Ronald J. Cappuccio,
LL.M.(Tax), Tax Lawyer, is a
Business and Tax Attorney emphasizing Personal and Business IRS Tax
Negotiation and controversies,
due taxes, Offers
In Compromise, Installment
Agreements, as well as Audits,
Collections Issues, Employee and
Independent Contractor issues, Payroll
Levy Release, Bank Levies
and Seizures. NJ Tax Court, US Tax and US Court of Federal Claims
We can help you start a Limited
Liability Company ( LLC ) which
can be the best form of business
as well as establish Corporations,
Partnerships, Limited Partnerships and Non-Profit
organizations. We also can
represent you in Buying and
Selling a business.
States attacking Independent Contractors
Service and 37 states are attacking companies that try
to trim payroll costs by changing employees' status to independent
contractors. Business Tax audits and State Tax audits are focusing on
1099's and subcontractors. Unless you have a tax attorney prepare
agreements and help your business extablish the necessary records to
demonstrate the person providing services is independent and not an
employee, you could unnecessarily loose an IRS Tax Audit or State Tax
For example, the New Jersey Department of Labor conducts audits taxing
independent contractors as employees.
The Governments want the extra taxes from employers even
though it hurts small business and cuts
factors to determine independent
contractor status. The IRS and States are matching
1099's and K-1s to increase
audit activity trying to catch under-reporting by partners, LLC members
and independent contractors. In an important case, Federal Express won
against employee groups and man states, including New York, California
and New Jersey by having the Federal Court uphold
Independent Contractor Status
for its drivers.
New Jersey is continuing the attack on Home Improvement Contractors. more...
Increases Small Business Audits
Internal Revenue Service is increasing
of small businesses
(<$10mil of assets) and stepping up the intensity
of mail audits. The
IRS plans to check for unfiled tax returns and look for
unreported income from sole proprietors of small businesses during
correspondence audits. The IRS is also attacking
seeking unreported cash income.
is also attacking multinational
companies for inter company transfers. Even smaller businesses that
sell good and services or license intellectual property are under
Cash transactions are under increased IRS
Large business audits (companies >$10 mil of assets) are being
attacked by the LB&I (Large Business and International) section
of the IRS. The latest area being review is the DPD (Domestic
Production Deduction.) This used to be relatively simple, but now since
the deduction can be up to 9% of a corporations's profit,
this is becomming an area of audit focus.
All large business audits (and small business audits) should be headed
by a tax attorney. Typically, the IRS has a team lead by a Revenue
Agenet and Manager, engineers, appraisers, IT staff and more. Your
audit team should be lead by your tax lawyer that understands tax
controversies and IRS Audits, CPA, internal accounting department (such
as your CFO) and other support staff.
Inside sources at the IRS said Taxpayer
Compliance audits will be “excruciating” and
somewhat like seeing a proctologist. In its alert to employers
the IRS advises companies to plan their response carefully should they
receive a letter initiating an audit under the research program. The
IRS says companies should form an internal team consisting of
representatives from payroll, accounts payable, accounting, human
resources, internal auditing, general counsel, and outside tax lawyers.
Call Ronald J. Cappuccio, J.D., LL.M.(Tax) at 856 665-2121
right away if you have independent contractors or receive an audit
Tax Collections - Bank Account Levy, Wage
Execution, Installment Agreements
has professional tax collectors, known as Revenue Officers. The job is
to collect taxes regardless. If you get a notice, letter, or visit
by the IRS, immediately call a tax lawyer. Quick action can stop
a bank account levy, prevent wages from being seized and prevent the
IRS from contracting your customers. It takes work, but frequently an
installment Agreement can be set-up to avoid "enforcement" actions.
Here is what you
do if the IRS or other tax collector comes to your door.
Time to Buy
and Expand a Business
depression/recession is has been a disaster for many
businesses. Companies, both large and small, are unloading
assets and cutting staff. This may be the perfect time to start or
expand a business to take advantage of some good opportunities.
