Congress breathed life back into the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA), extending it through December 31, 2013. After fierce debate, U.S. legislators extended the MFDRA for another year as part of the fiscal cliff deal. Over a year ago, Arizona bankruptcy and tax relief attorney Lawrence ‘D’ Pew published an important article... View Post
Will Someone Please Explain Why AZ’s Sales Taxes Are So High?
What need can possibly justify Arizona’s ranking as the state with the second highest sales tax burden in the nation? According to the Tax Foundation organization’s July report on State and Local Sales Taxes at Midyear 2012, Arizona’s combined state and local sales tax (2.52% avg.) tips the scales at 9.12%, second only to... View Post
Will the Short Sale Tax Exclusion Disappear Too Soon?
There are numerous reasons why someone would sell a home for less than what was paid, such as a job transfer, marriage and combining households, or an illness or death in the family. For many households in and around Phoenix, though, there are two other reasons: they are either underwater on their homes (owing more... View Post
Ten Ways to Avoid a Tax Audit in Arizona – #6: Don’t Over-share
There are few things Arizonans dread more than the news that they will be getting audited by the IRS. Even the most scrupulous of taxpayers can spend many sleepless nights wondering if they have categorized and documented their deductions and credits properly. In this series of blogs, we will look at the ten basic steps you can... View Post
Ten Ways to Avoid a Tax Audit in Arizona – #5: Keep Track of All Your 1099 Forms
There are few things Arizonans dread more than the news that they will be getting audited by the IRS. Even the most scrupulous of taxpayers can spend many sleepless nights wondering if they have categorized and documented their deductions and credits properly. In this series of blogs, we will look at the ten basic steps you can... View Post
Ten Ways to Avoid a Tax Audit in Arizona – #4: Check and Double Check
There are few things Arizonans dread more than the news that they will be getting audited by the IRS. Even the most scrupulous of taxpayers can spend many sleepless nights wondering if they have categorized and documented their deductions and credits properly. In this series of blogs, we will look at the ten basic steps you can... View Post
IRS “Fresh Start” Expands Tax Relief
As many taxpayers breathe a collective sigh of relief with April’s tax deadline now in the recent past, still others have serious tax issues yet to be resolved with the Internal Revenue Service (IRS). We have good news for those hoping to resolve their unpaid tax problems – the IRS expanded its tax relief assistance... View Post
Ten Ways to Avoid a Tax Audit in Arizona – #3: Don’t make it TOO Easy for the IRS
There are few things Arizonans dread more than the news that they will be getting audited by the IRS. Even the most scrupulous of taxpayers can spend many sleepless nights wondering if they have categorized and documented their deductions and credits properly. In this series of blogs, we will look at the ten basic steps you... View Post
IRS Offer-In-Compromise Program Fraught with Delays
On March 30, the Treasury Inspector General for Tax Administration released the results of its 2001-2009 audit of the IRS in a 29-page report – Increasing Request for Offers in Compromise Have Created Inventory Backlogs and Delayed Responses to Taxpayers. What Is the Offer in Compromise? Simply put, the Offer in Compromise (OIC) is a... View Post
IRS Penalties Slam Those Who Fail to File, Fail to Pay
Nobody enjoys paying taxes or dealing with the Internal Revenue Service. When you owe a big payment, it can be tempting to just put your head in the sand, ignore it and hope it goes away – especially if you don’t have the money available. Unfortunately, the IRS isn’t going to simply let that slide.... View Post