May 31st, 2016
An Offer-in-Compromise is an agreement between the IRS and the taxpayer that settles the taxpayer’s tax debt and allows the taxpayer to pay less than the full amount that is owed. Whenever you watch TV and you see a commercial where people are claiming they settled their IRS debt for pennies on the dollar, this is what they are talking about.
An offer-in-compromise is difficult to obtain because it is not very often that the IRS allows someone to pay less than their full tax debt owed.
In order to qualify for an offer-in-compromise, you must satisfy the requirements of one of the three types. Doubt as to liability is when the taxpayer and the IRS have a genuine dispute as to the existence or amount of the correct tax debt and therefore the taxpayer wishes to resolve the matter rather than fighting to the death with the IRS.
Doubt as to collectability is when the taxpayer admits to owing the full tax debt, but the taxpayer’s assets and income are so low that there is no reasonable method for the taxpayer to pay off the taxes owed.
The third type falls under effective tax administration. This occurs when the taxpayer admits to owing the taxes and has the income or assets to fully pay, but some reason exists so that if the taxpayer was forced to pay the tax debt, the taxpayer would experience some sort of severe economic hardship that would be unfair or inequitable to the taxpayer.
If you are having tax issues, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.
Free Cars For Car Salesman
May 26th, 2016
Salesmen and saleswomen have the ability to use their employer’s vehicles tax free, both at work and at home.
However, the exclusion comes with some pretty onerous requirements:
1.The salesman or saleswoman must be a full time employee
2.The car is used within 75 miles of the dealership
3.Family members cannot use the car
4.Cannot store personal items in the car
5.Cannot take the car on vacations
6.When outside work, you can drive it to/from home and work plus 10 extra miles per day
What is strange is that this exclusion is only available to the salespeople of the dealership and is not available for the mechanics, bookkeepers, or any part time salespeople.
If you need assistance with your taxes, give our office a call at 816-524-4949 or visit our website at Hoorfarlaw.com.
Common Personal Income Tax Return Penalties
May 25th, 2016
The first penalty is not really a penalty, but it occurs so often that I thought I would mention it. Any unpaid amounts to the IRS accrue interest from the due date of the return until the date of payment. The interest rate is determined quarterly and is the federal short term rate plus 3%.
The failure to pay penalty is assessed on any amount of tax that remains unpaid from the due date of the return until the date of payment. Similar to interest, this is assessed when the taxpayer does not pay their full tax bill on time. The penalty is .5% for every month that the tax goes unpaid, up to a maximum of 25%.
The failure to file penalty is assessed on any taxpayer who does not file a timely tax return or a timely extension request and owes money to the IRS. The penalty is 5% for every month the tax return is late, up to a maximum of five months. The minimum penalty for returns 60 days late or more is $135 or 100% of the tax, whichever is less.
If you are having tax issues, contact our office by phone at 816-524-4949 or visit our website www.Hoorfarlaw.com.
May 24th, 2016
Come see Camron speak at the National Business Institute CLE seminar ” BOOT CAMP: Foreclosure and Loan Workout Procedures” on June 13th, 2016, at the Crowne Plaza Kansas City. His presentation will cover Loan Modifications.
For more information please visit: http://www.nbi-sems.com/Details.aspx/R-72219ER%7C?ctname=SPKEM
Denial of a Chapter 13 Plan is Not Appealable
May 24th, 2016
Missouri has stated that a denied Chapter 13 bankruptcy plan cannot be appealed. A Chapter 13 bankruptcy plan is the repayment plan that a debtor proposes to the court in a Chapter 13 bankruptcy. A bankruptcy debtor must have a confirmed Chapter 13 bankruptcy plan in order to have a successful bankruptcy. But if the bankruptcy plan is denied, the denial cannot be appealed.
If you are thinking of filing for bankruptcy or need assistance in a bankruptcy you already filed, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
Appealing a Default Judgment
May 23rd, 2016
In Missouri, if a default judgment is entered against you, you cannot immediately file an appeal to the Missouri appellate courts. Instead, you must take the appropriate action in the court that issued the default judgment. A default judgment can occur if you fail to show up to court or if you fail to respond to a petition.
If you have been sued and would like some assistance, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
Essential Terms for a Commercial Lease
May 20th, 2016
If you are a landlord or a tenant of a commercial space and are not familiar with commercial leases, here are a list of important terms that every commercial lease should include:
- Description of the Premises – It is important to ensure what exactly you are renting.
- Use – Make sure you can use the property how you want.
- Base Rent – This is the amount of rent, usually given in a per-square-foot amount.
- Additional Rents – Pay attention to ownership costs, maintenance costs, and property taxes.
- Security Deposits – The amount you need to put up front in order to lease the property.
- Letters of Credit – A letter from your bank telling the landlord you have sufficient funds to pay your rent.
- Guarantees – Usually makes the individual owner of the tenant business personally liable for any rent due.
- Assignment – This discusses a tenant’s ability to pass the lease off to someone else.
If you are thinking of getting involved in a commercial property or you need someone to review your existing lease, contact our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
Title Insurance Claims
May 19th, 2016
If you purchased title insurance on a piece of real estate and you discover a title defect in your real estate, you may be able to sue your title insurance company and assert a title insurance claim. When determining damages for your title insurance claim, you must consider the fair market value of the real estate at the time the title insurance was purchased and the fair market value of the real estate at the time of the title defect. If you are facing a real estate issue or you believe you have a title insurance claim, contact our office at www.Hoorfarlaw.com or 816-524-4949.
Appealing Child Support
May 18th, 2016
Temporary child support orders are not subject to appeal, even if they are labeled a judgment. If you are facing a child support award that you are unhappy with, contact our office at 816-524-4949 or www.Hoorfarlaw.com.
Common Tax Filing Errors
May 16th, 2016
Before you file your tax return, make sure you double-check your return for these common mistakes:
- Wrong or missing Social Security Numbers.
- Misspelled names.
- Filing status errors.
- Math mistakes.
- Incorrect bank account numbers for direct deposits.
- Unsigned forms.
If you are having tax trouble, feel free to contact our office at 816-524-4949 or www.Hoorfarlaw.com.