Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Wednesday, October 12, 2011
WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENIN’ – WEDNESDAY EDITION
“The JK Harris company once advertised that
it could resolve people's tax debts for ‘pennies on the dollar’, but now it
could be the company's creditors and disgruntled former clients who will get
less than they are owed.”
Unfortunately - “The bankruptcy filing is aimed at selling
the business quickly while writing off debt. The company would continue
operations in the meantime.”So it
appears we haven’t seen the last of JK and his fraudulent claims yet.
As I, and my fellow
tax bloggers, have said many times before – nobody can guarantee to get you off
the hook with Uncle Sam for “pennies on the dollar”.If you are in trouble with the IRS you should
avoid firms that so advertise like the plague.
Kay echoes my comments to clients and readers (the highlight is mine) –
“But like all self-employed workers, I also
get some payments for which I don't get a 1099. The law requires that a 1099 be
issued only if the amount earned is $600 or more. Less than that, and the
paying company doesn't have to mess with creating and sending out the form.
That money, however, whether it's
reported on an official tax statement or not, is still taxable income.”
+ A “tweet” from a fellow twit who works for the IRS brought
me to the IRS page on identity theft.At
the very top of the page is an official reminder from the IRS that bears
repeating (the highlight is by the IRS and not me) -
“The IRS does
not initiate communication with taxpayers through e-mail.”
So if you receive
an unsolicited email allegedly from the IRS it is a scam – delete it
immediately, and, whatever you do, do
not open any attachment or click on any link.