Acquiring a struggling rival business, hiring talented experienced
people and growing your market share. A business can focus on
opportunities like these to improve its competitive position at
fire-sale prices. Time to Buy a
are increasing! Small business audits, especially Schedule C
filers and pass-through entities such as Partnerships, S Corporations,
and Limited Liability Companies (LLC) are the focus of the government.
Because small businesses are the best form of tax shelter for most
people, they are under the greatest scrutiny.
The number of audits jumped 11 percent from returns
with earnings of $200,000 or more, but rose 30 percent for returns
showing earnings of $1 million or more. For those under $200,000 the
number of audits remained steady at about 1%. ...More
Wealthy Taxpayers Attacked! The IRS released a report showing that the
IRS audited 18.4 percent of taxpayers whose incomes exceeded $10
million last year, compared to 10.6 percent in 2009. ....More
get a notice of an audit, call
Ronald J. Cappuccio, J.D., LL.M.(Tax) - tax attorney- at 856 665-2121.
speak to the IRS. We will do
it for you and possibly prevent you from jeopardizing your case! ...More
to Collect Tax
The IRS us
beginning to Audit taxpayers who claim exemption from cancellation of
indebtedness income. To claim the exemption, IRS
Form 982 is filed with the 1040.
Although most Cancellation of Indebtedness Income (COD) on a
principal residence is excluded, investment properties, credit cards
and other loans are not unless the taxpayer is bankrupt or insolvent.
Accounting Office is looking for
the IRS to collect billions in extra tax.
Loosens Innocent Spouse Rules
when a joint return results in liabilities in the form of penalties,
tax, and interest, one spouse may be innocent. It used to be that an
innocent spouse had only two years to apply for relief in such cases.
Now a recent Tax Court decision loosens the restrictions in some
focus on Home Interest deduction
has a special
tax force conducting audits on individuals with home mortgage interest
greater than $35k. These audits are total pain! The IRSW
demands excessive documentation - typically your HUD-1 settlement
statement, Mortgage, Note, Statements from the Bank, refinancing
documents and payment history. The problem is that many of these
documents may 10 or more years old! Then, after producing the
documents, the IRS denies the deduction and it has to be Appealed to
the IRS Appeals section.
Agent Sentenced for Soliciting a Bribe
December 16, 2010 in federal court in St. Paul, a tax revenue agent
with the Internal Revenue Service ("IRS") was sentencedto 33 months in
Federal Prison for soliciting and receiving a $9,700 bribe. More
Agent Convicted for Preparing Fraudulent Tax Returns
IRS agent Ronald A. Bright pleaded guilty
to assisting in the preparation of a fraudulent tax return as
part of his Delaware Tax Preparation business. t Bright routinely included
various types of false deductions and credits on his clients’
tax returns, including education credits, Individual Retirement Account
deductions, charitable donations, unreimbursed employee business
expense deductions, and Earned Income Tax Credits. More...
Hill Property Tax Appeals
Cherry Hill, NJ is reassessing
all 27,000 parcels of residential and commercial real estate. Now is
the time for a Property tax appeal.
Voorhees Property Tax Appeals
Voorhees is revaluing residential and commercial properties. The last
major reasseessment was 2006. This is a revaluation where there tends
to be more variances than a reassessment.
Moorestown is reassessing alll residential and commercial real estate.
Announces 2013 Standard Mileage Rates
of Jan. 1, 2013, the standard mileage rates for the use of a car (also
vans, pickups or panel trucks) will be:
cents per mile for business miles driven
• 24 cents per mile driven for medical or moving
• 14 cents per mile driven in service of charitable
rate for business miles driven during 2013 increases 1 cent from the
2012 rate. The medical and moving rate is also up 1 cent per
mile from the 2012 rate.
See IRS Announcement
rates have continued the same since the 4th qtr of 2011.
The 4th qtr 2013 IRS interest rates will
- three (3)
percent for overpayments [two (2) percent in the case of a corporation];
- three (3)
percent for underpayments;
- five (5)
percent for large corporate underpayments; and
- zero and
one-half (0.5) percent for the portion of a corporate overpayment
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Ronald J. Cappuccio, J.D.,
Counsellor at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005
Copyright 1996-2013 Ronald
J. Cappuccio, J.D., LL.M.(Tax) All