Wednesday, January 15, 2020

Husband hasn't paid taxes in 5 years!

I recently answered the following question on Quora.com 

Question: 


My husband and I just got married and I just found out he hasn’t paid taxes in 5 years! Where do we start to get this fixed?

Answer: 


I would begin with requesting tax return transcripts from the IRS. Specifically the Wage and Income Transcripts will provide you with the necessary information needed to complete the prior year tax returns. I also prepared a guide to assist in preparing past due income tax returns.

Other considerations to keep in mind when dealing with past due unfilled tax returns, the possibility that there will be a large tax liability (back taxes + interest + penalties). It may be a good idea not to commingle any of your financial assets with your husband until his tax situation is handled. This is because if he does end up owing significant money the IRS will only be able to collect or levy his accounts.

I hope this helps and good luck!

Thursday, January 9, 2020

IRS Rebrands Shared Economy Tax Center

IRS Launches Gig Economy Tax Center 


Today, I received an email from the IRS (IRS Newswire - January 9, 2020). The email discusses the launch of a new Gig Economy Tax Center on IRS.gov to help inform individuals who earn money performing "gigs" or through the "shared economy" of their tax obligations. 

The IRS previously had a Shared Economy Tax Center which appears to have been rebranded into the new Gig Economy Tax Center.


It is my belief that the IRS will start paying special attention to ride-sharing and temporary room or housing rentals (airbnb) going forward.
“Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line.” - IRS Commissioner Chuck Rettig 

The Gig Economy Tax Center is comprised of two sections:


Section for Gig Workers  


Information specifically for individuals that have revenue from gig work. These are taxpayers who will probably receive one ore more IRS 1099-MISC forms and file a Schedule C income tax return.  The "Gig Worker" will find information about tax forms, keeping records, deducting expenses, and filing and paying taxes here.

What is Gig Work?


Gig work is certain activity you do to earn income, often through an app or website (digital platform), like:

  • Drive a car for booked rides or deliveries
  • Rent out property or part of it
  • Run errands or complete tasks
  • Sell goods online
  • Rent equipment
  • Provide creative or professional services
  • Provide other temporary, on-demand or freelance work

Note: This list does not include all types of gig work.

Section for Digital Platforms 


Information for businesses that operate digital platforms, marketplaces or businesses in the gig economy. These businesses can learn about classifying workers, reporting payments, paying and filing taxes here.  

What are Digital Platforms?


Digital platforms are businesses that match workers' services or goods with customers via apps or websites. This includes businesses that provide access to:

  • Ridesharing services
  • Delivery services
  • Crafts and handmade item marketplaces
  • On-demand labor and repair services
  • Property and space rentals

Note: This list does not include all types of digital platforms.

The Gig Economy Tax Center will be a good resource for taxpayers participating in the sharing economy.  However, if you still have tax questions feel free to contact us. 

Monday, January 6, 2020

Attorneys with Swag Episode 2

I will be a guest on "Attorneys with Swag" episode 2 the tax law episode. I had a lot of fun filming and discussing tax law with the other attorneys. The premier viewing of Attorneys with Swag is Thursday 1/9 @ the Bombay Theatre in Fresh Meadows NY.

The Set of Attorneys with Swag

About Attorneys with Swag 

(from website: https://www.attorneyswithswag.com)
Attorneys with Swag is a show featuring Eugene Toussaint, Everett Hopkins, Kevin Michels, and Jubril Oladiran as four practicing attorneys based in New York City who discuss a diverse range of topics regarding the law (mostly about the criminal justice system) and everything else in between. Each episode also features a special guest who adds meaningful, and sometimes controversial, perspectives and experiences within the legal field including police officers, paralegals, plaintiffs, defendants, and victims. 
The format of the show is meant to imitate the Socratic Method of learning - a method used in law school to train people how to think like lawyers. It is a form of cooperative argumentative dialogue between individuals based on asking and answering critical thought-provoking questions to fully explore certain experiences. However, because of the different personalities and experiences of the hosts and guests, each discussion inevitably leads to enlightening, hilarious, and sometimes heated conversations. 

Tuesday, December 31, 2019

New Year's Resolution

@ Alizio Law, PLLC - Tax Attorney we may not be able to help with working out or cooking but we can help resolve your IRS or New York State tax problems. If you a serious about resolving your tax problems in 2020 speak with Peter E. Alizio or schedule a consultation today.

Fix Your Tax Problem in 2020

The Fine Print: Attorney Advertising. Prior results do not guarantee future similar outcomes. Communication does not create an attorney/client relationship.

Monday, December 30, 2019

New York E-File Mandate

I just received the following email from New York State Department of Taxation and Finance reminding me that tax preparers are required by law to e-file all New York State personal income tax returns prepared. This e-file mandate is not new but currently the e-filing system is down for maintenance (since November)  forcing tax preparers to either paper file a tax return or wait until the system is back up some time in January. 



The NYS Tax Return Preparer E-File Mandate


Tax return preparers who previously prepared 10 or more tax returns in the previous year are now mandated to use tax software and electronically file tax returns. Additionally, tax preparers may not charge a separate fee for e-filing and clients cannot opt-out of e-filing.

Tax Preparer Penalties for failure to comply with the E-File Mandate 


(1)  A $50 penalty per tax document not e-filed unless tax preparer can document reasonable cause for not e-filing. 

(2)  A $500 penalty imposed on tax preparers charging clients a separate e-filing fee (first time) and $1,000 penalty for each subsequent charge.

I like e-filing as it makes things easier for both NYS and the tax preparer.  However, there will always be times when it is necessary to paper file specifically past due tax returns.