Tax Return Preparation – Are You Deducting Everythign You May Be Entitled To?

Some Music Lessons may be deductible on your Schedule A

Both the clarinet and music lessons are tax deductible.  This is due to a 1962 provision added after orthodontists argued that playing the clarinet helps with a child’s overbite and should qualify as a medical expense.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

What Are the Odds? This Family Gambled And Lost, and Dad Went to Prison

The IRS has always pursued individuals for under reporting of income; especially gambling income.  Its important that you report your gambling winnings and losses, even if you lost more than you had won.  See Publication 525, Taxable and Nontaxable Income, for rules on gambling and Publication 529, Miscellaneous Deductions, for more information on losses. Publication 529 also lists specific types of gambling records a taxpayer may want to keep. Download and view IRS publications on IRS.gov/forms at any time.


Larry Tillery of Beaumont, Texas was sentenced to 33 months in prison for tax evasion and for running a business that accepted illegal wagers on sporting events from 1985 to 2017.  Tillery owned Daylight Motors, a used car dealership, and Lamar Capital, and used both companies as a front to launder the illegal gambling proceeds. He was ordered to pay restitution of $1,000,040 and to forfeit approximately two million dollars in cash, jewelry and sports memorabilia. A judgment of $32,758,541 was also ordered by the court.

Tillery’s wife, Judy, was sentenced to 24 months’ probation and shares the judgment with her husband. She assisted with laundering the proceeds of the operation, which allowed bettors to place bets on sporting events, including professional and collegiate basketball, baseball and football games via a website.

Brian Tillery, Larry’s son, was sentenced to 24 months’ probation and was ordered to forfeit $245,477 and a home worth $600,000. He collected money from bettors, paid bettors, made wire transfers to pay illegal gambling debts.  He also regularly mailed currency totaling more than $10,000 through the US Post Office.

While the gambling operation was illegal, federal tax law still required that Tillery register with the IRS as a bookmaker, report total wages he accepted monthly, and pay a gross wagering excise tax of 2% every month. Between 2011 and 2016 alone, Tillery accepted at least 52 million dollars in illegal wagers, resulting in over a million dollars in wagering taxes he did not pay.

Reference:  Helpful Tips to Know About Gambling Winnings and Losses


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Has the IRS filed a Federal Tax Lien against your house in someone else’s name?

Our office often receives calls from Taxpayers claiming that the IRS has filed a Federal Tax Lien, IRS Form 668(Y), against their house, but the lien is in someone else’s name.  Unfortunately this is very common as the IRS cannot always get it right.  That said, it is important that you make sure the Lien does not impact your house or your property rights; we can help.

Contact our office today to discuss how we can help remove the lien against your property.

 


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Your IRS Questions Answered Here…

Question:  I do not have the funds to pay what I owe for my 2018 income tax return.  I also was late in filing the return. Not only is the IRS demanding the tax I owe, but they have slapped on these huge amounts for penalties and interest.  I had extenuating circumstances that caused all of this. This isn’t fair…what can I do?

 

Answer:  We can request the removal (abatement) of penalties 2 ways:  1) “First Time” Penalty Abatement and 2) a Reasonable Cause Argument. The IRS writes off billions of dollars in penalties each and every year, but you must know how to do it correctly. A First Time Penalty Abatement  (FTP) can be requested if you have a “clean” compliance record, meaning you have not incurred a Failure to File or Failure to Pay penalty for the 3 years preceding the year you are requesting relief for.  FTP is generally granted in most cases, regardless of what the underlying reason is, if you are eligible.

If you do not qualify under FTP, there are 9 main “Reasonable Cause” arguments to get your penalties removed.  They are: 1) Death, Serious Illness, 2) Fire, Casualty or Natural Disaster  3) Unable to Obtain Records (common issue with couples going through a divorce)  4)  Mistake was made by the taxpayer or tax preparer, 5)  Erroneous Advice or Reliance on a tax preparer  6)  Written/Oral Advice from the IRS  7)  Ignorance of Tax Laws  8)  Reasonable Cause/Ordinary Business Care and Prudence  9)  Undue Economic Hardship.

Your Tax Resolution Specialist will guide through what documentation is needed to submit a formal legal request in writing.  For instance, let’s say you were going through a divorce and you ex-spouse withheld records from you needed to file a complete and accurate income tax return and you filed your return late because of this.  You could request abatement of these penalties using one of the above reasonable cause arguments, specifically #3 above.

Did You Know?

Exotic dancer Chesty Love decided that she needed breast implants to get bigger tips. The IRS said no to the deduction she claimed for the size 56FF implants, but the tax court disagreed, deeming the implants as depreciable assets, a type of stage prop.

A Thousand Talents But Staying Out of Trouble Is Not One of Them

Xiao-Jiang Li, a former Emory University professor, pleaded guilty to filing a false tax return. Li did not declare income he made as a participant in the Thousand Talents Program, which recruits professors and researchers to work for China.

