Ronald J. Cappuccio, J.D., LL.M.(Tax), Tax Lawyer, is a Business and Tax Attorney emphasizing Personal and Business IRS Tax Negotiation and controversies, past due taxes, Offers In Compromise, Installment Agreements, as well as Audits, Delinquent Tax, and Tax Collections Issues, Employee and Independent Contractor issues, Payroll Taxes, Tax Liens, Wage Levy Release, Bank Levies and Seizures. NJ Tax Court, US Tax and US Court of Federal Claims representation.

We can help you start a Limited Liability Company ( LLC ) which can be the best form of business organization, as well as establish Corporations, S Corporations, Partnerships, Limited Partnerships and Non-Profit organizations. We also can represent you in Buying and Selling a business.

IRS and States attacking Independent Contractors

The Internal Revenue Service and 37 states are cracking down on companies that illegally try to trim payroll costs by changing employees' status to independent contractors See USA Today article. The Governments  want the extra taxes from employers even though it hurts  small business and cuts employment.  Click here factors to determine independent contractor status.

IRS Increases Small Business Audits

The Internal Revenue Service is increasing field audits 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.

Estate Tax  be a "Killer"

Congress has done nothing to pass estate tax reform, so the estate tax will be back in 2011.The top rate jumpsd to 55% and the exemption will shrink from $3.5 million in 2009 to just $1 million in 2011.

Die in 2010!  On a $5 million estate, the tax consequence of dying a minute after midnight on Jan. 1, 2011 rather than two minutes earlier could be more than $2 million; on a $15 million estate, the difference could be about $8 million. 

Taxpayer Compliance Audits

 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 notice.

New Employee Tax Relief 

Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law March 18, 2010.

Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns

Tax Law Changes for 2010

Click here for a table listing Congress' latest tax law changes. Current IRS Interest rates and AFR.

Time to Buy and Expand a Business

The current 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 Business

IRS Audits!

IRS audits 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 2008 to 2009 for 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

If you get a notice of an audit, call
Ronald J. Cappuccio, J.D., LL.M.(Tax) - tax attorney- at 856 665-2121.

Do not speak to the IRS. We will do it for you and possibly prevent you from jeopardizing your case! ...More

Short Refinance - alternative to foreclosure or short sale when mortgage exceeds home value

Short Refinances are a method for homeowners to get out from under a mortgage that is more than the value of their home  When a homeowner is delinquent on payments and the value of the home is less than the mortgage balance, most people feel helpless. It seems there is no choice but to loose their home from either a short sale or foreclosure. Full Article

Loan Modification

Are you getting threatened with a potential mortgage foreclosure? Having your attorney negotiate a loan modification can help change some the terms of your mortgage. For example, a lowered interest rate may make your monthly payment more affordable to help avoid foreclosure. Sometimes, past due payments can be rolled into the package to keep you current......More

Short Sale

A "short sale" is when the sale of a home or commercial real estate is for less than the total amount due on the mortgage. For example, if a mortgage loan is $300,000 and the home can only be sold for $250,000, the Seller must get permission from the lender to sell the house. This is a "short sale" because the amount paid to the mortgage lender is "short" or simply less than the balance due. ....More

Should you convert to a Roth IRA?

Since January 1, 2010 anyone can convert their regular IRA to a Roth IRA. The $100,000 income limitation is removed for 2010 and 2011. That means if you have a regular IRA you can convert it to a Roth IRA. The advantage of the Roth IRA is that it grows tax-free, there is no minimum distribution requirement, and withdrawals after age 59 1/2 are tax-free. The disadvantage is you have to pay income tax on the conversion. ...more

Tax Court Loosens Innocent Spouse Rules

Sometimes 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 circumstances....more

IRS Announces 2010 Standard Mileage Rates

The  2010 standard mileage rates for the use of a car (also vans, pickups or panel trucks)are:
• 50 cents per mile for business miles driven,
• 16.5 cents per mile driven for medical or moving purposes, and 
• 14 cents per mile driven in service of charitable organizations

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