If you have been knowingly evading taxes by one means or another, it is time for you to make it right or face the consequences. The good news is that the IRS is presently having a Voluntary Disclosure program aimed at allowing tax dodgers to come forward and declare their assets that have not been taxed. And if you are a Maryland resident, the state is also having a similar amnesty program next month. If you wish to make good on your taxes, there are two ways to go about doing it. The first is to go under Uncle Sam's Voluntary Disclosure program and declare your untaxed assets. The second is to file back tax returns or amended returns and pay up what you owe. Depending on what form of tax evasion you are committing, you should opt for the appropriate way to pay off your taxes. If you have not been declaring your assets in an offshore bank account, you should choose to go under the Voluntary Disclosure program. This is because when you voluntarily disclose your assets, you will not face criminal prosecution and the IRS will likely impose a lighter penalty on you. But this Voluntary Disclosure program is not limited to those having offshore accounts only. Many have chosen to voluntarily disclose their assets just to gain official confirmation from the IRS that they are in the clear. The Voluntary Disclosure program ends September 23rd. The IRS says there will not be an extension to the deadline. If you have been under declaring your assets by reporting less income than you actually earn or by not filing your tax returns for years or by making a mistake in your favor on your returns, then the way to rectify it is to file back tax returns or amended tax returns for each tax year. Tax experts advise submitting each year's return separately to avoid attracting too much attention from the IRS. If your spouse has been incorrectly filling in her tax returns, you can choose to file your returns under 'Married filing separately' to avoid being penalized for your spouse's actions. If you want to correct certain figures previously reported, you should fill up Form 1040X and explain why you need to make your amendment. If you are submitting returns that you failed to submit earlier, you will have to pay back taxes plus interests and penalties. But if you are amending an earlier return, you will have to pay the amended taxes and interests but not likely a penalty. You can even pay by installments if you cannot pay everything in one lump sum. Maryland residents who have not paid their taxes last year or earlier are given an amnesty period starting next month. If you pay up, civil penalties and half of interests charged will be waived. You will also not face criminal prosecution unless you are already being investigated. If you cannot afford to pay all at once, the state is willing to receive 10% of your dues upfront and the rest by the end of the year. Maryland amnesty applications are available online at marylandtaxes.com. Alternatively, call 410-260-7951. The program ends October 30th. Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Customers of 1031 Exchange companies that go bankrupt may now be seeing some light at the end of a tunnel. A 1031 Exchange company is one named for the Internal Revenue Service code 1031 that holds money from the sale of property while the seller looks for a replacement property to invest in. If the search is successful and the sale is concluded within 180 days, the seller does not have to pay property gains tax. But if not, then he is liable for tax on the sale of his property. The problem arises when the exchange companies is declared bankrupt, in which case the proceeds from the seller's sale is tied up in the exchange company and does not pass on to him. Thus when the seller is obligated to pay property gains tax on his sale, he has to fork out the money from his own pocket instead of the proceeds from the sale which he never received. This predicament has prompted various parties to take action to resolve the issue. The IRS is working with the Treasury to see if there was a way to help investors whose money is locked up due to bankruptcy proceedings against the 1031 exchange company. One such company is the defunct LandAmerica 1031. One possible mode of relief for investors was to exempt them from having to declare capital gains on the sale of their properties which was not fully completed by LandAmerica 1031 Exchange Services Inc. before going bankrupt. Another culprit company was Edward Hugh Okun's 1031 Tax Group LLP and several of its subsidiaries. Okun was recently handed a 100 year sentence in March for 23 counts of fraud in which he stole $126 million of exchange clients' money. The core of the problem appears to be a timing issue. This is because the investors would have to declare the sale of their properties in their 2008 or 2009 tax returns while the bankruptcy proceedings take place, in which case they cannot take a loss until the bankruptcy case of the 1031 exchange company is settled. All parties concerned are hopeful the IRS will do something to address the timing issue. Another possible means of solving the issue is through legislation as there is a distinct lack of governmental supervision and regulation over these exchange companies that hold people's money. The US Attorney's office has drafted a proposal for legislature that seeks to redress the problem but has refused to elaborate on what type of proposal was drafted. Some states like Maine, Nevada and California have already legislation in place to regulate or place restrictions on these 1031 companies. But in some states like Virginia, legislation of this kind is conspicuously lacking. Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for almost two decades. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

If you are genuinely unable to pay your taxes, there is a provision called the Offer In Compromise (OIC) where you can pay less than the total you owe as full settlement. The IRS will consent to an OIC provided it is proven that payment of the OIC amount is more viable than having the case classified as uncollectable or to avoid a long-drawn settlement plan. The purpose of the OIC is to collect whatever tax amount that is within the ability of the taxpayer to pay at the earliest possible time thus avoiding any extra expenses by the government. But the issue is whether or not you qualify for the OIC. To be considered for the OIC, you must submit detailed documents that show your ability or inability to pay the tax amount. Obviously, this arrangement cannot be for everyone so you must meet all requirements before the IRS would agree to an OIC settlement with you. The other issue that is important to consider is who to help you file your OIC with the IRS. Many companies may portray themselves as able and willing to do so on your behalf for a fee or in some cases, even without a fee. The reality is that based on the stringent and detailed requirements set by the IRS, it would be impossible for any company to submit a successful application for you without a thorough study of your tax history and financial situation. You should beware of firms that purport to file an OIC application for you free of charge. If they do so without a systematic and thorough review of your situation, the chances of your application being approved is just about nil. The fact is that it takes a lot of work to make a proper analysis of anyone's financial position to determine whether you stand a chance of qualifying for the OIC and any company that does so free of charge would be soon out of business. In addition, filing an OIC application when you don't really qualify would be more detrimental to you than not filing it. The reason for this is that the statute of limitations that the government has on collecting your taxes is extended by the length of time your OIC application is pending approval plus another 90 days. The normal length of time the IRS takes to approve your OIC application can be 9 months or more. In the meantime, the waiting periods for other equally good alternatives of settling your taxes are also extended while your OIC request is pending approval. Is getting an OIC really worth the wait for you? In order to know the answer to this question, you need professional advice. In view of all the complications of an OIC application, the best action to take is to engage a fully qualified tax expert specializing in IRS matters. If you want to have an experienced professional firm analyze your financial situation for OIC application purposes, visit http://getirshelp.com Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for almost two decades. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

You would think that medical professionals make enough money to pay their taxes without any qualms. But it appears that's not the case with two Ohio dentists, Bradley C. Brennecke and Bruce A. Mrusek from Pleasant Plain and Maineville respectively. They were charged by the Department of Justice for conspiracy and attempting to cheat the IRS from 1998 to 2004. In July, the duo was indicted by a federal grand jury. The charges against them were evading taxes, defrauding the IRS and submitting false documents. Mrusek in particular, was charged with filing false tax returns on his business. Among others, they were charged for: Stating their spouses' names as owners of their assets in order to avoid taxes Making false tax returns Giving the impression that they paid tax liabilities by filing some bogus documents with the IRS Claiming for tax deductions that did not occur If convicted, the potential penalty they face would be very heavy. Brenneke faces a maximum jail term of 75 years and a fine not exceeding $1.75 million whereas Mrusek may be imprisoned for up to 79 years and fined not more than $2.25 million. It appears highly likely that these two dentists will be giving free dental treatment to their fellow inmates in the federal penitentiary for a long time. Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for almost two decades. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.