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Request for Reconsideration

Request for Reconsideration

Radha Rothrock, Cape Coral tax lawyer A request for reconsideration is a form of equitable relief to a taxpayer if the taxpayer has missed a deadline to file an appeal.  For example, assume the taxpayer filed a tax return and listed self employment income of $70,000  and deductions of $35,000.  The IRS audits the taxpayer and requests proof of the deductions.  The taxpayer does not provide the proof.  The IRS then assesses taxes, and the taxpayer does not file an appeal.   The IRS then files a levy against the taxpayer to collect the money.   In this situation, the taxpayer cannot file a Petition in Tax Court or an appeal with the Appeals Unit because the deadline to do so has already passed.   Instead, the taxpayer may file a Request for Reconsideration with the IRS and ask the IRS to consider proof of the late filed expenses. If the IRS accepts the request and proof, it will lower the tax liability.

When to Ask for a Request for Reconsideration

The IRS may accept the taxyaper's request at its sole discretion.  On the contrary, the IRS must consider a taxpayer's request for appeal or petition to Tax Court if the taxpayer files a petition timely.  A taxpayer should ask for a request only if it has missed a deadline.  If the taxpayer files the request, he  should document his case thoroughly and organize his documents well.

Hire an Experienced Tax Lawyer Today

If you need to file a Request for Reconsideration with the IRS, hire an experienced tax lawyer today.  Radha Rothrock is a Cape Coral tax lawyer.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States and the United States District Court for the Middle District of Florida.  Call the Rothrock Law Firm today for your free consultation at (239) 206-1948. Read the full article

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Premium Tax Credit

Premium Tax Credit

premium tax credit for health insurance Taxpayers may claim a premium tax credit if they buy health insurance through the Marketplace.   Taxpayers with low or moderate income can afford health care coverage if the government issues them a credit.  The government calculates the amount of credit according to the amount of income the taxpayer reported the previous year.  If the taxpayer's income increases significantly from the year before, he will  have to repay a substantial amount of the credit.

Report Changes

Taxpayers should contact the IRS if they experience changes to their family size or their income.  Reporting changes early will reduce the amount of credit that the taxpayer will have to pay back.  If the family size increases, or if the amount of family income decreases, the taxpayer can get a larger credit.  Eligibility for Medicaid will also affect the amount of tax credit.

File a Tax Return

Taxpayers must file a tax return to claim the premium tax credit.  In addition, taxpayers must attach form 8962 to their tax return if claiming the credit.

Enroll in the Marketplace

Taxpayers must enroll for Marketplace coverage at the end of the year in order to claim the credit.  Under certain circumstances, taxpayers may apply at other times if they experience changes to their jobs or family situations.  The Department of Health and Human Services administers the requirements for the health plans.

Call a Naples Tax Attorney Today

Radha Rothrock is a tax lawyer in Naples, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 438-4187.  We accept all major credit cards, including Visa, Mastercard, American Express, and Discover. Read the full article

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Cancellation of Debt Income

Cancellation of Debt Income

1099C Cancellation of Debt Income If you borrow money and fail to repay any of it, you are usually personally liable on the debt.  Your creditor can file a 1099C tax form for "cancellation of debt income."   This situation happens if you fail to pay your credit card or mortgage loan.  The situation is also common if you sign a deed in lieu of foreclosure.  Selling your home through short sale can also trigger a 1099C. You have to report the income as ordinary income and pay tax on the income unless you show that the cancellation of debt income is not taxable.    The most common reasons are bankruptcy and insolvency. If you file bankruptcy, and a judge discharges your debts, you do not have to pay taxes on the cancellation of debt income.  You do not have to pay taxes on the cancellation of debt income if you are considered insolvent. If your liabilities exceed your debt, you are insolvent. If you claim the bankruptcy or insolvency exception, you have to file a completed form 982 with your tax return.  Unfortunately, most tax software companies do not automatically fill out this form.  If you file your own tax return, you have to manually fill out this form and include it with your tax return.  I would recommend hiring a certified public accountant to file your tax return if you receive a 1099 Cancellation of Debt form.  If you omit Form 982, the IRS will send you a hefty bill.

About Rothrock Law Firm

Radha Rothrock is a Cape Coral tax attorney.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1948. Read the full article

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Tax Fraud and Tax Evasion

Tax Fraud and Tax Evasion

Read the full article

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Business Deductions for Medical Marijuana

