In Memory: Stanley H. Block (1932-2025). His legacy and guidance will continue through our service to clients.
As a Maryland tax resolution attorney, I feel it is my duty to inform the taxpaying community about some of the basic taxing rules and principles. One very important concept that many taxpayers who have repayment programs don’t understand is how to not default. This is very important because the costs associated with defaulting a plan are high. Read more
If you are like many Americans, you like to try and itemize deductions on your federal tax return. If you do not use the standard deductions, you may be entitled to claim a deduction for charitable donations you made throughout the year. My first tip is to make sure you take a picture of the items you donated as well as keep a list of the items donated. The more organized you can be about your donations, the better. The organization can include a list of items, the organization donated to, date of donation, and amount you will be claiming. Remember that all donations over $500 dollars require a receipt so make sure you ask for it ON THE DAY OF YOUR DONATION!
The IRS says that a taxpayer can deduct the fair market value (FMV) of the items they donated. The FMV is most likely not the amount you originally paid when you purchased the donated item. Rather, the FMV is more closely related to the value of the item at the time it was donated. Take into consideration the wear and tear of the item, age, quality, and how much the donation is worth to that particular agency when factoring its FMV. Donations are usually in the form of household goods, furniture, clothing, appliances, etc. You may need to consult with a tax professional to help you arrive at a proper valuation. Some sources estimate the FMV to be around 30% of the items original value.
In order to back up what you have put on the tax return(s) it is important to keep good records. To help substantiate your donations and their valuations your record keeping is key. S.H. Block Tax Services, Inc. suggests that clients keep detailed lists of their donations and hold onto those records for five years or as long as they may be required.
As always, my advice is if you are unsure about this or any other tax deductions or credits, it is in your best interest to consult with a reputable tax professional.
Helpful Links:
http://www.amazinggoodwill.com/hubfs/docs/Donation_Value_Guide_-100115.pdf
https://satruck.org/Home/DonationValueGuide
https://www.irs.gov/pub/irs-pdf/f8283.pdf
On September 21st, 2016, the IRS officially announced their new streamline program. This new pilot program is available to taxpayers who owe between $50,000 and $100,000. This new plan means a possibility of longer terms, less documentation, lower monthly payments, and extended periods for the statute of limitations to run its course. Read more
Did you know that most of the large Tax Resolution Firms will not handle your local tax issues? Many clients come into my office every month after they have already been through the tax resolution process with one of those big firms you hear on the radio. Only to find that despite what the salesperson said initially, big firms do not work on a taxpayer’s’ state liability. Read more
Q: My taxes were under review for months, not audited. I sent them everything they asked for and it’s not enough. Their saying I will get nothing back because nothing I sent them proves my kids live with me. What should I do? My kids always lived with me and I been claiming them their whole lives. I have to send them a response or more proof by next week or I get nothing.
A: Dear Friend after speaking to you and determining your low income status I have two suggestions. The first is Maryland as well as most states have a low income tax clinic. Our clinic is called the Maryland Volunteer Lawyers. They can be reached at 410-727-6006. I feel you may be a good candidate for their services and may meet their income requirements for assistance. Also available in most states as well as for IRS matters is tax payer advocates. You can obtain their help by filling out Form 911 Request for Taxpayer Advocate Service Assistance. I believe these two entities can provide you a wealth of information as well as possible assistance.
I have warned by phone and by social media, in person and on the news. This phone scam is a very real thing and finds hundreds of victims every week. The IRS impersonation scam, as it has been referred to; is a phone scam that has topped the IRS’s dirty dozen list in the last couple of years. I will continue to warn my fellow taxpayers about the robocalls and live agents threatening good people over the phone. I hope that these posts go viral and warn some of those unsuspecting targets. Read more
When a taxpayer fails to pay their taxes, the Maryland Comptroller’s office puts them in the collections phase and starts sending letters. If after sending a series of letters the taxpayer still fails to pay or set up a qualifying payment plan or provide a reason as to which they cannot pay, the Comptroller’s office can take action. Read more
Q: I’m currently unemployed and I have 3 years of unfiled taxes. How can I get these filed and how can I get this tax lien removed from the Federal and State?
A: Hello friend, this is a great question. In order for you to file previous tax returns we find it best to start with ordering a transcript. Luckily after a long hiatus, the IRS transcript taxpayer version is back up and running. Using your IRS transcripts to file old tax returns helps you get a full picture of what information the IRS will be looking for on that return. As for a tax lien, this requires an additional conversation with follow up questions please call our office at (410) 872-8376.
Q: Is it possible to file past years’ taxes from the 90s and early 2000s? How can I get the IRS off my back, they have attached a lien on my pay?
A: Hello friend, in short yes. It is possible to file taxes from the 1990s and early 2000s. However, your question is more complex. First, if you are referring to the IRS it may not be in your best interest to file taxes that are older than six years. This determination of filing needs more investigation. If you are referring to Maryland State Tax Returns, there is no statute of limitation and you will probably have to file those older years. This can be done using your transcripts, Form 4506-T, and requesting information via the Freedom of Information Act. However, you may need an attorney to guide you through the process of removing the lien, becoming compliant, and getting the IRS off your back.
Owing taxes is a very personal thing. Most of my clients would never dream of telling their neighbors, family members, and sometimes even their spouse that they owe taxes. The flip side to that coin is the State of Maryland is all too happy to announce to the world that you owe a tax debt. It may stem from a common bookkeeping mistake or maybe a family member was sick and you did everything just keep your head above water. Whatever the reason, your name is now on a list or possibly many lists. So what types of lists and announcements are there? Read more
