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Tax News

How come we have to pay all these taxes?

We know that you ask yourself this question every year – or, hopefully, every quarter.

So here are some answers.

Our client came to our office at the end of 2014 because her wages were being levied. She had signed for her late mother’s gambling winnings in 2006 and was stuck with a high tax debt ($21,000!) on that reported income. By the time we saw her she hadn’t filed her taxes in over six years and the wage levy in place didn’t leave her enough income to meet necessary living expenses. We had that levy released within two weeks.

While she was still our client, she was laid off at her job. Now there was absolutely no way for her to pay back all of the gambling taxes. The IRS accepted an Offer in Compromise of just $25 for back taxes that now totaled $25,000!

Sorry to break it to you.

You know those commercials you’ve seen that promise you’ll only have to pay “8 to 10% of your tax debt” or “pennies on the dollar” if you make an offer in compromise?

Those commercials are wrong. Or at the very least, misleading.

The Oklahoma Tax Commission initiated a program last month that allows residents to pay overdue taxes without the penalties and fees attached. So far we have had over 90 clients participate in this program and many of them have had amazing outcomes. A few of our results:

OTC allows Oklahomans to pay overdue taxes without penalty

In September, Oklahoma started a two-month program allowing residents to pay overdue taxes with deadlines before January 1, 2015 without penalties, fees or interest. This emergency amnesty program was initiated to increase the state’s budget and ends November 13th, 2015. This is great news for people who are behind on taxes. But if you owe money to a debt collection agency instead of the Oklahoma Tax Commission, the fees associated with the collection agency do not disappear automatically.

We are excited to announce that our Vice President and Managing Attorney was named a Rising Star by the magazine Super Lawyers! There is a three step process to be named a  Super Lawyer.

First, lawyers must be nominated. At least one nomination must come from someone outside their firm in order to be considered.

As the presidential election heats up, you’ll hear crazy men and women shouting about lots of hot-button social issues. (We pretty much guarantee it.) You’ll also hear some less entertaining talk about taxes. It’s not as sexy, but it’s definitely important.

Enjoy this glimpse into a very unusual section of tax law. It’s about as close as this firm gets to partying.

On September 16th, marijuana sellers and buyers in Colorado had a really great day. Thanks to a one-time glitch in the state constitution, the usual 10 percent state cannabis tax was revoked for 24 hours.

First of all – yes, the government is out to get you! They will get their money one way or another. It’s a sad fact of life.

Under the Affordable Care Act, you have to have health insurance – or else. If you don’t sign up for insurance by the deadline, you will have to pay an extra penalty at tax time.

We’re glad you asked.

You’re not the only one who wants to know – around this time of year, a lot of clients call us and are very confused about what, exactly, the extension deadline is. Don’t they get a free pass on their taxes if they missed the April deadline? Why is the IRS contacting them? What should they do?