Tax Lawyers Group, APC, is a premier tax law firm concentrating in all areas of  tax law and bankruptcy law.

We are a law firm dedicated to providing responsive, personalized legal representation of the utmost quality to our clients in all areas of taxation law.

Let us help you find real solutions and get real results in resolving your tax problems including representation before the Internal Revenue Service (IRS), Employment Development Department (EDD), State Board of Equalization (SBE), Franchise Tax Board (FTB) concerning Tax Audit Defense, Settlement of Taxes -Offer In Compromise, Bank Seizures & Levy issued by taxing agencies, Wage Levy by taxing agencies, Tax Lien release, Tax Appeals, Tax Court Litigation, Criminal Tax, Payroll or Employment Tax Disputes and Audits, Trust Fund Taxes, Tax Penalty and Interest Abatement, Tax Payment Plan, Bankruptcy, Business Formation, and Estate Planning.

Since its establishment, Tax Lawyers Group, A Professional Law Corporation, has provided all our clients the highest quality legal representation in resolving tax and bankruptcy problems faced by our clients. Tax Lawyers Group's network of professional staff includes tax attorneys from some of the best tax law firms in the country, former IRS Revenue Agents, former interns to U.S. Bankruptcy Court Judges, and seasoned tax attorney and Certified Public Accountants. Through our combined wealth of education and experience we believe that we are able to offer our clients the most dynamic, sound legal advice unmatched by our peers.

We welcome you to browse through the information on our web site. In it, you will find answers to some of the questions you may have concerning your tax problem as well as information for business planning and estate planning. We welcome any further inquiries you may have concerning your tax situation. Feel free to contact us by telephone or by completing the online form on the contact us page. We will respond to all relevant inquiries without any obligation.

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RECENT TAX DEVELOPMENT

January  2008
IRS Tax Penalty for Frivolous Claim

August  2007
Foreclosures  and Short Sales: IRS Surprise Troubled Taxpayers with More Taxes

July  2007
Late Filed Tax Penalty Abatement Must be based on Reasonable Cause

IRS Tells Church Minister to Prove His Tax Deductions

IRS Fights Tax Court Petition on Timeliness

IRS May Tax Personal Injury Award

IRS Tax Audit - IRS Disallows Mortgage Interest Deduction During IRS Tax Audit

California Tax Collection Statute of Limitation - Update on the New Tax Collection Law

July 2, 2007

IRS TAX RETURN FILING PROGRAM MAY NOT BE ACCURATE

The LA Times. " The Internal Revenue Service's free tax-filing program, which has had its share of controversy, got some more Friday as auditors said much of the program's industry-supplied software couldn't handle simple returns."

"Taxpayers have every reason to question whether they'd be better off with a pencil and an abacus than using the current free-file program," said Sen. Charles E. Grassley (R-Iowa).

"But the audit also found that there was no assurance of accuracy with the free-file software and that many of the programs simply couldn't handle basic tax situations.
             For instance:   

•  One-fourth of the free-file tax software programs would not allow taxpayers to take either the earned income tax credit or the child and dependent care credit without also claiming an exemption for a dependent, even though these credits don't always require that you claim a dependent.

•  Almost half of the programs did not ask users for enough information to determine whether they were entitled to claim an exemption for a dependent."

"Taxpayers who were sent to the wrong software program often didn't discover it until they were midway through the process, forcing them to start over with another free-file vendor or go elsewhere for their tax preparation — and pay for it. "

June 29, 2007

IRS TAX CREDIT FOR HYBRID CARS

Vehicles Purchased or Placed in Service

The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006.

The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.

Hybrid vehicles have drive trains powered by both an internal combustion engine and a rechargeable battery. Many currently available hybrid vehicles may qualify for the tax credit.

Quarterly Sales

Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th hybrid or advance lean burn technology. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.

Vehicles Purchased or Placed in Service 2001 through 2005

In August 2002, the IRS announced that it had certified the first hybrid gas-electric automobile as eligible for the clean-burning fuel deduction, effective 2001. Federal law allowed individuals to claim a deduction for the incremental cost of buying a motor vehicle propelled by a clean-burning fuel. A tax deduction is subtracted from income, thus reducing the amount of adjusted gross income on which the taxpayer is taxed.

The deduction is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.