Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Archive for December, 2011

State Law Collects Back Taxes On Lottery Winnings

December 29th

Only a handful of people are lucky enough to win lottery drawings each year, some of which make millions of dollars in winnings. While many of these people may have struck it rich, a new law could stand in the way of some receiving their money.

Getting Their Fair Share

Legislation passed a new law in Connecticut that requires that lottery winners be checked for back taxes before any of their winnings can be paid out. As of New Years Day 2012, anyone who wins the lottery will have their personal information checked against a list of tax delinquent and back due penalties before any prizes can be distributed. Lottery winners will also be checked for back due child or domestic support payments prior to receiving any winnings. The law is applicable to any winnings of $5,000 or more acquired in the state of Connecticut.

The law came about as a measure to resolve the $400 million in state back taxes that are said to be currently delinquent.  The House Chair of the Judiciary Committee, Gerald Fox says,”  “If someone is lucky enough to win a lottery prize and they also owe back taxes it is reasonable to collect those taxes at that time. This is not just about revenue owed the state, but also about fairness and improving confidence in our tax system.”

 

 

Historic New Jersey Gas Station Up For Auction

December 20th

After sitting empty for nearly a decade, a historic Gulf gas station went up for auction for unpaid taxes. Located in Upper Pittsgrove Township the old gas station at Pole Tavern Circle has been in jeopardy of foreclosure for quite some time. After local officials agreed to pursue more serious tax debt collection efforts, the gas station faced its debut on the auction block last week.

Up For Grabs

According to tax records, the Gulf gas station owner currently owes around $100,000 in back taxes. It is reported that $60,000 is attributed to the actual tax debt with the remaining $40,000 attributed to tax penalties and interest fees. With no payment for over five years, previous collection efforts proved unsuccessful.

Mayor Jack Cimprich said, ” They have not been paying taxes for quite some time. It’s just not fair to the rest of the township. We need to get that property back on the books.” The city approved the foreclosure proceedings in order to resolve the unpaid tax debt balance. After being questioned about the motive behind the foreclosure, Mayor Cimprich said, ” “We have no interest in the real estate business — recouping our back taxes is our primary goal.”

 

Year End Tax Issues

December 14th

As 2011 comes to a close, it is evident that this past year has had its fair share of fiscal ups and downs. One of the big topics of discussion has been the national debt and budget crisis and how it affects taxes.

The tax policy has been the center of much debate among politicians and whether possible changes would help alleviate our debt woes. Despite these discussions failing to lead to an agreement, some of the current tax cuts could come to end after the New Year.

Tax Reform

The issue that has many people concerned about the New Year is the payroll tax cut deadline. If no extension is granted, the payroll tax cuts currently offered will be terminated starting January 1st, 2012. The payroll tax cut has played a key role in sparking the job market by motivating employers and small business owners, which were eligible to lower payroll taxes from 6.2% to 4.2%. It is anticipated that Congress will extend this program for another year because it would be detrimental to raise takes on workers in a soft economy.

Another issue facing political leaders in the New Year is whether or not to raise taxes for certain income brackets. Democrats are looking to apply a 1.9% increase in taxes on those whose annual income exceeds $1,000,000. They are also hoping to repeal the Bush tax cuts for the wealthy. Meanwhile, some Republicans are pushing for a flat tax, or universal decrease in taxes so as to not cause a ripple of tax debt.  Further, Republicans want more tax deductions to help lower tax liabilities for all taxpayers and many businesses.

Currently, there are no plans for any changes to take effect by the year’s end. However, it is clear that some policy change is on the horizon, whether that means through tax increases or more cuts.

 

 

Hollywood Star Vows To Settle Tax Debts

December 6th

It seems as though no one is immune from the effects of back taxes. From movie stars to pro-athletes, many well  known Americans have faced serious IRS consequences for their unpaid taxes. Recently, actress Christie Brinkley experienced her own share of IRS trouble when she found out she had nearly $500,000 in IRS back tax.

Lifestyles Of The Rich

Christie Brinkley reports that she had no idea she owed the IRS money until she received a tax lien notification. With her house and bank accounts at risk of seizure, Brinkley has acted quickly to resolve her tax debts.

Reportedly the cause of an accounting error, Christie’s half a million tax bill has put a rush on her tax debt payments. She has vowed that her debts will be paid in full by Wednesday, December 7th.  Brinkley has never had any trouble with the IRS or paying her taxes in the past and says she regrets “not paying closer attention to (her) finances.”

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011