Headlines about prominent tax cases tend to focus on spectacle: a well-known name, a large dollar amount, and the outcome of a criminal trial. What receives far less attention is the quieter and far more useful question for successful professionals and business owners: what practical steps could have prevented the situation from reaching that point in the first place?

The recent federal conviction of Thomas C. Goldstein — a widely known Supreme Court advocate and co-founder of SCOTUSblog — offers an opportunity to reflect on exactly that question. A federal jury in Greenbelt, Maryland found him guilty on 12 of 16 counts, including tax evasion, filing false tax returns, willful failure to pay taxes, and making false statements on mortgage applications. Prosecutors described a pattern in which millions in gambling income were concealed, law firm funds were diverted to cover personal debts, and lenders were misled about substantial liabilities.

🔗  Source: U.S. Department of Justice — Prominent Lawyer Convicted at Trial of Tax Evasion and Mortgage Fraud

The purpose of this discussion is not to revisit the specifics of one individual’s circumstances. Instead, it highlights several governance and tax-planning issues that often sit quietly in the background of similar cases. These are the types of issues experienced advisors regularly address with business owners, investors, and professionals in communities such as Midland and Saginaw, Michigan, and Murfreesboro, Nashville, Franklin, and throughout Rutherford County, Tennessee.

When handled thoughtfully, these matters rarely become crises. When handled casually, they can create avoidable risk.

FOUR INSTRUCTIVE THEMES

LESSON 1    Treat Gambling Like a Ledger, Not a Hobby

Federal tax law treats gambling winnings as taxable income regardless of the source — casinos, private poker games, online platforms, tournaments, sports wagering, or lotteries. Losses may be deductible, but only to the extent of gambling winnings, under   IRC §165(d)  . For individuals who are not professional gamblers, winnings are typically reported as “other income” on the individual return, while losses are claimed as itemized deductions subject to that limitation.

For someone playing casually, these rules may seem straightforward. But when the stakes increase — especially when significant sums move through private games, loans among players, or informal settlements — accurate reporting becomes difficult without deliberate record-keeping.

The IRS expects gamblers to maintain detailed records, including:

• The date and type of gambling activity
• The location or establishment involved
• Amounts won and lost
• Names of other participants when relevant
• Supporting documentation such as tickets, bank records, or credit statements

In higher-stakes environments, that level of documentation is often only a starting point. Many experienced advisors encourage clients to maintain a centralized gambling ledger that records:

• Buy-ins and cash-outs for each session
• Transfers between players and whether they represent loans, stakes, or settlements
• Written agreements for substantial loans or staking arrangements
• Periodic reconciliations with bank statements and casino win/loss summaries

The objective is not simply tax compliance. Clear records allow a taxpayer to understand whether an activity is actually profitable, substantiate allowable deductions, and reduce the risk that transactions later appear inconsistent or incomplete.

LESSON 2    When Gambling Begins to Look Like a Business

A common misconception is that gambling automatically becomes a “professional” activity once the stakes or frequency reach a certain level. In reality, the determination is based on a facts-and-circumstances analysis. Courts and the IRS typically evaluate the regularity and continuity of the activity, the time devoted to it, whether there is a genuine profit motive, and whether the activity is conducted in a businesslike manner with formal records and planning.

If gambling rises to the level of a trade or business, income and expenses may be reported on Schedule C, similar to other self-employment activities. This may allow deduction of ordinary and necessary business expenses, though the overarching limitation remains: gambling losses and expenses cannot exceed gambling winnings.

For high-income professionals or entrepreneurs whose primary identity lies in another field, this classification decision carries practical implications. A structured gambling operation with disciplined record-keeping may reasonably qualify as a business. But claiming business treatment while maintaining casual or incomplete records can undermine credibility if the returns are examined.

LESSON 3    Tax Returns and Loan Applications Must Tell the Same Story

Many complex tax cases involve more than the tax return itself. They often intersect with lending and financing arrangements. Tax returns, personal financial statements, and loan applications frequently serve as key documents in mortgage or credit decisions. These documents are typically signed under penalty of perjury or subject to federal laws governing false statements to financial institutions.

Several legal provisions are directly relevant to this intersection:

•   IRC §7206(1)    —  criminalizes willfully submitting a tax return known to be materially false
•   18 U.S.C. §1014    —  prohibits knowingly making false statements to influence a financial institution
•   18 U.S.C. §1344    —  addresses bank fraud more broadly

Importantly, a false-statement charge under these provisions does not require proof of a tax underpayment. The offense centers on the willful misrepresentation of a material fact. In the Goldstein matter, prosecutors noted that mortgage applications required the disclosure of all liabilities — and that millions in personal debt and unpaid taxes were omitted, enabling the purchase of a multi-million-dollar home in Washington, D.C.

For business owners and high-income professionals, the most effective safeguard is financial consistency. Differences between documents can exist — timing differences, pending K-1 income, or unusual deductions — but they should be explainable and well documented. Experienced advisors frequently serve as a bridge between tax reporting and lending documentation, ensuring that lenders understand the economic reality behind complex tax structures or fluctuating income.

LESSON 4    Amended Returns Are Not a Time Machine

When a taxpayer discovers that a filed return is inaccurate, filing an amended return may be the correct course of action. But it is important to understand what an amended return can — and cannot — do.

An amended return does not erase the original filing. The initial return remains part of the historical record. If it was used in connection with a loan application or other financial transaction, it may continue to carry legal significance. Timing also matters: courts often examine whether an amended return was filed voluntarily before the taxpayer became aware of an audit or investigation.

Another concern arises when the narrative changes. If a taxpayer’s original return reported income in a way that supported a loan application, and a later amended return substantially changes that portrayal, the inconsistency can draw scrutiny. For that reason, amended returns should rarely be approached casually. Early involvement of experienced tax counsel can help determine whether the appropriate response is filing an amended return, providing additional disclosure, or coordinating communication with lenders or other parties. Handled thoughtfully, corrections can often be made without creating additional complications.

Broader Governance Lessons for Successful Professionals

High-profile tax prosecutions often arise from a combination of factors rather than a single mistake. Complex finances, side ventures, informal loans, and multiple advisors can create gaps in oversight if no one is looking at the full picture. Several governance practices can significantly reduce those risks.

Coordinated Advisor Relationships.  Effective tax planning rarely happens in isolation. Tax advisors, estate planning attorneys, business counsel, and financial advisors each see a different part of a client’s financial life. The most effective outcomes occur when those advisors communicate and work from the same set of facts.

Formalizing Informal Debts.  Large personal loans between friends, business partners, or fellow investors often begin informally. Over time, undocumented obligations can create confusion when preparing tax returns or financial statements. Written agreements, interest terms, and repayment schedules help ensure these obligations are treated consistently.

Understanding How Lenders Read Tax Returns.  Sophisticated tax planning can produce financial statements that appear confusing to lenders. Large depreciation deductions, pass-through losses, or complex entity structures can make income appear unusually low in certain years. Helping lenders understand these figures in context prevents misunderstandings and protects future financing relationships.

Embracing Transparency Rather Than Perfection.  No complex financial life is perfectly tidy. The objective is not flawless documentation but honest, organized disclosure. When an issue surfaces — an undocumented loan, incomplete records, or an omitted account — addressing it early with experienced advisors is almost always safer than hoping it never attracts attention.

