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Tax Attorney Mary King Resolves Serious IRS Tax Problems

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IRS Tax Help Blog

When You Have Tax Troubles You Need Full Service Representation

Facing the Internal Revenue Service (IRS) over a tax issue can be very upsetting. Tax problems can quickly escalate into large debts and result in tax levies against bank accounts, property or wages. The IRS can be very intimidating and most individuals and businesses that face tax issues often feel that they have no options but to pay the large debts.

Full Service Legal Representation

Hiring a legal representative to help with a tax issue is an option that more people in this position should take. Legal representation can help with the problems and possibly reduce the debt or correct the issue that is in question. However, not all legal representation is the same.

People who are facing a showdown with the IRS need to find legal representation that can do more than push papers around and make unrealistic promises about the issue at hand. They need a law firm that can aggressively represent them and has the ability to represent them in U.S. Tax Court.

Many firms advertise that they can help you solve your tax problems, but they are not qualified to represent you in tax court. And while many issues can be resolved without ever reaching a court room, there are instances where it is necessary to take the case to court. Under these circumstances, you want to make sure that the firm you are currently using has the ability to represent you in court. If they do not, you will have to start the entire process over again with a new firm that can, causing unnecessary delays and costs to you.

Reasonable Solutions To Tax Problems

Working with an experienced tax relief... full post

posted by Mary E. King , in:
Tax Problems

IRS Levy Help - Stop The IRS From Raiding Your Accounts

If you do not file or pay your taxes, then the Internal Revenue Service has the right to seize your property, including your house, car or boat. They could also play a levy on your bank account and wages. If you have a state tax refund, then the Internal Revenue Service can place a levy on it also. Additionally, if you have a retirement account or rental income, then a levy could be placed on those things.

However, it is important to note that the Internal Revenue Service may release a levy if you are having financial difficulty. You must be able to prove that seizing your property and/or garnishing your wages will make it difficult for you to pay for your basic living expenses.

There are steps that the Internal Revenue Service must take before they place a levy on your property.

They are required by law to send you a notice demanding your payment. They are also required to send you a notice of intent to levy. Additionally, the Internal Revenue Service is required to send you a notice of your right to a hearing.

The final notice has to be sent at least 30 days before the Internal Revenue Service issues the levy. You may receive this notice at your place of business or home. You may also get a letter sent to your last known address.

The good news is that you do not have to deal with an IRS levy on your own. Our attorney can help you manage or reduce your tax debt. The attorney can also help remove IRS levies from your property, wages and bank account. Our attorney is a very honest person and does not make promises that are not realistic or legal. The lawyer is also very experienced and committed to helping... full post

Offer In Compromise - A Process To Settle Back Taxes With The IRS

If you owe money to the Internal Revenue Service (IRS), you know how stressful of a situation it can be. However, you do have options that can help you erase your debt and enjoy a clear conscience, free from the burdens of financial obligation. The IRS may consider working with you to formulate an offer in compromise (OIC), which can reduce your tax bill to a mere percentage of the original amount owed. Although there is no legal obligation for the IRS to accept an OIC to settle a tax bill, they are required to seriously review any properly submitted request. Additionally, if your OIC is not approved, you have the recourse of requesting a hearing with the IRS Appeals Office.

How to Qualify for an OIC

Everyone would like to settle their tax bill for a fraction of what they owe. The IRS does not grant an OIC to anyone wishing to shirk their financial responsibility to Uncle Sam. There are certain circumstances that must be met in order for the IRS to consider granting an OIC.

Doubt of liability is one such condition that may qualify you for an OIC. Essentially, this means that there are genuine factors in existence which cast suspicion upon the validity of the debt in question. If the debt has already been deemed valid in a court of law, or is valid under current tax code, there is no credible doubt of liability to pursue. To reasonably support a claim of doubt, you must submit supporting paperwork and evidence, as well as a written statement providing a concise explanation as to why the debt is invalid.

