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. [...]

Can the IRS Take Your Home?

The IRS has the right to seize your home and other property if you fail to pay your federal income taxes. To exercise this authority, the IRS must notify you before they can seize anything. If you’ve been contacted by the IRS about a tax debt, don’t assume they will come immediately to take your home. There are steps you can [...]

How to Qualify for and Request an IRS Penalty Abatement

The IRS can impose substantial penalties on those who do not pay their taxes on time. Not only does this include hefty interest rates, but it can also include a penalty that is tacked onto the delinquent balance. None of this is fun, but the IRS also knows that it has significant leverage when dealing [...]

What Small Businesses Should Know About Payroll Tax Problems

Small Businesses Are at Higher Risk for IRS Audit It may sound counterintuitive, but smaller businesses have been at increased risk for an IRS audit for some time. This is due in large part to the ways in which they manage their payrolls. While larger businesses often have accountants themselves on the payroll, smaller business owners usually perform this task [...]

New Tax Brackets Under the Trump Tax Plan

Each time a new president is elected, they usher in their bold new tax plan that has Americans supposedly feeling better about their bottom line. Donald Trump is no exception. In 2017, President Trump not only announced major tax cuts, but also vastly overhauled the U.S. tax code. This includes the creation of new tax brackets. [...]

What You Need to Know About Virginia Income Tax Withholding Requirements

If you operate a small business, you will need to know about both income tax withholding requirements and other tax issues in Virginia. For the average person, these issues can be complex. But you don’t have to handle it alone. Seek the legal guidance of an experienced Virginia tax attorney at Sodowsky Law Firm today. Call (703) [...]

Mother’s Day is Coming

Sunday, May 13th is Mother’s Day. While we should celebrate our mothers and be thankful to them all year long, this is a special day set aside just for them. Some mothers get flowers; some get “breakfast” in bed prepared and served by their young children; some get taken out for a special lunch. All [...]

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