Bringing the Lessons Together

When the public narrative fades, many high-profile tax cases reveal familiar patterns: large financial flows managed with informal record-keeping, significant obligations treated casually among insiders but not fully documented, financial documents presenting slightly different versions of the same story, and attempts to reconcile inconsistencies after the fact.

These are rarely unsolvable problems. In most cases, they could have been addressed much earlier through disciplined record-keeping, coordinated advice, and careful tax planning.

Families and business owners in communities such as Midland, Saginaw, Murfreesboro, Nashville, Franklin, and throughout Rutherford County often face sophisticated tax and financial questions. With thoughtful planning and careful governance, most of those questions can be resolved quietly — long before they ever become disputes.

This article is provided for general informational purposes only and does not constitute legal or tax advice. No attorney-client relationship is formed by reading this content. Please consult qualified legal counsel regarding your specific circumstances.

When a high-income professional or business owner receives a letter from the IRS, the reaction is often immediate and intense — even among sophisticated taxpayers. Physicians, attorneys, real estate investors, and closely held business owners can feel blindsided by a balance-due notice or “Intent to Levy” letter.

Yet in most cases, IRS enforcement does not begin suddenly. The IRS follows a structured, legally required notice process before taking any enforced collection action such as bank levies, wage garnishments, or the filing of a Notice of Federal Tax Lien.

Understanding this process reduces risk. Responding early preserves options. Delaying increases cost, complexity, and exposure.

The IRS Does Not “Come Out of Nowhere”

In nearly every levy case we review, multiple notices were sent before enforcement began. Sometimes the taxpayer had moved without updating their address. Sometimes a bookkeeper set the letters aside. Sometimes the issue was deferred during a busy quarter.

The IRS notice sequence exists specifically to give taxpayers meaningful opportunities to respond before enforcement begins. Each notice has a legal function — and each one that passes without response narrows your available options.

The IRS Balance-Due Notice Sequence

Here is how the sequence typically unfolds, from the initial assessment through final levy authority:

Why High-Income and Business Taxpayers Face Unique Risk

National “tax resolution” firms typically market to middle-income individuals. High-income earners and business owners face a fundamentally different risk profile:

• Public lien exposure that can appear in searchable databases and affect deal closings, refinancing, and professional reputation
• Complex asset structures — partnerships, LLCs, trusts, and real estate holdings — that require more sophisticated analysis
• Payroll tax issues that can escalate to Trust Fund Recovery Penalty assessments against individual owners and officers
• Business account levies that can disrupt payroll and operational continuity
• Prior compliance gaps from unfiled returns processed as Substitutes for Return, often with incorrect income figures

The Most Common Strategic Mistake: Waiting Too Long

Many high-income taxpayers assume the problem will resolve itself or can wait until a slower season. Delayed response typically results in reduced negotiation flexibility, higher accrued penalties and interest, public lien filings, and increased professional fees. Early intervention consistently preserves leverage.

Resolution Options Before Enforcement Begins

Depending on the stage and the taxpayer’s financial situation, several resolution pathways are available:

Every resolution option requires accurate financial disclosure, full filing compliance, and a strategy that accounts for forward-looking tax obligations. For business owners, the resolution must also integrate with operational planning and cash flow forecasting.

The Difference Between Reactive and Strategic Representation

Many national tax resolution firms rely on urgency-based messaging — promises to “settle for pennies on the dollar” or “stop garnishment immediately.” High-income taxpayers require a fundamentally different approach.

A durable resolution involves determining how the liability arose, correcting compliance gaps, evaluating the accuracy of the assessment, analyzing asset structure, protecting business continuity, and designing preventative systems going forward.

Stopping enforcement is only one piece of the solution. Preventing recurrence is equally important.

How to Reduce the Likelihood of Future IRS Problems

Most collection cases originate from preventable structural gaps, not willful misconduct. Long-term prevention for business owners and high earners includes:

• Quarterly estimated tax discipline with cash flow-based projections
• Payroll tax oversight systems with segregated tax reserves
• Separation of operating accounts from tax liability reserves
• Entity structure review aligned with current operations
• Periodic compliance audits before IRS contact occurs

If You Are Receiving IRS Notices Now

The presence of IRS letters does not mean:

•   You are out of options

•   Enforcement is imminent

•   The matter cannot be negotiated

•   A public lien is inevitable

It does mean:

•   The clock may be running

•   Deadlines may affect your procedural rights

•   Early review consistently produces better outcomes than delayed response

Calm, informed action typically produces better results than reaction driven by fear. An experienced review can clarify what stage the account is in, what rights remain available, what realistic resolution options exist, and what steps will prevent recurrence.

Ready for a Calm, Informed Review?

If you or your business is receiving IRS balance-due or intent-to-levy notices, a professional review before escalation occurs can clarify what stage your account is in, what rights remain available, and what realistic resolution options exist.

FRAZIER LAW  |  Tax Resolution & Tax Planning

Tennessee  ·  Michigan  ·  Texas

Schedule a Confidential Consultation  |  crfrazierlaw.com

Download the IRS Collection Notice Guide

If you are receiving IRS letters, understanding where you are in the notice sequence can make a meaningful difference in what happens next, since each notice carries specific rights and deadlines. We created a concise IRS Collection Notice Guide for high-income individuals and business owners to help clarify the most common notices and the steps you can take before enforcement begins. Click the button below to complete the form and download the guide.

MIDLAND, Mich – Moving between states is one of the basic freedoms we have as Americans but state individual tax rules can make it a little more challenging. Here is a brief summary of the steps you need to do to prove to Michigan that you’re no longer a resident for individual income tax purposes.

What You Need to Know
A person who used to live in Michigan needs to know how to officially end their residency with the Michigan Department of Treasury. You must understand the legalrules for changing your “domicile” (your main home), what to do with your taxes, and how to prove that you no longer live in Michigan.

The Rules
What is Domicile and How Do You Change It?
In Michigan, your “domicile” is your main, permanent home that you always plan to return to. To stop being a Michigan resident, you have to do three things at the same time:

1. Decide to leave your Michigan home for good.
2. Decide to make a new state your permanent home.
3. Actually move to and live in that new state.
   The Department of Treasury will look at many things to decide if your domicile has
   changed, such as:
   ● Where you keep your most important belongings.
   ● Where your family lives.
   ● Where you vote.
   ● Where you have memberships (like clubs or gyms).
   ● Where your car is registered.
   ● Where you do your banking.
   ● Where you run your business.
   No one single thing is the most important. The state looks at all of them together.

What to Do with Your Job’s Withholding
If your job takes out taxes from your paycheck, you must tell your employer that you no longer live in Michigan within 10 days of moving. This will make sure that they stop taking out Michigan taxes. This change will only affect future paychecks, not any that came before you told them.

Proving You No Longer Live in Michigan
The state of Michigan assumes you are still a resident unless you can show them proof that you are not. You have to give the Department of Treasury detailed information to prove you have moved. If you don’t pay taxes in the state where you now claim to live,
the state of Michigan might not believe you have moved.

File a final Michigan Form MI-1040
When you are a resident of Michigan, you are required to pay income tax on all income
you earn, regardless of where it was earned. A “part-year resident” is someone who
moved their permanent home into or out of Michigan during the tax year. For the time
you were a resident, you must pay Michigan income tax on the income you earned,
received, or accumulated while living there. Filing a final return ensures you have
properly reported and paid tax on that income.