Business Deductions for Medical Marijuana

deductions for medical marijuana Business Deductions for Medical Marijuana.  Medical marijuana is a big business in the U.S.  It is also a legal business in the majority of states in the U.S.   Despite this fact, medical marijuana retailers cannot claim many business expenses on their tax returns. Internal Revenue Code Section 280E forbids tax deductions based on the sale of illegal substances.  Although the sale of marijuana is now legal in most states, it is still illegal under federal law.  (Oddly enough,Section 280E  does not apply to "cost of goods sold," which reduces the total amount of income reported for a company). The United States Tax Court interpreted Section 280E one step further.  In the case of Alterman v Commissioner, TC MMemo 2018-83, the Tax Court disallowed the taxpayers' deduction for non-marijuana merchandise, such as pipes and paraphernalia.  The Court ruled that "selling non-marijuana merchandise was not separated from the business of selling marijuana merchandise.  The taxpayer derived almost all of its revenue from the business of selling marijuana merchandise.  Also, the merchandise complemented its efforts to sell marijuana."  The taxpayers argued that selling paraphernalia was a separate business that did not involve selling drugs. Courts have also ruled that most employee salaries of medical marijuana businesses were nondeductible business expenses.  In the case of x, the taxpayer attempted to include salaries as a cost of goods sold to reduce total income reported.  The court held that the salaries were not cost of goods sold but were business expenses.  The company could not deduct the business expenses under Section 280.

How to Maximize Profits in Medical Marijuana

Legalized marijuana dispensary owners will eventually lobby Congress to change the laws regarding taxation.  Until Congress passes new laws, business owners should keep good records.  In the Alterman case, the taxpayers did not maintain good records.  Had they maintained good records, the Court might have allowed their deductions for the selling of non-marijuana merchandise as a separate business.  In order to maximize deductions, medical marijuana dispensaries and retailers should clearly separate the business of selling marijuana from other businesses, such as providing drug counseling, selling t-shirts, and selling pipes.

Hire an Experienced Tax Lawyer today

Call the Rothrock Law Firm today at (239) 206-1976.  Radha Rothrock is a tax lawyer in Fort Myers, Florida.  She is licensed to practice law in Florida and is admitted to practice before all Tax Courts in the U.S.  She holds a Masters of Law Degree in Taxation.  Call today for a free consultation. Read the full article

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How to Get a Tax Return Transcript

The Importance of the Tax Return Transcript

How to Get a Tax Return Transcript The first step in solving a problem with the IRS is to review the taxpayer's transcripts.  The IRS has authorized the Rothrock Law Firm to pull its clients' transcripts through the Transcript Delivery System.  Our offices uses wage transcripts to prepare delinquent returns and account transcripts to research our clients' tax history.  Most people don't have access to these tools; however, the IRS offers many free products to consumers.  This blog explains how to get a tax return transcript. I would recommend that you order your transcripts periodically to see if the information reported to the IRS is accurate and also whether anyone else is using your identity.

How Do I Get a Tax Return Transcript?

Supposedly, a taxpayer can create an online account with the IRS and can obtain IRS transcripts online.  In reality the system works about one third of the time.  My advice is to first try to create an online account.  If it works, you can download the transcripts instantly.  If if doesn't work, call the IRS at 1-844-545-5640.  You can make an appointment with your local IRS office if you call this number.  Do not show up to the IRS office without an appointment.  Most of the local IRS offices will not help you or even let you in the building unless you have an appointment. Make sure to bring your driver's license and social security card with you to prove your identity.  If you have an appointment and bring your verification of identity, they will give you your transcripts for free.  Make sure to know which transcript to ask for. Read our blog "Types of IRS Transcripts" to determine which transcript to ask for.

Call an Experienced Tax Attorney Today

The IRS has authorized the Rothrock Law Firm to pull tax return transcripts for its clients.  We access our clients' transcripts through the IRS Tax Transcript Delivery System. Radha Rothrock is a tax lawyer in Fort Myers, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1976. Read the full article

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Types of IRS Tax Transcripts

Types of IRS Tax Transcripts

IRS tax transcripts The government offers several different types of IRS tax  transcripts:  1)  tax return transcript, 2) account transcript, 3) record of account, 4) wage transcript, and 5) verification of nonfiling transcript.

What Type of IRS Transcript Should I Ask For?

Tax Return Transcript A tax return transcript is a summary of the actual tax return that you filed.  The IRS will give you tax return transcripts for the last three years only.  This transcript provides proof that you filed a tax return.  If you are applying for a mortgage, the bank will probably ask for this type of transcript. If you are filing bankruptcy or if you are filing an immigration petition, a government official might ask you for a tax return transcript. Account Transcript An account transcript is a history of your tax transactions. It shows when you filed a return, how much you owed, how many payments you made, when you made a payment, whether you ever filed an offer in compromise, whether the IRS accepted your installment agreement, etc.  The IRS provides account transcripts for the last ten years.  You will need this type of transcript if the IRS says you owe money, and you are trying to research your  history. Wage Transcript A wage transcript lists information reported about you by other people.  It will show the amount that your employer paid you and how much mortgage interest you paid your bank, among other things.  Ask for a wage transcript if you have not filed a tax return in years, and you are now trying to get things straight with the IRS.  The IRS provides wage transcripts for the last ten years. Record of Account A record of account combines the wage transcript and tax transcript.  The IRS provides a record of account for the last three years only. Verification of Nonfiling The verification of nonfiling provides proof that you did not file a return.  If  you are involved in a court proceeding, such as a bankruptcy or immigration proceeding, then you might need to prove that you did not file a return.  You might not have been required to file a return because you did not earn enough money in that tax year.  A wage transcript and verification of nonfiling shows the government official that you have complied with tax laws because the law did not require you to file a tax return.

