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Monthly Archives: September 2019

Do you want to be a Bookie? Don't Forget Your Form 11-C

September 10, 2019

It's that time of the year again, football is back, basketball is about the start and yes who can forget hockey. Along with sports comes sports betting.

If you want to be a Bookie, then don’t forget to file your form Form 11-C - Occupational Tax and Registration Return for Wagering.  

If you accept taxable wagers for yourself and or for another persons, you have to file form 11-C. Form 11-C is used by “agents” or “principals” who accept the taxable wagers to pay the occupational tax on wagering.  

There are two amounts of occupational tax: $50 or $500. For bookies (also known as bookmakers) accepting legal wagers, the occupation tax is $50. For the bookies who are working in areas where gambling is illegal, the tax is $500. How much sense does this make will you apply for a licenseand pay $500, aren't  you admitting that you're committing an illegal act?

Who is a principal? It is one who accepts taxable wagers for his or her own account in the business. This person is responsible for either making a profit or risks losses depending on the outcome of the event or contest for which the wager is accepted.  On the other hand, an agent accepts taxable wagers on the behalf of principal. Both have to file Form 11-C. But don’t get confused, illegal gambling is still a illegal gambling. 


But if you are going accept wages don’t forget to file the 11-C. There are other issues and forms that you need to be aware if you engage in gambling activities or are planning to engage in gambling activities.   You should seek the guidance from a professional to know what you have to do to comply with the tax laws.  By:  Luis O Rivera, CPA, CFF, CFE, CGMA, PI
 
Want To Hedge Your Bets on Tax Problems

 

Contact the Tax Lawyers at 

Marini & Associates, P.A.
 
 
for a FREE Tax Consultation Contact us at:
www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888)882-9243.

Read more at: Tax Times blog

“IRS Should Have Known We Changed our Address – TC Says No.

September 10, 2019

The Tax Court has ruled in Chapman, TC Memo 2019-110 that IRS properly mailed a deficiency notice to taxpayers' last known address. The taxpayers did not live at that address at the time the deficiency notice was mailed and had argued that the IRS Appeals Officer should have known that they didn't live at that address.
 Before assessing liability for unpaid taxes, IRS must send a notice of deficiency to the taxpayer's last known address by certified mail or registered mail. (Code Sec. 6212(a), Code Sec. 6213(a))
Within ninety days after the notice of deficiency is mailed, the taxpayer may file a petition with the Tax Court for a redetermination of the deficiency. Absent proper mailing of the notice of deficiency, subsequent assessments may be enjoined. (Code Sec. 6213(a))
Under Code Sec. 6212(b)(1), a notice of deficiency provides sufficient notice if sent to the taxpayer's last known address. Reg § 301.6212-2(a) provides that a taxpayer's last known address is the address shown on the most recently filed and properly processed return unless the taxpayer gives the IRS clear and concise notification of a different address.
The taxpayers were Mr. and Mrs. Chapman. IRS audited their 2006 return in 2012. At the time of the audit, the Chapmans lived in Hawaii. The last return that they filed before the audit began was their 2011 return, and it showed their address as that of their tax practitioner in Los Angeles. 
IRS proposed a deficiency, and the Chapmans protested this proposal. They met several times with Appeals Officer Lipetzky. Thereafter, IRS issued a notice of deficiency, which it sent to the Los Angeles address.
The Chapmans filed suit in Tax Court, but they did so well after the 90 days allowed under Code Sec. 6213(a). They claimed they never received the notice of deficiency and that the notice was invalid. They argued that, via their and their tax practitioner's interactions with Lipetzky, IRS should have known that they were living in Hawaii and, therefore, that their Hawaii address was their last known address.
The Court ruled that the Chapmans did not meet the "updated by clear and concise notification of a different address" requirement in Reg § 301.6212-2(a) and, therefore, the notice of deficiency was properly sent to their last known address.
The Court said that the taxpayer's argument was contrary to case law dating back several decades and contrary to the reg. 
Additionally, the Court said, accepting the taxpayer's argument would impose an unreasonable administrative burden on IRS; IRS would need to systematically record in a central file all address information acquired in any fashion.
Have a Tax Problem?

Contact the Tax Lawyers at 
Marini & Associates, P.A.
 
 
for a FREE Tax Consultation Contact us at:
www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888)882-9243.

 
 
 

Read more at: Tax Times blog

IRS to Temporarily Stop Passport Revocations for Taxpayer With Cases at the TAS

September 9, 2019

In a memorandum to Tax Advocate Service (TAS) employees, the TAS has stated that the IRS will temporarily decertify taxpayers with open TAS cases. Decertification means that taxpayers with seriously delinquent tax debts will, temporarily, not be at risk of having their passports revoked by the State Department merely because of those seriously delinquent tax debts.

