Don’t you wish you could hit the “reset” button on your unpaid taxes? If you could just go back to when they were first due and avoid all those expensive fees, penalties and interest, wouldn’t life be so much easier? With the IRS Fresh Start Program, you can do just that and more! Read on to find out more about this debtor-friendly program and don’t forget to schedule your consultation with the legal team at the Law Read More
Explaining Offers in Compromise
What if you find yourself unable to pay your full tax burden to the Internal Revenue Service? Or, let’s say you are able to, but paying your tax liability in full would create an extreme financial hardship on you. What can you do about that? Fortunately, the IRS offers something called an Offer in Compromise that may be available to you if you find yourself in these types of situations. If you are indeed eligible Read More
Understanding Section 179 Deductions
If you buy certain types of assets such as vehicles, machines, or cameras for your business’s use, you will qualify for tax deductions. These deductions are applied over the life of the property that you purchased to help offset the decreasing value of the asset. This concept of depreciation of assets is covered under Section 179 of the IRS tax code. Understanding how this section works and the deductions related to Read More
The Consequences of Owing Taxes to the IRS: Worst-Case Scenario
As Benjamin Franklin rightly said, “in this world, nothing can be said to be certain, except death and taxes.” Although the IRS wasn’t established until 1862, Franklin’s 1789 quote is timeless and still applies today: if you owe taxes, the government will use the full extent of the law to get the money they are owed. Penalties for non-payment of taxes are severe. Wage garnishments, liens, bank levies, seizure of Read More
A Brief Overview of IRS Trust Fund Penalties
Even if you’ve dealt with collection agencies in the past, the experience won’t prepare you for the IRS. If you’re delinquent in paying your federal business taxes, it can levy your company assets, bank accounts, accounts receivable, and even your personal property. Many business owners shield themselves from personal liability for company debts by forming a corporation or LLC. While this strategy can prevent Read More
Private Debt Collection Agencies
In April of last year, the Internal Revenue Service revived its private debt collection program. Under this program, authorized by 26 U.S.C. § 6306, the IRS can give certain taxpayer accounts to private contractors for collection and can pay them commissions of up to 25% of the amount collected. Taxpayers can be sent to private contractors to collect the tax debt when their accounts are in collections but Read More
Seriously Delinquent Tax Debt: What Happens and What Can You Do?
The IRS doesn’t take halfway measures when it comes to collecting overdue taxes. It can garnish your wages, file a lien on your assets, and even liquidate them to satisfy your tax debt. Over three years ago, the IRS expanded its collection powers by adding the ability to limit, revoke, or deny the issuance of your passport if you have seriously delinquent tax debt. What Is Seriously Delinquent Tax Debt? Under IRC Read More
Limiting Tax Liabilities with the IRS Collection Statute of Limitations
Our Firm works with each of our clients to get the best possible resolution of their tax problem. One of the tax resolution tools we evaluate in each case is the Collection Statute of Limitations. Collection Statute of Limitations The Internal Revenue Service does not have an unlimited amount of time to collect a tax debt. The Internal Revenue Code provides that in general the IRS only has ten years from the time Read More
Understanding the Difference Between Tax Evasion and Avoidance
The terms “tax evasion” and “tax avoidance” are often used interchangeably. Although a surface similarity exists (failure to remit the correct amount of tax due), one is a criminal offense and the other can only expose you to civil penalties at most. When deciding whether a taxpayer is guilty of tax evasion or avoidance, the IRS seeks to answer the question: Are they lying or hiding? What Is Tax Evasion? Tax Read More
3 Reasons You May Be Eligible for the Currently-Not-Collectible Program
If you owe a tax debt that you can’t afford to pay, you can apply for Status 53, which is the IRS’ “Currently Not Collectible” designation. In addition to giving you breathing room on back taxes, becoming a Status 53 taxpayer stops all collection activities in progress, such as garnishments or levies. Currently, Not Collectible status is intended to relieve taxpayers who are struggling financially and have no money Read More