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TAX, BUSINESS, WILLS & ESTATES
Wills and Estates
Protest of IRS and State Tax Audits
Innocent Spouse Relief
IRS and State Audits and Appeals
Tax Controversy Matters--Federal, State and Local
Offers in Compromise
Corporate, Partnership and Limited Liability Company organization and planning
IRS Criminal Investigations
Collection Due Process Hearings
Removing Tax Levies and Garnishments
FAMILY LAW--DIVORCE, CUSTODY & SUPPORT
Divorce-Contested and Uncontested
Custody and DHR
Dividing Retirement Plans and IRAs in Divorce
In many divorces, retirement plans are the parties’ most significant asset. Divorce attorneys must understand the basics of retirement plans so that they can properly represent their clients throughout the divorce process. Further, they must take the time during the initial stages of the divorce to get the information that they need about the parties’ benefits. Many of the most common errors stem from a misdirected effort to save money for clients on tight budgets. This is an area where it is very easy to accidentally cost your client a fortune while trying to save him a few hundred dollars. The issues addressed here arise frequently, but there are simple ways for attorneys to protect their clients and themselves. With attention to these few important issues, attorneys can go a long way toward peacefully and successfully dividing retirement benefits, even in the midst of economic uncertainty.
Tax Issues for the Divorced, Separated or Married
Gene M. Bowman, Tax Attorney, Divorce Lawyer
Posted 2/28/2014 What is “joint and several liability?”
When you sign an income tax return with your spouse (husband or wife), you are telling the tax agency that you agree to pay any tax due on that return, even if the tax is not caused by your own income or mistakes. You agree to pay the tax even if the tax is caused by your spouse. That is what “joint and several liability” means – you are liable for the tax as a married couple and as an individual person.
How do I get out of “joint and several liability?”
The easiest way to avoid joint and several liability is to file as “married filing separate.” Unfortunately, if you file “married filing separate” you will not be able to claim the Earned Income Credit. You may also end up paying more tax than you would if you filed jointly with your spouse. So some people will not want to file separately from their spouses.
If the IRS is saying that you owe taxes for a year in which you filed a joint return with your spouse, you can file Form 8857, “Request for Innocent Spouse Relief,” if you fit into one of three situations, listed below. The IRS will either agree with you and not hold you liable for the tax, or it will deny your request for relief. When the IRS denies your claim for relief, you can appeal to an IRS Appeals Officer and even the United States Tax Court.
IRS–Offer in Compromise Tax Lawyer, Tax CPA Posted on December 6, 2013
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be legitimate option if you can’t pay your full tax liability. The Internal Revenue Service (IRS) will consider your facts and circumstances when reviewing your offer: 1)Ability to pay;2)Income;3)Expenses; and 4)Asset equity. The IRS will generally approve an offer in compromise when the amount offered represents the most that they expect to collect within a reasonable time period.
Alimony and Taxes
Family Attorney/Divorce Lawyer, Posted on December 10, 2013
Alimony is a payment to or for a former spouse under a divorce decree. It does not include voluntary payments that are not made under a divorce decree. If you are divorced and paying or receiving alimony under a divorce decree or agreement, you need to consider the tax implication for your income tax return. Alimony payments received from your ex-spouse are taxable to you in the year that you receive them.
Alabama Sales Tax on Successor When Buying Business or When Prior Owner Quits The Business
Most states maintain some sort of successor liability provision in their tax statutes. Those provisions allow the state taxing authority to collect the seller’s outstanding sales tax liability from the purchaser in a sale if some requirements are not satisfied. Most states require that either the seller or the purchaser provide the state taxing authority with notice of the proposed asset sale. That affords the taxing authority the opportunity to review the seller’s sales tax history and to collect any outstanding debts before the seller closes up shop. Those provisions are designed to prohibit sellers from selling their assets and absconding with the proceeds before satisfying their sales tax debts. And they protect purchasers from the sales tax liability of unscrupulous sellers.
In Alabama, Code of Ala. 1975, section 40-23-25 provides as follows: Section 40-23-25. Sale of business; taxation of sucessor.
Any person subject to the provisions hereof who shall sell out his business or stock of goods, or shall quit3 business, shall be required to make out the return provided for under '40-23-7 within 30 days after the date he sold out his business or stock of goods, or quit business and his successor in business shall be required to withhold sufficient of the purchase money to cover the amount of said taxes due and unpaid until such time as the former owner shall produce a receipt from the department of revenue showing that the taxes have been paid, or a certificate that no taxes are due. If the purchaser of a business or stock of goods shall fail to withhold purchase money as above provided the taxes shall be due and unpaid after the 30 day period allowed, he shall be personally liable for the payment of the taxes accrued and unpaid on account of the operation of the business by the former owner. If in such cases the department deems it necessary in order to collect the taxes due the state, it may make a jeopardy assessment as herein provided. (emphasis added)
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We have over 20 years of experience as an attorney and CPA providing our expertise to resolve client's legal concerns in an effective manner with dedication to client success. We offer clients expert service with a unique commitment to ensure their needs are met from start to finish. We realize that results are important.
We have extensive experience handling tax matters as a tax lawyer and CPA, including tax audits and appeals with the Internal Revenue Service (IRS), tax audits and appeals with the State of Alabama, tax litigation in U.S. Tax Court, Circuit Court tax debt relief, offers in compromise, tax fraud, release of levies and liens and other taxpayer relief.
Our experience includes serving as the following: Attorney in Bowman Law Firm; Tax Director for a Fortune 500 Corporation; Legal Counsel for a Fortune 500 Corporation; and Senior Manager for a "Big Four" Consulting and Accounting Firm.
Our depth of experience with legal and financial matters serves as a benefit to our clients going through a divorce or dealing with other family law matters. We have years of experience, as a divorce attorney and family lawyer, handling issues that impact families, including the following: a) contested divorce; b) uncontested divorce; c) child custody; d) child support; e) DHR custody challenges.