Mississippi Tax Settlement Advice

What Is A State and What is A Federal Tax Settlement?

A tax settlement is a program offered by the IRS or Internal Revenue Service at the Federal level with the aim of allowing taxpayers to settle their debt to the IRS or state tax liabilities.  These programs are generally available to taxpayers who are struggling with their tax liabilities and can show proof of valid reasons that the IRS should be compelled to abate the penalties concurrent with the tax debts or any other tax relief that may be available to the tax payer.

There are a variety of options for taxpayers, , depending on their unique financial circumstance. The IRS is after all mandated to collect taxes in full and on time, and for this reason, tax settlement may be said to be the exception and the rule is that taxes should be collected in full and in a timely manner.

How Does A Tax Settlement Typically Proceed?

The IRS will generally agree to a negotiated tax settlement where the tax payer is allowed to pay an amount which is lesser than the total amount due and collectible as shown by their specific tax calculator or come up with a method where the full collection of the total amount owed is stretched out over a time period well beyond its due date. In all cases, the taxpayer has the burden of proving that they meet the prerequisites set forth by the IRS or the state for that specific program that the taxpayer intends to avail.

The taxpayer will have to first research what programs are available to them, and then make a determination of which program  applies, and then finally  complete a variety of tax forms or IRS forms for the specific applicable program. Usually this process not only takes a lot of time but a lot of difficult work, with all too often less than satisfying final results.   Taxpayers will benefit from seeking the competent assistance of a licensed attorney with knowledge in this area.  A licensed attorney will offer clients a multitude of options, and offer the assurance of State licensure and ethics guidelines that non-attorney representatives often lack.  Make sure the professional you retain is licensed and reputable to avoid making a difficult situation even more difficult.

Why Do You Need A Tax Professional?

Tax professionals understand that taxpayers have different circumstances and  can offer a customized  plan for each taxpayer. If you are burdened by state taxes in Mississippi area or Federal IRS tax debts, a tax professional serving in the State of Mississippi can help you resolve your tax problems in the best possible way.

If you do nothing, your tax problems will not go away.  In fact, they will almost certainly escalate and spiral out of control.  The situation will not get resolved until you do something about it. Obtaining the assistance of a  reputable Mississippi tax relief company to facilitate tax resolution in any of the ways available to you may just be the best way to get out of a messy  situation. Don’t wait! Get your Mississippi tax settlement application processed by an licensed attorney now!

What is Bankruptcy in the United States? (Mississippi)

What is Bankruptcy in the United States?

Bankruptcy in the United States is provided under the United States Constitution, specifically Article 1 of Section 8, Clause 4, authorizing Congress to enact “uniform Laws on the subject of Bankruptcies throughout the United States.”  Congress has implemented this mandate quite a number of times since 1801, with the adoption of the Bankruptcy Reform Act of 1978, codifying Title 11 of the United States Code, widely known as the Bankruptcy Code (“Code”).

The Code has undergone many amendments since 1978 with the more recent changes having a huge significant impact enacted in 2005 under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).  This amendment has changed the U.S. Bankruptcy law dramatically with the popular sentiment that this amendment has resulted in severe difficulty in filing bankruptcy.

Generally, bankruptcy is filed to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. A person or an entity who files bankruptcy is called a “debtor” in bankruptcy cases. Although bankruptcy cases are filed in United States Bankruptcy Court, however matters such as concerning the legitimacy of claims as well as exemptions, are frequently governed by State law. The State law of the debtor, therefore, is a major consideration in how to file bankruptcy cases. Generalizing bankruptcy laws across state lines is consequently impracticable. For example, Bankruptcy in Mississippi, provides that entities who file bankruptcy can only claim property exemptions given by Mississippi state law.

Entities or individuals seeking relief under the Bankruptcy Code may file a petition for relief under several different chapters of the Code, depending on their circumstances. There are six categories of bankruptcy under the Bankruptcy Code, found in Title 11 of the United States Code. These types of bankruptcies are better known by their chapter number such as  “Chapter 7”,  Chapter 11”, and Chapter 13”. Among the different bankruptcies, chapters 7 and 13 are by far the most commonly filed bankruptcy cases in the United States.

