IRS Tax Withholding Estimator - IR-2020-09 Selig & Associates, Tax Representation, Workers Comp Audits

WASHINGTON — The Internal Revenue Service has launched a new and improved Tax Withholding Estimator, designed to help workers target the refund they want by having the right amount of federal income tax taken out of their pay.

The Tax Withholding Estimator, now available on IRS.gov, incorporates the changes from the redesigned Form W-4, Employee's Withholding Certificate, that employees can fill out and give to their employers this year.

The IRS urges everyone to see if they need to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. If an adjustment is needed, the Tax Withholding Estimator gives specific recommendations on how to fill out their employer's online Form W-4 or provides the PDF form with key parts filled out.

To help workers more effectively adjust their withholding, the improved Tax Withholding Estimator features a customized refund slider that allows users to choose the refund amount they prefer from a range of different refund amounts. The exact refund range shown is customized based on the tax information entered by that user.

Based on the refund amount selected, the Tax Withholding Estimator will give the worker specific recommendations on how to fill out their W-4. This new feature allows users who seek either larger refunds at the end of the year or more money on their paychecks throughout the year to have just the right amount withheld to meet their preference.

The new Tax Withholding Estimator also features several other enhancements, including one allowing anyone who expects to receive a bonus to indicate whether tax will be withheld. In addition, improvements added last summer continue to be available, including mobile-friendly design, handling of pension income, Social Security benefits and self-employment tax.

Starting in 2020, income tax withholding is no longer based on an employee's marital status and withholding allowances, tied to the value of the personal exemption. Instead, income tax withholding is generally based on the worker's expected filing status and standard deduction for the year. In addition, workers can choose to have itemized deductions, the Child Tax Credit and other tax benefits reflected in their withholding for the year.

It is important for people with more than one job at a time (including families in which both spouses work) to adjust their withholding to avoid having too little withheld. Using the Tax Withholding Estimator is the most accurate way to do this. As in the past, employees can also choose to have an employer withhold an additional flat-dollar amount each pay period to cover, for example, income they receive from the gig economy, self-employment, or other sources that is not subject to withholding.

 For more information about the updated Tax Withholding Estimator and the redesigned 2020 Form W-4, visit Tax Withholding Estimator FAQs and the FAQs on the 2020 Form W-4.

(212) 974-3435

Free Consultation Experienced Federal Tax Practitioner, CPCU and Attorney. Legally privileged consultations available Monday through Friday in our New York City offices. 

Proven Results ​Practicing before the Internal Revenue Service and New York State Department of Taxation and Finance. Successful Tax Representation, Workers Compensation Audits and Tax Planning Services. 

Effective Tax Advocates Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise and all other tax matters. Missing Tax Returns prepared and filed within 48 hours. For immediate assistance call (212) 974-3435.

Construction Companies NYSIF Premium Assessments, Workers Compensation and all other Insurance Audits. Specializing in Contested Audits, Employee Misclassification, Unreported Income, Application Fraud, Experience Rating and other W/C violations. 

Tax Advisors Our strategic Tax Planning and Tax Advisory services are designed to help Business-owners significantly reduce their income tax liability in 2020 and beyond. Keep more of what you make. Schedule a Free Consultation by calling or contacting us online.

Gov. Cuomo Lowers Boom on White Middle Class Families. Anti-White Tax Bias and the Elimination of STAR Benefits

State to Eliminate STAR Benefits for Homeowners That Fail to Pay Property Taxes

Localities to Report Tax Delinquents to Department of Taxation and Finance

Governor Andrew M. Cuomo today announced a proposal in the FY 2021 Executive Budget to deny School Tax Relief Program benefits to delinquent property owners. The measure would eliminate STAR benefits for homeowners that do not pay their property taxes. It would also require localities to report tax delinquents to the Department of Taxation and Finance so that a STAR credit or exemption can be withheld. Homeowners will be excluded from the STAR program until past-due property taxes are paid.

"These benefits are meant to help responsible taxpayers pay their school tax bill, and if someone is not paying their fair share, they should not be entitled to STAR - period," said Governor Cuomo.  

"By closing this loophole, New York will crack down on bad actors and help ensure these benefits go toward the hardworking taxpayers who deserve them" 

(which is Sanskrit for non-whites and other undocumented aliens) 

Commissioner of Taxation and Finance Michael Schmidt said, "Only those homeowners who pay their property tax bills should receive the STAR benefit. Governor Cuomo's proposal will help ensure that STAR only goes to those who deserve it, promoting property tax compliance and creating a fairer system for homeowners across the State."

