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

(212) 974-3435

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. 

(212) 974-3435

Keeping it Real - Is Filing a Tax Return Voluntary? SELIG & Associates saves the Day

Some taxpayers assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. Proponents of this contention point to the fact that the IRS tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Additionally, these taxpayers frequently quote Flora v. United States, 362 U.S. 145, 176 (1960), for the proposition that "[o]ur system of taxation is based upon voluntary assessment and payment, not upon distraint."

The Law: The word “voluntary,” as used in Flora and in IRS publications, refers to our system of allowing taxpayers initially to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them from the outset. The requirement to file an income tax return is not voluntary and is clearly set forth in sections 6011(a), 6012(a), et seq., and 6072(a) of the Internal Revenue Code. See also Treas. Reg. § 1.6011-1(a).

Any taxpayer who has received more than a statutorily determined amount of gross income in a given tax year is obligated to file a return for that tax year. Failure to file a tax return could subject the non-compliant individual to civil and/or criminal penalties, including fines and imprisonment. In United States v. Tedder, 787 F.2d 540, 542 (10th Cir. 1986), the court stated that, “although Treasury regulations establish voluntary compliance as the general method of income tax collection, Congress gave the Secretary of the Treasury the power to enforce the income tax laws through involuntary collection . . . . The IRS’ efforts to obtain compliance with the tax laws are entirely proper.” The IRS warned taxpayers of the consequences of making this frivolous argument in Rev. Rul. 2007-20, 2007-1 C.B. 863 and in Notice 2010-33, 2010-17 I.R.B. 609.

Relevant Case Law:

Helvering v. Mitchell, 303 U.S. 391, 399 (1938) – the Supreme Court stated that “[i]n assessing income taxes, the Government relies primarily upon the disclosure by the taxpayer of the relevant facts . . . in his annual return. To ensure full and honest disclosure, to discourage fraudulent attempts to evade the tax, Congress imposes [either criminal or civil] sanctions.”

United States v. Tedder, 787 F.2d 540 (10th Cir. 1986) – the 10th Circuit upheld a conviction for willfully failing to file a return, stating that the premise “that the tax system is somehow ‘voluntary’ . . . is incorrect.”

United States v. Richards, 723 F.2d 646 (8th Cir. 1983) – the 8th Circuit upheld a conviction and fines imposed for willfully failing to file tax returns, stating that the claim that filing a tax return is voluntary “was rejected in United States v. Drefke, 707 F.2d 978, 981 (8th Cir. 1983).”

United States v. Hartman, 915 F.Supp. 1227, 1230 (M.D. Fla. 1996) – the court held that, “The assertion that the filing of an income tax return is voluntary is, likewise, frivolous.” The court noted that I.R.C. § 6012(a)(1)(A), “requires that every individual who earns a threshold level of income must file a tax return” and that “failure to file an income tax return subjects an individual to criminal penalty.”

Other Cases: 

United States v. Drefke, 707 F.2d 978 (8th Cir. 1983); United States v. Schulz, 529 F. Supp. 2d 341 (N.D.N.Y. 2007); Foryan v. Commissioner, T.C. Memo. 2015-114, 109 T.C.M. (CCH) 1591 (2015); Jones v. Commissioner, T.C. Memo. 2014-101, 107 T.C.M. (CCH) 1495 (2014).

SELIG & Associates: Proven Results We solve Income, Payroll and Sales Tax Problems. For a FREE legally privileged consultation with a Federal Tax Practitioner and licensed Attorney call (212) 974-3435 or through our Confidential Contact Form. 

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HOW TO STICK YOUR BIG FAT EX WITH your TAX BILL and other timely tax tips (CRASH COURSE)

FILING A JOINT RETURN Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. 

Joint responsibility Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. This means that if one spouse does not pay the tax due, the other may have to. Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. 

You may want to le separately if: 

•You believe your spouse is not reporting all of his or her income, or 


•You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. 


Divorced taxpayer. You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return led before your divorce. This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously led joint returns. 

Relief from joint liability. In some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. You can ask for relief no matter how small the liability. There are three types of relief available. 

1.           Innocent spouse relief. 


2.           Separation of liability, which is available only to joint lers who are divorced, widowed, legally separated, or have not lived together for the 12 months ending the date election of this relief is led. 


3.           Equitable relief. 


You must le Form 8857, Request for Innocent Spouse Relief, to request any of these kinds of relief. 

Signing a joint return. For a return to be considered a joint return, both spouses must generally sign the return. If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. If neither you nor anyone else has yet been appointed as executor or administrator, you can sign the return for your spouse and enter “ ling as surviving spouse” in the area where you sign the return. 

