Estimated Tax Penalty

Usually taxes are not dischargeable for the New York individual in a bankruptcy, and must be paid even when a person files bankruptcy.  It does not matter if a person files Chapter 7 or Chapter 13. There is exception to this general rule when the tax return was due over three years ago, or filed […]

Bartering Effects Taxes in New York

A New York singer agrees to give singing lessons to an attorney in exchange for tax return preparation. The federal income tax law treats the agreement as the performance of singing lessons by the artist for a fee equal to the fair market value of the tax return preparation services. The fair market value of […]

Robucci v Commissioner of Internal Revenue

Robucci v Commissioner of Internal Revenue is a US Tax Court case (Filed January 24, 2011) that teaches New York taxpayers not to avoid paying self-employment taxes. The case centers on Medicare social security taxes.  The social security tax rate for self-employed taxpayers is 10.4% for 2011 and 2012 and thereafter will be 12.4%. In […]

Independent Contractor v. Employee Misclassifications in New York

In poor economic times, New York businesses are getting away with worker abuse and not paying payroll taxes.  It is no wonder people are getting into debt and filing bankruptcy in record numbers.  Businesses, not just the small companies, try to get away with not having to pay payroll taxes and misclassifying NY workers as […]

Tax Scams in New York

WABC-TV, New York, New York reported on March 30, 2011 in “Bloomberg warns of tax scams” that during tax time, when taxpayers are in a hurry to meet deadlines, scam artists are out with operations that violate consumer protection laws, scam phone calls and fax requests, and scam emails and websites that offer services to […]