The state presumes that a taxpayer is a Michigan resident unless they can prove
otherwise. Filing a part-year return is a formal way of notifying the state of your change
in residency status for tax purposes. This helps to prevent the Department of Treasury
from mistakenly believing you are still a resident and sending you notices about unpaid
taxes on income earned after you moved.

What This Means for You
To officially end your Michigan residency for tax reasons, you must:

1. Meet the legal rules for changing your domicile. This means you must show that
   you planned to leave Michigan, planned to live in a new state, and actually moved
   there. You should provide proof like voter registration, car registration, and
   banking information from your new state.
2. Tell your employer. If your job takes out taxes from your paychecks, you must tell
   them you are no longer a Michigan resident within 10 days of moving. This will
   change your future tax withholding.
3. Give the state proof. You must give the Department of Treasury detailed proof
   that you no longer live in Michigan. This includes showing that you have moved
4. your life to another state. If you are not paying taxes in your new state, it will be
5. harder to prove you have moved.
6. File a final tax return. Your final partial-year resident tax return is your final
   declaration showing that you have left the state and have appropriately resolved
   your Michigan residency status.
   
   By following these steps, you can make sure that the state of Michigan officially
   recognizes you as a nonresident for tax reasons.

This information is provided for information purposes only. Please consult with a licensed practitioner before acting on any advice you read in a web post or other media.

Nashville, TN, and Midland, MI

A sense of dread hung in the air as a couple sat across from my desk, their tax returns spread between us. “Something just feels wrong,” the wife said, her voice tight with anxiety. “Our tax preparer… I don’t think he did this right.”

It took only a glance at the first page of their business return to see she was right. Staring back at me was a blatantly fraudulent loss, an impossible figure more than ten times the company’s annual revenue. It was a ticking time bomb waiting to detonate in an IRS audit.

But as shocking as that was, the real tell—the clue that exposed the preparer’s malicious intent—was hidden in plain sight. At the bottom of the return, in the section clearly marked “Paid Preparer Use Only,” the signature line was empty. The firm’s name simply read: “Self-Prepared.”

They had been conned. They paid a professional, but the return was designed to look like they did it themselves, leaving them solely responsible for the fraud embedded within. They were victims of a ghost preparer.

The Vanishing Act of the “Ghost Preparer”

You place immense trust in the person who prepares your taxes, handing over your most sensitive financial data. But what if that person is a phantom, intentionally setting you up for financial disaster while they collect their fee and vanish?

This is the danger of the ghost preparer.

The IRS has an ironclad rule: any person paid to prepare a tax return mustsign it and include their Preparer Tax Identification Number (PTIN). This signature isn’t a formality; it’s a legal chain of accountability. It tells the IRS, “I prepared this return, and I stand behind its contents.”

A preparer who refuses to sign is committing a cowardly, calculated act. They are intentionally making themselves invisible to the IRS, severing the chain of accountability and leaving you to face the consequences alone.

How They Trap You

Why would a preparer do this? The motive is almost always greed, fueled by fraud. These predators lure in taxpayers with promises of massive, unbelievable refunds. They achieve this by:

• Inventing Phantom Deductions: They will claim you gave thousands to charity or had massive business expenses you never incurred.
• Claiming Credits You Don’t Deserve: They will wrongfully claim lucrative credits, like the Earned Income Tax Credit, knowing you don’t qualify.
• Hiding or Shifting Income: They manipulate your income figures to create a false financial picture that benefits them.

The most sinister ghost preparers take it a step further. In the case of the couple in my office, their preparer had not only fabricated a loss but had also set up the tax filing to route the fraudulent refund directly into his own bank account. They were not only being set up for an audit but were also being robbed.

The Weapon of Choice: Consumer Software

Another disturbing tactic is the use of consumer-grade tax software. A legitimate professional uses specialized software built for preparers, which allows them to properly sign and document their work.

Ghost preparers use off-the-shelf software like TurboTax or H&R Block’s consumer versions. This software is licensed for individuals preparing their own returns and often makes it physically impossible for a paid preparer to affix their required signature.

This is a deliberate choice. By using this software, they can print the return and have you sign it—with the preparer section ominously blank. This act of deception isn’t just lazy; it’s a strategy to place all legal and financial liability squarely on your shoulders.

The Nightmare Awaiting the Victim

When the IRS’s powerful analytics flag your return, the fallout can be catastrophic. “I didn’t know” is not a defense the IRS will accept. You are legally responsible for every number on the return you sign. The consequences include:

• A Bill for a Phantom Refund: You will be forced to repay the entire fraudulent refund, often a sum you never even saw.
• Crippling Penalties and Interest: The IRS will tack on substantial penalties and daily compounding interest, turning a manageable problem into a mountain of debt.
• Years of Audits: A fraudulent return can trigger invasive audits of not just the current year, but previous years as well, creating a multi-year nightmare.
• Criminal Investigation: In severe cases, what starts as a financial issue can escalate into a criminal investigation, threatening your freedom.

Charles R Frazier, an expert tax specialist with offices in Nashville, Tenn., Midland, Mich. and Prosper, Texas explains it as “The taxpayer is trying to find legal ways to save on their taxes while the devil in this case is someone who is close, trusted and has been paid to perform a service.  This taxpayer would have been liable for potentially thousands, perhaps over a million dollars of tax repayments, penalties and interest while providing a pathway for the fraud perpetrator to get away.  I’m glad they called Frazier Law for help as soon as they knew something wasn’t right.

Your Shield Against Deception

You are not powerless. Protecting yourself from these predators is about vigilance.

• Demand a Signature: Never, ever sign a return if the “Paid Preparer” section is blank. This is non-negotiable. The preparer must sign and include their PTIN.
• Verify Their Credentials: Ask for their PTIN upfront and use the free IRS online directory to confirm they are a legitimate, credentialed preparer.
• Question Their Tools: Ask what software they use. If it’s a consumer product you could buy at a retail store, that is a massive red flag.
• Reject Cash-Only Deals: Ghost preparers often work in cash to avoid leaving a paper trail. Insist on a receipt or invoice that documents your payment.
• Trust Your Gut: If a preparer promises you a refund that sounds too good to be true, it is. Walk away immediately.

Thankfully, the couple in my office discovered the fraud before signing and filing. They avoided a devastating financial blow, losing only the exorbitant fee the ghost preparer charged them. Many are not so lucky.

Your tax return is a legal document signed under penalty of perjury. Your financial future is on that signature line. Make sure your preparer’s is there first.

PRACTICE NOTE:  The preparer’s signature may be printed by the tax professional’s software.  The key here is that his or her name is clearly printed with all of their identifying information.  An actual signature is preferred, but may be represented by their printed name.

As summer unfolds, it’s an opportune time to assess your tax situation and implement strategies to optimize your financial standing before the year’s end. Proactive mid-year tax planning can help you avoid surprises come tax season and potentially reduce your 2025 tax liability.

Adjust Your Withholdings

Life changes such as marriage, the birth of a child, or a new job can impact your tax obligations. It’s advisable to review your W-4 form to ensure your withholdings align with your current circumstances. The IRS provides a Tax Withholding Estimator to assist in this process.