Li was sentenced to one year of probation and ordered to pay restitution in the amount of $35,089 to the IRS. In addition, he was ordered to file legitimate tax returns for the years 2012 – 2018 within the first two months of his probation, and fully cooperate with the IRS in order to make an accurate determination of all taxes, penalties and interest that he owes.

“The defendant thought he could live two separate lives, one here at Emory University and one in China as a Thousand Talents Program participant,” said U.S. Attorney Byung J. Pak.

Starting in 2012 and continuing until 2018, while still working at Emory University conducting large animal research to investigate Huntington’s disease, Li also worked at two Chinese universities doing similar research. During that period Li earned at least $500,000 in foreign income that he never reported on his federal tax returns.

IRS tax attorneys near you with a free consultation

At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is.

View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys.

Nationwide, and international, representation for clients

While we are based out of Chadds Ford, Pennsylvania, we have helped taxpayers in every State find relief of their tax problems.

Not only represent in the United States, but also clients out of the country.

We have the most experience in IRS tax collection issues

A list of IRS collection issues we help with:

Helping you with your IRS tax law services

A list of IRS tax law services we help with:

Available to you anywhere in the US

While we are based out of Chadds Ford, Pennsylvania, we have helped taxpayers in every State find relief of their tax problems.

Contact us today for a free tax consultation.

Who are your lawyers?

Our lawyers are 100 percent focused on tax law. It’s all we do.

Take a moment to meet our two owners:

Gregory M. McCauley

Tax Attorney Greg McCauley has a boutique law firm in Chadds Ford, PA, a suburb of Philadelphia Pennsylvania. He has been practicing for almost 30 years. He is a member of the Pennsylvania, New Jersey, and New York bars. Because he is also admitted to practice in the United States Tax Court, he can represent taxpayers from any state. The firm concentrates its practice in civil and criminal tax cases. As an attorney, Greg can represent taxpayers from every state before the IRS. He will negotiate directly with the IRS so you do not have to.

Gregory M. McCauley Jr.

Mr. McCauley received his Juris Doctor from Villanova University School of Law. After his first year of law school, Mr. McCauley was a summer clerk for Resident Judge Witham in the Delaware Superior Court. Mr. McCauley then served as a summer associate at Cooch and Taylor, P.A. While in law school, Mr. McCauley served as a Student Attorney at the Villanova University School of Law Clinic for Law and Entrepreneurship, where he provided counsel and advised an internet startup company and a 501(c)(3) nonprofit. Additionally, he also assisted a public corporation in drafting securities and corporate governance documents.

Mr. McCauley prides himself in being an honest lawyer and is committed to upholding the highest ethical standards of the legal profession. He is widely known amongst friends and colleagues for his persistence, courage of conviction, and integrity.  Mr. McCauley cares deeply for each and every client and strives to provide exceptional representation.

We’re here to help you!

We are going to get your life back on track.

We are going to fight for the best possible resolution.

We are going to help you beat your tax problem.


View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon.

Calculating Your IRS Penalties

Every year, millions of Americans file their taxes on time.  They either pay the government the amount owed or wait patiently to receive their refund. But what happens when you don’t pay what is owed to the Internal Revenue Service (IRS)?  What types of penalties will you be looking at when everything is said and done?

Well, that depends on how much money or property you have defaulted on, as far as your taxes are concerned.  Most believe their penalty will be monetary. However, there is the possibility you may have to forfeit property.  If it comes to it, you may have to go before a federal judge with the possibility of jail time.  These penalties are based on how much money is owed to the government.  The amount owed will continue to accrue the longer you put off paying.

We will not be able to cover all 150 types of civil penalties written in the United States Internal Revenue Code.  We will cover the some of the most well-known ones.

What Are Some of the Most Common Penalties?

Failure to Pay – This occurs when you have either not paid the taxes you owe for the year or have not filed for an extension.

Failure to File – This occurs when you have not gotten your taxes in the mail before the designated date of April 15 or have not filed for an extension.

Underpayment of Estimated Taxes – This occurs when you do not pay enough in quarterly taxes or have not had enough withheld from your paycheck.

Bounced Check or Credit Card Declined – This occurs when you do not have enough money in your account or you have given a bad credit card number.

Calculating Your Penalties and How It Is Done

Failure to Pay Penalty – Internal Revenue Code §6651(a)(2)

  1. If your taxes are not postmarked on or before April 15 – 0.5%
  2. If you continue to not pay the full amount owed, you will continue to accrue a 25% interest rate until the full amount is paid
  3. Even if you make your payment for the prior month, in the middle of the following month, you are still going to have to pay all the way through the current month.

