Did You Know the IRS Gives Out Badges?

It’s true. However, these badges aren’t something the federal agency gives out for a job well done. Rather, tax professionals refer to these designations as badges of fraud. As the name suggests, these badges are indicators to the IRS that a taxpayer committed an error with possible fraudulent intent. This puts the taxpayer in danger of having to pay civil or criminal fines. In the most severe cases, prison time is Read More

Not All IRS Audits Are Created Equal

You don’t have to be a tax professional to know that a tax audit is not on anyone’s wish list. Most taxpayers think of an audit as a tremendous invasion of privacy wherein they have to produce documentation of every dollar they’ve ever earned. Some audits do require taxpayers to show numerous financial documents.  Chances are, though, that if you are audited, you will never speak face-to-face with an IRS agent, Read More

IRS Liens Can Still Affect Your Credit

In April 2018, the three major credit reporting bureaus announced a shift in procedures: they would cease including federal tax liens on credit reports. This was welcome news to individuals and businesses struggling to pay tax debts. There are still several other ways, though, that tax liens (federal and state) can indirectly affect one’s credit and overall financial wellbeing.  What is a Tax Lien? When an Read More

IRS Penalty Relief: First-Time Penalty Abatement

For all the doom and gloom surrounding “the IRS” — a mere mention of the federal agency is enough to make some taxpayers shudder — plenty of people might be surprised about how willing representatives are to help taxpayers settle tax liabilities and penalties. The IRS is typically more lenient toward taxpayers without a long rap sheet. In other words, you’re more likely to receive penalty relief for your first tax Read More

Three Types of IRS Summonses and How to Respond

Few things are more frightening to a taxpayer than receiving a summons from the IRS. You may automatically assume that you’ve been targeted for a criminal investigation when the reality is that the government regularly issues summonses for reasons that have nothing to do with suspicion of misconduct. Below is an overview of three types of summons you may receive from the IRS and how to respond appropriately. 1. For Read More

IRS Levies vs. Liens

You might have been warned about the power of the IRS to place a lien on your home, bank accounts, or other assets if you don’t pay your taxes. What’s more, the IRS can seize your assets with a levy to satisfy any tax debts they allege you owe. Liens and levies are two distinct tools used by the IRS to collect on your tax liabilities. This blog will explore the main differences between a federal tax lien and levy and Read More

Innocent Spouse Relief

Generally, “my spouse did it; I’m innocent!” is not a great excuse to use in everyday life for obvious reasons. However, in cases where your spouse (or former spouse) is responsible for filing an erroneous tax return, a defense called “innocent spouse relief” can save you from the taxes, penalties, fees, and interest that are attributable to your spouse. Whether your spouse filed an incomplete tax return, 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 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