The Robert Burns poem To a Mouse, written in 1786, is an apology. The story has it that Mr. Burns upended a mouse's home while plowing a field and felt bad about it. To make amends, he wrote a poem, the most famous portion of which reads: But little Mouse, you are not alone, In proving foresi...
There are dozens of issues that have to be recognized, discussed, and planned for… before a bankruptcy is filed. For people with IRS debt and an IRS lien, the issue of avoiding IRS seizure of a retirement account after bankruptcy is a big one. First, some background: When yo...
The most an Arizona creditor with a judgement can garnish from your paycheck is 25%. The IRS is a different animal and isn't subject to Arizona's exemption laws. As a result, it can garnish much more. In some cases, the majority of the paycheck can be taken. (See IRS wage levy page)...
Dealing with a large IRS debt is difficult. The IRS doesn't want to “settle” with most people because they don't qualify under the IRS' standards. As a result, the vast majority of people with tax debt end up in some form of IRS payment...
The IRS is in the business of collecting money and it has some advantages that other money collectors don't have. Your employer submits a report of your income each year to the IRS. If you are self employed, your vendors or others send the IRS a 1099 misc. form. The bank sends ...
Keith Fogg, at the terrific tax blog “Procedurally Taxing” has provided a short review of the Martin v. United States Case wherein the 9th Circuit Bankruptcy Panel (BAP) rejects the literal interpretation of Bankruptcy Code Section 523(a)(*). You can read his review here. If you have...
If the IRS can't recover, it can't seize or levy Pursuant to Internal Revenue Code Sections 6331(f) and 6331(j)(2)(c), the IRS cannot seize property or levy unless doing so will result in money for it. I recently represented a client who had some equity in a vacation home. The IRS...
It's easy to file a tax filing extension with the IRS. A simple form is filled out, the amount you think you owe is included, and in theory… that amount and the form are sent into the IRS before the April 15th deadline. This allows you to put off filing the return until much later in the...
The U.S. Senate passed it's version of a bill meant to fund the highway system, but included language in the bill that would privatize much of the IRS' collection responsibility. The U.S. House of Representatives is working on it's own highway bill and may just include a similar provis...
IRS problems don't just go away. The cartoon is a clumsy way of making the point. The point is that you have to do something. You can't ignore the problem and just go about your business. Your house is on fire and you may not realize it. The most common “house-fire” we see is that o...
The IRS Final Notice of Intent to Levy or why you should always open your mail I'm surprised at how often my clients bring me a box filled with un-opened mail from the IRS. To tell you the truth, most of it is junk. Reminders to pay, debt breakdowns, letters requesting missing ta...
The IRS Offer in Compromise isn't over when you get the letter approving settlement with the IRS. Don't get me wrong, the Offer in Compromise (OIC) can be a great solution for some people with IRS debt. But unlike a chapter 7 or chapter 13 bankruptcy case, an offer in compromise isn't ...
IRS form 433 is the primary piece of equipment that the IRS collection unit and IRS revenue officers use to get your information. If you are an individual that owes almost any type of tax and you don't qualify for a streamlined agreement, you will probably have to supply the 433a or at ...
Almost every person who contacts me asks about getting rid of IRS penalties. There are two reasons I think this happens: 1. Many Americans believe in paying debt and see tax as a debt. But they regard penalties as just unwarranted punishment. 2. Many people have been falsely led t...
The IRS Fresh Start program was created a few years ago. It's claim at the time was that “struggling” taxpayers needed some help so it changed some of the ways it did business with taxpayers. The changes were done in three areas. IRS Liens, IRS Installment Agreements and IRS Offers i...
The very first thing I do when a person with a large tax debt balance hires me, is to calculate the IRS Collection Statute Expiration Date or CSED for short. I calculate the clock. Why do I care so much about this bit of information and write about it all the time? I mean…clocks are ...
Large IRS Payment Plan vs Chapter 13 Bankruptcy – Which is Better? Combine a large IRS debt, a lengthy IRS statute of limitations period (CSED), and a “good” income, and you may have a recipe for a large monthly IRS payment plan. Many people are living this “recipe” and as a result a...
Releasing an IRS levy when tax returns aren't filed The IRS likes to get attention. It doesn't take “selfies” to get it, but once it issues a wage garnishment or a bank levy on your account, you will wish that it just used a camera instead. It doesn't use a camera because it wants ...
I haven't filed a tax return in a long time – what should I know? If you haven't filed a tax return for a while – you're not alone. There are literally thousands of people and small business owners who haven't filed a tax return in several years. The IRS is actively searching for mi...
Most payment plans arranged with the IRS are “streamlined” plans. An IRS streamlined payment plan is one that allows the taxpayer up to 72 months to pay the debt if the original debt assessed is less than $50,000.00, all returns have been filed, and the taxpayer agrees to al...
A recent case out of the US Bankruptcy Court in the Southern District of Florida, Coyle v. U.S., has rejected the McCoy line of cases and relied on the beard test to determine whether tax debt based on returns filed after IRS assessment can be discharged. The taxpayer in question f...
Tax Debt, Credit Card Debt, and Bankruptcy Many of our clients have both serious tax debt and other debt at the same time. These other debts may be student loans, state taxes, credit cards, medical bills, business debt or some combination. If you read this blog you know that the ...
If you have an IRS debt and are struggling with it, make a call to our office and ask to speak with the Attorney about it. We like to discuss the situation on the phone for free to ask you some questions, answer some of yours and to determine whether it may make sense for us to help. We’ve helped several thousand clients with tax debt problems over the last two decades. We’ll tell you the truth about your options and help you find the best one.