Dec 242014

For nearly twenty two years, Federal Tax Resolution has been helping taxpayers make sense out of tax predicaments. With Tax Professionals who have a combined experience of over 100 years to serve you, we know IRS precedent and will use it to your advantage. We honestly don’t care how you fell behind on your taxes, but prefer to concentrate our efforts on what we can do to help you.

A few days ago, we experienced the winter solstice. The darkest and longest day of the year is over. More light brings renewed enthusiasm, new growth, and longer days. If your experiencing a dark period in your life, due to the IRS, call us at 1-888-689-7861, and let us bring back the light back into your life. HAPPY HOLIDAYS FROM  FEDERAL TAX RESOLUTION !!!!


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Dec 012014

The Sixteenth Amendment to the United States Constitution gives the U.S. Congress the authority to levy an income tax. The two specific provisions are Article 1, Section 2, part 3, and Article 1, Section 8, part one. Born from the funding of the Civil War, the Income Tax became enshrined in law in the case of Pollock v. Farmers Loan & Trust Co. in 1895. The Sixteenth Amendment was then adopted February 3rd, 1913.

Income tax is generally used the Federal, State, and local governments, as a way to fund multiple programs. Partnership income is pass thru income, the taxable portion to each partner being the amount that passes thru as income. Business expenses are generally used to offset income, reducing taxes. Even Capital Gains are taxable, usually at a lower rate.

In January of the New Year, the IRS starts to process tax returns as they receive them. The deadline for filing a tax return is April 15th each year, unless the 15th falls on a Saturday or Sunday, in which case the filing date would be the following monday. If you want to avoid late payment penalties, the tax amount you owe must be paid by April 15th, even if you file for an extension to file. October 15th is the deadline to file, if you filed an extension prior to or on April 15 of the tax year.

Your taxes are considered late, or BACK TAXES, if you did not pay with your extension, or if you failed to file a tax return by April 15th of that tax year. The IRS generally only goes back 7 years on back taxes, but due to the 10 year statute of limitations on collections, they may file a Substitute for Return (where they file for you) for up to ten years.

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May 092014

Wash. D.C.

In its annual report to Congress, the IRS acknowledged that it has failed to do all it can to recover “hundreds of millions” of dollars thru the IRS Whistleblower program. The program was set up by Senator Chuck Grassley, in a bill he co-sponsored in 1986 to give teeth to the “Qui Tam” provision of the False Claims Act.

Thousands of claims by Whistleblowers have been made, but only nine times did the IRS award any money to Whistleblowers. Whether the funding cutbacks are hurting this program, or whether it is simply not a priority for the IRS is hard to tell.

 05/09  No Responses »
Jul 202012


A pseudo event is a made up event. It really doesn’t exist until the news coverage of the event. Dennis Rodman announcing who his bride was at a pre-planned media event, only to show up in the wedding dress himself, is a perfect example. The event was used to gain free publicity.

The Romney campaign yesterday had Mrs. Romney state that if they released their tax returns, the other side would find something to make an issue out of. As most TV analysts have stated, its best to get the bad news out, deal with it for a few days, then be done with it. Even Republicans have stated that is the wise thing to do.

By not disclosing the information contained in those tax returns, if the Romney’s have nothing to hide, they have created the illusion that they do have something to hide. If on the other hand they really do have something to hide, by not disclosing it, they create a sense of distrust and thoughts that a Romney Administration might not disclose much to the American people.

The Bush Administration did that in energy hearings, with Ken Lay, former Enron Executive, as one of the key players. Then came the California Energy crisis. The reality of the Iraq war, and the reason for going to war, was never really disclosed until insiders finally came out and revealed the truth. After what this nation just went through, do we really need another President to hide things from the American people ?

It has been a tradition for Presidential Candidates to disclose tax return information for some time now. So is Mr. Romney starting a new tradition ?  And if so, is this a good tradition or not !

 07/20  No Responses »
May 102012

When Congress passed the recent Homebuyer Tax Credit, used to help spur the housing recovery, the IRS set up a website to obtain information, which could be used to make sure you had been given that credit.

Be prepared to give your Social Security or Individual Tax ID number (ITIN), your date of birth, and the location of the property.

The following information may be put into your browser to get to that IRS Webpage,

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May 042012

If you file online for an IRS Employment Identification Number, or EIN, their is no need to fill ou out form SS-4. The IRS ask questions, you answer, then after your answers are verified, you are issued an EIN. You can even print your EIN form online, after verification.

Due to the large volume on the system, the IRS will limit the number of EIN’s assigned per day to a responsible party, to five per day. This limit is set regardless of whether you apply online, by phone, or fax.

IRS publication 15 provides information on employer tax responsibilities regarding taxable wages, employment tax withholding and which tax returns should be filled out. Publication 15-A goes into more complex issues and if you need information on employee benefits, try Publication 15-B, which has most of what you will need.

 05/04  No Responses »