Call an Experienced Tax Lawyer Today

The Rothrock Law Firm files delinquent tax returns for clients, arranges payment plans, and disputes tax liability.  We pull various types of IRS tax transcripts for our clients as part of our representation.  We have completed all government background checks, and the IRS has authorized us to prepare tax returns. Radha Rothrock is a tax lawyer in Naples, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 438-4187. Read the full article

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IRS Whistleblower Statistics

IRS Whistleblower Statistics

IRS releases whistleblower statistical information The IRS publishes various statistics about the IRS Whistleblower Program, including the total amount of claims filed and the total amount of money awarded.  Below is a partial summary of its findings:

Length of Time to Process Case and Pay Reward

In the last three years, the IRS has taken approximately seven years to process the claims and pay the rewards for each claim.

Reasons that Claims were Denied

For tax year 2017, the biggest reason that the IRS rejected a claim was because the allegations were not specific enough.  The IRS closed 57% of its cases for this reason.  The IRS closed 11% because the amount collected was less than $2,000,000.  In addition, the IRS closed 10% of its claims because it was already investigating the claimant.

Awards Paid

In 2015, the IRS received 204 claims  and issued 99 rewards.  For 2016, the IRS received 761 claims and issued 418 rewards.  In 2017, the IRS received 367 claims and paid 242 rewards.  The IRS collected $501,317,481 in 2015 and paid $103,486,236 in rewards.  In 2016, the IRS collected 368,907,298 and paid $61,390,910 in rewards.  In 2017, the IRS collected $190,583.750 and paid $33,979,873 in rewards. Since the program's inception in 2007, the Whistleblower Office has collected $3,609,932,724 and has paid $499,174,673 in rewards. As noted in the published IRS Whistleblower statistics, the chief reason that the IRS denied a claim was because the claimant did not provide sufficient information to support the claim.  Hire an experienced tax attorney to submit the claim on your behalf. The Rothrock Law Firm holds more than 50 years of combined experienced.  All of our attorneys have been licensed for more than 20 years.

Contact an Experienced Tax Attorney Today

If you wish to file an IRS Whistleblower claim, speak to an experienced tax attorney today. Radha Rothrock is a tax attorney in Cape Coral, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has been licensed to practice law since 1989 and is admitted to practice before the United States Tax Court in all 50 states. Call today for your free consultation at (239) 206-1948. Read the full article

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IRS Whistleblower Appeals

IRS Whistleblower Appeals

Naples tax attorneys Carl and Radha Rothrock file IRS Whistleblower Appeals Per IRS Code 7623, the IRS may award  whistleblowers anywhere between 15 and 30 percent of the amount it collects. The whistleblower may appeal the amount of the reward.  Rothrock Law Firm files IRS Whistleblower Appeals.   The IRS has published the following factors in determining the amount of the reward:

25.2.2.5.4.1 (01-12-2018)

Factors Used to Determine Award Percentage

Positive factors. The application of the following non-exclusive factors may support increasing an award percentage under IRM 25.2.2.5.4.2, Amount of Award Percentage - Substantial Contribution, and IRM 25.2.2.5.4.3, Amount of Award Percentage - Less Substantial Contribution. The whistleblower acted promptly to inform the IRS or the taxpayer of the tax noncompliance. The information provided identified an issue or transaction of a type previously unknown to the IRS. The information provided identified taxpayer behavior that the IRS was unlikely to identify or that was particularly difficult to detect through the IRS’s exercise of reasonable diligence. The information provided thoroughly presented the factual details of tax noncompliance in a clear and organized manner, particularly if the manner of the presentation saved the IRS work and resources. The whistleblower (or the whistleblower’s legal representative, if any) provided exceptional cooperation and assistance during the pendency of the action(s). The information provided identified assets of the taxpayer that could be used to pay liabilities, particularly if the assets were not otherwise known to the IRS. The information provided identified connections between transactions, or parties to transactions, that enabled the IRS to understand tax implications that might not otherwise have been understood by the IRS. The information provided had an impact on the behavior of the taxpayer, for example by causing the taxpayer to promptly correct a previously-reported improper position. Negative factors. The application of the following non-exclusive factors may support decreasing an award percentage under paragraphs (1) or (2) of IRM 25.2.2.5.4.2, Amount of Award Percentage - Substantial Contribution, and IRM 25.2.2.5.4.3, Amount of Award Percentage - Less Substantial Contribution. The whistleblower delayed informing the IRS after learning the relevant facts, particularly if the delay adversely affected the IRS’s ability to pursue an action or issue. The whistleblower contributed to the underpayment of tax or tax noncompliance identified. The whistleblower directly or indirectly profited from the underpayment of tax or tax noncompliance identified, but did not plan and initiate the actions that led to the underpayment of tax or actions described in IRC §7623(a)(2). The whistleblower (or the whistleblower’s legal representative, if any) negatively affected the IRS’s ability to pursue the action(s), for example by disclosing the existence or scope of an enforcement activity. The whistleblower (or the whistleblower’s legal representative, if any) violated instructions provided by the IRS, particularly if the violation caused the IRS to expend additional resources. The whistleblower (or the whistleblower’s legal representative, if any) violated the terms of the confidentiality agreement described in 26 CFR 301.7623-3(c)(2)(iv). The whistleblower (or the whistleblower’s legal representative, if any) violated the terms of a contract entered into with the IRS pursuant to 26 CFR 301.6103(n)-2. The whistleblower provided false or misleading information or otherwise violated the requirements of IRC §7623(b)(6)(C) or 26 CFR 301.7623-1(c)(3).

