For an array of reasons, some taxpayers have not filed taxes in years. Motivations for this approach to taxes vary, but some taxpayers will fail to file because they don’t think they earn enough money for the IRS or California Franchise Tax Board to notice. Other taxpayers, in particular self-employed individuals, may have failed to realize that their income was subject to additional taxes and therefore did not have the funds available to pay all or some tax obligations. A

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

Taxpayers are reluctant to file and pay taxes for a variety of reasons. Some taxpayers may believe that they do not earn enough to have to pay taxes. Other taxpayers may fear learning about their tax obligations and will continuously put off doing their taxes. Still other taxpayers may fail to file taxes simply because they have never done so before, and fear that filing for the first time will trigger an audit or other tax enforcement action by the IRS or a California state

When taxpayers begin to suspect that they may have made simple or complex tax errors on past tax returns, one of the first things they want to know is whether the full range of their mistakes can be audited by the IRS, the California Franchise Tax Board, or other tax agencies. Taxpayers who realize that the IRS can look back several years — and in some cases, many years or indefinitely – are probably less likely to make mistakes in the first place. Furthermore, because they

With marriage come an array of benefits and burdens. When individuals file taxes, those who are married may be able to experience the potential benefits of filing joint taxes. These benefits include a reduced filing burden since the taxpayers only have to file a single tax return. In some circumstances, the taxpayers may even benefit from reduced taxes. However, with the benefits of filing a joint tax return come certain responsibilities. Taxpayers must consider how filing jo

For investors, entrepreneurs, and other business-minded individuals the Wall Street Journal is the gold standard for business and financial news. Thus, when the Wall Street Journal warns investors about potential civil or criminal exposure in any investment or asset protection context, it is important for all impacted or associated parties to take notice, perform a compliance review, and take any necessary corrective or remedial action. Recently, the Wall Street Journal warne

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)

At NewPoint Law Group, LLP, we recognize that there are often significant misconceptions about the tax system and the tax agencies’ enforcement of laws. People may take comfort or even find horror in the stories spread among family and friends. However, people are often surprisingly hesitant to ask questions about the truth of widely-held beliefs regarding tax enforcement. The attorneys of NewPoint Law Group, LLP have prepared this post to address the popular belief that weal

Many taxpayers are highly conscientious regarding tax deadlines and ensuring that all obligations are squared away in a timely manner. Other taxpayers may take a more relaxed approach to their taxes but nevertheless successfully manage to get their taxes filed. However, forgetting to file one’s taxes can carry serious consequences. And yet, people still choose to file and handle their own taxes. Perhaps this is because when people handle their own taxes, there are a certain t

For many taxpayers, the new year is a signal that they should start preparing their tax filings so that they can be submitted as early as possible. However, at least some taxpayers may wonder why other taxpayers are in such a hurry to file their taxes when they technically have until April to file. Other taxpayers who file for an automatic extension of time to file taxes may be even more perplexed by some taxpayer’s decision to file their taxes as early as possible. However,

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

For weeks you stressed over getting your income tax and report of foreign accounts in order. You spent time tracking down W-2s, various 1099s, and other statements of income. You also spent time ensuring that the tax positions you or your accountant staked out were compliant with tax law and well-supported by your books and records. You filed your taxes by April 18, 2017, and believe that you have the right to avoid thinking about taxes for another year. Then, one day you rec

As most California lawyers and estate planning attorneys would likely state, estate plans are necessary to protect not only your assets and the things you have worked for, but also your goals. While there are many ways for an individual to achieve their estate planning goals, an organized and meticulous approach should guide the process. In doing so, the potential for accidental oversights or errors is reduced. The first step in the process is to identify the things that are

While millions of people call California home, high demand for real estate along with a high cost of living result in many Californians opting to rent an apartment, condominium, or home instead of purchasing one. Renting property rather than purchasing property can provide an individual with greater flexibility. Not only can they avoid saving for a large down payment on a property, but they can also avoid the responsibilities of home or property ownership. Renting can allow p

While the overheated real estate market is a problem for some, landlords and property owners in California have a highly profitable opportunity to rent their home, condominium, or apartment. Tenants can occupy an array of structures; however, the most common landlord-tenant relationship is when a person rents an apartment from an individual landlord or from a property management company. The second most common landlord-tenant relationship is probably individuals who rent a si

Many taxpayers are not quite ready to file their taxes when the tax filing deadline arrives. In fact, there are many reasons why a taxpayer would need more time to ensure a comprehensive and accurate income tax return filing. For instance, an employer may have neglected to send a W-2 or 1099 or may need to make corrections to the document. In other cases, a taxpayer may simply need more time to seek the professional guidance of a California tax lawyer if you are concerned abo

Same-sex couples in the United States have faced numerous obstacles and challenges raised by traditionalists. While the exact level of difficulty faced varies across states and individual experiences, all same-sex couples have been forced to contend with restrictive and discriminating federal legislation like the Defense of Marriage Act (DOMA). Thankfully for same-sex couples, DOMA is no longer the law of the land and significant strides towards equality have been made. Compa

In California and throughout the United States, few, if any, taxpayers actually enjoy paying taxes. However, the duty to file informational returns and pay taxes due on income and other economic activity is a duty that should never be neglected. In most situations, the failure to file or pay taxes typically results in fines, penalties, and other consequences that add further complications to the problems that initially created the tax noncompliance. Unfortunately, for some Ca

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

On this blog, we have previously addressed some of the changes introduced by the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). The changes introduced by the PATH Act means that some taxpayers will have to take timely action to ensure that he or she has a valid individual taxpayer identification number (ITIN) for upcoming tax years. While the provisions introduced by the PATH Act were intended to streamline the ITIN process and protect taxpayer PII, many individu

Taxpayers who receive a letter from the IRS are often distressed and anxious about the possibility of having to pay additional taxes, interest, and penalties on that unreported or unpaid tax. Thus, as most people in today’s world frequently do when they are seeking information, the taxpayer may decide to Google the issue identified by the IRS. Providing the right information to a Sacramento tax lawyer can be a helpful first step in assessing the situation you face. However, t

In California, the state income tax obligation is administered by the California Franchise Tax Board (FTB). Essentially, the California FTB is the state-based counterpart to the IRS. While the IRS handles your federal income tax and other tax obligations, the California FTB handles similar responsibilities at the state level. The failure to satisfy either state or federal tax obligations can result in selection for an audit, fines, penalties, and even criminal tax prosecution

The partnership is an effective and efficient method of organization for many businesses including professionals. However, special tax rules exist for many transactions, transfers, and disbursements that may involve the partners or partnership. Many of these tax rules have been motivated by Congress’s and the IRS’s belief that partnership entities open the door for specific types of tax fraud and abuse. As such, the IRS recently announced a final rule regarding disguised prop