Have you received letters from IRS? Are you asking yourself why all of these penalties?By representing many taxpayers in Mount Laurel and the rest of New Jersey, my clients always ask me “why the penalty?”when a taxpayer knows that there will be a penalty for: Not Filling Not Paying Not Depositing Not Providing the correct numbers on your tax return  They will be penalized, most taxpayers will pay attention. Filling and paying  your tax return, then depositing on time is voluntary compliance. Basically if there is no penalty, why would any taxpayer file and pay on time. Penalty  conserve IRS’s resources if they have to chase non-filers for not filling and paying on time.Penalty is not to punish taxpayers. Why would good taxpayers go out of their way to keep good records, file and pay th... 07/25/2022

I represent taxpayers in Mount Laurel and the rest of New Jersey. Many taxpayers have been asking me about some of the IRS Audit Notices they have been receiving. I think it is best I write a blog  with the various audit notices and letters used in an IRS examination.The Examination Opening Letter 2205-AThis is the letter that informs the taxpayer that they have been selected for an examination. It advises the taxpayer that they can be represented by a Power of Attorney ( meaning a CPA, EA or attorney), and that they should begin gathering their records in preparation for the examination.The information Document Request (“IDR”) Form 4564An IDR is where the IRS request documentation and information it perceives is necessary to review the tax return. It is not unusual for there to be seve... 07/20/2022

In Mount Laurel, New Jersey many taxpayers have asked me similar questions about IRS Audits and how it works. Here are some of the questions:How far back can the IRS go to audit my return?Generally, the IRS can include returns filed within the last three years in an audit. This time limit is often referred to as the “ASED” If the IRS believes that fraud has been committed they may be able to pursue earlier years.How long does an audit take?The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings.What are your rights when dealing with the IRS?IRS Publication 1, Your Right as a Taxpayer, explains your rights as a t... 07/18/2022

I represent taxpayer in Mount Laurel and the rest of New Jersey.Unpaid payroll taxes are a serious matter to the IRS and are some of the worst kind of back taxes you can owe. If you’re a small business owner with a payroll tax problem, read on to learn what you can do to avoid the IRS crippling your business or worse, shut your business down completely.  Already in payroll tax trouble? Contact us to schedule a no-obligation consultation and let’s get your payroll tax issue resolved. Meet with me. Why Small Business Owners Get Into Payroll Tax Trouble In The First PlaceIt’s hard being a small business owner today, trying to pay your employees their paychecks every week, and pay the IRS all those payroll taxes!  A lot of times when money is short, you pay the employees first.  It’s a natu... 07/11/2022

Do You Owe Money to the IRS? Possible Tax Resolution Strategies to Set Your Mind at Ease Even for honest taxpayers, the IRS can be extremely frightening. Unlike most other government agencies, the IRS has unbridled power to attach your wages, freeze your bank account and even confiscate your property, and that is enough to send a chill up the spine of any taxpayer.  If you receive a letter from the IRS saying that you owe additional taxes, it is important not to panic. It may be a frightening situation, but there are things you can do to settle your tax debt and get back on the good side of the IRS. I represent taxpayers in Mount Laurel and the rest of New Jersey. Taxpayers do have options when resolving tax disputes and paying additional taxes due, and simply knowing what those options... 07/05/2022

Business taxpayer with employees often ask me, what is employment tax and the trust fund recovery penalty (TFRP).Well, to encourage prompt payment of withheld income and employment taxes, including social security taxes, railroad retirement taxes, or collected excise taxes, Congress passed a law that provides for the TFRP. These taxes are called trust fund taxes because you actually hold the employee's money in trust until you make a federal tax deposit in that amount. The TFRP may apply to you if these unpaid trust fund taxes cannot be immediately collected from the business. The business does not have to have stopped operating in order for the TFRP to be assessed.Who Can Be Responsible for the TFRPThe TFRP may be assessed against any person who: Is responsible for collecting or paying... 06/22/2022

Understanding IRS notices can be very challenging for taxpayer, which is one of the reasons why it's left un-opened. Not a good idea? Ignoring IRS as everything is quit is not the answer. I represent taxpayer in Mount Laurel and the rest of  New Jersey.One of the IRS notices can say " Final Balance Due Reminder- Notice of Intent to Seize (Levy) Your Property or Right to Property.As a taxpayer, this is the opportunity to make things right. Remember John when he called me 2 weeks ago about his back tax debt issue when his bank account was levied? What did the tax levy do to John? The tax Levy reached his money in his bank account that day. So, we were able to save the day for John. Fortunately, John did move quickly  and we got his money back. John was also qualified for first time penalt... 06/13/2022

