White Plains New York Tax Blog

Improperly reporting cryptocurrency could lead to tax litigation

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in criminal/civil tax litigation on Monday, February 17, 2020.

New York residents who are financially savvy may have jumped into the cryptocurrency game at its inception. Whether individuals have participated in crypto trades, mining, sales or other related activities, those actions may have become lucrative endeavors. Still, it is important to remember that if individuals do not report that income on their taxes, they could end up facing tax litigation.

Though some seasoned cryptocurrency experts may already know the proper way to report the income on their taxes, some individuals newer to this type of currency may not be so up to date. One of the biggest facts to remember is that the income must be reported. Not reporting this income is a violation of tax law, and it could lead to financial penalties or even criminal charges if not properly addressed.

Collections for tax debt do not have to go on forever

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in federal and state tax collections on Monday, February 10, 2020.

Paying taxes seems like a burden to most New York residents and those around the country. Though people may grumble at the amount withheld from their paychecks, they may feel relieved when they receive a refund. Unfortunately, everyone is not lucky enough to obtain a refund, and some may owe significant amounts. This type of ordeal can be difficult for some people, and they may face collections for tax debt.

Having tax debt is a stressful predicament to be in. Many people may think that they can handle their debt easily, but over time, it may become more of an issue than they anticipated. After filing the year's tax returns, individuals can gain a better idea of what they actually owe. This information can help them find the right debt relief options. In this type of situation, it may be better to file one's taxes ahead of the deadline to have more time to explore available options.

Avoid these common income tax mistakes in 2020

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. on Thursday, February 6, 2020.

Paying taxes to the IRS every year is an unpleasant task for everyone, but you want to avoid making the process even more difficult, and expensive, by making mistakes on your income tax returns.

While many errors won’t automatically trigger an audit, major or minor mistakes can cause headaches by delaying refunds until they are corrected. But other more serious missteps can create costly consequences.

What issues can lead to tax controversies, audits?

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in tax controversies on Monday, February 3, 2020.

Tax season is typically not one that individuals look forward to. Though possibly receiving a refund can make having to go through the often tedious filing process worth it, it can still be a stressful time, especially if the IRS decides to conduct an audit. Tax controversies can cause anyone to panic, but there are ways New York residents could help themselves lessen the likelihood of an audit.

One area that could be of concern is itemized deductions. Most people want to claim as many deductions as possible to lower their tax obligation, but large itemized deductions could raise a red flag. In particular, if someone makes a substantial charitable donation, it could increase the chances of an audit.

Criminal tax litigation is likely for accusations of tax evasion

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in criminal/civil tax litigation on Monday, January 27, 2020.

Dealing with taxes can be complicated for any New York resident. Filing the right forms, including the right information and paying taxes as dictated by the government can be complicated. Unfortunately, some people may end up facing criminal tax litigation if they are accused of tax evasion.

In particular, business owners can be at risk of this charge if the IRS suspects that they have not handled their taxes appropriately. This type of situation befell a business owner in another state, and that individual is currently facing accusations of sales tax evasion, sales tax violation, fraudulent practice and ongoing criminal conduct. The man had owned three bars and is suspected of not properly handling tax-related matters for more than two years.

What is the federal tax collection process?

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in federal and state tax collections on Friday, January 24, 2020.

Owing taxes is fairly commonplace for residents in New York and elsewhere. While many individuals and families prepare for paying taxes each year, for some, this can be extremely burdensome for those struggling financially. Not paying taxes due could result in penalties and could initiate the collection process. However, many are not aware of what this process entails and what options they might have.

What is the federal tax collection process? When an individual does not pay their tax bill in full, the IRS will send a bill, which then initiates the collection process. This can continue with various alternative payment options if it cannot be paid in full, and it will end once the account is satisfied. This bill will include the amount past due, any penalties associated with it and the interest that has accumulated at this point in time.

Helping you resolve tax collection issues

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in federal and state tax collections on Thursday, January 16, 2020.

The New Year brings many things, one of which is the delivery of tax documentation for individuals and businesses. While this is commonplace for many in New York and elsewhere, for some, it can be challenging to consider the next filing year when one has not made payment on a previous tax year. Whether one is delinquent in paying taxes or is seeking to obtain an extension, it is important that individuals and business owners understand their options to avoid tax collection.

At the Auerbach Law Group, P.C., our attorneys are dedicated to providing personal attention to people dealing with tax collection issues. Tax debt can have serious consequences, which is why it is important to be proactive when dealing with delinquent taxes.

Couple, and their attorney, face federal tax charges

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in criminal/civil tax litigation on Thursday, January 9, 2020.

A couple who has a history of running into controversy with the IRS is now facing criminal allegations of tax evasion and conspiracy to defraud the government. Both the couple and the attorney are facing years in prison.

The IRS also says that the couple owes over $1 million to the IRS, in part because of penalties and interest. Those accused have denied the allegations and are awaiting a trial.

Four ways the IRS can audit you

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. on Monday, December 30, 2019.

Receiving an audit notice from the Internal Revenue Service (IRS) can be nerve-wracking at first. However, if you have not provided false information or failed to complete your taxes, you may not have anything to worry about. The IRS conducts investigations when they want to examine a person’s or business’s tax filings further. Though the government also performs random assessments periodically. If you recently received a notice in the mail, understanding the different types of audits can help you prepare.

Overview of the federal crime of tax obstruction

On behalf of Lee David Auerbach, Esq. of Auerbach Law Group, P.C. posted in criminal/civil tax litigation on Thursday, December 26, 2019.

There has been a lot of talk about obstruction in the media these days. In running speech, obstruction refers to the effort of one person unfairly refusing to let another person, or institution, do his or her job.

In the world of federal taxation, tax obstruction refers to a violation of a certain federal law. Specifically, it is a crime, punishable by a fine of $5,000 and up to three years in prison, for a person to try to prevent or delay the IRS from enforcing the tax code.

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