Spouse away from home. If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so that it can be led on time. 

Signing as guardian of spouse. If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. 

Spouse in combat zone. If your spouse is unable to sign the return because he or she is serving in a combat zone (such as the Persian Gulf Area, Serbia, Montenegro, Albania, or Afghanistan), and you do not have a power of attorney or other statement, you can sign for your spouse. Attach a signed statement to your return that explains that your spouse is serving in a combat zone. 

Nonresident alien or dual-status alien. A joint return generally cannot be led if either spouse is a nonresident alien at any time during the tax year. However, if one spouse was a nonresident alien or dual-status alien who was married to a U.S. citizen or resident at the end of the year, the spouses can choose to le a joint return. If you do le a joint return, you and your spouse are both treated as U.S. residents for the entire tax year. 

MARRIED FILING SEPARATELY 

You can choose married ling separately as your ling status if you are married. This ling status may bene t you if you want to be responsible only for your own tax or if it results in less tax than ling a joint return. If you and your spouse do not agree to le a joint return, you must use this ling status, unless you qualify for head of household status. 

If you live apart from your spouse and meet certain tests, you may be considered unmarried and may be able to le as head of household. This can apply to you even if you are not divorced or legally separated. 

If you qualify to file as head of household, instead of as married ling separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. The head of household ling status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. See Head of Household, later, for more information.

MONEY OVERSEAS? The Internal Revenue Service (IRS) has been aggressively pursuing unreported foreign accounts since 2009. During that time, the IRS has offered various Offshore Voluntary Disclosure Programs (OVDP's). On March 14, 2018, the IRS announced that the current OVDP would end on September 28, 2018. It is now imperative that you review the best way to help correct prior omissions for undisclosed foreign financials.

Selig & Associates We solve IRS & NYS Tax Problems quickly and quietly, without having to go to Court. Call David SELIG for a free consultation (212) 974-3435

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Man With Delicate Features & Diminutive Physique Pleads Guilty to Tax Crime

Selig & Associates

BREAKING NEWS A very unhappy man plead guilty in U.S. District Court to charges that he impeded the IRS by cashing over $2 million in checks from his business at check cashing services to evade the IRS.

DON’T GET SCREWED Selig & Associates solves Tax Problems. If you’re in trouble with the IRS or State, you need an experienced Advocate to stand up and protect your rights. 

STAY OUT OF COURT We settle difficult tax cases without going to court. We settle tax cases quickly and quietly. 

STAY OUT OF PRISON  We solve serious tax problems including Tax Crimes, Tax Evasion, Failure to File a Tax Return and Criminal Non-Filing, Filing False Tax Returns, Installment Agreements, Partial Payment Agreements, Audits, Sales Tax Controversies, Wage Garnishments, Bank Levies, Seizure of Property, Innocent Spouse Relief, Trust Fund Recovery Penalty, Payroll Taxes, Statute of Limitations, Offer in Compromise ("OIC"), Administrative Appeals, Collection Due Process Hearings ("CDP") and most other tax matters. 

Guaranteed 

We solve Tax Problems quickly and quietly.

Successful

We solve Civil and Criminal Tax Problems.

Proven

We solve Payroll and Sales Tax Problems.

Confidential

To schedule a legally privileged consultation with a Federal Tax Practitioner

and licensed Attorney call Selig & Associates directly (212) 974-3435.

Professional 

We practice before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYS”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”).

A Disproportionate Number of White American Males were Charged with Criminal Tax Evasion, says David Selig

Offender and Offense Characteristics

In fiscal year 2016, approximately two-thirds of tax fraud offenders were male (68.8%).

The majority were White (49.0%) followed by Black (30.3%), Hispanic (12.7%), and Other Races (8.1%).

The average age of these offenders at sentencing was 50 years.

The majority of tax fraud offenders were United States citizens (94.0%).

The majority of tax fraud offenders had little or no prior criminal history (80.0% of these offenders were assigned to Criminal History Category I).

The median tax loss for these offenses was $218,035.3

90.7% of tax offenses involved tax losses of $1.5 million or less.

25.9% of tax offenses involved tax losses of $100,000 or less.

Nearly two-thirds of tax fraud offenders were sentenced to imprisonment (63.9%).

The average sentence length for tax fraud offenders was 15 months.

If you’re in trouble with the IRS, you need a vigorous advocate to defend your rights.

Click here to read the entire report

Successful Civil and Criminal Tax Representation We practice before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Proven Results We successfully resolve IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Guaranteed Service We meet with our clients personally and we return telephone calls promptly. We answer emails and we provide our clients with regular updates and status reports. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Successful Tax Attorney             

Honest Tax Accountant