NYC Tax Advocates

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Specializing in IRS and NYS Tax Representation. Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Comp Audit representation includes: NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.

Friday, December 27, 2019

IRS Offers in Compromise (“OIC”) and the Big 3 Time Requirement Rules of Bankruptcy "the waiting is the hardest part"



When it comes to Bankruptcy, Tax Debts and Timing, there are 3 main rules your Attorney and Accountant need to know: 

1.    Bankruptcy must be filed more than 3 years after your tax return was due a/k/a “the 3 Year Rule”

2.    Bankruptcy must be filed more than 2 years after your tax return was filed, a/k/a “the 2 Year Rule”

3.    Bankruptcy must be filed more than 240 days after the IRS assessed your tax liability, a/k/a “the 240 Day Rule”

IRS Tax Representation, Consulting and Tax Planning


Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 




Tax Debts and Bankruptcy. Selig and Associates



If you have Tax Debt, and you’re contemplating Bankruptcy, there are 3 important rules your Attorney and Accountant need to know: 
1.     Bankruptcy must be filed more than 3 years after your tax return was due a/k/a “the 3 Year Rule”

2.     Bankruptcy must be filed more than 2 years after your tax return was filed, a/k/a “the 2 Year Rule”


3.     Bankruptcy must be filed more than 240 days after the IRS assessed your tax liability, a/k/a “the 240 Day Rule”



Tax Representation, Advocacy and Strategic Tax Planning

Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation and Tax Planning services. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.
 
Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 


Wednesday, December 25, 2019

Topic No. 306 Penalty for Underpayment of Estimated Tax. "I saw you (and him) walking in the rain"



The United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year. You can do this either through withholding or by making estimated tax payments. If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers and fishermen, certain household employers and certain higher income taxpayers. For more information, refer to Publication 505, Tax Withholding and Estimated Tax.

Generally, taxpayers should make estimated tax payments in four equal amounts to avoid a penalty. However, if you receive income unevenly during the year, you may be able to vary the amounts of the payments to avoid or lower the penalty by using the annualized installment method. Use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts (PDF)  To see if you owe a penalty for underpaying your estimated tax.
The law allows the IRS to waive the penalty if:
1.    You didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
2.    You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect, or
3.    The underpayment was due to an inability to accurately calculate your estimated income tax payment due to the breadth of changes enacted by the tax reform.
Refer to the Form 2210 Instructions (PDF) for information on requesting a waiver of the estimated tax penalty. Please see IR-2019-144 for a waiver of the estimated tax penalty for eligible 2018 tax filers.
Refer to Publication 505 for information about federally declared disaster areas.
Refer to the Form 1040 Instructions (PDF) for where to report the estimated tax penalty on your return.



Tax Representation, Consulting and Tax Planning

Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 




Tuesday, December 24, 2019

NYS Tax Department Cancels Christmas – Seizes Employees Payroll


On December 20th 2019, just 4 days before Christmas, the New York State Department of Taxation and Finance seized over $20,000 from a small business’s Designated Employee Payroll Account. And as a direct and clearly foreseeable consequence of this enforcement action, a store-full of minimum wage workers weren't paid for two-weeks worth of work. 

In other words, the workers, who have absolutely nothing to do with the tax debt, have no money for Christmas. They have money for food. No money for transportation. No money for baby formula. No money for diapers, or for any other necessity that most of us take for granted. 

What makes this case so outrageous is that we were negotiating a payment plan whereby my client would pay the State $50,000 on Friday December 27th says David Selig of Selig & Associates. Then without warning the State went back on its word and seized the company’s entire payroll. 

Ironically, the only people the Tax Department actually hurt, were the company's minimum wage workers, who are almost exclusively women of color, and mostly single mothers, says Selig. 

But let’s keep it 100, says Selig, the State employees who carried out this financial pogrom are also people of color. So it’s hard for me to make sense of their actions, other than to say they’re just mean, and to a greater extent, foolish inasmuch as they consistently step over dollars to pick up nickels.

My client is a successful businessman who keeps an attorney and accountant on retainer. So when push comes to shove, he can always file for bankruptcy or pursue some other strategic course of action before the State can divest him of a single asset. 