Chapter 7 bankruptcy is also known as liquidation or straight bankruptcy and is the simplest and quickest form of bankruptcy available for individuals as well as business entities. Liquidation involves the appointment of a person designated as the trustee who is tasked to collect the so called non-exempt properties of the debtor, offer it for sale and then distributes the proceeds to the creditors. Because of the fact that each state permits the debtor to retain essential properties, most Chapter 7 cases results in a scenario that there are not enough non-exempt assets to distribute to creditors.

Chapter 13 bankruptcy or “Wage Earner Bankruptcy” on the other hand, involves a rehabilitation of finances for debtors with regular source of income which requires a payment plan to repay all or part of their debts.

Individuals and entities in trouble with excessive debt and facing possibility of going bankrupt may find relief in filing Bankruptcy. Coming to a decision to file bankruptcy is a very important matter that should be discussed with a Mississippi bankruptcy attorney who is well versed about bankruptcy as well as how to bankruptcy. After all, Bankruptcy laws are enacted to facilitate a fresh start by affording relief from the saddle of  devastating debt.

Is Reverse-Racism Real?

The New York Times is having fun debating this question – Do whites suffer from racism? What are your thoughts?

For a good discussion on the issue, check out the debate between Pat Buchanan and Rachel Maddow.

Supreme Court to California – Release 30,000 Inmates

In a shocking decision a 5-4 majority of the Supreme Court ordered the State of California to release roughly 30,000 inmates. The majority opinion, written by Justice Anthony M. Kennedy, argued the release was necessary because overcrowding in California’s prisons caused “needless suffering and death.” The majority stated California’s bulging prison population meant the State was not in compliance with constitutional requirements (yet school officials can still lay hands on children and such an action is deemed discipline). Justice Antonin Scalia dissented, calling the decision “absurd.”

The Los Angeles Times explained the impact of the decision:

“State officials and lawyers for inmates differ over just how many prisoners will have to be released. In recent figures, the state said it had about 142,000 inmates behind bars, and the judges calculated the prison population would need to be reduced to about 110,000 to comply with constitutional standards.

Kennedy said the judges in California overseeing the prison-release order should ,accord the state considerable latitude to find mechanisms and make plans” that are “consistent with the public safety.’”

For the Supreme Court’s decision, complete with dissents, click here.

The Government Wants to Drug Test Your Sixth Grader

A New Jersey school district is considering a proposal that would require Sixth graders to undergo random drug tests while attending school. Proponents of the proposal state the measure would deter kids from engaging in questionable behavior and stress the program would be voluntary.

Students in Belvidere, NJ participating in the program would not be turned over to the police if they test positive, nor would they be suspended. As reported by CBS New York:

The district said it wants to convey a similar message to its students — that the tests are not about punishment, but about getting help to those who may be experimenting with drugs.

But understanding schools are notoriously bad at maintaining student privacy (an Pennsylvania school recently got in trouble for spying on students via laptops), is this a smart move? And should parents give the schools authority to randomly drug test their kids?

No Smokers Wanted

A Massachusetts hospital is causing a stir after it announced a new policy requiring applicants to submit to nicotine tests. If an applicant for employment at Anna Jaques Hospital in Newburyport, Mass. tests positive for nicotine, i.e. they smoke, their application for employment is automatically rejected. Is the hospital taking a stand against a public health nuisance or it is reaching too far into the private lives of it applicants?

Hospital spokeswoman Deb Chiaravalloti defended the policy by telling CBS Boston, “We believe as a health care organization we need to make sure we have a healthy environment for our employees and our patients. Smokers are not a protected class.” The spokeswoman also explained that soon smoking on campus will be banned for employees, patients and visitors.

