Stopping a wage garnishment in the state of Michigan for taxes owed is a common issue for many Michigan residents. When a tax bill from the IRS or State of Michigan is unpaid or ignored, the IRS or State of Michigan Taxation agency can file a Wage Garnishment order, which requires a third-party wage provider to withhold some amount of wages as a means to repay a debt. The wage garnishment will stay in effect until the entirety of the tax debt is paid off, or the State of Michigan taxation agency or IRS agrees to a levy release. Continue reading
Category Archives: Blog
June 2017 Newsletter
Man Claims He Didn’t File Tax Returns Because of the Bible
James Schlosser of PA was convicted of failing to file tax returns for 21 years because he considered using a Social Security number akin to using the “mark of the beast” spelled out in the Bible. Schlosser failed to file returns from 1994 to 2014 on his earnings of approximately $2.3 million as a medical equipment salesman. The prosecution showed he funneled the income through foreign business trusts and corporations registered in Nevada. Schlosser could face 5 years in prison and $450,000 in fines. Continue reading
May 2017 Newsletter
Interesting Facts About the IRS
-When the IRS tax form 1040 was first introduced in 1914, it had only 3 pages including instructions. Today, it has 101 pages of instructions.
-The IRS requires you to declare all sources of illegal income (i.e. embezzlement)—they can’t prosecute you for the activity, but they can prosecute you if you don’t report the income. Continue reading
March 2017 Newsletter: Happy St. Patrick’s Day!
And Yet Another New Scheme; The Latest Tax Scam
Issuing an alert to tax professionals and taxpayers, the Internal Revenue Service is warning them about a new fake tax scam involving fake CP2000 notices. CP2000 notices are sent as part of the IRS’s Automated Under-Reporter Program when income reported from third party sources, such as employers or 1099’s does not match the income reported on a tax return. It is always sent to the taxpayer through the U.S. Postal Service. In the new scam, the fake CP2000 notice is sent as an attachment to an email, stating there is additional unpaid taxes owed relating to he Affordable Care Act. The notices appear to be issued from an Austin, TX address and includes the request that a check be mailed to an Austin post office box. The email also has a “payment” link within the email.
If you get a questionable notice feel free to call or email Lothamer at 517-484-1040, toll free at 1-800-619-8277 or
February 2017 Newsletter: Happy Valentines Day!
Tobacco Store Owner has to Cough up Big Bucks for Tax Fraud
Business owner Hisham Jaber, of Pekin, IL pleaded guilty to filing fraudulent corporate income tax returns and sales tax returns with the State of Illinois.
Jaber was the owner of two retail tobacco stores, Smoker’s Paradise One and Two and was charged with underreporting more than $8 million in sales between 2008 and 2013.
The amount of the fraud resulted in an underpayment to the state of $640,000. Jaber was sentenced to three years in prison and ordered to pay restitution of the amount owing to the state of $640,000.
Lothamer has helped many smoke shops and MMMP shops get current and pay taxes.
We here at Lothamer Tax Resolution will make sure all your rights are protected!
January 2017 Newsletter: Know Your Rights
Know Your Rights!
THE 10 COMMANDMENTS OF THE IRS
The idea that the IRS has a list of 10 Commandments (taxpayer rights) might seem like an oxymoron, but the fact is they do, and here they are:
- The Right to be Informed
- The Right to Quality Service
- The Right to Pay No More than the Correct Amount of Tax
- The Right to Challenge the IRS’s Position and Be Heard
- The Right to Appeal an IRS Decision in an Independent Forum
- The Right to Finality
- The Right to Privacy
- The Right to Confidentially
- The Right to Retain Representation
- The Right to a Fair and Just Tax System
We here at Lothamer Tax Resolution will make sure all your rights are protected!
How to Avoid Tax Preparer Fraud
Every tax season, someone will fall victim to a tax preparer fraud scheme. Most incidents occur towards the end of tax season and in low-income neighborhoods. The most common schemes are: inflating personal or business expenses; false deductions or income; and unallowable credits or excessive exemptions. Tax preparer scammers will use these schemes as a way to inflate your refund and keep the money for themselves. Continue reading
Five Things to Look for When Hiring a Tax Attorney
Many Americans are faced with an IRS problem every year. If you happen to fall into this situation, it is important that you seek the help and advice of a qualified tax attorney. While there are many reasons to hire one attorney over another, here are five important things to look for when hiring a tax attorney for your case. Continue reading
Missing 1099’s ???
Now that tax season has arrived, we are all patiently waiting to receive our tax forms in the mail. While many will receive a W-2 from our employer, some may receive a 1099 for work performed or other reasons. Some common 1099 forms are for interest income, retirement accounts, real estate or broker exchange transactions, merchant card payments, or just miscellaneous income. As with W-2s, any 1099 should be received by January 31st of the following year. Here are three things you can do if you do not receive them: Continue reading
What IRS Form 433-B and How it Can Help You
The IRS’ Form 433-B, Collection Information Statement for Businesses, is the form the IRS uses to determine a businesses’ ability to pay their tax liability. The form is required by the IRS when a business owes the IRS taxes, and requests that the IRS approve an installment plan, an offer in compromise, or place the currently noncollectible status. Continue reading
The IRS’ Form 433-B, Collection Information Statement for Businesses, is the form the IRS uses to determine a businesses’ ability to pay their tax liability. The form is required by the IRS when a business owes the IRS taxes, and requests that the IRS approve an installment plan, an offer in compromise, or place the currently noncollectible status.