25.2.2.5.4.2 (01-12-2018)

Amount of Award Percentage - Substantial Contribution

If the IRS proceeds with any administrative or judicial action based on information brought to the IRS’s attention by a whistleblower, such whistleblower shall, subject to paragraphs (2) and (3) of IRC §7623(b), receive as an award at least 15 percent but not more than 30 percent of the collected proceeds resulting from the action (including any related actions) or from any settlement in response to such action. The amount of any award under this paragraph depends on the extent of the whistleblower’s substantial contribution to the action(s). IRM 25.2.2.5.4.5, Multiple Whistleblowers, for rules regarding multiple whistleblowers. Computational framework. Starting the recommended award percentage at 15 percent, the Whistleblower Office will analyze the administrative claim file using the factors listed in IRM 25.2.2.5.4.1, Factors Used to Determine Award Percentage - (1) to determine whether the whistleblower merits an increased award percentage of 22 percent or 30 percent. The Whistleblower Office may increase the award percentage based on the presence and significance of positive factors. The Whistleblower Office will then analyze the contents of the administrative claim file using the negative factors listed in paragraph (2) of IRM 25.2.2.5.4.1 , Factors Used to Determine Award Percentage, to determine whether the whistleblower merits a decreased award percentage of 15 percent, 18 percent, 22 percent, or 26 percent. The Whistleblower Office may decrease the award percentage based on the presence and significance of negative factors. Although the factors listed in paragraphs (1) and (2) of IRM 25.2.2.5.4.1, Factors Used to Determine Award Percentage, are described as positive and negative factors, the Whistleblower Office’s analysis cannot be reduced to a mathematical equation. The factors are not exclusive and are not weighted and, in a particular case, one factor may override several others. The presence and significance of positive factors may offset the presence and significance of negative factors. The absence of negative factors does not constitute a positive factor.

25.2.2.5.4.3 (01-12-2018)

Amount of Award Percentage - Less Substantial Contribution

If the Whistleblower Office determines that the action is based principally on disclosures of specific allegations resulting from a judicial or administrative hearing; from a governmental report, hearing, audit, or investigation; or from the news media, then the Whistleblower Office will determine an award of no more than 10 percent of the collected proceeds resulting from the action (including any related actions) or from any settlement in response to such action. If the whistleblower is the original source of the information from which the disclosures of specific allegations resulted, however, then the award percentage will be determined under IRM 25.2.2.5.4.2, Amount of Award Percentage - Substantial Contribution. Note: The Whistleblower Office will include publicly available filings on government websites, such as financial filings with the Security and Exchange Commission, as meeting the criteria for consideration as a less substantial contribution. Computational framework. The Whistleblower Office will analyze the administrative claim file to determine- Whether the claim involves specific allegations regarding a tax underpayment or a violation of the internal revenue laws that reasonably may be inferred to have resulted from a judicial or administrative hearing; a governmental report, hearing, audit, or investigation; or the news media; Whether the action was based principally on the disclosure of the specific allegations; and Whether the whistleblower was the original source of the information that gave rise to the specific allegations. If the Whistleblower Office determines that the action was based principally on disclosures of specific allegations, as stated in paragraph (b) above, and that the whistleblower was not the original source of the information, then, starting at 1 percent, the Whistleblower Office will analyze the administrative claim file using the factors listed in IRM 25.2.2.5.4, Award Computation - IRC §7623(a) claims filed on or after December 20, 2006, and IRC §7623(b) claims, to determine whether the whistleblower merits an increased award percentage of 4 percent, 7 percent, or 10 percent. The Whistleblower Office will then determine whether the whistleblower merits a decreased award percentage of zero, 1 percent, 4 percent, or 7 percent using the factors listed in paragraph IRM 25.2.2.5.4, Award Computation - IRC §7623(a) claims filed on or after December 20, 2006, and IRC §7623(b) claims, of this section. The Whistleblower Office may increase the award percentage based on the presence and significance of positive factors and may decrease (to zero) the award percentage based on the presence and significance of negative factors. Like the analysis described in IRM 25.2.2.5.4, Award Computation - IRC §7623(a) claims filed on or after December 20, 2006, and IRC §7623(b) claims, the Whistleblower Office’s analysis cannot be reduced to a mathematical equation. The factors are not exclusive and are not weighted and, in a particular case, one factor may override several others. The presence and significance of positive factors may offset the presence and significance of negative factors. But the absence of negative factors does not constitute a positive factor.

