Los Angeles Tax Law Explained

By: Gavin Sanderson

The tax laws differ from state to state. The Los Angeles tax laws areparticularly complicated and are enough to baffle anyone. The tax laws are alsoimportant because they affect the lives of millions living in the city. Thus,the tax attorney is a very important figure in the realm of the city. A goodtax attorney will help you understand your unique situation, give you advice asto how you can minimize the tax payments and defends you in case there is anaccusation of tax evasion or fraud leveled against you.

The tax attorney is someone who is well trained in mattersof law. The most revered of lawyers have the prestigious LLM degree that is theMaster of Law Letters. Many clients prefer the attorneys who have an LLM degreebecause the notion is that the best lawyers of the city have the LLM. Theselawyers supposedly provide the best tax assistance.

The Internal Revenue Service does not apply the partialpayments made by businesspersons and organizations in OrangeCounty or Ventura County, California, Los Angeles Countyor Santa Barbara County before January 1, 2003. The IRS,according to their own convenience, applies the payments to the Trust FundRecovery Penalty. This partial payment is made on Form 941 tax liability andthe IRS accepts the payments in accordance with their own priorities. The IRSalso sends the Letter 1153 to the businessperson or the organization.

The IRS acceptance of payment is prioritized. Theliability that accompanies the minimum decree of limitations for collections isfirst in the list of payment applications. That is followed by the one with thenext minimum amount of limitations of collection and so on. This method ofpayment application followed by the IRS does not necessarily mean that the onesimpending for the longest time will be taken care of before others. It is justthe tax period that has the minimum collection statute that is given toppriority.

The IRS sends the Letter 1153 (DO) to a business executive whoowes a certain amount to the IRS and has his Trust Fund Recovery Penalty(TFRP). The Letter 1153 (DO) is sent before June 19, 2000. If the businessexecutive receives the letter and has made the partial payment to the IRS bythe Form 941 before January 1, 2003, the IRS assesses his partial payment.

When some business executive has made a partial orundesignated payment in a similar manner as described above, the payment willbe subject to application to various taxes. First, the payment will be under thenon-trust fund part of the tax, then under assessed lien fees and collections,then under assessed penalties for defaulters, followed by assessed interest,accrued penalties and accrued interest. After all this is over, the payment isultimately assessed to the trust fund segment of the tax under the IRS.

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