To a certain extent, the hospital is right, smokers are not protected from discrimination under federal or state law. But if the hospital can refuse to hire smokers because it is a “health care organization” wanting to provide a “healthy environment,” they can also refuse to hire those who test positive for alcohol. Taking it another step, they can refuse to hire someone who is overweight. Drinking and obesity, of course, do not portray a “healthy image.” Should smoking, drinking or eating habits disqualifying a person from employment if they are otherwise qualified for the job?

Here is CBS Boston’s new report on the issue.

Federal Government Can Regulate Internet

The Federal Communications Commission has voted, for the first time ever, to give the federal government the authority to regulate the internet. The Wall Street Journal reports:

“A divided Federal Communications Commission approved a proposal by Chairman Julius Genachowski to give the FCC power to prevent broadband providers from selectively blocking web traffic.

The rules will go into effect early next year, but legal challenges or action by Congress could block the FCC’s action. Senate Minority Leader Mitch McConnell (R., Ky.) on Tuesday called the FCC’s action ‘flawed’ and said lawmakers would ‘have an opportunity in the new Congress to push back against new rules and regulations.’”

You can read the rest of the article by clicking here.

Census Brings Little Change to Mississippi

Though the South witnessed a strong migration to the region betwee 2000-2010, Mississippi’s population growth was not enough to warrant additional seats in the U.S. House of Representatives. The Magnolia State, therefore, will retain its four (4) Congressional seats. Over the last decade, Mississippi’s population grew from 2,844,65 to 2,967,297; an increase of 4.3 percent.

The region’s big winner, however, was Texas. The population of the Lone Star State grew by 20 percent. The population growth resulted in Texas gaining four additional House seats. Texas’ Electoral College clout now rises to 38. Texas, despite its positive growth, was not the fast growing state in the Union, as that honor went to Nevada. The Silver State saw its population grow by 35 percent.

New York and Ohio suffered population loses and lost two House seats. Marking a migrational shift to the South, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey and Pennsylvania each lost one House seat. New York now has the same number of House seats as Florida – 27.

For more information on the Census and how it impacts you, click here.

Va. School Muzzles Christmas Spirit

A group of students attending a Mananas, Va. high school were taught a valuable lesson – candy canes are weapons, Christmas sweaters are impermissible, and caroling is a nuisance. The group of boys were wearing over-the-top Christmas sweaters, singing Christmas carols and tossing candy canes to fellow students when school officials stepped in. It was argued that the candy canes were weapons and, by virtue of tossing the candy others, the Christmas quartet had the “intent to injure” others. The boys were disciplined, but many think the school board overreacted. You can read the full story here.

Government Wants to Regulate Your Internet

If all goes according to plan, the Federal Communications Commission (FCC) will take a major step towards regulating how Americans use the internet. Under the guise of “net neutrality,” i.e., keeping the internet open to all, the FCC is attempting to regulate broadband pricing by invoking the phone monopoly laws of yesterday. Here is Robert McDowell’s, the Republican commissioner on the FCC, writing for the Wall Street Journal:

“Still feeling quixotic pressure to fight an imaginary problem, the FCC leadership this fall pushed a small group of hand-picked industry players toward a “choice” between a bad option (broad regulation already struck down in April by the D.C. federal appeals court) or a worse option (phone monopoly-style regulation). Experiencing more coercion than consensus or compromise, a smaller industry group on Dec. 1 gave qualified support for the bad option.”

FCC Commissioner, Julius Genachowski, is focusing on three areas of reform: dealing with new issues created by wireless carriers, adding protections for a new online pricing model and reducing the number of avenues providing general access to the internet (internet toll lanes).

The proposed reforms have raised eye brows. Under proposed rule changes, “toll lanes” granting access to the internet would be limited and people would be charged based upon their use. The more you use and download from the net, the more you would pay. Because YouTube and Netflix users could be hit with high price tags, the FCC is trying to find a middle ground in which they can regulate the net.

Aside from impacting consumers, opponents of the plan say the new regulation would undercut investment flowing into technologies associate with the internet.

The talks are ongoing and there is no guarantee net neutrality will advance at tomorrow’s meeting.