In 2013, Governor Cuomo enacted reforms to the STAR program to crack down on delinquent taxpayers, including barring property owners who made a material misstatement on a STAR exemption application from receiving the exemption for six years. In 2015, the State Department of Taxation and Finance was authorized to recoup STAR benefits from property owners who unlawfully received those state benefits in past years, a power that previously resided with local assessors only.

The STAR program provides $3.4 billion in relief from school property taxes. It includes the Basic STAR credit benefit for homeowners with incomes of $500,000 or less, the Basic STAR exemption benefit for homeowners with incomes of $250,000 or less, and the Enhanced STAR benefit for seniors with incomes of $88,050 or less.

NYS Tax Dept Seizes 336 Cartons of Cigarettes from 2 Brooklyn Delis (Are Yemenites being Targeted?)

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 December 3^rd 2019. 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

(212) 974-3435

Free Consultation: Federal Tax Practitioner, CPCU and Attorney. Practicing before the Internal Revenue Service and the New York State Department of Taxation and Finance. We provide our Clients with successful Tax Representation and Tax Planning services. Legally privileged consultations available Tuesday through Friday in our New York City offices. 

Tax Advisors: Our strategic Tax Planning and advisory services are designed to help Business Owners protect their assets and significantly reduce their income tax liability in 2020. To schedule a Free Consultation call (212) 974-3435 or contact us online.

Tax Representation: Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Expedited service. Missing Tax Returns prepared and filed within 48 hours, guaranteed. Proven results. Corporations, S-Corps, LLC’s. For immediate assistance call (212) 974-3435.  

W/C NYSIF Assessments: We help Construction Companies with Workers Compensation Insurance Audits and NYSIF premium disputes, including Employee Misclassification, Unreported Income, Application Fraud, Experience, Rating and all other Workers Compensation Insurance violations. Schedule a Free Consultation today.

(212) 974-3435

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

(212) 974-3435

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. 

(212) 974-3435

Understanding the Statute of limitations on Tax Assessments in New York State, by David Selig, Selig & Associates

New York State Tax Law generally places a three-year statute of limitations on its right to assert additional tax due . However, a six-year statute of limitations applies to assert additional tax due when there is an abusive tax avoidance transaction, or, when a taxpayer omits 25% or more of their income from the return. A taxpayer and the Tax Department may agree in writing to extend the statute of limitations before it expires.  The statute of limitations to assert additional tax does not apply, however, for any period during which a taxpayer failed to file a return, failed to report the changes made by the Internal Revenue Service (IRS) to a federal tax return, or filed a false or fraudulent return with intent to evade tax. For income, estate, and corporation tax purposes, a taxpayer is generally required to report a federal change to New York State within 90 days after the final determination of the change, correction, renegotiation, or disallowance. For amended returns filed on or after April 12, 2018, the statute of limitations on the State’s right to assert additional tax due, attributable to a change or correction made on such amended return, is generally one year from the date such amended return is led (unless a longer period of time applies or unless the amended return is due to federal changes).

Tax Representation, Consulting and Strategic Tax Planning

(212) 974-3435

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. 

(212) 974-3435

Tow Company Operator Faces Jail Time After Guilty Plea! Multiple Felonies Including Criminal Tax Fraud (he should have hired SELIG)

New York State Commissioner of Taxation and Finance Michael Schmidt said, “Frank and Shannon Inzano criminally evaded their taxes, starving our communities of support for vital public services. We will continue to work with all our partners in law enforcement to hold accountable those who try to game the system by committing tax fraud and other crimes against honest New Yorkers.”

The New York State Department of Taxation and Finance, the Putnam County District Attorney’s Office, New York State Police, and the New York State Department of Transportation today announced guilty pleas from the operators of Top Notch Towing in Mahopac, NY. Frank Inzano, 47, pleaded guilty to multiple felonies including criminal tax fraud, larceny, and attempted weapons possession. His wife Shannon, 42, pleaded guilty to misdemeanor charges. The couple, both of Carmel, NY, were arrested on May 21, 2019. Top Notch Towing had a contract with the NYS Department of Transportation to tow vehicles at a set rate from the Taconic Parkway. In response to an allegation of overcharging, New York State Police launched an investigation that determined that the couple had charged exorbitant rates. State Police executed a search warrant and seized business records, cash, and guns. Tax Department investigators reviewed the couple’s financial records when it became clear they were underreporting income.

Selig & Associates 

Our mission is to win every tax case with integrity ingenuity and thrift

(212) 974-3435

FREE Consultation We provide effective tax representation before the IRS and New York State. By addressing difficult tax controversies with professional expertise and positive energy, we can solve your tax problems, so you can get on with your life. To meet with us personally in our conveniently located New York City office, call 1-(212) 974-3435 or contact us Online. 