Evaluate Estimated Tax Payments

For those with income not subject to withholding—such as self-employment income, dividends, or rental income—it’s crucial to make timely estimated tax payments. The next payment is due on September 15, 2025. Assess your income to date and adjust your payments accordingly to avoid penalties.

Maximize Retirement Contributions

Contributing to retirement accounts not only secures your future but can also provide immediate tax benefits. For 2025, the contribution limits are:

• 401(k): $23,500 (plus $7,500 catch-up for those 50 and older)
  
• IRA: $7,000 (plus $1,000 catch-up for those 50 and older)
  

Consider increasing your contributions to take full advantage of these limits.

Review Potential Deductions

Keep track of deductible expenses such as:

• Charitable donations
  
• Medical expenses
  
• Education-related costs
  
• Business expenses
  

Maintaining organized records throughout the year can simplify the deduction process when filing your taxes.

Reassess Life Events or Changes

Summer is a good time to pause and consider how recent events may affect your tax picture:

• Bought or sold a home?
  
• Launched or closed a business?
  
• Gained new dependents?
  
• Received an inheritance or major windfall?
  

Each of these life events could create significant tax implications. A mid-year strategy session can help you plan appropriately and avoid surprises later.

Consult with a Tax Professional

Tax laws and regulations are complex and ever-changing. Consulting with a tax professional can provide personalized advice tailored to your unique situation, ensuring compliance and optimizing your tax outcomes.

Contact UsIf you have questions about your tax situation or need assistance with tax planning, the experienced team at Frazier Law is here to help. Contact us at 615-510-4000 or visit our Contact Page to schedule a consultation.

Recent headlines in Franklin, Tennessee, have brought attention to a Certified Public Accountant (CPA) indicted on charges of wire fraud, money laundering, and tax fraud. These serious allegations highlight how devastating the consequences of financial misconduct can be for both individuals and businesses. At Frazier Law, we understand that news like this can raise concerns, especially during tax season or if you’re relying on professionals to handle your financial matters.

Let’s break down what these charges mean, how they could affect you, and how we can help protect your interests.

Understanding the Charges

1. Tax Fraud: This includes any intentional wrongdoing to evade taxes, such as underreporting income, inflating deductions, or hiding money offshore. Tax fraud is one of the most severe allegations that can lead to audits, penalties, and even imprisonment.
2. Money Laundering: This involves concealing the origins of illegally obtained money, often by passing it through a complex sequence of banking transfers or commercial transactions. This crime is a red flag for anyone in the financial ecosystem.
3. Wire Fraud: This typically involves using electronic communication—such as email or phone—to intentionally defraud someone out of money. In this case, wire fraud charges suggest that the CPA allegedly misrepresented facts to gain financial advantage.

How This Affects You

Even if you are not directly connected to this case, stories like this underscore the importance of due diligence when working with financial professionals. Here are a few things to consider:

• Vet Your CPA or Financial Advisor: Ensure your financial professional has a clean track record, certifications, and a solid reputation. Online reviews, references, and state licensing boards can provide valuable insights.
• Understand Your Tax Return: Don’t sign off on a tax return or financial document without fully understanding what’s in it. Fraudulent filings can leave you liable, even if a third party prepared them.
• Protect Your Assets: Regular audits, open communication with your financial team, and consulting with a tax attorney can prevent issues before they arise.

How Frazier Law Can Help

If this story has raised questions about your financial practices or the professionals you’re working with, we’re here to help. Frazier Law specializes in tax law and financial compliance, offering a range of services designed to protect your interests, including:

• Tax Matter Defense: If you’re under investigation, our team will build a robust defense strategy to safeguard your rights and assets.
• Preventive Consultations: We review your financial dealings and tax filings to identify potential risks and offer proactive solutions.
• Review Representation: Facing an IRS audit? We’ll guide you through the process, ensuring your case is handled with professionalism and care.

Take Action Today

Financial fraud and tax-related crimes are serious matters with life-changing consequences. Don’t wait for a headline to turn into a personal crisis. If you have questions about your tax filings, financial records, or simply want peace of mind, contact Frazier Law today.

Schedule a consultation to discuss your concerns and learn how we can help you navigate complex tax laws with confidence. Your financial future depends on it.

At Frazier Law, we’re committed to helping our clients stay informed and protected. Follow us on social media for more updates, tips, and insights into the world of tax law.

Stay proactive. Stay protected. Call Frazier Law today!

Are you receiving mail from companies promising to fix your tax problems? Did the letter you received to notify you that the IRS has filed a Notice of Federal Tax Lien?

Beware because you may be the target of predatory debt relief firms (OIC Mills). In July 2020, the IRS included these OIC Mill operators in its annual Dirty Dozen list of tax scams. A few large tax resolution companies, JK Harris, Roni Deutsch, and Tax Masters, have been in the news in past years for the atrocious, often criminal treatment of their clients.

OIC Mills often target taxpayers by monitoring public records for tax lien information. Once a taxpayer is on their list, they send letters that are often misleading and warn of drastic consequences if you fail to contact an “800” phone number.

THE ODDS ARE AGAINST OIC ACCEPTANCE

Unfortunately, we have consulted with many potential clients who have paid thousands of dollars for either very disappointing results or no results at all. The clients have often been misled to believe that they can settle their tax debt for pennies on the dollar.

Offers in Compromise (OIC) are good options for the right situations, but many taxpayers’ OICs are rejected. In 2019, the Service accepted only about one out of every three OICs (17,890 of 54,225) that were submitted. Typically, taxpayers who have a very limited stream of income and no equity in assets have the best chance of being approved for an OIC.

THE OIC PROCESS

The OIC is an agreement between the taxpayer and the IRS to settle the taxpayer’s tax liability when the taxpayer cannot fully pay the liabilities through asset liquidation, personal loans, an installment agreement, or other methods for full satisfaction of the outstanding tax balance.

The Law Offices of Charles R. Frazier will guide you through the requirements necessary to qualify for an OIC. We advise taxpayers to ensure that they are in compliance with tax filing and required tax payment obligations.

We will advise you regarding your estimated reasonable collection potential (RCP) because the IRS won’t accept an OIC for any amount less than the taxpayer’s RCP. We can help you obtain and submit all documentation the IRS deems necessary to determine your ability to pay your outstanding tax liabilities. To determine if an Offer in Compromise is right for you, we review your financial information, including your current assets and future earning potential.

The IRS is only authorized to accept an OIC based on three grounds: (1) doubt as to liability; (2) doubt as to collectability; and a compromise based on (3) effective tax administration. We will analyze your specific tax circumstances and advise on whether you qualify for an OIC based on these grounds. However, we will not waste your time or money if we believe you will not be successful when seeking an OIC.

READY TO FIND OUT MORE?

Do not face the threat of falling prey to an OIC Mill. Turn to the Law Offices of Charles R. Frazier for an honest evaluation of your tax situation. We have the experience and know-how to help fix your tax problems. To schedule a low-cost consultation, call 615-510-4000 or contact us online.

Typically, the IRS begins processing tax returns in late January. However, changes to the tax law on December 27, 2020, are prompting the agency to make adjustments and perform tests on its programs and systems. The tax law changes that occurred at the end of last year provided a second round of 2020 stimulus payments and other benefits.

