale proceeds to pay taxes on your profits, you can use the money to purchase a new property, as long as it is of “like-kind.” The rules and restrictio

An offer in compromise (OIC) is a deal between a California taxpayer and the Internal Revenue Service (IRS) or the Franchise Tax Board (FTB) to pay off a tax debt for less than the full amount. The agreement will not be accepted automatically, as the taxpayer must meet specific requirements when applying for an OIC. These eligibility requirements vary depending on whether the taxpayer is applying to the IRS or the FTB, his or her financial circumstances, and other factors. Th

With some exceptions, U.S. citizens must generally file tax returns – and pay taxes. Nevertheless, sometimes through no fault of your own, you may be unable to pay the taxes owed. An unexpected accident, loss of a job, or an illness can place an individual under heavy financial duress. If you are facing financial difficulties and owe unpaid tax debts to the Internal Revenue Service (IRS), there may be options available to reduce what you owe or make payments more manageable.

The individual tax burden can be overwhelming. Are you at a point in your life or career where federal and state income taxes are scaring you? Perhaps you can’t see a way to catch up. Has the IRS placed a lien on your property or is your paycheck being garnished? You may be receiving threatening IRS or state notices daily. This can be both frightening and confusing. A Roseville and Sacramento tax attorney experienced with IRS and state tax procedures can help you navigate com

When the government comes across new technologies and ways of doing business, it often doesn’t know how to fit these new things into existing law. With Bitcoin and other cryptocurrencies, the government is still working to catch up. For now, crypto coins are treated as property – but their sale or transfer may still trigger profits. Profits like these mean taxes – and avoiding paying those taxes can mean serious criminal charges. While the government may not be sure how to ha

Claiming the proper deductions and credits can be an overwhelming process for taxpayers. With new case law constantly being decided by the Tax Court and the IRS, it can be especially difficult to keep up with new regulations. A recent case involving estate tax and charitable deductions, Fakiris v. Commissioner, reached an important holding in the area of estate tax. Decided June 28, 2017, the case explores the issue of whether a gift is complete or not during a person’s life.

If you are married or recently divorced, separated, or widowed, you may have filed taxes jointly with your spouse. This can give you many benefits and deductions you can’t access filing as an individual, but it can also set you up for potential issues. If you filed jointly, you are jointly responsible for the taxes alongside your spouse. This means that, even if only one of you earned the income, the IRS can go after either one of you for payment. Luckily, spouses that were p

American expatriates are all too aware of the various tax difficulties and hurdles that exist. Unfortunately, in recent years, law-abiding expats have been caught in the crossfire as Congress attempts to crackdown on wealthy Americans use foreign trusts and offshore accounts to conceal wealth and income. These efforts have resulted in the start of enforcement of the Foreign Bank Account Report (FBAR) obligation under the Bank Secrecy Act and the enactment of the Foreign Accou

The Federal Tax Crimes blog recently posted a blog regarding a sentencing proceeding which involved the owner of a wholesale salon supply business. As set forth originally by the Federal Tax Crimes blog, United States v. Nguyen, ___ F.3d ___, 2017 U.S. App. LEXIS 6390 (5th Cir. 2017) dealt with a business owner who was charged with aiding and assisting the filing of a false corporate tax return. The taxpayer pleaded guilty to a single count in violation of 26 U.S.C. § 7206(2)

Taxpayers who have not filed taxes in a number of years generally have a sense that they are not in the best legal or financial position. When individuals who have neglected to satisfy their tax duties for years come into our law offices, they are typically apprehensive and anxious regarding what our review might find. However, if you work with the Sacramento tax lawyers and tax professionals of NewPoint Law Group, LLP, you can rely on our careful and strategic approach to th

If you have even a passing interest in Bitcoin as a technology or as an investment, it is highly likely that you have already heard about the IRS’s attempts to crackdown on improper use of Bitcoin and other cryptocurrencies such as Ethereum. The IRS believes that a significant number of high income and high asset taxpayers are utilizing Bitcoin as their latest tax evasion gambit. While it is unclear exactly how many wealthy Americans are using Bitcoin and similar blockchain-b

Many taxpayers would understandably be taken aback by the proposition that the federal government could prosecute them for the violation of state tax laws. In fact, most taxpayers would probably expect to deal with the IRS or Department of Justice for alleged federal tax failures. However, when it comes to state tax obligations like sales tax and certain employment taxes, most people would expect to be audited or prosecuted by the relevant state tax agencies. In California, i

Most people probably assume that wealthy individuals are priority number one on the IRS’s radar. There is some truth to this characterization, as audit rates for high-income filers are much greater than the audit rates experienced by the general population. However, the Treasury Inspector General (TIGTA) — a government watchdog responsible for identifying and eliminating waste, fraud, or corruption in government – has identified problems with the IRS’s already reasonably aggr

No taxpayer relishes in the idea of being in debt to the IRS, California FTB, or other tax agency. The only thing worse than being in tax debt of any type is facing significant debts that have accumulated from months or years of fines and penalties on top of the original debt. For many taxpayers, a situation like this can make them feel powerless and as if their life is spinning out of control. However, you don’t have to fear the unknown or the potential consequences of tax d

Did you file for a tax extension in April that provided an additional six months to file your taxes? At the time, it may have seemed as if the October deadline by which you would need to file your tax return was ages away. But summer has come and gone, and the October deadline for those who had previously filed for income tax return extensions is upon us. However, some individuals may be surprised to learn that filing IRS form 4868, Application for Automatic Extension of Time

If you’ve fallen significantly behind on your debts, you may engage in negotiation with creditors to reduce or eliminate certain parts of your debt burden. In certain situations, the potential for bankruptcy and the possibility of an overworked creditor may encourage them to forgive a certain portion of the debt. Other times the creditor may simply realize that the collection costs will exceed any amount that can be recovered. While having debt forgiven or cancelled is certai

You filed your taxes on time and didn’t expect to face any issues. In fact, you were looking forward to putting them out of your mind altogether until the next tax filing season. At NewPoint Law Group, LLP we provide year-round tax support and guidance, but we understand why taxpayers would prefer to think about more appealing topics. In any case, you were expecting at least several months respite from thinking about tax filing duties and obligations. Then it happened. You re

When a taxpayer owes money to the IRS but is unable to pay in full, there are a number of options available to reach a resolution and prevent a bank levy or wage garnishment. Resolving tax debt involves completing IRS Form 433-A, 433-A (OIC), or 433-F, for most individuals. The form requires listing personal information, i.e. name, address, and Social Security number. It also requires a listing of assets owned, such as bank accounts, cars, real estate (like a primary residen

Since the 2007 financial crisis turned Congress’ attention to the deficit and national debt, perceptions that wealthy Americans were using offshore accounts, trusts, and various entities to avoid tax has motivated an array of enforcement measures. Currently, U.S. taxpayers, whether living at home or in a foreign nation, have an obligation to disclose their foreign accounts and assets when certain conditions are met. The two main disclosure obligations are, when applicable, t

Most taxpayers know that facing a tax audit or tax investigation is not an enviable position to find oneself facing. While many people are concerned about facing criminal tax consequences due to all types of mistakes and errors on their taxes, there is typically no referral to IRS CI unless there are badges of fraud present like indicia (or badges) of fraud. The presence of badges of fraud shows a likelihood that the action or inaction was taken intentionally or voluntarily d