If you or your business are in the unfortunate position of having an outstanding tax liability, you may be acutely aware of the resulting stress, anxiety, and in some cases downright fear and panic that the most powerful collection entity (IRS) in the nation can instill. While my comforting words alone may not eliminate these …
Prior to the COVID-19 pandemic, there were already millions of individuals and businesses owing significant sums of money to the IRS or state taxing authorities. With the brutal economic fallout caused by the pandemic, that number has skyrocketed. This has changed the playing field—in terms of both risks and opportunities–for taxpayers who are in collections. …
Owing your least favorite uncle a back-tax debt is undeniably scary and stressful. Uncle Sam—the most powerful creditor in the world–is typically the last entity that one wants to deal with due to all the collection weapons it has readily at its disposal. It is a direct result of the fear and anxiety that a …
Resolving a serious tax liability, whether by way of an Installment Agreement, Offer in Compromise (OIC), or Currently Not Collectible Status, is often a painstakingly difficult, time-consuming, and stressful process. So, the last thing anyone who survives this process needs is to wind up defaulting their agreement. It’s really bad news. Not only will the …
How to Avoid Defaulting an IRS Tax Resolution Agreement Read More »
Once an individual or business falls behind with taxes, a time-bomb clock starts ticking. If you are unable to full pay your tax liability and you wish to avoid nasty consequences, you must become eligible for some form of voluntary tax resolution.
The CP523 notice of intent to levy intent to terminate your installment agreement is more or less saying that the agreement is in default and may terminate in 30 days. If the agreement does terminate, involuntary enforced collection action will commence. This could mean garnished wages, levied accounts receivable or levied bank accounts. This could …
The good news is that the IRS cannot just file a Notice of Federal Tax Lien (NFTL) without any warning or notice. Several things must first occur before an NFTL gets filed. An assessment must be made, notice and demand for payment must be made, and the taxpayer must neglect or refuse to pay the …
Are you an owner or employee of a business that is delinquent with employment taxes? If so, watch out! It is possible that you will be held personally liable for what is called the Trust Fund Recovery Penalty. What is the Trust Fund Recovery Penalty? In short, the Trust Fund Recovery Penalty is a penalty …
Many businesses rely on the use of their accounts receivable or inventory as collateral for loans or for factoring. However, in my experience, few business owners fully grasp how devastating the consequences can be if they engage in this type of financing and fall behind with federal taxes. Unfortunately, fully grasping this concept often does …
Understanding the IRS 45 Day Rule for a Federal Tax Lien Read More »
As an attorney who makes his living resolving tax liabilities, the majority of my clients are businesses that have accrued 941 employment tax liability. There are numerous reasons as to why a business accrues a 941 tax liability. These reasons range from mere lack of funds resulting from both internal and external issues to simply …
You and/or your business have accrued a tax liability and are now receiving increasingly threatening letters from the IRS that indicate that they are going to seize your assets. Many questions arise. Can the IRS actually do this? Will they seize my corporate assets and shut my business down? Will they seize my residence? These …
Will The IRS Seize My Assets, Business Or My Residence? Read More »
You invested your entire savings and better part of your working life into your business in an attempt to have it succeed and ultimately grow. During this time many unforeseen obstacles occurred that caused you to have to make difficult decisions, one of which was to forego making a tax deposit in order to remit …
Understanding IRS Successor, Alter Ego , Nominee, And Transferee Liability Read More »
In order to be eligible to resolve an outstanding federal tax liability on a voluntary basis (e.g. Installment Agreement, Offer in Compromise), as opposed to having it forcefully resolved through collection action such as levies, garnishments, and the seizure of assets, the IRS has two basic requirements. The first requirement is that you are in …
If the IRS is pursuing collection action against you for an income tax liability for which you believe you are not responsible because the liability was derived from a spouse (or former spouse), you may be correct and have legal grounds to dispute the liability. The IRS has a specific provision called innocent spouse relief …
Innocent Spouse Relief Can Relieve Your Spouse of a Joint IRS Liability Read More »
It is possible for some taxpayers to reduce or eliminate their IRS tax penalties by obtaining an abatement of penalties. This article will explore the fundamentals of IRS penalties as well as how to go about getting them removed. Taxpayers with a state tax liability may also qualify for an abatement, depending on the state. …
IRS Tax Penalties: Is it Possible to Eliminate My Tax Penalties? Read More »
Question: Will the IRS garnish my wages or Levy my wages? How can I avoid this? Answer: In order to answer this question effectively, some background and definitions with regards to IRS procedures are warranted. A levy on wages is where the IRS effectively takes a portion of ones wages and applies it to the …