Failure to File  Internal Revenue Code §6651(a)(1)

  1. It is mandatory to pay 5% of the taxes to be reported
  2. You will be charged 30% each month if you are also being penalized for failure to pay.
  3. Your charge will be applied for a full month if your taxes are received after April 15, but still in the month of April.
  4. 100% of the tax required must be noted on your taxes that you did not pay on time.  Here are the specific dollar amounts:
    • $435 for returns due or after 1/1/2020
    • $210 for returns due between 1/1/2018 & 12/31/2019
    • $205 for returns due between 1/1/2016 & 12/31/2018
    • $135 for returns due between 1/12009 & 12/31/2015
    • $100 for returns due before 2009

Underpayment of Estimated Taxes – Internal Revenue Code §6654

  1. It is typical for estimated payments to be made to the IRS every quarter.  If you receive a raise throughout the year, it is up to you to account that into your quarterly taxes. You may have to use Form 2210. This number will be calculated separately from each individual payment previously received. The interest rate is dependent on how many days/months your underestimation payment is received.

Bounced Check or Credit Card Declined – Internal Revenue Code §6657

  1. Payment over $1,250, you will owe 2% of the amount owed
  2. Payments less than $1,250 is $25

Is it Possible to Remove My Penalties?

Contact McCauley Law Offices, P.C. to see how we can assist you with removing or assisting with penalties you are currently deal with.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

how to find a great tax attorney

How to Find a Great Tax Attorney

Choosing the right tax attorney is important for many reasons: performance, costs, and availability are just a few. You want to ensure that you are working with a professional that can handle negotiations and proper deals with the IRS with regards to your tax debts and future. It is imperative that they get it right the first time.

Are they recommended by others who have experienced similar problems with the IRS?

Check the reviews of the tax attorney that you are going to work with. Are others saying that they accomplished their goals in a timely manner? Were they satisfied with the work that the tax attorney did for them or were they left strapped with higher payments to the IRS and high interest fees.

Are they recommended by the courts and peer professionals?

Do other attorneys speak highly of their work? If you are already working with an attorney for estate planning, or other services, do they speak highly of the tax attorney that you intend to work with?

Do they have great Google, Yelp And Yahoo! reviews?

Google Maps, Yellow Pages (yelp.com) and Yahoo are all sources that you can trust for gathering review data on a potential tax attorney. You can find out about the process and types of services that the tax attorney offers as well.

What convenience does the office offer?

Is their office far away from you or are they are tax attorney near you that offers you an easy, convenient office space to meet at?

Are they a part of professional organizations and networks of certified tax attorney specialists?

A good tax will be in community with other fantastic tax attorneys through networks and other organizations that represent their profession. This helps them to maintain high levels of professional competence and development.

Where did they receive their education?

Knowing where they received their education and law degree may help you make your decision. Their previous experience may also show that they have extended experience in the field.

Do they offer a free consultation?

Are they willing to meet with you to discuss your situation and their process for assistance prior to your agreeing to work with them?

McCauley Law Offices, P.C. can work to provide you with peace of mind and lessen the burden of your tax debts. We negotiate for our clients in all types of IRS tax debt situations. Whether you have a lax lien against property, the IRS is garnishing wages from you, or you need assistance with ensuring that you get a fair installment plan in place to pay your unpaid taxes, we can represent you. It is never too late to reach out and allow us to deal with the IRS on your behalf. We keep your rights and financial needs at the top of our priority list when working with the IRS on your case. You do not have to go through this alone.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.

Tax levy

What is an IRS seizure and how to avoid it

The IRS can seize your property if you’re in debt to them. A quote from the IRS website:

“If the IRS seizes your house or other property, the IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt.”

When your property is seized, it’s taken to a local auction to be sold to the public. This money will be used to pay off your debt.

How to get your personal property back from an IRS seize

If a seize is placed on you, contact the IRS immediately to have it reversed.

Further information from the IRS website:

“Contact the IRS immediately to resolve your tax liability and request a seizure release. The IRS can also release the seizure if it determines that the seizure is causing an immediate economic hardship.”

If you can prove that the seized property will cause “immediate economic hardship” to you and/or your family, you may be able to get out of a seize.

Personal property the IRS cannot seize

The IRS has the right to seize a wide variety of assets, but they cannot take everything. Here’s a brief list of things they cannot take from you:

  • Assests or sources of income that you and/or family need to survive on a daily basis (like a home or car)
  • Items that would prohibit a way to earn an income
  • Items necessary for work or school such as clothing or tools

Contact us if a levy has been placed on you to learn how to get out of it.

How to avoid an IRS seizure

1. Pay on time

Avoid a seize or levy by paying the full amount of taxes when they’re due.

2. Ask for an extension

If you need more time to pay it your taxes, ask for an extension. Usually, the IRS will grant a 120-day period of grace to gather payment with no penalties.

RELATED: What happens if you owe the IRS money and don’t pay

3. Coordinate an Installment Agreement

Set up an Installment Agreement to have it paid for in increments every month with interest added.


At McCauley Law Offices, P.C., our lawyers will find a solution to your tax problems, no matter how complex your IRS issue is. View our services and contact us (or call 610-388-4474) to schedule a free consultation with one of our tax attorneys. View and purchase Gregory McCauley’s published work “TAXJAMS: Simple Solutions” on Amazon. From our office in Chester County, Pennsylvania, we find tax solutions for clients throughout the country.