“Planning for the nation’s filing season process is a massive undertaking, and IRS teams have been working non-stop to prepare for this as well as delivering Economic Impact Payments in record time,” said IRS Commissioner Chuck Rettig. “Given the pandemic, this is one of the nation’s most important filing seasons ever. This start date will ensure that people get their needed tax refunds quickly while also making sure they receive any remaining stimulus payments they are eligible for as quickly as possible.”

While tax filers can begin preparing their returns now with tax software companies, the tax agency won’t begin accepting and processing 2020 tax year returns until Feb. 12. The IRS encourages taxpayers to file electronically and use direct deposit to reduce errors and delays. Other tips from the IRS for taxpayers to speed up refunds and to get help with filing include:

• Stay up-to-date on the latest tax information by visiting IRS.gov.
• If you are eligible for stimulus payments, carefully review the guidelines for the Recovery Rebate Credit. According to the IRS, “most people received Economic Impact Payments automatically, and anyone who received the maximum amount does not need to include any information about their payments when they file. However, those who didn’t receive a payment or only received a partial payment may be eligible to claim the Recovery Rebate Credit when they file their 2020 tax return.”

The IRS has also posted key dates for this year’s filing season. They include:

January 15. IRS Free File opens.

January 29. Earned Income Tax Credit Awareness Day

February 12. IRS begins 2021 tax season.

February 22. Projected date for the IRS.gov Where’s My Refund tool being updated

First week of March. Tax refunds begin reaching those claiming EITC and ACTC (PATH Act returns) for those who file electronically with direct deposit and there are no issues with their tax returns.

April 15. Deadline for filing 2020 tax returns.

October 15. Deadline to file for those requesting an extension on their 2020 tax returns

Visit this IRS page directly for more information for filing and speeding up your returns in a pandemic. Business owners who are experiencing tax issues with the IRS should contact the Law Offices of Charles R. Frazier to see if we can assist with your specific tax matter.

Imagine no more because those days are here and many small businesses are taking the opportunity to charge clients who chose to charge their purchase to their preferred piece of plastic.

Several credit card processing companies have been marketing the idea of “passing the credit card fee onto your customers,” and I’m here to say that this might be the worst idea of client engagement I have ever heard.

Here are five reasons why you should not charge your customers extra fees when they whip out their plastic at your establishment.

1. Profit and loss envy

I completely understand why a business owner might make this election. Like most good bookkeepers, we track a separate expense line on our client’s Profit and Loss for credit card convenience fees. This amount stands out like a sore thumb and many business owners begin salivating at the idea of this cash being funneled back to their pockets.

For context, I looked up the average fee for a small dining establishment. With gross sales of around $500,000, their total credit card fees were just under $16,000 for the year. What business owner wouldn’t love the opportunity to pocket an additional $16,000?* This could replace an aging machine, provide some pay increases, or maybe afford the owner a little well-deserved vacation! But is it as easy as just jacking the price up on the credit card machine? Let’s think about this a bit deeper.

*After-tax impact would net the owner $10,520 of Distributable Net Income (DNI).

2. Customers buy more with a card

Every business owner looks for ways to increase revenue and wasn’t this one of the reasons why you started accepting credit/debit card payments in the first place? According to Forbes.com, customers will spend 12 to 18% more per transaction when using plastic instead of cash. Think about it: Would you prefer to cut 15% off your bottom line just to avoid plastic? Probably not.

3. Cash isn’t as “free” as you think

Retailers who accept cash-only payments face several hidden costs that can directly impact their business’s bottom line, a few of these hidden costs (or risks) include

• employee theft
• external theft
• costs of surveillance systems to combat theft
• time spent counting
• reconciling and depositing cash
• balancing cash drawers
• bank fees (believe it or not, cash management is why branch banking has become so expensive)
• loss of sales from people (like me) who prefer using plastic over cash
• counterfeit loss
• proper record keeping
• accounting and change management

While cash transactions may seem straightforward overall, they come with a variety of hidden costs that can affect your bottom line and operational efficiency.

4. You already increased your prices when you started taking credit cards!

Like many business owners 20 years ago, I noticed that the fees of taking credit cards were eating into my bottom line. At that time I made one simple adjustment: I raised my prices by 5% and rounded up to the next whole dollar. I made this adjustment many years ago. By making that adjustment years ago and adjusting my prices for inflation, I have already accepted the fees as a part of my operational reality.

I will gladly pay (and deduct) the credit card processing fees because ultimately my clients are happy and I’m thrilled that my systems automatically reconcile these transactions with no effort on my part.

5. Customers (like me) will intentionally avoid you because you charge.

I live near Midland, Michigan and many Mom and Pop restaurants around here charge the added convenience fee when using a credit card. When I find myself in these situations, I prefer to reach for my emergency $100 to avoid paying the discretionary fee. I find it appalling that the restaurant owner will then ask me if I have any smaller bills.

I feel like I’m darned if I do and darned if I don’t, but I only go there when someone in the family insists on visiting this establishment. I refuse to go out of my way to patronize a business that looks for ways to penalize me as a paying customer.

As a matter of principle, I will go out of my way to intentionally thank business owners who choose not to charge a fee for using my card.

Discount instead of charge!

If you’ve read my rant and still prefer cash, here’s an idea: Instead of penalizing–I mean charging your customers who prefer to use a card–why not offer a discount to your customers who use cash (or write a check for that matter)?

This will encourage your customers to make decisions based on your operational preferences and not punish your customers for doing business with you.

My time in the Ranger Battalion instilled in me the mental and physical fortitude required to succeed in challenging environments. This same toughness was crucial during my law school years and continues to play a vital role in my legal practice. Each day, I apply the discipline and tenacity learned from my Ranger training to navigate complex tax issues and deliver clear, effective solutions to my clients.

In the field, Rangers learn to confront problems head-on with honesty and courage, a practice that translates directly to how I handle tax resolution. It is crucial to acknowledge the root causes of tax issues frankly so that we can address them effectively. My approach involves providing clients with a candid assessment of their situation, helping them understand how their actions may have contributed to their tax problems, and advising them on corrective measures to prevent future complications.

Integrity is the cornerstone of both military service and legal practice. In my firm, we prioritize the client’s best interests over all else. This means I do not shy away from advising against a course of action if it does not benefit the client, ensuring our solutions are both ethical and effective. Our commitment is to offer relief and clarity to those facing daunting battles with the Internal Revenue Service (IRS), not to capitalize on their vulnerability.

Our tax resolution process mirrors the meticulous planning and execution taught in Ranger training. We begin by gathering comprehensive details about each client’s circumstances and communicating with the IRS to understand their perspective. With all the information in hand, we craft a strategic plan of action, thoroughly discuss the options with our clients, and, once agreed upon, execute the plan with precision. We stay the course, adjusting as necessary until we reach a resolution.

As we honor the Army on its special day, I am proud to say that the values learned in the 3rd Battalion of the 75th Ranger Regiment continue to illuminate my path. At our firm, “Rangers Lead the Way” in tax resolution by setting the standard for integrity, diligence, and client-focused service. If you are facing tax issues and need guidance you can trust, we are here to lead the way to resolution.

Give us a call today.

The Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit are two opportunities for taxpayers to claim credits associated with making energy improvements to their main home after January 1, 2023.

