It’s that time of year again when you have to start thinking about your taxes. For some people, this is a simple process. They gather up their documents and send them off to their accountant. But for others, it’s a complicated and stressful process. They’re not sure what they’re doing and are worried about making a mistake.

Bankruptcy is often viewed as an admission of failure or a defect of character. But, bankruptcy is not a desperate move but a second chance to rebuild your financial future.

As a Certified Public Accountant and a tax expert, I always have to work within the purview of the tax law. However, very often, I have encountered cases that require me to go beyond what I generally do to ensure that my clients get what they deserve and ensure success.

The IRS restructuring act added Section 6320 of the U.S. Tax Code. It gives you the right to request a hearing when the IRS has filed a tax lien against you or has issued you a notice that it intends to file a levy. As an expert in the field, Christopher G Carmona CPA, APC, wants to help you understand the truth behind how a Collection Due Process (CDP) hearing works. 

With the downturn in the economy and massive job losses, personal bankruptcy filings have exploded. Many clients may benefit from including federal tax debts in their petition during this time. Besides being aware of the tax resolution options of bankruptcy, a professional will be familiar with administrative tax resolution methods, which the client should pursue first. As experts in the field, we at Christopher G Carmona CPA, APC want to help you understand the truth about discharging taxes and how it can affect you. 

At Christopher G Carmona CPA, APC, we are a CPA Firm that strives to prepare returns at affordable prices while minimizing taxes for clients. We listen carefully to understand our client’s concerns. Therefore, we like to find solutions to the tax problems they may have with the Internal Revenue Service (IRS). Please keep reading to learn how we help clients that can’t pay their taxes. 

At Christopher G Carmona CPA, APC, we understand that payroll tax payment and filing requirements can be quite a challenge. The rules can be complex, and penalties for non-compliance severe, but accurate and timely compliance is the key to avoiding payroll tax penalties!

Public accountants help with tax levy preparation and filing. They also assist with asset protection, estate planning, bookkeeping and accounting. They provide information about tax laws and regulations along with helping with asset protection and estate planning.

With the IRS claiming between $50-$52 billion in collectable tax debt but limited resources to collect it, Congress passed a law requiring the IRS to use private collection agencies to help retrieve this debt. The law, passed in 2015, led the IRS to assign certain types of inactive debt cases to Private Debt Collection (PDC) agencies to help the IRS collect the debts they were not actively pursuing.

The Collection Due Process (CDP) appeal is your opportunity to seek an independent review of your tax assessment to be sure that the Internal Revenue Service (IRS) has not made a mistake. The CDP appeal is used to appeal any enforcement actions, such as federal tax liens, property seizures, liens or wage garnishments that are made against you. 

Corporations are obligated to pay a number of taxes, including payroll taxes, sales and use taxes, and income taxes. If they fall behind or fail to pay these taxes, the IRS will come calling and could levy fines and penalties. Typically, people believe that any person in the company who is required to collect, pay over, or financially account for taxes paid to the IRS may be held liable for the failure of payment. However, it is not solely the responsibility of those in charge of finances to be held liable for errors not made by them. Believing in such myths and misconceptions, you find online can severely hamper you. In order to help you steer clear of this misconception, Christopher G Carmona CPA, APC, has debunked this widely believed legal myth in the accounting industry.

Happy Holidays from Christopher G Carmona CPA, APC. Wishing you a joyous and safe holiday season and a Happy New Year 2022!

If an employer has not paid federal withholding taxes, the IRS may issue a Letter 1153 assessment and Form 2751. Letter 1153 is an IRS Trust Fund Recovery Penalty (TFRP) assessment against a business or responsible party. If you received a Letter 1153, the IRS has determined that you are responsible for an assessment for unpaid payroll taxes. A Form 2751 is issued along with the Letter 1153 and provides for agreeing to the assessment. To help you learn more about how you should go about the agreement process and how to appeal the proposed assessment in case it isn’t accurate, Christopher G Carmona CPA, APC has put together information on what exactly the Proposed Trust Fund Assessment: Letter 1153 and Form 2751 entail.

Regardless of any business, if you’re an employer, it is important you know about tax laws, the rules and regulations about tax preparation, and when to pay them. However, as a business owner, you may be oblivious to the tax process, so a wise decision would be hiring a tax professional capable of meeting the requirements of your specific business.

An Offer in Compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. Minor mistakes can have big consequences for Offer in Compromise (OIC) cases. Sometimes they can simply cause confusion and delays, but some can lead to outright rejection. Either way, making mistakes in an Offer In Compromise application will bring time-consuming and costly complications. To help you avoid some basic errors that could prove to be costly, Christopher G Carmona CPA, APC has put together a list of the most common mistakes people make when applying for an Offer In Compromise. When considering whether to file an Offer in Compromise or not, you should consider several issues beyond just that of the RCP calculation. 

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The Revenue Officer will often seek interviews with those individuals it believes are responsible for the unpaid payroll taxes. The reason is that it helps the IRS determine if there were other individuals who should be considered as responsible parties and pursued for the Trust Fund assessments. The Revenue Officer will conduct the interview utilizing its Form 4180, Report of Interview with Individual Relative to Trust Fund Recovery Penalty or Personal Liability for Excise Taxes.  There are issues with the IRS Form 4180. This Form used to be eight pages long in 2003. It is now three pages long. In an…

A fraudulent conveyance is where the tax debtor transfers assets to a third-party with the object or the result of placing the property beyond the reach of the creditor or hindering the creditor’s ability to collect a valid debt. A fraudulent transfer also occurs when property is transferred without fair consideration.  Taxpayers who attempt to frustrate collection by transferring away assets that the IRS lien has attached to are usually subject to this claim of fraud, and these liens would be filed against the recipient of the assets. Christopher G. Carmona CPA,CFE Orange County, USA 

Just because someone had signature authority does not mean they ever used that authority or had any knowledge of the tax problems. A critical piece of information to support a client’s defense that they did not sign payroll checks or even other checks would be copies of the cancelled checks. Like the bank signature card, a copy of these checks may be in the administrative file you obtain through the FOIA request. If they are not, the client may need to obtain copies from the bank. You need to review cancelled checks to determine that the client: A. did not sign…