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Federal Tax Liens
One of the primary recourse for individuals, businesses, government institutions, and other entities like the IRS who are owed money is a legal instrument called a lien. A lien is a legal document that...
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‘Tis the season
Every September through November the IRS begins to send out federal tax liens and levies to anyone who may owe a balance to Uncle Sam. Receiving a notification from the IRS stops everyone in his or her...
View ArticleThe Pros and Cons of Uncollectable Status
If a taxpayer is in serious financial hardship, the IRS can classify the tax as Currently Non-Collectible, suspending all collection action. This means that the taxpayer will not be required to make...
View ArticleBuying and Selling Property Subject to Federal Tax Lien
The Property is in contract. All inspections completed. You get the title report and find out for the first time that federal tax liens have been filed making it impossible to convey clear title....
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If you can’t pay your taxes, see a tax attorney
Law requires the IRS to engage in some form of enforcement action against a taxpayer who has not paid their taxes in a timely manner and who has also failed to contact the IRS to take advantage of any...
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IRS correspondence
The IRS will never contact you via email or social media to ask for personal or financial information. If you receive such correspondence, you can send it to IRS’s phishing page or you can call the IRS...
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What to do if you missed filing an IRS return or need to file late
While life can get in the way and cause you to miss filing timely tax returns, the IRS is notoriously unsympathetic when it comes to money they allege you owe. While filing late or having a backlog of...
View ArticleA Story of the Trust Fund Recovery Penalty (and Getting Out of It).
My client and Mr. X purchased an automobile repair shop, which they owned 50/50. Initially Mr. X ran the business. My client was signatory on the company checking account, but signed few checks and was...
View ArticleInnocent Spouse Relief
Innocent Spouse Relief Most married taxpayers file joint tax returns. Each spouse is liable for the entire tax and any additions to tax, interest, or penalties, even if they later divorce. Joint and...
View ArticleAppealing an IRS Action
A taxpayer can appeal most collection actions. If the request for appeal is timely, in most cases, all collection activity will stop during the appeals process. The main options for appeals are the...
View ArticleWhat is an Offer in Compromise?
An offer in compromise is an agreement between a taxpayer and the IRS that settles and resolves the taxpayer’s tax debt. The IRS has the authority to settle, or “compromise,” federal tax liabilities by...
View ArticleWhat About Penalty Abatement?
Many clients are resigned to paying the tax, but they take a different view of the penalties assessed by the IRS. Here is some information on IRS penalties, and how they can be reduced or eliminated....
View ArticleThe One Percent Settlement
My client is a near minimum wage food service worker. She lives with her daughter and two grandchildren, in a house she bought, without financing, when she won a legal settlement. The settlement was...
View ArticleCan Back Taxes Be Discharged in Bankruptcy?
Bankruptcy can in certain circumstances, wipe out tax liability. Chapter 7 bankruptcy will only discharge income tax liability. Therefore, gift, sales, estate, and self-employment taxes are not...
View ArticleIRS Wage Garnishment
Federal Guidelines for Garnishment If you owe the IRS for back taxes, the IRS has the authority to levy or seize your property. A specific type of levy is the garnishment of employment wages each week....
View ArticleInnocent Spouse Relief
Innocent Spouse Relief By requesting innocent spouse relief, a taxpayer can be relieved of responsibility for paying tax, interest, and penalties if the taxpayer’s spouse (or former spouse) improperly...
View ArticlePaying Estimated Taxes
Estimated Taxes Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the...
View ArticleFresh Start Installment Agreements
Fresh Start Installment Agreements You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. However, you will reduce or eliminate...
View ArticleInterest and Penalties Build Up for Filing and Paying Federal Taxes Late.
Interest is compounded daily and charged on any unpaid tax from the due date of the return (without regard to any extension of time to file) until the date of payment. The interest rate is the federal...
View ArticleIRS Tax Levies Caused Hardship for Social Security Recipients
(From Accounting Today) Internal Revenue Service employees pushed too hard to impose levies on elderly people’s Social Security benefits, leading to economic hardship for some low-income people with...
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