Most taxpayers are employees who get a paycheck every pay period and can for the most part ignore their taxes until the end of the year. Their employers are responsible to withhold taxes from their paychecks and they get a W-2 at the end of the year. But if you are a freelancer or are self-employed, you alone are responsible for paying your taxes. If you are self-employed and don’t have a comprehensive Read More
What to Do if the IRS Garnishes Your Paycheck
The Internal Revenue Service (IRS) is arguably the most powerful creditor you may ever have. While you can declare bankruptcy to clear debts such as credit card bills and unpaid utilities, income tax debt is often non-dischargeable. When you can't or won’t pay your taxes, the IRS can and will garnish any income you receive to satisfy the debt. This includes: Salary Hourly wages Commissions Bonuses Unlike Read More
A Brief Overview of IRS Penalties for Nonpayment
We’ve all heard stories about the consequences of not paying your taxes. Al Capone is one famous example. More recently, Eric Galanti, former owner of three bars and restaurants in Seattle, was sentenced to eight months in prison for several misdemeanor counts of failing to file tax returns (and, by extension, pay his taxes). Although these are extreme examples, they are also reminders that the IRS frowns on Read More
Lower Your Tax Debt with an Offer-in-Compromise
The IRS has a debt settlement program called an Offer-In-Compromise. It can be used by individuals and by businesses, such as restaurants, Airbnb owners, and professional service firms who owe the Internal Revenue Service more money than they can afford to pay can use this tax resolution tool to lower their debt. The IRS accepts offers-in-compromise to taxpayers to give them a “fresh start” without their tax Read More
When an IRS Installment Plan Makes Sense
If you have outstanding debts with the IRS, one the most important things to remember is that the IRS wants to work with you to settle your debt and even provides options to help you do so. One of these options is called an installment agreement. An installment agreement is like a payment plan, and it enables you to pay off your tax debts over time via monthly payments. There are several different types of Read More
The 5 Most Common Causes for an IRS Audit
Getting audited by the IRS is something everyone hopes they never have to go through. Even though audits are relatively rare for most people, it’s important to make sure you do everything you can to ensure that it doesn’t happen to you. Luckily, there are a lot of things you can do to lessen your chances of getting audited. Below we take a look at some of the most common causes for an IRS audit. 1. Failing to Read More
How to Choose a Tax Attorney to Assist You
Choosing a Tax Attorney There are a number of things you should consider when choosing a tax professional or tax attorney to assist you with your tax problem: Hire a Tax Professional If you are facing a challenging audit with the potential for a large tax bill or for harsh penalties, a tax attorney, who is trained in negotiation skills and understands tax law will be best suited to negotiate a favorable outcome. Read More
Tax Law 101: An Audit vs. Correspondence Audit vs. Adjustment Letter
Coming home to a notice from the IRS is never a fun moment, regardless of whether or not you are someone who always pays their taxes and submits their returns on time. However, just because you received a letter from the IRS doesn’t mean there’s any reason to panic. Although you might have thoughts of a terrifying tax audit circling in your brain, it’s actually fairly unlikely that a comprehensive audit is on your Read More
Facing Your Tax Problems
Business owners and others with tax problems often get into trouble by trying to avoid their problems or by believing at some level that if they ignore their problems, they will go away. A client of mine came to me a couple of years ago after being injured at his construction job.[1] This severely limited his ability to find gainful employment in his field. The settlement process was taking much longer than Read More
Yes, You Can Make a Deal With the IRS!
If you owe the IRS a tax debt and are struggling to pay it off, then you’ve probably come to dread hearing the mailman pull up to your house. But, contrary to popular belief, dealing with the IRS doesn’t have to be so difficult or scary. At the end of the day, the IRS just wants to see that you are making an effort to work with them to figure out how to pay off your debt. That’s why if you’ve received notices or Read More