Appealing the Reward

The IRS whistleblower may file an appeal of the reward with the United States Tax Court.  The whistleblower will need to argue the facts articulated above to persuade a Tax Court Judge that the amount of the reward should be higher.

Hire an Experienced Tax Lawyer to Represent You

In presenting your Form 211, the Rothrock Law Firm will carefully review the evidence you submitted. We will present the evidence most favorably to you with the IRS and will demonstrate how your evidence substantially contributed to their collection.  We will maximize the amount of your recovery and will appeal with the Tax Court if necessary.

Call Us Today

The Rothrock Law Firm files IRS Whistleblower Appeals.  Radha Rothrock is a tax attorney in Naples, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has been licensed to practice law since 1989 and is admitted to practice before the United States Tax Court in all 50 states. Call today for your free consultation at (239) 438-4187. Read the full article

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Anonymous Whistleblower Claim

Anonymous Whistleblower Claim

Radha Rothrock Fort Myers Tax Lawyer IRS Whistleblowers can submit an anonymous whistleblower claim by filing Form 3949-A rather than Form 211. The IRS will not pay a reward for filing the claim under Form 3949-A, however.  If the whistleblower wants to collect the reward, he must file a Form 211 and disclose his identity. The law provides some protection to the whistleblower's identity even if the whistleblower files Form 211.  Section 6103 of the Internal Revenue Code prohibits the IRS from disclosing a whistleblower's information unless the IRS can show a compelling exception.  Although the IRS rarely releases the whistleblower's identity, it might reveal the whistleblower's identity if the whistleblower testifies in court.   If IRS counsel cannot prove its case without the whistleblower's testimony, it may call the whistleblower as a witness. The Tax Court also provides protection for the anonymous whistleblower claim.  The Court adopted Rule 345(a) which allows a whistleblower to proceed anonymously if the whistleblower presents a sufficient showing of harm that outweights counterbalancing societal interest in knowing the whistleblower's anonymity. The attorneys at the Rothrock Law Firm protect your confidence.  If you retain us, we will be the chief contact with the IRS concerning your claim.

Hire an Experienced IRS Whistleblower Attorney Today

If you wish to file an anonymous whistleblower claim, speak to an experienced tax attorney today. Radha Rothrock is a Fort Myers tax attorney.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has been licensed to practice law since 1989 and is admitted to practice before the United States Tax Court in all 50 states. Call today for your free consultation at (239) 206-1976. Read the full article

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How to Submit an IRS Whistleblower Claim

How to Submit an IRS Whistleblower Claim

Reporting an IRS Whistleblower Claim How to Submit an IRS Whistleblower Claim.  A whistleblower can report suspected underpayment of taxes in one of two ways:  filing Form 211 and filing Form 3949A.

Form 211

The IRS will  pay a reward only if the whisteblower submits Form 211.  A whistleblower must sign the application under penalty of perjury and disclose his identity.   The whistleblower must fill out all parts of the form and must provide adequate documentation to support the claim.  We recommend strongly that you hire an attorney to assist you.  Only x per cent of whistleblowers received the reward in 2017.   The attorneys at the Rothrock Law Firm have more than 50 years of experience practicing law.  All attorneys at the Rothrock Law Firm negotiate with the IRS regularly and appear before the United States Tax Court.

Form 3949A

The whistleblower can submit Form 3949A anonymously.  A whistleblower does not need to sign the application under penalty of perjury. The IRS will not pay a reward if the whistleblower files the complain on Form 3949A.  

Meet with a Qualified IRS Whisteblower Attorney Today

The Rothrock Law Firm can assist you with how to submit an IRS whistleblower claim. If you wish to file an IRS Whistleblower claim, speak to an experienced tax attorney today. Radha Rothrock is a tax attorney in Cape Coral, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock has practiced law in Texas and Florida, the United States District Court for the Middle District of Florida, and the U.S. Tax Court.  Carl Rothrock has practiced law since 1989 and is admitted to practice before the United States Tax Court in all 50 states. Call today for your free consultation at (239) 206-1948.  We have offices in Cape Coral, Fort Myers, and Naples.   Read the full article

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How to Report an IRS Whistleblower Case

How to Report an IRS Whistleblower Case

First Step:  Hire an Qualified Tax Attorney

Radha Rothrock,Naples tax lawyer How to report an IRS whistleblower case?  The first step in reporting an IRS whistleblower case is to hire an experienced tax lawyer.  The attorneys at the Rothrock Law Firm hold more than 50 years of experience.  They appear before the United States Tax Court, and they negotiate with the IRS on a regular basis.  They know how to present evidence to the IRS.

Second Step:  Organize the Evidence

The second step is to organize all evidence that supports the claim.  The IRS will deny the claim if detailed evidence does not support the claim.  The IRS will also deny the claim if the statute of limitations has already run to investigate the claim.  The attorneys at the Rothrock Law Firm will analyze the evidence you provide and will organize your case to its maximum extent.