PROVEN Results We successfully resolve unpaid income, sales and payroll taxes, unfiled tax returns, monthly installment agreements, offer in compromise, audits, suspended drivers’ license, suspended passport, tax evasion, tax crimes and most other tax issues. Do you have missing tax returns? We can have them prepared and filed for you within 48 hours, guaranteed. Find out what we can do for you. 

(212) 974-3435

Did Yury Run Unsafe Flophouses in New York City? The New York Times says YES

The New York Times says YES

Did Yury B. really run unsafe flophouses that housed homeless people and addicts in the New York City area?  Did he push many residents into unneeded drug rehab, force some to take drugs, and evict anyone who didn’t cooperate? 

Selig & Associates is a Tax Representation and Insurance Claims Settlement firm. Don't be fooled by out of state companies, we are conveniently located in New York City, and we meet with each perspective client personally. To schedule a legally privileged consultation with a result driven Federal Tax Practitioner CPCU and Attorney, please call us directly at (212) 974-3435. 

Selig & Associates is a Tax Representation and Insurance Claims Settlement firm. Don't be fooled by out of state companies, we are conveniently located in New York City and we meet with each and every client personally. To schedule a legally privileged consultation with a result driven Federal Tax Practitioner CPCU and Attorney please call us directly at (212) 974-3435. 

We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients.

Effective Tax AdvocacyWe successfully resolve most civil and criminal tax problems including suspended Drivers Licenses and Passports. We provide practical solutions to difficult IRS and State tax problems. Specializing in unpaid sales and payroll taxes. We negotiate affordable installment agreements and if you have missing or unfiled tax returns we can have them prepared and filed for you within 48 hours guaranteed. For immediate assistance please call us directly at (212) 974-3435 or contact us online.  

Insurance Claims We settle insured property damage claims in the shortest amount of time and at the least cost to the policyholder and insurance company. Insurance litigation is costly and time consuming. Accordingly we provide policyholders and insurance companies with a cost effective alternative to litigation. Commercial and residential insurance representation includes: Environmental Damage, Mold (removal & remediation) Fire, Business Interruption, Burglary, Vandalism, Windstorm and Water Damage.  

For more information about our Tax and Insurance Claims Settlement services or to schedule a FREE consultation, call (212) 974-3435 or contact us online. 

Owner of Scrap Metal Business Sentenced for Tax Evasion

Nellie Brown Boxx was sentenced to 18 months in prison without parole, and ordered to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx, the owner of Frank Metal Company, pleaded guilty on Feb. 19, to tax evasion. Boxx assisted tax preparers to prepare tax returns that contained false information. For example, Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company. Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. In addition, Boxx submitted a false 2008 Form 1040 to a bank in order to receive a financial loan and admitted that she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments scheduled Monday through Friday. For immediate assistance call (212) 974-3435 or contact us Online. 

Restaurant Tax Accountant and Tax Attorney We negotiate excellent installment agreements and provide restaurant owners with effective sales tax and audit representation, including unfiled tax returns and all Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

Business Tax Accountant and Tax Attorney We negotiate affordable repayment plans and provide our business clients with effective payroll tax and audit representation, obtaining government contracts with a tax lien, compliance checks, missing tax returns and Workers Compensation audits. For immediate assistance call (212) 974-3435 or contact us Online. 

Attorney & IRS Employee Convicted of Tax Evasion (NEED TAX HELP? CALL SELIG & ASSOCIATES)

A federal jury in Las Vegas, Nevada, yesterday convicted Craig P. Orrock, a former attorney and former Internal Revenue Service (IRS) employee, of tax evasion and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan of IRS-Criminal Investigation.

According to court documents and evidence presented at trial, starting in the early 1990s, Orrock, currently of Sandy, Utah, evaded the payment of his federal income taxes and obstructed IRS efforts to collect those taxes. Orrock filed federal individual income tax returns for the years 1993 through 2015, but failed to pay the income taxes reported as due. He attempted to prevent the IRS from collecting the reported income taxes through the use of nominee entities, bank accounts and trusts to hide his income and assets from IRS collection officers. Orrock attempted to evade the assessment of a large part of the income tax he owed for 2007, by concealing from the IRS both the ownership of real estate he held through a nominee known as Arville Properties LLC as well as the proceeds from the sale of the property. 

From 1993 through 2015, Orrock evaded the payment of over $500,000 in federal income taxes.

Orrock faces up to five years in prison on each of the first two counts and up to three years in prison on the third count, as well as a period of supervised release, restitution and monetary penalties. Sentencing is scheduled for Aug. 26.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Patrick Burns and Tax Division Trial Attorney Erin S. Mellen, who are prosecuting the case.