IRC Sec. 7345 authorizes (but does not require) the IRS to certify a taxpayer's seriously delinquent tax debt to the State Department for the purposes of passport denial, limitation, or revocation. A seriously delinquent tax debt is an assessed individual tax liability exceeding $50,000 (adjusted for inflation) for which either a notice of federal tax lien has been filed or a levy has been made. IRS must also send a decertification to the Department of State where the certification was in error or where there is no longer a seriously delinquent tax debt. (Code Sec. 7345(b))
The Internal Revenue Manual provides details as to how the IRS certifies and decertifies a taxpayer. (IRM 13.1.24) A decertification protects the taxpayer's passport from being denied, limited, or revoked.
The National Taxpayer Advocate (NTA) has long advocated to exclude certain taxpayers with TAS cases from passport certification.
TAS has now issued a memorandum to its employees. In it, TAS notes that the IRS Commissioner, Charles Rettig, has not made a final decision on what the NTA has been advocating for. But he has agreed to temporarily suspend TAS cases from the certification program. Effective July 25, 2019, all open TAS cases with a certified taxpayer will be systemically decertified. New TAS taxpayers will also be systemically decertified.
TAS will not incorporate this guidance into the next revision of IRM 13.1.24 as the IRS Commissioner's decision is temporary. New guidance will be issued once the IRS Commissioner makes a final decision on this issue.
 Once You’ve Resolved Your Tax Problem With The IRS,



The IRS Will Reverse The Certification Within 30 Days Of Resolution Of The Issue And Provide Notification To The State Department As Soon As Practicable.


WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR AT LEAST 30 DAYS? 

Travel

If you’re leaving in a few days for international travel, need to resolve passport issues and have a pending application for a U.S. passport, you should call 888 8TaxAid immediately. If you already have a U.S. passport, you can use your passport until you’re notified by the State Department that it has been revoked. 
If your passport is cancelled or revoked, after you’re certified, you must resolve the tax debt by paying the debt in full, making alternative payment arrangements or showing that the certification is erroneous.
  
The IRS will reverse your certification within 30 days of the date the tax debt is resolved and provide notification to the State Department as soon as practicable.
WHO CAN AFFORD TO BE WITHOUT THEIR PASSPORT FOR
AT LEAST 30 DAYS? 
Those who discover they have not been in compliance with their US tax obligations, including filing of income tax returns or FBAR reports, may avail themselves of the IRS Streamlined Offshore Procedure, which does not include the draconian FBAR penalty for Non-US Domiciliary's.

If You Face This Problem, You Should Consult with Experienced Tax Attorneys, As There Are Several Ways Taxpayers Can Avoid Having the IRS Request That the State Department Revoke Your Passport. 

 

 Want To Keep Your US Passport?
 
 

Contact the Tax Lawyers at 
Marini & Associates, P.A.

 
 
for a FREE Tax Consultation Contact us at:
www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888)882-9243.

Read more at: Tax Times blog

IRS Announces New Procedures to Enable Certain Expatriates to Get into Compliance

September 6, 2019

The Internal Revenue Service announced on September 6, 2019 a new procedures that will enable certain individuals who relinquished their U.S. citizenship to come into compliance with their U.S. tax and filing obligations and receive relief for back taxes.

The Relief Procedures for Certain Former Citizens apply only to individuals who have not filed U.S. tax returns as U.S. citizens or residents, owe a limited amount of back taxes to the United States and have net assets of less than $2 million.

Only Taxpayers Whose Past Compliance Failures Were

"Non-Willful" Can Take Advantage Of These New Procedures.

Many in this group may have lived outside the United States most of their lives and may have not been aware that they had U.S. tax obligations.

Eligible individuals wishing to use these relief procedures are required:

  1. to file outstanding U.S. tax returns,
  2. including all required schedules and information returns,
  3. For the five years (5) preceding and their year of expatriation.
Provided that the taxpayer’s tax liability does not exceed a total of $25,000 for the six years in question, the taxpayer is relieved from paying U.S. taxes. The purpose of these procedures is to provide relief for certain former citizens. Individuals who qualify for these procedures will not be assessed penalties and interest.  

The IRS is offering these procedures without a specific termination date. The IRS will announce a closing date prior to ending the procedures.

Individuals Who Relinquished Their U.S. Citizenship Any Time After March 18, 2010, Are Eligible So Long As They Satisfy The Other Criteria Of The Procedures.

  • These procedures are only available to individuals.
  • Estates, trusts, corporations, partnerships and other entities may not use these procedures.

Relinquishing U.S. citizenship and the tax consequences that follow are serious matters that involve irrevocable decisions.

Taxpayers who relinquish citizenship without complying with their U.S. tax obligations are subject to the significant tax consequences of the U.S. expatriation tax regime.

Taxpayers interested in these procedures should read all the materials carefully, including the FAQs, and should seriously consider consulting Experienced Tax Counsel before making any decisions.

Need International Tax Help?
 
 
We Can Advise on How This Program Can Benefit You!
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
 
For a FREE Tax Consultation
at: www.TaxAid.com or www.OVDPLaw.com or
Toll Free at 888-8TaxAid (888) 882-9243



Read more at: Tax Times blog

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