NJ Tax Lawyer | NJ Tax Attorney | NJ Tax Appeal | NJ Tax Audit- IRS Audits, IRS Tax levies, Bank levy, 08002

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. Fox News 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. 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...

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. The IRS is also attacking sole proprietors seeking unreported cash income.

IRS is also attacking multinational companies for inter company transfers. Even smaller businesses that sell good and services or license intellectual property are under attack.

Cash transactions are under increased IRS audits.

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.

IRS Confirms $1.1mil home interest deduction

In Revenue Ruling 2010-25, the IRS ruled that a taxpayer can deduct as qualified residence interest up to $1.1 million of the debt securing the purchase of a taxpayer’s principal residence.

While personal interest is nondeductible, qualified residence interest, which includes both interest on acquisition indebtedness and home-equity indebtedness, is generally deductible. IRC § 163(h)(3)(B) provides that the total amount treated as acquisition indebtedness cannot exceed $1 million for any period ($500,000 for a married individual filing separately), and any indebtedness in excess of $1 million is not acquisition indebtedness. More...

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

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

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

IRS Auditing 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. The Government Accounting Office is looking for the IRS to collect billions in extra tax.

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

Tax Relief Advertisers Shut Down for Bilking Customers

American Tax Relief, a company that heavily advertised its ability to help taxpayers who were in trouble with the IRS and allegedly bilked consumers out of more than $60 million by falsely claiming it could reduce their tax debts. More....

The FTC is banning for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.. This will help protect taxpayers from scammers.This does not prevent the Phoney TV advertisers who frequently bilk unsuspecting taxpayers out of thousands of dollars! Call Ronald J. Cappuccio, J.D., LL.M.(Tax), Tax Attorney at 856 665-2121 if you owe the IRS.

"Tax Lady" Roni Deutch Shutting down

Roni Deutch, known as “the Tax Lady” from her formerly ubiquitous nationwide commercials, is shutting down her law offices after complaints from the California Attorney General. More...
Deutch has been hit with a $183,000 tax lien by the Internal Revenue Service. More...

How to Avoid getting scammed by fake tax relief services

Watch out for the out-of-state companies that promise "pennies on the dollar" IRS relief.
- more...

Former IRS 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

IRS Revenue Agent Convicted for Preparing Fraudulent Tax Returns

Former 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...

Brooklyn Bar Owner Jailed for not Paying $1.3M in Sales Taxes

On December 30, 2010 The principal owner of The Kettle Black, a popular sports bar and restaurant in the Bay Ridge section of Brooklyn, has pleaded guilty to stealing more than $1.3 million in city and state sales taxes over a five-year period. More

Energy Property Tax Credit

Homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2010 tax bill as well. The Nonbusiness Energy Property Credit is 30% of eligible energy-saving improvements, to a maximum tax credit of $1,500. More on the Tax credit...

IRS Announces 2013 Standard Mileage Rates

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The 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

Interest Rates

Interest rates will decrease for the calendar quarter beginning Oct. 1, 2011. The rates will be:

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 exceeding $10,000.

See Rev. Rul 2011-18

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