Two years ago, the Internal Revenue Service (IRS) had 74,608 pages in their Tax Code (laws). More pages have been added since then. Is it no wonder taxes are one of the most complicated and complex legal issues today? Adjustments are made yearly to the income tax brackets which most of us are aware of. However, there are also other adjustments made, making taxes even more confusing. Thirty-three years ago “tax indexing” was added to the tax codes. Tax indexing adjusts variou
Nothing chills our veins like a letter from the IRS. Especially when you open the letter and find you’re under an IRS Audit or under an IRS Investigation. After you get over the shock - think twice before you even think of calling them. What you say to the IRS and what documents you provide can and most likely will be held against you. Most people think if they cooperate with the IRS, answer all their questions and give the IRS everything they ask, they’ll be treated better.
On December 8, 2017, the Internal Revenue Service (IRS) made changes to its authentication system. This is the system that verifies tax returns that mortgage applicants provide. The system is known as the Income Verification Express System (IVES) and is in place to make sure tax returns aren’t fraudulent. Within five days of the changes, on December 13, mortgage groups were finding problems with the new system. Other groups said problems with the changes began almost immediat
Nationwide, home foreclosures have dropped to their lowest level since November 2005. During April 2017, there were 77,049 filings reported in the U.S. This number includes default notices, scheduled auctions and bank repossessions. The figures reflect the lowest number of foreclosures since the housing crisis began. While the drop is significant, at the same time there was a rise in repeat foreclosures. A repeat foreclosure is noted as any property address with the same owne
The Federal Home Loan Mortgage Corporation, known as Freddie Mac, announced last week that it’s selling off non-performing loans to private investors. Freddie Mac is a public government-sponsored enterprise (GSE) headquartered in Virginia. Freddie Mac was created in 1970 to help expand the mortgage market alongside the Federal National Mortgage Association (Fannie Mae). Previously, from 1938 to 1968 Fannie Mae was the only institution that bought mortgages leading to and enco
The Home Affordable Modification Program (HAMP) was introduced in 2009 and established to help homeowners recover from the great housing bubble burst. The HAMP was part of the Making Home Affordable program (MHA) along with the Hardest Hit Fund program (HHF) that was under the Troubled Asset Relief Program (TARP). These programs were part of the Emergency Economic Stabilization Act of 2008 and put into place to help struggling homeowners avoid foreclosure. HAMP and the entire
If you’re starting a new business, the tax obligations aren’t something you should try to handle alone. Meeting with a qualified tax and business attorney can save you thousands of dollars and ensure your business is starting out on the right foot. When it comes to taxes, there’s no room for error. An audit, additional taxes, penalties and fees can become a nightmare if you make one error, or grab the attention of the IRS. The first day your business is up and running, your b
There are many reasons to hire a Denver tax attorney, but none hit the mark more than ‘resolution’ and ‘confidentiality’. Resolution: A tax attorney is the only source that has the experience in achieving tax settlements and tax negotiations. A Certified Public Accountant (CPA) does not have a full understanding of tax laws and tax codes that can change several times a year. A tax attorney also has clear and full comprehension of the many programs available to help the taxpay
Lyndon McLellan has owned a small convenience store in rural North Carolina for the past 13 years. His store, L&M Convenience Mart, is his life. He works seven days a week, 12 to 13 hours a day as a small business owner selling hot dogs and soft drinks. Over the course of the last 13 years of owning the store, he managed to save $107,000. The $107,000 is every penny he’s worked so hard for. Spread out over 13 years, that’s about $8,200 a year he’s managed to put away in the b
When workers signed up for Obamacare, they submitted their estimated annual income to qualify for tax subsidies. But 55% of those American households took home more money than they expected or estimated. Workers who underestimated their income due to more overtime or changing jobs will be hit with a tax bill along with part-time workers and free-lancers who made more income than they estimated. Americans who had an alteration in family status such as divorce, marriage or dea
Under normal circumstances, when your home mortgage debt is either all or in part cancelled you will be taxed on that amount. However, The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. This provision applies to debt forgiven from 2007 to 2014. Up to $2
February – the month of romance, Valentines and a hint that spring is on the way. It’s also the month you receive all those 1099’s, W-2s and other tax forms in the mail. The taxman cometh so we must prepare. There are several things that will make the taxman take a second look at your return - as in an audit. That dreaded word can send chills up your spine. Even if you’re completely in the right, the audit itself can be costly in time alone. Normally, individual audits occur
There are many reasons why someone may not have filed taxes, including financial difficulties. Back taxes accrue interest and penalties- quickly adding to the total debt owed to the IRS. When the IRS feels you’ve been hiding money, filed fraudulent returns or willfully failed to file, there are cases where jail time is ordered. The IRS can also place liens against your property or seize your property including bank accounts and garnish your wages without ever going to court.