Conversely, his minimum wage workers are extremely vulnerable because they live paycheck to paycheck. And if they don’t return to work (because they weren’t paid) our client may never have to pay them. But don’t get it twisted, says Selig. No one at the State gives a damn about minimum wage workers either, so it’s hard to find the moral high ground. Nevertheless, it’s still frustrating because I tried like the Devil to get the State to release this levy and pay the workers - but it was all for naught. 

On Tuesday December 24th 2019 the good folks at Metrotech refused to release the worker's pay, and eventually stopped answering my calls. I suppose the State employees went home to enjoy their paid holiday - while their undeserving victims are left to suffer. Seasons Greetings! 

David Selig, CPCU Federal Tax Practitioner can be reached for comment at:
(212) 974-3435 or by email: Dselig@truetaxhelp.com


Tax Lobbyist Sentenced & Sent to the Slammer for Filing a False Tax Return "the freaks come out at night"




An Alexandria, Virginia, tax lobbyist was sentenced to one year in prison today for willfully filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.

According to court documents, attorney James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by more than $2.2 million. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted partnership income he received from two law firms and the gross receipts he received from his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was more than $730,000.
In addition to the term of imprisonment, U.S. District Judge Leonie M. Brinkema, ordered Miller to serve one year of supervised release and to pay restitution to the United States in the amount of $735,933.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United State Attorney Ryan S. Faulconer from the Eastern District of Virginia and Trial Attorney Terri-Lei O’Malley of the Tax Division, who prosecuted the case.

Tax Representation, Consulting and Tax Planning


Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 



Monday, December 23, 2019

New Jersey Man Convicted of Promoting Tax Fraud Scheme – Better call SELIG & Associates "oops used your head"


A federal jury sitting in Camden, New Jersey, convicted an Atlantic City man of conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to evidence presented at trial, between 2015 and 2016, Kenneth Crawford Jr., and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained for their clients fraudulent refunds from the Internal Revenue Service (IRS).  Crawford promoted the scheme to individuals who were facing foreclosure or behind on their mortgage payments, and represented to them that they could extinguish their outstanding mortgage debts by filing tax forms with the IRS.  As part of the scheme, Crawford and his co-conspirators caused clients to file forms that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false withholding claims caused the IRS to authorize significant refunds to which the clients were not entitled. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS, of which the IRS paid out more than $1.3 million.  Crawford charged his clients a fee of roughly 25 percent of the refund obtained.
When the IRS discovered the fraud and attempted to recover the previously issued refunds, Crawford provided clients with false and fraudulent documents to send to the IRS, directed clients to conceal from the IRS his role in filing the false returns, and advised clients to remove funds from bank accounts in their names in order to thwart IRS collection efforts.
U.S. District Judge Robert B. Kugler scheduled sentencing for March 20, 2020. As a result of his conviction, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws.  He also faces a period of supervised release, restitution, and monetary penalties. 
Crawford is currently detained pending sentencing as a result of his conviction, and for previously violating his conditions of pretrial release.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Sean Green and Assistant Chief John Kane, who are prosecuting the case.  He also thanked the United States Attorney’s Office for the District of New Jersey for its assistance and support during the investigation and prosecution of this case.

Tax Representation, Consulting and Tax Planning


Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Federal and State Tax Representation. Legally privileged consultations are available Tuesday through Friday in our New York City offices. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

Tax Advisors: Our Consulting and strategic Tax Planning services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. 

W/C & NYSIF Assessments: We help Construction Companies with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. Call us directly (212) 974-3435 to schedule a Free Consultation.

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need to establish a new Corporation, LLC or S-Corp? We can help. All States. Contact us directly for immediate assistance. 

