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

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

Understanding the Difference Between Levies and Wage Garnishments

The IRS uses bank levies and wage garnishments to collect unpaid taxes, which is why the two processes are often confused. They are both collection actions, but the similarity ends there. IRS Bank Levies When the IRS issues a bank levy, it freezes your bank account and withdraws the amount you owe. If there isn’t enough money in the account, the IRS will keep placing levies on it once more funds are available, Read More

Cryptocurrency and Taxes

You have probably heard of Bitcoin and cryptocurrency, but you may not know exactly what it is, or how it is treated for tax purposes. Let me explain what cryptocurrency is and why you need to know about it. Crypto comes from cryptography, which is computer technology used for security, hiding information, and verifying identities. Cryptocurrency is a form of electronic money. It is made possible by a new kind Read More

Collections Due Process Explained

The Fourth Amendment guarantees you due process in situations where your life, liberty, or property are at risk. When you owe money to the IRS, they have the power to garnish your wages, file liens and levies on your property, and sue you, but the IRS Restructuring and Reform Act of 1998 gives you statutory rights in this situation, including the right to a hearing. A Collections Due Process Hearing gives you the Read More

Advantages and Disadvantages of Using a Tax Resolution Professional to Solve IRS Taxes

Nothing can strike fear into the heart of a small business owner or other citizen like being contacted by the Internal Revenue Service. This tax agency enjoys powers not granted to many other parts of the government. Unlike those other government agencies, the IRS can garnish your wages, freeze your bank accounts and seize your property. So, you cannot simply do nothing if the IRS contacts you or your business about Read More