As a local expert Tax Resolution Firm ourselves serving Mount Laurel and the rest of New Jersey, we encourage all readers facing a back tax debt to contact us for a consultation.It is important to know who to trust and get educated on what your options are to resolve your tax debt problem.You may have heard on the radio and online, that you can settle your tax bill for less than what you owe. But are these claims actually true? And can you really settle your tax debt without hurting yourself in the long run?The truth is that though it’s often harder than they claim to settle for less than you owe the IRS, it is possible and you must first learn if you qualify for the program. This is called an "offer in compromise," but settling is not necessarily a bad thing.An "offer in compromise" is... 06/08/2022

In my office last week Thursday in Mount Laurel, New Jersey a John called me at 4:45 PM. So John was trying to get his final returns filed, he has been levied, was hiding it from his spouse and is now frantic because they will bounce the checks. His spouse is blaming him for everything. So, what led John to this situation?A tax levy is generally issued when a taxpayer has either failed to respond to the IRS requests or failed to provide the collection division information when they received IRS Notices. Before property can be levied, the taxpayer must be given a: Notice and demand (billing notice) Notice of intent to levy, and (threat to levy) Notice of a right to a collection Due Process (CDP) hearing (final notice intent to levy) We can help you with your levy and your IRS notices. If... 06/06/2022

I represent taxpayer in Mount Laurel and the rest of New Jersey (NJ). If you don't have money to pay what you owe the IRS, you have a few options to work with. Whatever you do, don’t ignore the letters from the IRS and don’t let your back tax problem go unattended. The IRS has a great deal of power when it comes to recovering money they think is theirs. When you owe the IRS money,  they can garnish your wages, levy your bank accounts, put a lien on your home and seize other assets. Here's what you can do if you find yourself not being able to pay your taxes. Note, we always recommend getting in touch with a tax resolution professional to help avoid the harsh penalties and interest that accrued on your back taxes. It’s far easier to navigate towards tax resolution, if you have a professi... 06/01/2022

Being that I represent taxpayers in Mount Laurel and the rest of New Jersey, taxpayers often tells me they want to Understand a Federal Tax Lien.A federal tax lien is the government's legal claim against your property when you neglect of fail to pay a tax debt. The lien protects the government's interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after:The IRS: Put your balance due on the books (assesses your liability) Sends you a bill that explains how much you owe (Notice and Demand for payment) YOU:Neglect of refuse to fully pay the debt in time.The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.How to Get Rid of a Lien?Paying yo... 05/30/2022

I represent taxpayer in Mount Laurel and the rest of New Jersey. Taxpayer often ask me "How did I get to the point of my bank account being levy?"There are six steps before IRS levy your account.1. A tax return is filled, either voluntarily by the taxpayer or the IRS creates a return for them ( a "substitute for Return" under IRC section 6020). Once the return is secured the tax liability is assessed.2. Once the tax is assessed a billing notice is sent to the taxpayer with a demand for payment.3. If the billing notice goes unpaid, a lien arises automatically by statute. The IRS does not have to file anything for the federal tax lien to be created, as IRC section 6321 creates it automatically. However, nobody knows about the 'silent lien' so the IRS will file a Notice of Federal Tax Lien... 05/25/2022

Representation NewsletterWe know the story: things are tight financially, so you either (1) do not file the tax return, or (2) file the tax return but don't pay the balance due. But do not worry, you tell yourself, next year will be better. Now it is 2-3 years later and a letter arrives from the IRS, and the threats start, and maybe it has even gotten to the point of actual levy and seizure activity. Now the IRS is wreaking havoc on your financial life and you simply do not know what to do.  We know. We have helped many clients through that exact scenario. Fear not, there is a light at the end of the tunnel. As it turns out the IRS is usually only too happy to work with taxpayers, but there are some ground rule you need to be aware of and a roadmap to follow.1. Tax ComplianceThe first s... 05/23/2022

