How Employment Lawyers Evaluate Potential Clients and Their Cases

When you consult a lawyer about your employment lawsuit, two things will go on: 1. You will evaluate the lawyer to decide whether this is the person that you want to represent you. 2. The lawyer will evaluate you and your case to decide whether he or she wants to represent you. Here is how [...]

COVID-19: Business and Tax Resources for Disaster Assistance and Loan Programs

Coronavirus Relief Options Our nation's small businesses are facing an unprecedented economic disruption due to the Coronavirus (COVID-19) outbreak. On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses. Funding Options In addition to traditional SBA funding programs, the CARES [...]

IRS Mines for Data: IRS is Using Data Mining Software to Identify Tax Cases

The IRS recently signed a seven-year, $99-million deal with a private company for data mining software to help the IRS track down and prosecute tax cheats. The technology can sift through mountains of taxpayer information, exposes suspicious activity, and identify cases for possible audit. With tight budgets, the software boosts efficiency. The IRS is being [...]

Alimony Payments : What Records Do You Need to Keep?

Although courts have been less inclined in recent years to grant alimony (spousal support paid from one partner to the other on an ongoing basis following a divorce), there are some scenarios in which it is more commonly awarded, such as when one partner was responsible for the vast majority of the couple’s combined income [...]

Are You on the IRS Radar?

Although the IRS lost a lot of staff over the past few years due to budget cuts, retirements, and hiring freezes, it has been hiring additional enforcement personnel in the past few months. The personnel are being trained and are starting to hit the field. That means the IRS is ramping up to increase tax [...]

The Cost of No Records – Keeping Track of Home Improvements is Important.

Many of us feel overwhelmed with paper and record keeping. I often get asked how long records should be kept, as well as what records to keep. Here’s a court case that will help you appreciate the need for good tax records. Proving Basis in the Home Riley and Joyce Pendergraft bought their home in [...]

IRS Audit – Mandatory Review of Tax Returns

Most people are probably aware that various groups, including the US Congress, have been trying to get President Trump to release his tax returns. In 2016, then candidate Trump indicated he would release his returns if elected.  More recently, President Trump has been asking the Federal Court to block a subpoena issued by the Manhattan [...]

Tax Fraud in Northern Virginia

In July 2019 a man who formerly resided in Herndon was sentenced to one year and a day in federal prison on each of four charges (two charges of theft of government money and two charges of money laundering) for his role in tax fraud i.e preparing false tax returns, stealing the refunds, and “laundering” [...]

How NOT to Value Charitable Contributions : Understanding Fair Market Value

A retired grandmother with a fondness for shopping sought a way to combine her love of shopping with a desire for a tax cut. In 2010 she developed what she described as her “personal tax shelter.” She learned that a taxpayer may generally claim a charitable deduction in an amount equal to the fair market [...]

Responding to Coronavirus for Businesses and Employers

Since a major pandemic of this scope has never happened before, there is broadscale confusion for businesses and employees during the quarantine. The CDC has issued guidelines as temporary closure orders remain at the discretion of individual states and counties. These guidelines, if they are not followed, can become lawsuits later on, so businesses will need to remain vigilant [...]

Can the IRS Garnish Social Security?

Social Security garnishment is generally prohibited when it comes to creditors. But the U.S. Government is no ordinary creditor and has the full force of the IRS to perform levies against tax-delinquent debtors. So can the IRS garnish Social Security? Simply put, yes. The IRS is among the only agencies that can levy your Social [...]

Filing IRS Form 12153 to Request a Collection Due Process Hearing

If you owe the IRS money, they may pursue aggressive collections actions against you. Unlike private lenders, they don’t have to go through the court to place liens on your property, levy your bank account, or garnish your wages. They do, however, have to provide you with notice of their intent to do so. If [...]

What Is an IRS Criminal Investigation?

If you are facing an IRS criminal investigation, the impact on your professional and financial well-being can be devastating. An experienced tax lawyer will help ensure that your business doesn't make costly mistakes that could lead to an investigation, as well as offer experienced defense if you are already in trouble with the IRS. Contact Sodowsky Law firm, P.C. to learn more [...]

What Is the IRS Statute of Limitations on Collections and Assessments?

The IRS has what is known as a Collection Statute Expiration Date (CSED). Logistically, the CSED is ten years. However, there are a number of waivers and extensions that the IRS can file for to extend the CSED. There are also exceptions to the ten-year rule. Below, we take a look at everything you need to know about the IRS statute of limitations on tax [...]

Tax Avoidance vs. Tax Evasion: What’s the Difference?

As a business owner, you are expected to file and pay your taxes each year. And the IRS knows there's nothing wrong with trying to pay less in taxes, allowing you to use legitimate strategies to lower your tax burden. But there is a huge difference between using legal tax avoidance tactics and trying to illegally underpay. [...]

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