Fast Facts: The IRS Fresh Start Program

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 free consultation with the legal team at 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 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

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 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

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

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