 We focus our practice on tax resolution issues in Mount Laurel and across New Jersey. We deal with taxpayers who have fallen into the IRS Collection Division's inventory and are dealing with federal tax levies by the Internal Revenue Service (IRS). A question that comes up often is what can the IRS really seize?There are two types of federal tax levies issued by the IRS: a "regular" levy and a "continuing" levy. A continuing levy is a levy issued by the IRS on wages or routinely paid commissions, so it will remain in place until is released. A "regular" levy issued by the IRS reaches the assets owned by the taxpayer at the moment the levy is received. Look at it this way: Assume Taxpayer owes the IRS $10,000. Taxpayer has $200 in their bank account on Tuesday. Tuesday at 3:30 pm the ba... 05/18/2022

Being that I represent taxpayer in Mount Laurel and the rest of New Jersey. I have noticed that many taxpayers are receiving Final Notice of Intent to Levy... Now What?OnPoint Resolution got this, no reason to panic. What do we need to do? Let's talk to the government, let's work on a collection alternative. If you have received this notice, give us a call at 973-840-7350 today! I'm Fanta Kaba, I'm here to help you. Let's get this sorted out. There is no reason why should be levied. What does it mean when you receive an IRS notice stating "Final Notice of Intent to Levy"What the final notice is your last wake up call. Come in, let's work a resolution: Offer in Compromise (OIC), Installment agreement or Currently Not Collectable (CNC). I'll get on the phone. You don't have to talk to the... 05/16/2022

I represent taxpayers in Mount Laurel and the rest of New Jersey. When taxpayers come into our office, many are asking why the IRS penalizes us taxpayers?I had to find the best way to say:Penalties is not to punish taxpayers. Think of it this way, why would any taxpayers go out of their way to keep good records, file their quarterly or annual taxes and then file on time? Because they do not want to be penalized by IRS or their state.IRS penalizes taxpayer because it encourage voluntary compliance. If there is no penalty, why would you file and pay on time? Penalty conserve IRS resources. IRS or the state cannot be chasing after taxpayer for not filing or paying on time. Penalties provide clear guidance to taxpayers and practitioners. It ensure consistent and fair treatment of the issue.... 05/10/2022

I represent taxpayers in Mount Laurel, New Jersey with back tax debt. So, why does IRS take payroll taxes very serious? Think about it this way: You are an employer with 2 employees.  You pay your employees $20,000 per year Your employees are in a 10% tax bracket for example Your employees must pay $2000 each in income tax to the IRS Let's say you pay your employees every Friday. You withhold $384.61 from your employees paycheck each week With this information, you the employer is taking taxes out of your employees' check and must send it to IRS, but instead you don't. At the end of the year, when you the employer send your employees their W2s stating they have paid $2000 in taxes, but IRS have not received any payment from you. Now there is a big problem because you are keeping your em... 04/22/2022

I represent tax payers in Mount Laurel, NJ. Here is a video on Gig workers with tax time issues.https://youtu.be/-i_qAWNN5lwContact me today if you have any questions:Fanta KabaOnPoint Resolution LLC309 Fellowship Road, suite 200Mount Laurel, NJ 08054Tel. 973.840.7350Fax. 347.344.6942onpoint@onpointresolution.comwww.onpointresolution.com  04/12/2022

I represent taxpayers in Mount Laurel and rest of NJ.If you are a member of the gig economy, you are not alone. Millions of others have made the same choice, voting with their feet and their time, and leaving the world of traditional employment behind.Step 1 -- Start As Early As PossibleIt's always a good idea to start your tax planning early, but it's even more critical when you are self-employed or a member of the gig economy. If you are used to getting your taxes done in an afternoon, you have a serious wake-up call in front of you. If you do not start early, you might not finish on time.Keep in mind that you may not be able to file early, as it likely will take some time to wrap your head around the complicated tax laws, find the right tax professional, research deductions and ensur... 04/12/2022

I specialize in helping taxpayers in Mount Laurel and the rest of New Jersey who owe $10,000 or more to the IRS or have years of unfiled tax returns.Tax time is not fun, but reaching the end and finding you owe money is even worse. If the results of your tax preparation activities are less than optimal, you might think the only choice is to write the check, but that may not be the case.However, depending on the circumstances and the time of year you’re reading this,  you may be able to trim your tax bill now, before you file and write that check. Here are some possible ways to trim the high cost of filing taxes and keep more money in your pocket.Boosting your year-end 401(k) contribution might not help you for 2021 but planning ahead is always key and for 2022 you still have time to inc... 04/05/2022