Third Step:  Submit the claim

The third step is to submit the claim.  Although the IRS is supposed to review the claim  within ninety days, it often takes much longer to investigate.  If the IRS audits the person or business against whom the claim is filed, the case could last for months or years.  The larger the business, the greater chance that the business will litigate the claim.  The IRS cannot pay a reward until it collects unpaid taxes, penalties, and interest from the business or individual.

Fourth Step:  Collect the Reward

The fourth step is to collect the reward.  The Rothrock Law Firm will track your claim with the IRS.  If the reward appears too small, the firm will file an appeal in Tax Court if necessary.

Contact an Experienced Tax Lawyer Today

If you need assistance on how to report an IRS whistleblower case, speak to an experienced tax attorney today. Radha Rothrock is a Naples tax attorney.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has practiced law since 1989 and has appeared before the United States Tax Court. Call today for your free consultation at (239) 438-4187.     Read the full article

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Areas of Taxpayer Abuse

Areas of Taxpayer Abuse

IRS identifies areas of taxpayer abuse The IRS has identified several areas of taxpayer abuse.  If you  believe you have information about taxpayer abuse, you might be able to file an IRS Whistleblower case.  If the IRS collects at least $2 million in taxes, penalties, and interest, it can pay you a reward of 15% to 30% of the money collected. Abusive Return Preparer Enforcement Return preparer fraud generally involves the orchestrated preparation and filing of false income tax returns (in either paper or electronic form) by unscrupulous preparers who may claim, for example: inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions. Abusive Tax Schemes Abusive tax scheme originally took the structure of abusive domestic and foreign trust arrangements. However, these schemes have evolved into sophisticated arrangements that take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit/debit cards issued from offshore financial institutions. Bankruptcy Fraud One of Criminal Investigation's goals in bankruptcy fraud investigations is to increase voluntary compliance with federal tax laws through the prosecution of those committing significant crimes in the bankruptcy arena. Since the IRS is often a major creditor in many bankruptcy proceedings, it is important that we protect the interests of the IRS. Corporate Fraud Corporate fraud frequently involves violations of the Internal Revenue Code (IRC) through falsification of corporate and individual tax returns and CI has exclusive investigatory jurisdiction over criminal violations of the IRC. Employment Tax Enforcement Employment tax evasion schemes can take a variety of forms. Some of the more prevalent methods of evasion include pyramiding, employee leasing, paying employees in cash, filing false payroll tax returns or failing to file payroll tax returns. Evading employment taxes can have serious consequences for employers and the employees. Financial Institution Fraud Criminal Investigation focuses on tax and money laundering violations involving fraud against banks, savings and loan associations, credit unions, check cashers, money remitters, and other financial institutions. Currency Transaction Reports and Suspicious Activity Reports continue to be effective investigative tools in the financial world. Gaming Illegal gaming operations, including bookmaking, numbers, Internet and some charitable gaming operations, continue to be areas of compliance concern. Criminal Investigation continues to play an enforcement role in the illegal gaming industry and to support regulatory and legislative initiatives aimed at eliminating an environment conducive to illegal gambling. General Fraud Investigations Criminal Investigation special agents investigate violations of the tax laws and related financial crimes. Taxpayers who chose to willfully and intentionally not comply with their legal responsibility to file required tax returns and/or pay taxes pose a serious threat to tax administration and the American economy. Healthcare Fraud Multi-agency healthcare fraud investigations and prosecutions show that perpetrators of these schemes financially benefited from their fraudulent activities in false billings, mental health, nursing home fraud, chiropractic fraud, durable medical equipment fraud, staged accidents, pharmaceutical diversion, and patient referral (kickbacks) schemes. In these investigations, Criminal Investigation follows the money trail and considers both tax and money laundering perspectives. Identity Theft Schemes IRS Criminal Investigation (CI) detects and investigates tax fraud and other financial fraud, including fraud related to identity theft. International Investigations International tax compliance is a top priority of the IRS. Complex international tax avoidance schemes and cross-border transactions have heightened the IRS’ concern about tax compliance. Individuals may attempt to use foreign accounts, trusts, and other entities to commit criminal violations of U.S. tax laws as well as narcotics, money laundering and Bank Secrecy Act (BSA) violations. Money Laundering & Bank Secrecy Act (BSA) Money laundering is a very complex crime involving intricate details, often involving numerous financial transactions and financial outlets throughout the world.  Criminal Investigation has the financial investigators and expertise that is critical to “follow the money trail.” Narcotics-Related Investigations Criminal Investigation's contribution to the war on narcotics is vital but sometimes difficult to recognize, because the work of IRS special agents usually doesn't make the headlines. The long hours of tracking down and documenting financial leads allows an investigation to go right to the door of the leader of the narcotics organization, which contributes to the disrupting and dismantling the country's major drug and money laundering organizations. Non-filer Enforcement There have always been individuals who, for a variety of reasons, argue taxes are voluntary or illegal. The courts have repeatedly rejected their arguments as frivolous and routinely impose financial penalties for raising such frivolous arguments. Take the time to learn the truth about frivolous tax arguments. Public Corruption Crimes Public corruption investigations encompass a wide variety of criminal offenses including bribery, extortion, embezzlement, illegal kickbacks, entitlement and subsidy fraud, bank fraud, tax fraud, and money laundering. Criminal Investigation concentrates its resources on the tax and money laundering aspects of these investigations in cooperation with other federal, state, and local law enforcement agencies. The expertise used in investigations has established our reputation as one of the leaders in the fight against corrupt public officials. Questionable Refund Program (QRP) Questionable Refund Program (QRP) is a nationwide, multifunctional program designed to identify fraudulent returns, to stop the payment of fraudulent refunds and to refer identified fraudulent refund schemes to be investigated and prosecuted criminally.

