We would like to wish all of our clients a happy and successful new year.  Here are some important dates to remember for the month of January.

Tuesday - January 17, 2006

• Deadline to make an estimated tax payment for the fourth quarter of 2005.

Tuesday - January 31, 2006

• Deadline to provide Form W-2 to employees and Form 1099-Misc to independent contractors who earned more than $600 in 2005.
• Deadline for employers to file the 2005 Form 940 and Form 941 for the fourth quarter of 2005.

The IRS has a general policy of not considering an offer in compromise received from a taxpayer that has filed for bankruptcy protection.  However, a bankruptcy court recently held that the IRS must consider a taxpayer’s offer even while that individual was in bankruptcy status.  The court reasoned that the tax codes and regulations authorized the IRS to consider an offer in compromise in all cases, and these sources of legal authority were superior to the IRS policy of simply not doing so. In re: Charles Peterson, Bnkr. D. Neb., No. BK03-40948.

It will be interesting to see how this court decision will affect IRS policy, and whether the ruling will be uniformly applied in all offer in compromise cases that involve bankruptcy.

As part of the nation’s new bankruptcy laws, which took effect on October 17, 2005, some new requirements have been implemented in regards to tax filings.

The debtor (party filing for bankruptcy) must provide a copy of the most recent tax return or a transcript at least seven days before the meeting of creditors.  Otherwise, the case may be dismissed.  The same information must also be provided to any creditor who requests it.  Additionally, all unfiled tax returns due for the last four years need to be filed prior to the meeting of creditors.

“Just to let you know that I received the levy release from the IRS - hopefully I’ll get paid now. The company was very concern[ed] with what to do. Your expertise has convinced me and I’m grateful for finding YOU!! Christmas has come early for me this year….” Tina, December 8, 2005

We have been asked on several occasions to explain the differences in qualifications among the tax professionals that work for Premier Tax Solutions, Inc.  Here are some key points to consider: 

Tax attorneys are professionally educated and licensed to practice law by being admitted to a state bar.  Their expertise is generally in areas of negotiation, litigation, and dispute management.

Enrolled Agents are tax specialists who qualify to practice before the IRS either by having worked for the IRS for at least five years or by having passed a challenging IRS-administered examination.

Certified Public Accountants (CPA’s) must have completed a program of study in accounting, passed the uniform CPA examination, and have a certain amount of experience in the public accounting field.

All three of these professionals are required to take a minimum amount of continuing education courses to retain their license to practice.  All of our tax attorneys, enrolled agents, and CPA’s focus their continuing education in tax related areas and strive to keep their knowledge of all tax matters up-to-date.

This blog, which is short for “web log,” is to be a source for information on tax news and tips and miscellaneous topics regarding tax relief and resolution.  We hope that you find the information useful and interesting.