I was not aware of Michigan Challenge Balloonfest until I started doing business in Livingston County. When I was asked to volunteer at the event by the Howell Chamber of Commerce, I was more than happy to accept. I am sure glad I volunteered. My family and I had a blast!
Bush tax cuts, what is at stake?
There has been a considerable amount of press on Bush Tax Cuts set to expire on December 31, 2012. What is not well publicized is there are many other tax provisions that have expired or are set to expire this year. So what really is at stake?
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Quote of the Month – July 2012
I’m not what I ought to be;
Not what I want to be;
Not what I am going to be;
But I’m thankful I am not what I used to be.
– John Wooden
Supreme Court Rules in Favor of the Taxpayer
The Supreme Court ruled in favor of the taxpayer in a 5-4 vote concluding that an overstatement of basis is not considered an omission of gross income for the purposes of the six year limitation rules.
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IRS overwhelmed by Offer in Compromise requests, changes made
According to the Treasury Inspector General for Tax Administration (TIGTA) report, the IRS was overwhelmed by Offer in Compromise (OIC) requests. Due to the backlog of OIC requests, TIGTA recommended changes to the OIC program. The IRS did implement some of the recommended changes.
IRS Fiscal year 2011 Data Book
The IRS issued their fiscal year 2011 Data Book. The 2011 Data Book provides a snap snapshot of agency activities for the year. For example, the IRS collected $2.4 trillion and processed more than 234 million tax returns. Below are some interesting statistics related to tax resolution.
82% of annual individual tax returns selected for audit resulted in a change. On average, the changes made resulted in about $11,000 of additional taxes per return.
71% of annual business tax returns selected for audit resulted in a change. On average, the changes made resulted in about $850,000 of additional taxes per return.
30% of the annual individual income tax returns selected for audit claimed the Earn Income Tax Credit (EITC).
The IRS Substitute for Return program resulted in $14.4 billion of additional taxes.
The IRS assessed $31 billion in penalties. The IRS abated $11 billion in penalties.
On average, 34% of individual penalties were abated and 44% of business penalties were abated.
There were 59,000 Offer in Compromises (settlements) filed. 33% of the offers submitted were accepted.
IRS issued 3.7 billion levies. This is an increase of 4% compared to 2010.
If you need relief from the IRS, ALG Tax Solutions, P.C. can help. Call us at 855-MI-TaxHelp. (855-648-2943)
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.
TaxMasters hit with a $195M judgment
As previously reported, Taxmasters filed for federal bankruptcy protection. Well the news does not get any better. Taxmasters was recently hit with a $195 million judgment. Continue reading…
Recommendations
I had the pleasure of studying with, as well as being a co-worker of A.J. In school, A.J. established himself as a trusted team-player. He raised the level of the group by challenging his fellow teammates to look at every angle to come to the best solution. His sharp problem solving skills & easy communication style made him a unique asset commonly sought after by his classmates. These skills & attributes were also demonstrated during his professional career at Motorola. February 22, 2012, Emily.
Recommendations
I worked with A.J. at Motorola. A.J. was extremely professional and did exceptional work. His interpersonal and organization skills were outstanding. He would be a tremendous asset to any organization. February 10, 2012, Todd.
Recommendations
I was A.J.’s supervisor for key account sales and support. I found A.J. to be a diligent contributor who genuinely strove to achieve customer satisfaction. He was technically competent and performed well in a team environment. He is a professional who I endorse. February 9, 2012, Jim.