Call a Tax Lawyer Today

If you wish to file an IRS Whistleblower claim, speak to an experienced tax attorney today. Radha Rothrock is a Fort Myers tax lawyer.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.   Call today for your free consultation at (239) 206-1976. Read the full article

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IRS Whistleblower Rewards

IRS Whistleblower Rewards

Rothrock Law Firm, Attorneys in Fort Myers, Cape Coral, and Naples, FL The IRS rewards whistleblowers with money if it collects underpayments of taxes.  The IRS pays Whistleblower Rewards anywhere from 15 to 30 percent of the amount it collects.  This amount includes taxes, penalties, and interest.  The law places no cap on the amount of the reward.  Whistleblowers have collected hundreds of millions of dollars under this program. Section 7623 of the Internal Revenue Code authorizes the IRS to pay rewards.  This code section makes the reward mandatory.  The taxpayer can file an appeal with the United States Tax Court if it believes that the IRS has not paid the reward. Mimimum Amount of Collection The IRS must collect at least $2 million before it pays the reward.  This amount includes taxes, penalties, and interest.  In addition, if the whistleblower reports the actions of an individual, the individual must earn at least $200,000 per year in the year that the activity was reported. Successfully collecting the reward is a complicated process.  The whistleblower must document his case carefully.  The IRS must be able to collect the taxes.  If the company is defunct, the IRS might not be able to collect.  The whisteblower must provide information that ultimately leads to the collection of taxes.  If the government had already investigated the taxpayer independent of the whistleblower, it does not need to pay a reward.  If the whistleblower believes that the IRS did not pay the reward or underpaid the reward, it can file an appeal with the United States Tax Court. Hire a Law Firm to File your Claim of Reward The attorneys at the Rothrock Law Firm can help the whistleblower put his best case forward so that he can collect the largest reward possible.  All the attorneys at the Rothrock Law Firm have practiced law for a minimum of 20 years and are admitted before the United States Tax Court.  They hold more than 50 years of combined experience in dealing with agencies such as the IRS.  

Call an Experienced Tax Attorney Today

If you wish to maximize IRS whistleblower rewards, speak to an experienced tax attorney today. Radha Rothrock is a tax attorney in Cape, Florida, who represents IRS whistleblowers.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has practiced law since 1989.  He practices before the United States Tax Court in all 50 states. Call today for your free consultation at (239) 206-1948. Read the full article

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IRS Whistleblower Program

IRS Whistleblower Program

Rothrock Law Firm - IRS Whistleblower Attorneys in Naples, FL The IRS Whistleblower Program provides a reward to any person who provides information to the IRS concerning the underpayment of tax.  The whistleblower can identify any person, corporation, business or trust who underpays its taxes in any way, whether through fraud, mistake, or uncertain tax position.   The award equals up to 30 percent of the tax, interest, and penalties that the IRS collects. The program places no cap on the amount of the dollar award. The IRS will reward the whistleblower only if the total amount of tax collected exceeds $2 million.  This amount includes taxes, penalties, and interest.  Further, if the person who owes taxes is an individual, then the individual must earn at least $200,000 per year. An IRS whistleblower must follow strict rules and guidelines in submitting a claim form.  The key to getting the reward is to have well assembled documentation that supports the claim.  The attorneys at the Rothrock Law Firm hold more than 50 years of combined experience.  All attorneys at the Rothrock Law Firm are admitted to practice before the United States Tax Court and have several years of experience in dealing with the IRS.

Call a Qualified IRS Whistleblower Attorney Today

If you wish to file an IRS Whistleblower claim, speak to an experienced tax attorney today. Radha Rothrock is a tax attorney in Naples, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law in all courts in Texas and Florida, the United States District Court for the Middle District of Florida, and before all Tax Courts in the United States.  Carl Rothrock has practiced law since 1999.  He is admitted to practice law in all courts in Texas, the United States District Court for the Southern District of Texas, and all Tax Courts in the United States.  Call today for your free consultation at (239) 438-4187.   Read the full article

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Trust Fund Penalties

Trust Fund Penalties

Rothrock Law Firm, Attorneys in Fort Myers and Naples, FL Perhaps the most damaging type of penalty facing the small business owner is the Trust Fund Penalty.  The small business owner is responsible for withholding taxes from his employees' paychecks and then remitting the withheld taxes to the government. Often, the owner collects the tax but does not remit it.  Other times, the owner does not collect the tax at all.  In these situations, the government will assess trust fund penalties against both the business and any "responsible party."  The penalty equals a whopping 100% of the tax due.

