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

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

Credit Agencies No Longer Report IRS Tax Liens

Last year the three credit reporting agencies (Experian, TransUnion and Equifax) announced that they will no longer report IRS tax liens on people’s credit reports. See https://www.experian.com/blogs/ask-experian/tax-liens-are-no-longer-a-part-of-credit-reports/. Prior to this, you had to wait seven years after you paid the tax liabilities the IRS lien covered to remove it from your credit report.  The wait was Read More

Understanding Your Options if You’re in Debt to the IRS

Every year, there are a large number of people who can’t afford to pay the IRS all the tax debts that they owe. Even though the quickest solution for your overdue taxes is to pay the full amount right away, sometimes circumstances prevent that from happening. The unfortunate truth about IRS debts is that the interest will continue to accrue on what you owe, even as you pay it down, and the penalties don’t go away. Read More

The Pros and Cons of IRS Installment Plans

If you are an individual or business owner with significant tax debt that you are financially unable to pay, you may be eligible to enroll in an installment agreement with the Internal Revenue Service. An installment agreement is essentially a payment plan that enables you to pay off your taxes over time. To qualify, you must file all required tax returns and disclose all of your assets and cash to the IRS. This is Read More

Understanding Innocent Spouse Relief

Married couples get to enjoy a lot of key benefits when they file their tax return jointly, and it can even be a contributing factor as to why people decide to make their union legal in the first place. However, when one spouse decides to keep financial information from the other and misrepresents their situation when filing their taxes, needless to say, it creates a lot of problems. If you suddenly find yourself Read More

Piercing the Corporate Veil: When the IRS Can Seize Personal Assets to Cover Business Tax Liabilities

Small business owners often put their blood, sweat, and tears into making sure their company remains operational and successful. Sometimes it isn’t enough, and the company has to close. When this happens, owners might be under the impression that they aren’t responsible for their unpaid business debts, but that’s not always true. Having a business isn’t a free pass to acquire debt and then not pay it off or Read More