Energy Efficient Home Improvement Credit
According to the Internal Revenue Service, expenses that qualify as energy efficiency improvements can include expenditures on items such as exterior doors, windows, skylights, insulation and air sealing materials or systems. Residential energy property expenses can include natural gas, propane or oil water heaters and hot water boilers, heat pumps, water heaters, biomass stoves and boilers, and home energy audits of a main home.

Residential Clean Energy Credit
Residential improvements that are associated with clean energy production (i.e. solar, wind, geothermal, etc.) may qualify for the Residential Clean Energy Credit. Expenses that qualify for this credit include the costs of solar electric panels and water heaters, wind turbines, geothermal heat pumps, fuel cells and battery storage technology.

Both of these credits are nonrefundable, which the IRS says “means the credit amount received cannot exceed the amount owed in tax.”

To claim these credits – both the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit – taxpayers should use Form 5695, Residential Energy Credits, when filing their taxes. Be sure to keep records of your purchases and installation expenses throughout the year if you’re planning to claim this credit.

The IRS provides more detailed information about claiming these credits, which expenses qualify, and limitations on its website. As always, if you’re not certain if your expenses qualify for these credits, then reach out to a tax professional who can provide specific guidance for you.

The Infrastructure Investment and Jobs Act changed the rules that require taxpayers engaged in a trade or business to report cash received over $10,000. Digital assets are now included in this rule and treated as cash. However, Announcement 2024-4 announces that businesses do not have to comply with this rule until regulations are issued. This transitional guidance provides businesses with some breathing room before they have to comply with the new rule.

For businesses that received cash before the Infrastructure Investment and Jobs Act, the old reporting rules still apply. Cash transactions received in the course of a trade or business should be reported on Form 8300, Report of Cash Payments over $10,000 Received in a Trade or Business. This form must be filed 15 days after cash is received. Digital assets, on the other hand, do not have the same reporting requirement – at least, not yet.

The announcement from Treasury and IRS indicates that they plan to issue proposed regulations that provide additional information and procedures for reporting the receipt of digital assets. These regulations will be open for public comment, giving businesses and other interested parties the opportunity to voice their opinions on the proposed changes.

It’s important to note that this announcement only affects the way businesses report the receipt of digital assets. It does not change the tax treatment of digital assets in any other way. Businesses should still consult with their tax advisors to ensure they are accurately recording income from digital asset transactions and complying with all tax regulations.

The Treasury Department and IRS announcement provides some relief for businesses engaging in digital asset transactions, as they do not have to report them the same way they report cash – at least, not yet. However, businesses should stay informed as regulations are issued and comply with all tax regulations related to digital assets. As always, consulting with a tax advisor is the best way to stay ahead of any tax changes that may affect your business.

MIDLAND, Michigan – Every year, millions of individuals and businesses rely on Tax Preparers, Enrolled Agents (EAs), and Certified Public Accountants (CPAs) to prepare and file their tax returns. While many tax professionals provide reliable services, there are occasions when tax returns may not be filed on time, leaving taxpayers in a challenging situation.

If you find yourself in this predicament, it’s crucial to act swiftly to protect your financial interests and stay compliant with tax authorities. Here’s a step-by-step guide to navigate the situation:

1. IMMEDIATE COMMUNICATION

First and foremost, reach out to your tax professional. Misunderstandings and oversights can happen or there may be a valid reason for the delay. Give them a reasonable period of time to respond (three days is generally reasonable before attempting to contact them again). As many tax professionals operate in small offices with limited (or no) support staff, don’t be alarmed if you do not hear back immediately. A diligent tax professional may even have an out-of-office message or notification that will let you know when to expect a response. If you have made more than three attempts to connect and they have not responded, then it’s time to take additional action steps to advance your matter.

2. VERIFY EXTENSIONS

It’s common for CPAs to file extensions, granting taxpayers extra time. Confirm whether this has been done on your behalf, and be aware of the new filing deadline.

3. ATTEMPT TO RETRIEVE YOUR DOCUMENTS

If you decide to switch to another CPA or handle the process yourself, ensure you obtain all your tax-related documentation.

4. CONSIDER ALTERNATIVES

If your current CPA is unresponsive, think about filing the tax return yourself using reliable tax software or engaging with another reputable tax professional.

5. ADDRESS ANY PENALTIES

Late filing can result in penalties. If you face any due to your CPA’s delay, you can request an abatement. In certain situations, if it was the CPA’s fault, they might bear the cost of penalties, although this may involve legal recourse.

6. KNOW YOUR RIGHTS

Review any agreement or engagement letter you’ve signed with the CPA. It should outline the services they’ve committed to provide and can be vital if there’s a dispute.

7. SEEK PROFESSIONAL GUIDANCE

If there’s significant financial or legal fallout due to the CPA’s actions, consider consulting with a tax attorney, enrolled agent or another CPA. These are the only professionals who are properly credentialed to handle your matter.

8. FILE A FORMAL COMPLAINT

For extreme cases where you believe there’s been gross negligence or misconduct, you can file a complaint with the state board of accountancy or relevant professional bodies.

Remember, as a taxpayer, the ultimate responsibility for your tax filings lies with you, even when using professional services. Staying proactive, being informed, and maintaining open communication can safeguard you against unforeseen complications.

Do you need a consultation to discuss your business or personal tax matter? Contact Frazier Law at (989) 704-6560

*Disclaimer: This news story is for informational purposes only and is not intended as legal or tax advice. Always consult with a professional regarding specific tax matters.*

It is essential that claims for Employee Retention Credits be made by business owners with complete understanding of the eligibility requirements as well as the consequences for improper, erroneous or fraudulent claims.

Taxpayers who question their claim may contact Frazier Law at (615) 267-0125 or (989) 704-6560 for an independent ERC review.

Key Features of the Withdrawal Process:

1. Employers who have submitted an ERC claim but have not received a refund can opt to withdraw to bypass future repayment, interest, and penalties.
2. The withdrawal process assists businesses that were misled into filing ineligible ERC claims by overzealous promoters. Claims retracted will be considered as unfiled, and no penalties or interest will be levied by the IRS.
3. It’s important to note that if someone deliberately filed a fraudulent claim or was part of such activities, the withdrawal won’t shield them from potential criminal consequences.

IRS Commissioner Danny Werfel emphasized the agency’s commitment to supporting small businesses that were influenced by aggressive ERC marketing schemes. Werfel encouraged employers with pending claims to consider this withdrawal option.

About the Employee Retention Credit (ERC):

The ERC, or Employee Retention Tax Credit, is a refundable tax credit for businesses that kept employees on their payroll during specific periods of the COVID-19 pandemic. It is aimed at companies affected by government-mandated operational suspensions or substantial revenue drops. The credit is not available for individual taxpayers.

Since its inception, approximately 3.6 million claims have been filed for the ERC. The IRS is intensifying its audit efforts on dubious claims and has numerous ongoing criminal investigations related to the credit.

Recent Developments:

A recent halt on processing new ERC claims was announced on September 14, mainly due to the surge of ineligible claims. This pause will extend until the end of the year. Claims made prior to this date will continue to be processed, albeit at a reduced speed owing to comprehensive compliance checks.

Guidelines on Withdrawing an ERC Claim:

To qualify for the withdrawal process, employers should meet the following criteria:

• Claims were made using specific adjusted employment returns.
• The adjusted return was solely for the ERC without any other modifications.
• They intend to retract the entire amount of the ERC claim.
• The IRS has either not paid the claim or, if paid, the refund check hasn’t been cashed or deposited by the employer.

