Tag Archives: tax law

Tax attorney to millionaires, Allie Petrova, warns about new IRS tactics against taxpayers

GREENSBORO, N.C. /ScoopCloud/ -- It is official now: The Internal Revenue Service is going after high-income taxpayers who need to be filing returns, reporting income, and coming to terms with overdue taxes, penalties, and interest, cautions renowned tax attorney and national speaker Allie Petrova, founder of Petrova Law PLLC, a premier tax resolution law firm.

In its effort to improve tax compliance in the high-income categories, the IRS has started mailing out compliance letters to more than 25,000 individuals and families with more than $1 million in income earned during tax years 2017 through 2021. IRS compliance letters have also gone out to over 100,000 high-income earners with incomes between $400,000 and $1 million for the same period.

"Clients typically feel overwhelmed in these situations. It is important to not delay and to consult with a specialized tax attorney right away because deadlines are tight. The last thing you want is to miss an IRS deadline," cautions attorney Petrova, who guides taxpayers with high-stakes tax debt in the six and seven digits. Attorney Petrova works with clients from all over the country.

Curiously enough, this is all low-hanging fruit for the IRS because these cases were flagged based on Forms W-2 and 1099 received by the IRS from third parties. The IRS was unable to match this income data with corresponding returns, which indicated that these high-income earners received income, but did not file tax returns.

What does that mean to you? Make sure you open your incoming mail, particularly from the IRS and the state tax authorities. Muster some courage and open it right away, do not let it linger on your desk or the kitchen counter.

In some cases, the IRS can file on behalf of taxpayers what is called a substitute for return based on income reported on Forms W-2 and 1099s. That leads to exorbitantly high taxable income because the IRS does not take into account all applicable deductions. Then, the taxpayer has the daunting task to prove that this taxable income should be lower.

If a taxpayer hasn't filed tax returns for any of the immediately preceding couple of years, the first action to take would be having these returns prepared and filed after a consultation with a tax attorney.

"When a client came to my office recently, we discovered that her family - she and her husband - owed the IRS a balance of over $600,000. While she expected some balance due to non-routine transactions, the magnitude was a bit of a surprise. IRS balances can snowball with the added interest and penalties," shares tax attorney Allie Petrova.

The IRS has been strengthening its enforcement efforts for a while now. Thanks to Inflation Reduction Act funds, it finally has the budget and funding to be impactful.

Many of Ms. Petrova's clients are high net worth individuals who value privacy, peace of mind, and reliable solutions. "We look at tax issues from every angle and do everything possible to discover the best solution for each client and minimize the tax impact," remarks attorney Petrova.

For more information about tax attorney Allie Petrova, visit: https://www.petrovalaw.com/who-we-are/galina-allie-petrova/

About Petrova Law PLLC:

Petrova Law is a national tax law firm which exclusively represents high-income taxpayers and businesses with high-stakes, high-value tax debt before the IRS and state tax authorities.

For more information about Patrova Law, visit: http://petrovalaw.com/.

It is official now: The Internal Revenue Service is going after high-income taxpayers who need to be filing returns, reporting income, and coming to terms with overdue taxes, penalties, and interest, cautions renowned tax attorney and national speaker Allie Petrova, founder of Petrova Law PLLC, a premier tax resolution law firm.

Related link: https://www.petrovalaw.com/

Tax Court Case: Engineering Firm Overstated §179D Energy Efficient Commercial Building Property Deduction

COLUMBUS, Ohio /ScoopCloud/ -- In a recent case, Michael Johnson, et ux. v. Commissioner, the tax court denied the majority of a taxpayer's Energy Efficient Commercial Building Deduction under IRC §179D since it claimed a §179D Deduction exceeding the cost of the Energy Efficient Commercial Building Property (EECBP), says ICS Tax, LLC.

Background

The §179D Deduction is a federal tax incentive designed to promote taxpayers to construct energy efficient buildings as well as encourage building owners to make improvements to existing structures that reduce energy and power costs. At the time of the case, the §179D Deduction provided a maximum deduction of up to $1.80 per square foot of the building's floor area and applies to interior lighting systems, heating, cooling, ventilation, hot water systems or building envelope. A special rule under §179D provides that architects, engineers, contractors, environmental consultants or energy services providers may also be eligible for the incentive on public projects. However, the amount of the §179D Deduction is limited to cost of the EECBP.

For an updated summary of the heavily revised §179D rules, go to https://ICS-Tax.com/179D.