Tax Evasion Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation) imprisoned not more than 5 years or both, together with the costs of prosecution. 26 U.S. Code Section 7201. For immediate assistance with this or any other tax matter call (212) 974-3435 or contact us Online.  

Suspended NYS Drivers License If your drivers license has been suspended for unpaid taxes, we can help. New York State can suspend your drivers license if you owe $10,000 or more in taxes, penalties and interest. See: New York Tax Law Section 171-v. 

Failure to File Tax Returns  If you haven’t filed a tax return for one or more years, we can help. FYI Under federal law failure to file a tax return is usually treated as a misdemeanor, IRC §7203. However in more egregious cases, willful failure to file a tax return may be elevated to a felony, IRC §7201. Additionally, under New York State Tax Law Section 1801(a)(1) willful failure to file a tax return may now be prosecuted as a felony.  For immediate assistance call us directly at (212) 974-3435. 

The IRS and National Small Business Week

As part of Small Business Week, the Internal Revenue Service today reminds small business owners and self-employed people that they can avoid a surprise tax bill and possibly a penalty by making estimated tax payments during the year.

This year, National Small Business Week is May 5-11. For more than 50 years, the week has recognized the important contributions of America’s entrepreneurs and small business owners.

By law, everyone must pay tax as they earn income. Estimated tax is the method used to pay tax on income that is not subject to withholding. For small business owners and self-employed people, that usually means making quarterly estimated tax payments as they earn or receive income during the year. They need to pay as they go, so they don’t owe.

Individuals, including sole proprietors, partners and S corporation shareholders, generally must make estimated tax payments if they expect to owe tax of $1,000 or more when they file their 2019 tax return. Often, this includes people involved in the sharing economy. Corporations generally must make these payments if they expect to owe tax of $500 or more on their 2019 tax return.

Estimated tax is used to pay not only income tax but other taxes such as self-employment tax and alternative minimum tax. Estimated tax requirements are different for farmers and fishermen. Publication 505, Tax Withholding and Estimated Tax, has more information about these special estimated tax rules.

How and when to pay estimated taxes

The next quarterly estimated tax payment for 2019 is due June 17. Taxpayers may have to pay estimated tax for 2019 if their tax was more than zero in 2018. See the worksheet in Form 1040-ES, Estimated Tax for Individuals (PDF), or Form 1120-W, Estimated Tax for Corporations (PDF), and Publication 505 for details on how to figure estimated tax payments.

Using the Electronic Federal Tax Payment System (EFTPS) is the easiest way for individuals and businesses to make estimated tax payments. Using EFTPS, they can access a history of their payments, so they know how much and when they were made. Corporations must deposit payments using the EFTPS. For more information, refer to Publication 542, Corporations.

Wage-earners who also have business income can often avoid having to pay estimated tax by asking their employer to withhold more tax from their earnings. The IRS urges anyone in this situation to do a Paycheck Checkup, using the IRS Withholding Calculator. If the calculator suggests a change, they can then submit a new Form W-4 (PDF) to their employer. This form has a special line to enter any additional withholding amount.

Penalty for underpayment of estimated tax

Anyone who pays too little tax through withholding, estimated tax payments or a combination of the two may owe a penalty. In some cases, the penalty may apply if their estimated tax payments are late, even if they’re due a refund.

For tax year 2019, the penalty will generally apply to anyone who pays less than 90 percent of the tax reported on their 2019 income tax return during the year through withholding, estimated tax payments or a combination of the two. People who base their estimated tax payments on last year’s tax will normally avoid a penalty if they pay 100 percent of the amount shown on Line 15 of their 2018 Form 1040 (110 percent if their income was more than $150,000).

Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishermen, casualty and disaster victims, those who recently became disabled and recent retirees. In addition, anyone who receives income unevenly during the year can often avoid or lower the penalty by annualizing their income and making unequal payments throughout the year. See Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts (PDF) (or Form 2220, Underpayment of Estimated Tax by Corporations), for more on the penalty. Refer to the Form 1040 Instructions or Form 1120 Instructions (PDF) for where to report the estimated tax penalty.

Here’s a reminder for those who still need to file for tax-year 2018. An expanded estimated tax penalty waiver may be available to those who paid too little tax during 2018. See Form 2210 and its instructions and Form 843, Claim for Refund and Request for Abatement, for details.  

More information:

• Estimated Taxes
• IRS.gov/payasyougo
• Self-Employment Tax, Social Security and Medicare Taxes
• Sharing Economy Tax Center
• Self-Employed Individuals Tax Center
• IRS Tax Calendar for Businesses and Self-Employed
• Filing and Paying Your Business Taxes
• FS-2019-6, Basics of estimated taxes for individuals