Law Offices of Michael Raff, LLC

It is always a Fantastic Friday when a client leaves a review like the one below. My greatest joy as a business owner is knowing that my firm can deliver a result that was promised at intake! #taxadvocacy #taxresolution #taxcontroversy

IRS POSTPONES CERTAIN ILLINOIS COUNTY (INCLUDING COOK) FILING AND PAYMENT REQUIREMENTS THROUGH FEBRUARY 3, 2025! Major news for individuals and business owners in and around the Chicagoland area this morning. The IRS has postponed many filing and payment requirements for taxpayers residing in this area from July 13,?2024, and ending on Feb. 3, 2025. The current affected counties are Cook, Fulton, Henry, St. Clair, Washington, Will and Winnebago. As a result, affected individuals and businesses will have until Feb. 3, 2025, to file returns and pay estimated taxes and employment taxes that were originally due during this period. This means, for example, that the Feb. 3, 2025, deadline will now apply to: Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storms occurred. Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025. Quarterly payroll and excise tax returns normally due on July 31, Oct. 31, 2024, and Jan. 31, 2025. In addition, penalties for failing to make payroll and excise tax deposits due on or after July 13, 2024, and before July 29, 2024, will be abated, as long as the deposits were made by July 29, 2024. The IRS also reminds taxpayers in effected counties that if they suffered a disaster loss during this period, they are eligible to file their taxes in a manner allowing them to claim a loss. Feel free to reach out if you want to understand how this may impact you!

The IRS has lifted its ERC processing Moratorium! The agency announced today that it will continue reviewing claims filed between September 14, 2023 and January 31, 2024. This will be welcome relief to businesses still waiting on payment. My guess is the IRS was hoping that congress would enact legislation preventing further claims from February 1, 2024 onwards. As no such bill passed, the IRS will need to continue reviewing claims made during that time period as well, but we'll have to see when they get around to doing so. #IRS #ERC

If the IRS has denied your business' Employment Retention Credit claim, you should reach out to discuss your options!

Why hire an attorney to help with tax issues when an accountant or enrolled agent may be cheaper? I often get asked this question, and one of the main answers I provide is that while all may able to help with numbers and figures, only one is qualified to give legal advice. For instance, what determines willfulness in the context of a proposed FBAR penalty? This is paramount to determine when analyzing disclosure options or fighting against a proposed IRS penalty. In a recent 9th circuit case, USA vs. Saydam (attached), the Court refused to grant the Government's Motion for Summary Judgment, arguing that neither the Government nor the Defendant had properly analyzed willfulness in a civil FBAR context. Specifically, in the 9th Circuit, the Court contends there is a substantial difference between reckless conduct (which would be willful) and negligent conduct (which would not be willful). It implored both parties to be ready to present the jury with adequate instructions on the same at trial. While legal advice may not be necessary in every engagement, it is paramount in certain contexts, such as evaluating a client's risk potential in an offshore disclosure matter, where the context of "willfulness" is so very important. Tax Law may be filled with numbers, but it is still the practice of law. Ensure when you are getting legal advice it is coming from a lawyer. #TaxLaw #FBAR #TaxControversy

If you think you pay a lot in taxes to the IRS, read on to see what their collection efforts have recently uncovered... The IRS announced yesterday that the agency has collected $1 billion from millionaires who have failed to pay their recent tax debts. These efforts stemmed from a campaign the agency started last year to target taxpayers who had annual earnings of over $1 million and tax debts of greater than $250,000. You may be wondering a few things a) what caused these high earners to fail to pay their taxes in the first place and b) if they weren't paying their taxes before, what is the IRS doing now to get them to pay? High earners can fail to pay taxes for a myriad of reasons, some have cash flow concerns or live lavish life styles, but it also may be difficult to reach a repayment resolution with the IRS when income is high and many expenses are not "approved" on first blush with the IRS. As these individuals can't get approved payment plans, they fall behind with voluntary payments, and penalty and interest grows. How has the IRS been successful now in getting payment? One of the biggest tools in their arsenal has been suspending delinquent taxpayers ability to renew their US passport. Millionaires and their families love to travel, especially internationally, and once the IRS advises the State Department that a taxpayer is "seriously delinquent" the only way to be able to obtain a new passport is to strike a deal with the IRS. In practice, I've seen many taxpayers simply full paying the entire balance due just to be in position to obtain their passport back as quick as possible. There are a few lessons to be learned here: 1) The IRS is serious about collecting what its owed, and its best to be proactive rather than reactive; 2) There is always a pay plan resolution available if you are persistent and 3) When paying the IRS back in full, always see if any of the penalties paid can be abated post payment. #TaxControversy #TaxCollection #TaxPenalties #TaxLaw

Our law firm's goal is to reduce the stress of dealing with the IRS.... One way to accomplish this is to keep the public informed of significant decisions in the law or at the administrative level which could impact individual and business taxation. Follow our firm to keep up to date on the shifting tax landscape!

If you think declaring personal bankruptcy is a get out of jail free card with respect to paying personal taxes, the holding in Sharma v. United States is a good reminder that is not always the case.... In that case, the plaintiff filed a refund suit against the IRS because he paid taxes that were personally assessed against him as a result of failing to pay employment taxes to the IRS. These are called trust fund recovery penalties. TFRPs, sales taxes or employment taxes which were held by a business "in trust" to be turned over to a government, are not dischargeable in a personal bankruptcy filing. While there are instances where individual income taxes can be discharged in a personal bankruptcy, there are several requirements that must first be met. Bankruptcy is one tool to potentially cure delinquent tax obligations. However before filing, it is important to understand what could potentially be discharged and alternative resolution options. #backtaxes #bankruptcy #OfferInCompromise