The Case

In this case, the taxpayer was an engineering firm in the business of installing heating, ventilation, and air conditioning (HVAC) systems. The taxpayer installed HVAC systems in a U.S. Dept. of Veterans Affairs (VA) hospital. This engineering firm had the §179D Deduction allocated to them such that they claimed a deduction of $1,073,237 for the 2013 taxable year, which was equal to the product of $1.80 and 596,243, the hospital's square footage. However, the cost of the EECBP was only $304,640. Hence, the tax court concluded that the §179D deduction was limited to the $304,640 cost of the EECBP.

Many professional service providers lack the expertise to properly analyze the complex tax rules and engineering requirements for the §179D Deduction. For a tax incentive requiring both a thorough knowledge of the tax code and engineering principles, it is essential to hire a fully qualified and experienced team that includes CPAs, attorneys, and professional engineers. It is also essential to thoroughly vet your §179D service provider, and at a minimum, perform an Internet search that can yield critical information.

Author: Alexander Bagne, JD, CPA, MBA, CCSP

ABOUT ICS TAX:

ICS Tax, LLC (ICS) is a consulting firm providing innovative tax planning strategies. ICS collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability. ICS provides nationwide service through its offices throughout the country. Learn more: https://ics-tax.com/.

In a recent case, Michael Johnson, et ux. v. Commissioner, the tax court denied the majority of a taxpayer's Energy Efficient Commercial Building Deduction under IRC §179D since it claimed a §179D Deduction exceeding the cost of the Energy Efficient Commercial Building Property (EECBP), says ICS Tax, LLC.

Related link: https://ics-tax.com/

PitBullTax Software Once Again Dominates Tax Resolution with its Release of Version 5.0

CORAL SPRINGS, Fla. /ScoopCloud/ -- PitBullTax Software is excited to announce the release of its most robust and streamlined cloud based software platform to date. PitBullTax, the country's leading IRS Tax Resolution Software for CPAs, EAs and Tax Attorneys will be unveiling all the cutting edge major enhancements of Version 5.0 to licensees from all over the United States at its PitBullTax Institute User Conference today through May 3 in Fort Lauderdale, Florida.

"We continually strive to deliver best in class technology and solutions to the IRS Tax Resolution profession, and with Version 5.0 we exceeded our own incredibly high Expectations," stated Jose Alfaro, Co-Founder and Chief Technology Officer. "We always put our licensees ahead of the curve by streamlining and automating the ever changing requirements from the IRS," he added.

PitBullTax Software has been dominating the tax resolution software space for ten years, with a complete team of software engineers, developers, tax resolution professionals, administrators, customer service representatives, cyber security experts and program analysts, who are always aware of the ever increasing technology and tax law demands.

"We live and breathe IRS Tax Resolution , it runs through our veins. We pride ourselves on being extremely responsive to our users' feedback. They tell us what they need and we deliver it!" says Chief Operating Officer, Irina Bobrova, MST, EA. "Our company stands on three pillars: top-notch technology, data security and outstanding customer service."

Version 5.0 is all about increased efficiency for IRS Tax Resolution professionals and their office staff. It includes significant enhancements that will allow handling of many more cases in much less time, with much more macro controls. Key enhancements include a unique Client Summary, a one of a kind Transcript Dashboard, internal 2-Factor Authentication, more IRS Forms, more robust To Do's, Calendar and Time Tracking, enhanced User Permissions and advanced Smartphone App integration.

Jaime Buchwald, CPA, CFF, Co-Founder and CEO explained, "We are fortunate that we can always provide our licensees with increasing value through these major product enhancements. Jose and I started and self funded this company and we do not have venture capitalists, banks, or investors to answer to. Our loyalty is to our licensees, that's who we answer to. We never forget this when we come to work everyday."

PitBullTax Institute, an IRS and NASBA approved continuing education provider, invites all interested tax pros to its third PitBullTax User Conference, which will take place today through May 3 at the beautiful Hilton Fort Lauderdale Beach Resort. Software demonstrations of Version 5.0, printed course materials and multiple case studies will be part of this three day conference.

In addition, renowned guest speaker and tax attorney Robert McKenzie will present classes on Advanced Offers in Compromise and Installment Agreements. A bonus marketing session will also be presented by Michael Rozbruch, CPA.

Learn more: https://www.pitbulltax.com/.

PitBullTax Software is excited to announce the release of its most robust and streamlined cloud based software platform to date. PitBullTax, the country's leading IRS Tax Resolution Software for CPAs, EAs and Tax Attorneys will be unveiling all the cutting edge major enhancements of Version 5.0 to licensees from all over the United States at its PitBullTax Institute User Conference today through May 3 in Fort Lauderdale, Florida.

Related link: https://www.pitbulltax.com/