Details on the withdrawal process can be found on the IRS website. The IRS also offers resources, including an upcoming webinar and an interactive eligibility checker for the ERC.

Beware of Scams:

The IRS has noted new tactics from scammers post the September 14 moratorium announcement. There have been cases of promoters persuading businesses into availing expensive upfront loans expecting a refund. The IRS urges taxpayers to be vigilant and be aware of the signs of ERC-related scams. The IRS continues to advocate for employers to consult trusted tax professionals and be cautious about promoters looking to exploit them.

WASHINGTON — The Internal Revenue Service today warned taxpayers to watch for promotions involving exaggerated art donation deductions that can target high-income filers and offered special tips for people to use to avoid getting caught in a scheme.

There are ways for taxpayers to properly claim donations of art. But some unscrupulous promoters may use direct solicitation to promise values of art that are too good to be true. These promoters persuade taxpayers, usually high-income taxpayers, to purchase the art, wait to donate the art and then take an incorrect deduction for the art donated. As part of a larger effort to increase compliance work on high-income individuals and corporations, and protect taxpayers from scams, the IRS has active promoter investigations and taxpayer audits underway in this area.

“Creativity in art is a beautiful thing, but aggressive creativity in art donation deductions can paint a bad picture for people pulled into these schemes,” said IRS Commissioner Danny Werfel. “This is another example where people should be careful when it comes to aggressive marketing and promotions. There are legitimate ways to claim an art donation, but taxpayers should be careful to understand the rules and watch out for inflated values or questionable appraisals. Beauty is not always in the eye of the beholder when it comes to tax deductions of art.”

The IRS is using a variety of compliance tools to combat abusive art donations through audits of tax returns and civil penalty investigations. The IRS reminds taxpayers, including high-income filers that may be targets of these schemes, to watch out for aggressive promotions. In addition, following Inflation Reduction Act funding, the IRS is focused on increasing compliance efforts on high-income and high-wealth individuals to ensure filers pay the right amount of tax owed.

How the scheme works

Promoters encourage taxpayers to buy various types of art, often at a “discounted” price. This price may also include additional services from the promoter, such as storage, shipping and arranging the appraisal and donation of the art. The promotor promises the art is worth significantly more than the purchase price.

These schemes are designed to encourage purchasers to donate the art after waiting at least one year and to claim a tax deduction for an inflated fair market value, which is substantially more than they paid for the artwork. Promoters may suggest taxpayers donate art annually and allow them to buy a quantity of art that guarantees a specific deductible amount. Promoters may even arrange for certain charities to take the donations.

IRS conducting promoter investigations, taxpayer audits involving art donations

As the IRS works to increase compliance activity involving high-income and high-wealth areas as well as complex partnerships and corporations, abusive schemes like art donations are on the agency’s radar.

The IRS has multiple active abusive art donation promoter investigations underway and questionable art donations by taxpayers have been – and will continue to be — under audit when questions arise. These donations can involve art valued at millions of dollars. More than 60 taxpayer audits have been completed with more in the works; those audits that have produced more than $5 million in additional tax.

Watch for red flags

Taxpayers should be wary of buying multiple works by the same artist that have little to no market value outside of what the promoter might be advertising.

Another red flag in this scheme is that promoters might line up specific appraisers for participants to use. An appraisal that supports this scheme often fails to adequately describe the art. It may not address the value characteristics, such as rarity, age, quality, condition, stature of the artist, price paid and the quantity purchased.

Taxpayers should remember they are always responsible for the accuracy of information reported on their tax return. Participating in an illegal scheme to avoid paying taxes can result in repayments of the taxes owed with penalties and interest and potentially even fines and imprisonment. Charities also need to be careful they don’t knowingly enable these schemes.

Properly claiming an art donation

To properly claim a charitable contribution deduction for an art donation, a taxpayer must keep records to prove:

• Name and address of the charitable organization that received the art.
• Date and location of the contribution.
• Detailed description of the donated art.

The above items are required to properly claim a charitable contribution deduction. There are additional requirements based on the value of the claimed deduction. If the claimed deduction for an art donation is:

• $250 or more, the taxpayer must obtain a contemporaneous written acknowledgement of the contribution from the charitable organization. They need to have that document on or before the earlier of the date on which they file a return for the taxable year in which they made the contribution, or the due date, including extensions, for filing such return.
• More than $500 but not over $5,000, the taxpayer must also complete a Form 8283, Noncash Charitable Contribution, Section A, and attach it to their tax return.
• More than $5,000, the taxpayer must complete Form 8283, Section B, including signatures of qualified appraiser and donee. They must also obtain a qualified written appraisal of the donated property.
• $20,000 or more, the taxpayer must do all the above and attach a complete copy of the qualified appraisal to their return. They should also have a high-resolution photo or digital image of the object and provide it, if asked.

See Publication 561, Determining the Value of Donated PropertyPDF, for requirements of a qualified written appraisal.

IRS Art Appraisal Services (AAS)

The IRS has a team of professionally trained Appraisers in Art Appraisal Services who provide assistance and advice to the IRS and taxpayers on valuation questions in connection with personal property and works of art.

Although organized under the IRS Independent Office of Appeals, Art Appraisal Services assists IRS’ examination function, lawyers from the IRS Office of Chief Counsel and the Department of Justice, as well as Appeals Officers, on the valuation of personal property and works of art.

In certain cases, the Art Appraisal Service is advised by the Commissioner’s Art Advisory Panel. The panel is comprised of up to 25 renowned art experts who serve without compensation and provide advisory opinions. IRS Appraisers, the Director of Art Appraisal Services, and panel members meet regularly to discuss the valuation of art works submitted for review by Art Appraisal Services.

How to report tax schemes

Taxpayers can report tax-related illegal activities relating to charitable contributions of art using:

• Form 14242, Report Suspected Abusive Tax Promotions or PreparersPDF, to report a suspected abusive tax avoidance scheme and tax return preparers who promote such schemes.

• They should also report fraud to the Treasury Inspector General for Tax Administration at 800-366-4484.

More information

• Publication 526, Charitable ContributionsPDF
• Publication 561, Determining the Value of Donated PropertyPDF
• Form 8283, Noncash Charitable ContributionsPDF
• Tax Topic 506, Charitable Contributions

Eligible buyers, including those that bought an EV or hybrid this year, have had to wait until they filed their federal income tax returns to actually get the benefits.

The Treasury Department says the near-instant credits of $7,500 for an eligible new vehicle and $4,000 for a qualifying used vehicle should lower purchasing costs for consumers and help car dealers by boosting EV sales.

Under the Inflation Reduction Act, which included the credits, buyers can transfer the credits to dealers, which can apply them at the point of sale starting Jan. 1.

Plus, the government says people can get the full credits from dealers regardless of how much they owe in federal taxes.

The vehicles have to qualify under guidelines spelled out in the law, and buyers’ incomes have to fall below limits.

Dealers have to hold state or local licenses in order to offer the credits, and they must register on an Internal Revenue Service website. After dealers turn in the sales paperwork, dealers can expect to get payments from the government within about 72 hours, officials said.

To be eligible, electric vehicles or plug-ins have to be manufactured in North America. SUVs, vans and trucks can’t have a sticker price greater than $80,000, while cars can’t sticker for more than $55,000.

