McFARLANE LAW-A Tax Law Firm is now a virtual law firm!
Send any mail or correspondence to:
PO BOX 30405, PHOENIX, ARIZONA 85046-0405
Our phone number and email address remain the same.
With over 30 years of experience in Tax Audits, Appeals, Tax Court Litigation, Collection, and Payment Plan Negotiations, we can assist you or your clients resolve tax problems.
Referrals: We regularly work with attorneys, CPAs, and bookkeepers. We are especially respectful of your relationship with your clients in a referral situation.
Thank you for your continued confidence in our practice !

…
Continue Reading WE’VE GONE VIRTUAL!!

Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. Contact your local tax attorney for advice and answers to help you through the process of starting a new business.

Here are five tips for new business owners.

Choose a business structure.

The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:

• Sole Proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared

…
Continue Reading Tips for people starting a new business

Several of my clients received IRS Notices with due dates that already expired by the time I received the Notices because the mail date stated on the Notices was months ago-this despite being recently mailed!! The pandemic shutdown really messed things up with all agencies.

The National Taxpayer Advocate stated that the IRS generated more than 20 million notices that were printed but not immediately mailed. As a result, the notices bear dates that now have passed, some by several months. Many of the Notices are time sensitive and require taxpayers to respond by deadlines that have also passed.

The…
Continue Reading Beware: The IRS is Sending Important Notices with Bad Dates

Generally, the answer is no. The exception is if the taxpayer owes child support arrearages.Under the CARES Act guidelines and subsequent direction, Economic Impact Payments/recovery rebates/stimulus checks cannot be offset to pay any debt except child support.

However, “normal” federal tax refunds remain fair game in the absence of an Offset Bypass Refund (OBR) request. NOTE: OBRs may be slightly easier to come by in these coronavirus times.
If you will have a refund on your 2019 return, but owe past due taxes and wonder if you will receive your refund this year, you should file an extension until Oct…
Continue Reading I Owe Past Due Taxes. Can the IRS Take My $1200 Economic Impact Payment?

A: Taxpayers should file on time even if they cannot pay their full tax bill
You should file your tax return by the deadline even if they cannot pay the full amount due. Otherwise, you will be assessed a late filing penalty and end up owing even more. If you owe tax, but cannot pay by the July 15, 2020 deadline, you should:

• File your tax return or request an extension of time to file.
  If you cannot file your return on time, request an extension to file on Form 4868. Without this extension, if you owe 2019 tax, you

…
Continue Reading Q: What if I cannot Pay my Taxes by the July 15 Deadline?

In previous blogs The Honeymoon is Over – It’s Time to Think Taxes! and It’s Time to Prepare and File your 2019 Tax returns, I discussed the upcoming, looming tax return filing and payment deadline of July 15. You can extend the time to file, but not to pay – so budget accordingly.Other extension, deffal or benefits bestowed to Taxpayers due to COVID-19 also expire July 15 or the end of this month. For example, federal IRS tax returns are due or can be extended to October 15. 2019 taxes are due. The $600/month supplemental unemployment payments end. The…
Continue Reading The honeymoon is over – Part III

The IRS continues its pursuit of “US Citizens” who own a foreign bank account, foreign real estate, interests in a foreign company, and other assets such as brokerage accounts with credit card access. They are looking for US Citizens with foreign based assets who fail to report the existence of those assets.
US Citizens are required to report their worldwide income, but also report their assets such as real estate or business interests on informational returns.
In 2019, tax agencies around the world shared information on 84 million accounts holding foreigners’ assets; this to fight tax avoidance and evasion in…
Continue Reading Do you have a foreign bank account or own an interest in foreign real estate or in a foreign entity?

There has been stories that nursing homes and other care facilities have been taking their resident’s/patient’s Economic Impact Payments (EIPs). If you have a loved-one in a nursing home or other care facility, check to see that the facility has not absconded with the EIP. If so, you may to hire an attorney to send a demand letter to recoup the EIP. Under the IRS guidelines, the EIPs belong to the recipients, not any organizations providing care for the recipients. Be aware and check on this as there has been stories that people and businesses may be taking advantage of…
Continue Reading Nursing Homes and Care Facilities and Economic Impact Payments

If you or your spouse collects social security benefits and have been assessed past due taxes or have other debts, those SS benefits may be subject to collection action by the Internal Revenue Service (IRS) and the Arizona Department of Revenue (ADOR). This can be particularly distressing if you are retired and in debt and your only source of income is social security.

The IRS has statutory authority, via the Federal Payment Levy Program, to garnish up to 15 percent of Social Security benefits to pay delinquent taxes. Other creditors, such as banks and credit card companies, cannot touch your…
Continue Reading The IRS can garnish your Social Security

<h2<Important Tax Record-keeping Advice:
If you received an economic impact payment in 2020 need to keep Notice 1444, entitled Your Economic Impact Payment, with your other 2020 tax records such as W-2s, 1099s, and any virtual currency transactions. This Notice 1444 provides important information about the amount of your payment, how the payment was made, and how to report any payment that was not received.

Note that the IRS mails this Notice 1444 to each recipient’s last known address within 15 days after the payment goes out. It is important for people to keep this Notice 1444for their 2020 tax…
Continue Reading Keep Economic Impact Payment Notice with Your 2020 Tax Records