Friday, December 20, 2019

Sales Tax Sting in Brooklyn - Solving NYS Sales Tax Problems - Selig and Associates



The New York State Department of Taxation and Finance announced it seized more than 336 cartons of untaxed cigarettes following two store inspections in Brooklyn. Tax Department investigators conducted routine inspections in Brooklyn at S&O Star Deli Corp, 6602 Bay Parkway, and A&B Food Corp, 7402 17th Avenue, on Tuesday, December 3. They found a combined total of 336.8 cartons of cigarettes bearing counterfeit New York State and New York City tax stamps, as well as ones with stamps from Connecticut, Georgia, and Virginia. “Business owners who evade the tax on cigarette and tobacco products or other sales put honest merchants at a competitive disadvantage and deprive their communities of revenue used to fund vital services,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “We’ll continue to conduct these inspections and work with our law enforcement partners to ensure a level playing field for all.” The owner of A&B Food Corp, Abul Islam, 59, was arrested and charged with multiple felonies, including possession of a forged instrument, attempt to evade cigarette tax on 10,000 or more cigarettes, and possession for sale of counterfeit-stamped cigarettes. More than 96 cartons of illicit cigarettes were seized from his store. The owner of S&O Star Deli Corp, Salah Aizah, 53, was arrested and charged with multiple felonies, including possession of a forged instrument, possession for sale of 30,000 or more cigarettes, and possession for sale of counterfeit-stamped cigarettes. More than 240 cartons of cigarettes with counterfeit and out-of-state tax stamps were seized from the store. In addition to the criminal charges, the defendants each face fines of up to $600 per carton seized, which would total more than $144,000 for Salah Aizah and more than $57,600 for Abdul Islam. The Kings County District Attorney’s Office is prosecuting the cases. A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.



Tax Representation, Consulting and Strategic Tax Planning


Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Tax Representation, Consulting and Strategic Tax Planning Services and can help you significantly reduce your income tax liability in 2020. Legally privileged consultations are available Tuesday through Friday. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

W/C & NYSIF Assessments: We help Construction Companies and Business Owners with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. 

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need a new Corporation, LLC or S-Corp? Contact us directly for immediate help and assistance. 


Tuesday, December 17, 2019

The True Tax Consequences Associated with Giving Employees Gift Cards, by David Selig, Selig & Associates



  • Gift cards redeemable for cash are taxable to the employee. And contrary to some bad information that’s been floating around the Internet, there is no “holiday gift exemption”.
  • Monetary prizes, including achievement awards, as well as non-monetary bonuses like vacation trips awarded for exceeding sales goals, are taxable compensation, and not just for income taxes, but for FICA, so withholding taxes apply. 
  • Gifts worth more than $75 are taxable to the employee recipient.  Specifically, non-cash employee gifts of minimal value (under $75 per year), are not taxable.
  • Any item that could be considered either a gift or as entertainment is generally considered entertainment and cannot be deducted.
  • You need to have records that prove the business purpose of the gift as well as the details of the amount spent.
  • The tax-free value is limited to $1,600 for all awards to one employee in per year. Gifts awarded for length of service or safety achievement are not taxable, provided they are not cash, gift certificates or points redeemable for merchandise
But what about my customers?Are business gifts deductible?Answer:  If you give business gifts in the course of your trade or business, you can deduct all or part of the costs subject to the following limitations:

  • You deduct no more than $25 of the cost of business gifts you give directly or indirectly to each person during your tax year.
    • If you and your spouse both give gifts to the same person, both of you are treated as one taxpayer.
    • Incidental costs such as engraving, packing or shipping aren't included in the $25 limit if they don't add substantial value to the gift.
    • For purposes of the $25 per person limit, don't consider gifts costing $4.00 or less that have your business name permanently engraved on the item and which you distribute on a regular basis.





Tax Representation, Consulting and Strategic Tax Planning

Free Consultation: Federal Tax Practitioner, CPCU and Attorney. We provide our Clients with successful Tax Representation, Consulting and Strategic Tax Planning Services and can help you significantly reduce your income tax liability in 2020. Legally privileged consultations are available Tuesday through Friday. 

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Proven results. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. Speak with us directly (212) 974-3435 or contact us online.

W/C & NYSIF Assessments: We help Construction Companies and Business Owners with Workers Compensation Audits and NYSIF Premium Assessment Disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Comp violations. 

Expedited Service: Unfiled Tax Returns? We can have your missing Tax Returns prepared and filed within 48 hours, guaranteed. Do you need a new Corporation, LLC or S-Corp? Contact us directly for immediate help and assistance. 


COVID-19 Corporate Debt Restructuring vs. Bankruptcy

Corporate debt restructuring  a/k/a  "business debt restructuring" may be preferable to bankruptcy, as explained in Investopedi...