IRS Tax Problems No comments yet

Renting Out Your Spare Room to Cover Your Bills May NOT be the Answer!

By mking on May 22nd, 2010

The current mortgage crisis means that many Florida homeowners are considering renting their properties as an alternative to selling, or even renting out spare rooms to help meet their mortgage payments. But homeowners desperate for additional income in these tough economic times may find themselves in trouble with the Internal Revenue Service (IRS) when it comes to renting property.

Leasing one’s home (or a portion of it) to meet mortgage obligations can lead to disaster with the Internal Revenue Service (IRS) if any money collected as rent is not reported as income.

The IRS has a series of guidelines that have to be met when it comes to paying taxes on rental income and failing to properly report them. This can lead to complications that include fines, interest, and possible garnishment of wages to collect the unpaid taxes.

Anyone who rents or leases property for more than 14 days is subject to paying taxes to the IRS. Add to the equation the fact that there are different rules on IRS tax liability based on how the property is rented and it becomes obvious that homeowners should seek the advice of an expert to prevent trouble with the IRS.

Obviously, in some cases renting property can result in a tax liability to the IRS that results in greater financial problems than before a homeowner considered leasing.

Among the different IRS tax rules that apply to rental property income are:

  • Whether the property is used both for personal and rental purposes
  • Whether the residence is being rented strictly for profit as opposed to assisting the homeowner in paying a mortgage

If you have questions about this or any other IRS tax related issue, please contact Florida Tax Attorney Mary E. King for your free, confidential IRS tax help consultation.

Why a Tax Expert Matters No comments yet

Prepare for Back IRS Taxes by Using An Expert

By mking on May 10th, 2010

Prepare for Back IRS Taxes by Using An Expert

Paying back taxes may cost taxpayers more than they realize as a result of fees and penalties, interest and other factors, according to Sarasota Florida IRS tax attorney Mary E. King. It’s important taxpayers not only realize that improperly dealing with their tax burdens can cause them more than they might have initially paid the Internal Revenue Service (IRS), but also understand how tax attorneys can help ease their burden.

A taxpayer who thinks they can escape the wrath of the IRS by simply paying taxes on a few items they neglected is likely to be in for a very unpleasant surprise. That’s because there are a series of items the IRS can go after that can create a nightmare scenario where taxpayers are concerned.

Taxpayers who do not know the best solutions in dealing with the IRS can be putting themselves at further risk. Attorney Mary E. King said paying all federal taxes due to the IRS on time is the best way to prevent the accumulation of penalties and interests, thus avoiding problems in the first place.

But she adds that IRS tax attorneys are invaluable when it comes to sharing their expertise about other issues that include:

  • An IRS tax attorney to have the experience to provide information about how to deal with the situation of the inability to pay taxes by April 15th,
  • Understanding the options in paying penalties and interest imposed by the IRS
  • How tax liens can negatively impact a taxpayer’s financial situation and hurt their ability to secure loans, jobs or credit in the future
  • The danger or levies imposed on a taxpayer
  • Steps to take in cases of audits by the IRS

IRS Tax Attorney Mary E. King advises taxpayers about the best action to take in dealing with the IRS when it comes to back taxes. She added they can also help them avoid not only paying them more than they have to, but also stress by identifying options that will make paying down their burden easier.

IRS Tax Problems No comments yet

Wage Garnishment Can Be Minimized In Dealing with IRS

By mking on May 6th, 2010

Taxpayers beware: The Internal Revenue Service (IRS) will claim any back taxes and fines they determine are due to the agency. Sarasota Florida tax attorney, Mary E. King, warns that the IRS will not hesitate to take money from a taxpayer’s paycheck if they determine that they are due money.

Wage garnishments imposed by the IRS can total up to 25 percent of a taxpayer’s earnings for each pay period. In today’s struggling economy, the loss of a quarter of a wage-earner’s salary can have a devastating impact on their budget.

Because tax fines tend to snowball, a taxpayer may end up paying more than they anticipated. The impact that those fines can have on wages garnished from their paychecks can be monumental, which is why contacting a tax attorney early is so important.

Using a knowledgeable source will not only help prepare a taxpayer for the pain of wage garnishment, but can also work to make sure that the taxpayer only pays the minimum amount that he has to.

While taxpayers may be intelligent, the average person is unfamiliar with the labyrinth of tax laws that allows the IRS to garnish a maximum when it comes to an employee’s earnings. That’s why it is essential to retain the services of a professional who is equally educated about tax laws.

Mary can help in structuring settlements with the IRS that are more client friendly because they will not have such a major impact on a taxpayer’s budget. She also offered one other suggestion about the importance of using a tax attorney and that is she urges those dealing with the IRS not to wait until their problems with the agency become unmanageable. She said waiting too late in selecting a reputable tax attorney may result in increased penalties and fines imposed by the IRS.

Tax Laws and Politics No comments yet

The Evidence Is Now Out There. Congressman Hints at Additional Taxes to Reduce Deficit

By mking on April 20th, 2010

It is expected that the IRS will be more thorough in reviewing tax returns this year. It’s been rumored that tax increases will be necessary to reduce the budget deficit, but now Washington leaders are coming out and saying it.

Rep. Steny Hoyer(D-MD) said at the first of this month that increasing taxes to reduce the budget may be, “the only solution.” Hoyer also said a balanced approach is needed that “raises some revenue.”

As a result, American taxpayers will be expected to fork out more of what they earn, both during the years of the current recession and when it comes to filing their annual returns for years to come.

The Internal Revenue Service (IRS) will be even more aggressive in checking to make sure the United States Government gets every penny owed to it. The increased diligence that the IRS will employ in reviewing returns means that taxpayers will have to assure they are knowledgeable about the money that may be owed to the government.

That’s why consulting with a tax attorney is important when preparing returns and in the event that taxpayers are audited to avoid costly IRS tax problems.

IRS Problem Resolution No comments yet

Three Things Not To Tell The IRS

By admin on April 20th, 2010

If you have an IRS problem and find it difficult to deal with or understand, you need to know that it’s not your fault. The Federal Tax Code is so complicated that it’s difficult for anyone to understand it completely.

I would like to offer you some free advice on what you should know before you speak to anyone from the IRS.

First, never voluntarily tell the IRS anything unless they have specifically asked you for the information. This is extremely important for you to understand. You must only give the IRS only the information that they have asked for and nothing else. The IRS actually counts on taxpayers who voluntarily give up too much information.

Second, never tell the IRS something that you know is not true. Lying to an employee of the IRS is a criminal offense. If the IRS catches you in a lie, you may be charged with perjury, which can ultimately subject you to time in prison.

Third, you should never answer any question that you don’t understand completely. Remember what I said about the complexity of the tax code? You should not admit to or speak about anything that you do not understand. If you are not completely sure about your answer to a question from an IRS employee, you should let them know that you “don’t know” or “can’t recall.” This is important as the IRS will not forgive any penalty or interest they have assessed against you if they feel that you have not been upfront and honest with them.

I hope that this advice will help you. IRS problems are serious business and they deserve serious attention. Procrastination will not resolve your IRS problem. However, there are a variety of ways to resolve your IRS problem and move forward with a stress-free life. I would be happy to meet with you to discuss the options available.