Used electric vehicles can’t have a sale price of more than $25,000.

There also are income limits for buyers set up to stop wealthier people from getting the credits. Buyers cannot have an adjusted gross annual income above $150,000 if single, $300,000 if filing jointly and $225,000 if head of a household.

To qualify, buyers have to be below the income limits either in the year of purchase or the prior year. If their income exceeds the limits both years and they took the credits, they’ll have to repay them when they file their income tax returns, the government said.

There also are requirements for battery and component manufacturing that could disqualify some vehicles or make them eligible for only part of the tax credits.

Treasury Department guidelines still have to wind their way through the government regulatory process, including a public comment period.

Sales of new electric vehicles for the first nine months of the year rose 50.9% from the same period a year ago, pushing the EV market share up slightly to 7.5%. U.S. consumers bought 875,798 EVs from January through September.

• Stay Updated with Changing Tax Laws: Tax laws and regulations change frequently. Business owners must stay updated to ensure they are compliant and avoid costly penalties. A tax consultant will provide current information and guide businesses through any recent changes.
• Maximize Deductions: Many business owners are unaware of the numerous deductions available to them. A tax planning session can illuminate these potential savings, ensuring business owners aren’t overpaying on their taxes.
• Cash Flow Management: Effective tax planning can improve a company’s cash flow. By understanding tax liabilities and planning ahead, businesses can manage their finances more efficiently.
• Avoid Costly Mistakes: The punitive implications of tax errors can be severe. A tax consultant can help identify and rectify potential issues before they become major problems.
• Strategic Business Planning: Tax planning isn’t just about compliance; it’s a strategic tool. A consultation can help business owners make informed decisions, from investment strategies to hiring practices, all tailored to their specific tax situation.
• Peace of Mind: With a professional overseeing their tax strategy, business owners can focus on what they do best – running their businesses. They can rest assured that they are minimizing liabilities and making the most of any available tax benefits.

You can schedule your tax planning consultation today by calling (615) 267-0125 or (989) 704-6560.

About Charles R. Frazier JD LLM

Charles R Frazier is the principal attorney for Frazier Law, a tax, estate and business law firm with offices in Middle Tennessee and Central Michigan. Charles writes and speaks nationally on topics of tax planning, tax controversy & defense, business and succession planning, and estate planning. Charles is a member of bar in the states of Michigan, Tennessee and Texas. Mr. Frazier can be scheduled for consultations or interviews at (615) 267-0125 or (989) 704-6560.

MIDLAND, Mich. – The Law Offices of Charles R. Frazier has expanded its practice in the Great Lakes Bay market to now include estate planning, elder law and business succession planning services. Adding to its existing tax planning, compliance and controversy services, the firm is now able to provide these additional services throughout the state of Michigan.

Tax and estate planning attorney Charles R. Frazier was admitted and licensed to practice law in Michigan, and was sworn in by Honorable Judge Stephen Carras at the Midland County Courthouse this summer. Attorney Frazier is a highly-credentialed and experienced attorney who is a certified estate planning law specialist, a certified exit planning advisor to business owners, and a tax attorney who holds two advanced tax degrees; a Master of Taxation from The Florida Atlantic University and a Master of Laws (LL.M taxation) degree from the University of Alabama.

The Frazier firm has offered nationwide tax controversy services since opening its doors in 2009, and it opened a Midland office in May 2022.

The Frazier firm is devoted to tax planning, tax controversies, estate planning, and business succession planning. It represents fiduciaries and beneficiaries in estate and trust administration and works with nonprofits to obtain and maintain tax-exempt status. Frazier has helped countless business owners and entrepreneurs avoid or resolve problems with the IRS or Department of Revenue. Stopping IRS collections, assisting clients with tax audits, and creating installment agreements are a few of the existing tax services that previously existed at the firm.

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About the Law Offices of Charles R. Frazier

The Law Offices of Charles R. Frazier provide legal counsel to individuals and businesses, and focuses on tax law and estate planning. The firm handles tax collections and tax audit matters before the IRS or Michigan Department of Revenue, as well as tax planning and compliance. The firm’s estate planning practice helps guide clients through the process of obtaining wills, living wills, powers of attorneys and completing other estate planning matters. Since 2009, The Law Offices of Charles R. Frazier has saved its clients millions of dollars in taxes; given customers the peace of mind that comes with a thoughtful estate plan; and settled countless difficult probate estates.

The October 16th deadline applies to taxpayers who requested a six-month extension to file their 2022 tax return. The extension provides extra time to file but does not extend the time to pay any taxes owed. Those who haven’t settled their tax bill should do so immediately to minimize any additional interest and penalties.

Key Points to Remember:

• Ensure Accuracy: Double-check all information on the return to avoid potential errors or discrepancies.
• E-file for Speed: Electronic filing (e-filing) is the fastest, most efficient way to submit a tax return and receive a refund if one is due.
• Payment Options: If you owe taxes, consider direct pay options available through the IRS, or set up an installment agreement if you cannot pay in full.
• Refunds: For those expecting a refund, the IRS’s “Where’s My Refund?” tool provides updates within 24 hours of e-filing or four weeks after mailing a return.
• Seek Help if Needed: If you have questions or uncertainties, contact our office at (989) 704-6560 or (615) 267-0125 to schedule a consultation to discuss your tax situation.

Taxpayers who miss the October 16th extension deadline can face penalties, additional interest charges, and potential legal consequences. It’s crucial to act promptly and ensure compliance.

For more information, guidance, and resources on tax deadlines, visit the official IRS website at www.irs.gov.

About Rick Miller, CPA

Rick Miller is the Director of Tax & Business Services for Frazier and directs the Great Lakes office in Midland, Michigan. He leads the tax preparation team and works with the legal side of Frazier when handling tax controversy cases. He can be reached at rick@frazier.law or at (989) 704-6560.

The ERTC, initially implemented as a response to the economic downturn caused by the COVID-19 pandemic, has been pivotal in incentivizing businesses to keep employees on their payroll. The credit allows eligible employers to claim a portion of wages paid to employees, with the intention of reducing the number of layoffs during challenging economic times.

However, in recent months, the IRS has reported a significant uptick in applications, some of which raised red flags. “This pause is designed to help safeguard taxpayer dollars and ensure only those truly eligible receive the credit,” said Nashville-based tax attorney Charles R Frazier.

Implications for Businesses

The announcement of the moratorium has raised concerns in the business community, particularly among those that were gearing up to submit their applications. Business leaders and trade associations are urging the IRS to expedite their review process and provide clear guidance on when the processing might resume.

Looking Ahead

The IRS has hinted that the resumption of ERTC processing but has stated that they are working diligently to address the matter. The agency will be engaging with stakeholders and experts in the coming weeks to enhance the application process and reduce the potential for fraud.

In the interim, businesses are encouraged to keep detailed records and documentation, ensuring they are prepared once the IRS resumes the ERTC application process.

Tax professionals advise businesses to be proactive in staying informed about any updates or changes regarding the ERTC and to consider seeking professional guidance if unsure about their eligibility or the requirements of the program.

The moratorium is a reminder of the complexities and challenges that arise when rolling out broad economic relief programs. As the IRS seeks a balance between facilitating aid and maintaining the program’s integrity, businesses and employees alike await further clarity.