Who Can Be a Responsible Party?

The IRS may assess a trust fund penalty against any person who ir responsible for collecting or paying the withheld taxes and willfully fails to collect or pay them.  A responsible person is a person or group of people who has the duty to perform and the power to direct the collecting, accounting, and paying of trust fund taxes. This person may include: An officer or an employee of a corporation, A member or employee of a partnership, A corporate director or shareholder, A member of a board of trustees of a nonprofit organization, Another person with authority and control over funds to direct their disbursement, Another corporation or third party payer, Payroll Service Providers (PSP) or responsible parties within a PSP Professional Employer Organizations (PEO) or responsible parties within a PEO, or Responsible parties within the common law employer (client of PSP/PEO). For willfulness to exist, the responsible person: Must have been, or should have been, aware of the outstanding taxes and Either intentionally disregarded the law or was plainly indifferent to its requirements (no evil intent or bad motive is required).

How the IRS Determines Who is a Responsible Party

The IRS will interview the business owner to determine who was responsible for collecting and paying the trust fund taxes.  The IRS agent will ask the owner questions about the roles of the owners and employees of the business.  Often times, the IRS will determine that all owners are responsible parties.  In addition, the IRS may also hold the manager of the company and/or the bookkeeper responsible parties.

Appeal of Trust Fund Penalty

Once the IRS assesses a trust fund penalty, the party will have 60 days to file an appeal.  The taxpayer cannot file an appeal in Tax Court for this type of penalty. You may be asked to complete an interview in order to determine the full scope of your duties and responsibilities. Responsibility is based on whether an individual exercised independent judgment with respect to the financial affairs of the business. An employee is not a responsible person if the employee's function was solely to pay the bills as directed by a superior, rather than to determine which creditors would or would not be paid.

Hire a Qualified Tax Lawyer Today

If the IRS is investigating you for trust fund violations, call an experienced tax attorney today.  Trust fund cases are probably the most difficult cases to defend.  Case law has sided with the IRS on almost every reported case.  Nevertheless, the Rothrock Law Firm successfully overturned trust fund penalties for one of our clients.  In that case, we presented more than 200 pages of documentation and affidavits showing that our client was a passive owner of his business and did not participate in the day to day management of the business.  The IRS Appeals Unit agreed and reversed over $60,000 of trust fund penalties against the taxpayer. Radha Rothrock is a tax lawyer in Cape Coral, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1976. Read the full article

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IRS Civil Penalties

Types of IRS Civil Penalties

irs civil penalties The IRS lists more than 100 possible civil penalties in the Tax Code.  The following list explains some of the most common types of penalties:

Failure to Pay Penalty

The IRS assesses a failure to pay penalty if the taxpayer files a tax return, owes taxes, but does not pay those taxes.  This penalty is 1/2% of the outstanding tax debt.  It accrues monthly up to a maximum of 25%.

Failure to File Penalty

The IRS assesses a failure to file penalty if the taxpayer does not file a tax return.  This penalty is 5% of the outstanding tax debt.  It accrues monthly to a maximum of 25% of the total taxes owed.

Accuracy Related Penalty

The IRS imposes accuracy related penalties under Section 6662(a) of the United States Code.  The IRS imposes this penalty in the following types of situations:   understatement of income tax, negligence or intentional disregards of IRS rules and regulations, substantial valuation misstatement, substantial overstatement of pension liabilities or a substantial estate or gift tax valuation understatement.   This penalty is 20% of the outstanding tax debt.

Gross negligence penalty

The IRS imposes gross negligence penalties under Section 6662(h)(i) or (j) of the United States Code.  The IRS imposes this penalty to the extent that a portion of the underpayment described in Section 6662  is attributable to one or more gross valuation misstatements.  This penalty is 40% of the outstanding tax debt.

Civil fraud penalty

The IRS imposes civil fraud penalties under Section 6663(a) of the United States Code if any part of any underpayment of tax  described in Section 6662 is due to fraud.   This penalty is 75% of the total tax owed.

Penalty Abatement

If the IRS imposes a civil penalty on you, contact an experienced tax attorney.  In tax year 2016, the IRS assessed over 39 million civil penalties totaling more than 27 million dollars.  Of this amount, the IRS abated only 13% of the penalties totaling around 9 million dollars.  The Rothrock Law Firm has successfully abated penalties numerous times.  Our firm abated more than $100,000.00 of penalties for one client in 2018.   Radha Rothrock is a tax attorney in Fort Myers, Florida.  She has practiced law since 1995.  She holds a Master of Law Degree in Taxation from the University of Denver.  Mrs. Rothrock is admitted to practice law before all Tax Courts in the United States.  Call today for your free consultation at (239) 206-1976. Read the full article