Stamford, CT

We frequently represent taxpayers involved with IRS tax issues in Stamford, Connecticut and elsewhere. The Internal Revenue Service (“IRS”) announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.

The changes include:

• Certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties. A six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals. The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011, but only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.
• The IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program. The IRS announced today that the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000, and the maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.

If you would like to discuss either of these programs or any other IRS Tax Debt issue you are having in Stamford, Connecticut or elsewhere, please feel free to contact me at (203) 602-5550 or at egreen@convicerpercy.com.

Eric L. Green, Esq.

Convicer, Percy & Green, LLP

60 Long Ridge Rd., Suite 202

Stamford, CT 06902

Ph. (203) 602-5550

Fax (203) 286-1311

www.convicerpercy.com

We frequently have taxpayers in Stamford, CT contact us for help because they have filed several years of missing tax returns (on the advice of their preparer) jointly, and now the IRS collection division is pursuing them and their spouse.

I will be the first to agree that, in most cases, filing a joint tax return with your spouse can save federal taxes. There are some instances, however, in which you DO NOT WANT TO FILE A JOINT RETURN!

A real life example that came into our office was the following: husband was self-employed and wife was a stay-at-home mom. The couple had not filed tax returns for 6 years. They owned their home, in which they had $160,000 of equity, and the wife had an IRA she had put away when she worked before they had children with $120,000 in it. When contacted about their missing returns by the IRS they went to a CPA who had them file joint tax returns. With interest and penalties they owed $322,000 to the IRS.

I questioned why the CPA had them file joint tax returns, and he told me that by doing so they saved $57,000. I explained that, by having them file jointly, the wife was now liable for the taxes. The CPA did not save them $57,000 but actually cost the wife $200,000: her ½ of the equity in the home and her IRA, both of which would be deemed available by the IRS to pay the outstanding federal tax liability.

If you can file and pay the tax, then filing jointly is almost certainly the best choice from an economic perspective. However, if after the returns are filed the liability is too large to pay, you are probably better off filing as “married filing separately” and keeping one spouse (and their assets) out of the tax problem, even if it increases the liability.

When in doubt, file separately, because you can always elect later to amend the returns with the IRS and file jointly. Once you file jointly, you cannot elect out of the joint liability and will be stuck. If you have any questions please feel free to contact me to discuss the situation BEFORE YOU FILE!

If you have any questions regarding your IRS issue in Stamford, CT or any other area of Connecticut do not hesitate to contact me at (203) 602-5550 or by email at egreen@convicerpercy.com.

Eric L. Green, Esq.

Convicer, Percy & Green, LLP

60 Long Ridge Rd., Suite 202

Stamford, CT 06902

Ph. (203) 602-5550

Fax (203) 286-1311

www.convicerpercy.com

We frequently represent taxpayers before the IRS during routine audits in Stamford, Connecticut, as well as criminal tax investigations and eggshell audits (civil audits where tax fraud exists but the IRS has not found it yet). I am often asked what causes an IRS examiner to send a case to the criminal investigation division (“CI”)?

The Internal Revenue Manual (“IRM”) states that an IRS tax auditor should refer the case for criminal investigation when there are “firm indications of fraud.”

Great: so what does that mean?

There are a number of items that may raise an examiner’s suspicion of tax fraud: failure to report specific income items or entire streams of income/bank accounts. Significant underreporting of income, or overstatement of expenses may raise badges of fraud. Also odd taxpayer behavior or refusal to provide information may also cause concern for the civil tax examiner.

I can assure you that it can be any number of items or behaviors that trigger the fraud referral to CI.

So our advice to you, in Stamford, CT or elsewhere, is if there is any reason to be concerned about something on your tax return (or maybe not on your return!), say nothing to your accountant before seeking the advise of an experienced tax attorney who handles criminal tax matters in Stamford, Connecticut and elsewhere. If you have any questions regarding IRS audits, criminal tax issues or any other IRS tax issue in Stamford, CT or any other area of Connecticut do not hesitate to contact me at (203)602-5550 or by email at egreen@convicerpercy.com.

Eric L. Green, LL.M.

Convicer, Percy & Green, LLP

60 Long Ridge Road, Suite 202

Stamford, CT 06902

Ph. (203) 602-5550

Fax (03) 286-1311

www.convicerpercy.com

We frequently represent taxpayers before the IRS during routine audits in Stamford, Connecticut, as do many CPAs or EAs. Having your CPA or EA handle your audit may be a costly mistake if there are potential tax fraud issues involved with the return.

Accountants, defined as anyone allowed to practice before the IRS (CPAs and EAs) enjoy a privileged relationship with their clients in routine tax matters. Internal Revenue Code (“IRC”) Section 7525 creates a confidential relationship for accountants similar to that of attorneys with their tax clients in civil tax matters.

Unlike the attorney-client privilege, the 7525 accountant-client privilege ceases once the issue becomes criminal.

I can assure you that this means that your accountant may become the star witness against you if the IRS determines there are firm indications of fraud and refers the case to the IRS Criminal Investigation Division (“CI”).

So our advice to you, in Stamford, CT or elsewhere, is if there is any reason to be concerned about something on your tax return (or maybe not on your return!), say nothing to your accountant before seeking the advice of an experienced tax attorney who handles criminal tax matters in Stamford, Connecticut and elsewhere. If you have any questions regarding IRS audits, criminal tax issues or any other IRS tax issue in Stamford, CT or any other area of Connecticut do not hesitate to contact me at (203)602-5550 or by email at egreen@convicerpercy.com.

Eric L. Green, LL.M.

Convicer, Percy & Green, LLP

60 Long Ridge Road, Suite 202

Stamford, CT 06902

Ph. (203) 602-5550

Fax (03) 286-1311

www.convicerpercy.com

Dr Suess is on the loose in Stamford CT this Saturday! You are invited you to join ou Stamford Target store tomorrow (on Broad Street) this Saturday, February 25^th from 9-11 am for story time with Dr. Seuss. Sponsored by NEA (National Education Association) and Target. This event is another way Target promotes the importance of reading for all ages.

Children and adults alike will have the opportunity to relax, and enjoy readings of The Lorax, a classic tale written and published by Dr. Seuss in 1971. The story introduces children to the importance of the environment and how changes can affect many, if not an entire population.

In addition to reading The Lorax, the celebration of reading will also include goodie bags, special activities, and more. This is truly an event that your children (and maybe even you) will not want to miss!

Be sure to take some time out of your busy Saturday this weekend, and take part in this nationwide event.

This is a must do, before the movie comes out.......

If you enjoyed reading about this event, please visit the Facebook page 365 Things to do in Greenwich, Stamford and Norwalk and always have something to do!