Resolving a serious tax liability, whether by way of an Installment Agreement, Offer in Compromise (OIC), or Currently Not Collectible Status, is often a painstakingly difficult, time-consuming, and stressful process. So, the last thing anyone who survives this process needs is to wind up defaulting their agreement. It’s really bad news. Not only will the …
How to Avoid Defaulting an IRS Tax Resolution Agreement Read More »
Once an individual or business falls behind with taxes, a time-bomb clock starts ticking. If you are unable to full pay your tax liability and you wish to avoid nasty consequences, you must become eligible for some form of voluntary tax resolution.
Aside from getting behind with the IRS in the first place, defaulting an IRS installment agreement can be among the most disastrous financial missteps a person can make. Thus, knowing how to avoid a default and what steps to take in the event that you receive a default notice is must-know info for anyone on …
Avoiding the Disaster of a Defaulted IRS Installment Agreement (CP523) Read More »
If you or your business owe money to the IRS, the specter of a tax lien might be keeping you up at night. Will the IRS file a tax lien? When will they do it? How will this affect me? These are all legitimate concerns. What is a Federal Tax Lien? Let me begin with …
Are you an owner or employee of a business that is delinquent with employment taxes? If so, watch out! It is possible that you will be held personally liable for what is called the Trust Fund Recovery Penalty. What is the Trust Fund Recovery Penalty? In short, the Trust Fund Recovery Penalty is a penalty …
Many businesses rely on the use of their accounts receivable or inventory as collateral for loans or for factoring. However, in my experience, few business owners fully grasp how devastating the consequences can be if they engage in this type of financing and fall behind with federal taxes. Unfortunately, fully grasping this concept often does …
Understanding the IRS 45 Day Rule for a Federal Tax Lien Read More »
As an attorney who makes his living resolving tax liabilities, the majority of my clients are businesses that have accrued 941 employment tax liability. There are numerous reasons as to why a business accrues a 941 tax liability. These reasons range from mere lack of funds resulting from both internal and external issues to simply …
You and/or your business have accrued a tax liability and are now receiving increasingly threatening letters from the IRS that indicate that they are going to seize your assets. Many questions arise. Can the IRS actually do this? Will they seize my corporate assets and shut my business down? Will they seize my residence? These …
Will The IRS Seize My Assets, Business Or My Residence? Read More »
You invested your entire savings and better part of your working life into your business in an attempt to have it succeed and ultimately grow. During this time many unforeseen obstacles occurred that caused you to have to make difficult decisions, one of which was to forego making a tax deposit in order to remit …
Understanding IRS Successor, Alter Ego , Nominee, And Transferee Liability Read More »
In order to be eligible to resolve an outstanding federal tax liability on a voluntary basis (e.g. Installment Agreement, Offer in Compromise), as opposed to having it forcefully resolved through collection action such as levies, garnishments, and the seizure of assets, the IRS has two basic requirements. The first requirement is that you are in …
If the IRS is pursuing collection action against you for an income tax liability for which you believe you are not responsible because the liability was derived from a spouse (or former spouse), you may be correct and have legal grounds to dispute the liability. The IRS has a specific provision called innocent spouse relief …
Innocent Spouse Relief Can Relieve Your Spouse of a Joint IRS Liability Read More »
It is possible for some taxpayers to reduce or eliminate their tax penalties by obtaining an abatement of penalties. This article will explore the fundamentals of IRS penalties as well as how to go about getting them removed. Taxpayers with a state tax liability may also qualify for an abatement, depending on the state. Most …
Tax Penalties: Is it Possible to Reduce or Eliminate My Penalties? Read More »
Question: Will the IRS garnish my wages or Levy my wages? How can I avoid this? Answer: In order to answer this question effectively, some background and definitions with regards to IRS procedures are warranted. A levy on wages is where the IRS effectively takes a portion of ones wages and applies it to the …