Another legitimate reason to request an OIC is to prove the existence of extenuating circumstances. If you are able to substantiate the fact that repayment of the debt would create an... full post

IRS Tax Liens And Your Credit Score

Tax Lien Overview

People who are not current with their taxes will often encounter the problem of a tax lien. This process allows the Internal Revenue Service to have access to reclaiming property as the financial obligation is not taken care of promptly and efficiently. All three of the main credit reporting agencies will eventually have access to this information. Once they have access to the information they can place the information on the credit score of the individual who the sanctions has been filed against. This situation can negatively impact a person's ability to apply for loans and in some cases can have a negative impact of employment status of the individual. Settling this issue is as simple as making payments through an arrangement or paying the debt completely.

Impacts Of A Tax Lien

Once a sanction has been brought against a credit report it can be difficult to get is removed. The freighter 14 agencies can hold this problem over the head as an individual who has been affected by this type of legal action. If an individual is not able to handle the situation promptly, the record which affects the credit can be active for seven years. This can negatively impacts the ability of person who has gotten over the financial difficulties in terms of buying future property and getting loans in order to improve the quality of their life. Seeing the removal of this derogatory mark removed will often be difficult however it can be accomplished if a person is persistent. The removal process requires a great amount of legwork in order to be completed.

Settlement Agreement

Making a settlement agreement it's usually the easiest way to take care of this type of legal issue. Often working with a legal representative will to improve the speed with which the process is... full post

posted by Mary E. King , in:
Tax Lien

Avoid Costly IRS Problems By Working With A Tax Debt Settlement Lawyer

If the IRS has recently contacted you and told you that you owe them money, the last thing that you want to do is ignore them. The IRS has a variety of tools at its disposal to get the money that you owe. However, you can solve your tax issues before they spiral out of control by talking to an experienced tax attorney.

Penalties and Fees Can Accumulate Quickly

The IRS will charge penalties and interest from the day that you file your tax return. Therefore, the IRS could contact you years later about an issue with a tax return and you would still be liable for years worth of penalties. A tax debt settlement attorney may be able to work with the government to have some or all of those extra costs reduced or waived entirely.

Don't Have Property or Bank Account Seized

The government has the right to put a lien on property, seize your bank account or garnish your wages. The good news is that a IRS settlement attorney can help settle a tax dispute and get rid of a lien or wage garnishment in a relatively short period of time. If the government places a lien on your property, it could be reported to credit agencies, which can make it harder to get loans, housing or even a job.

Only Provide What the IRS Wants

When the IRS conducts an audit, it will ask for specific information from a taxpayer. In some cases, the taxpayer may provide additional information that could lead to a more extensive audit. During an audit, a taxpayer may let emotions guide their decision making process. This may only make things worse for a taxpayer and expose him or her to further problems. A tax attorney will act as a rational third-party who knows how to talk... full post

posted by Mary E. King , in:
Tax Debt

Taxpayers With IRS Tax Liens Should Expect Financial Complications That Only Get Worse With Time

Having an existing tax lien is one of the most distressing situations that a taxpayer can face. A tax lien is a hold on one’s personal property that the I.R.S. places to ensure that it receives a payment that a person owes. The I.R.S may issue a tax lien for a wide variety of reasons. One reason a person may have tax lien against him or her is a failure to file income taxes or pay income taxes. Income taxes for the previous year are supposed to be filed by April 15 of the following year. A taxpayer who misses the deadline and does not request an extension is at risk for a tax lien.

Other Reasons a Tax Lien May Apply

Another reason that a taxpayer may receive a tax lien is if he or she fails to pay property taxes on a home or personal property. Most property taxes are payable once per year, although policies may differ in different states. A tax lien does not necessarily mean that the I.R.S. is going to take possession of the property. However, it may implement a tax levy if the taxpayer does nothing to resolve the situation.

How to Resolve a Tax Issue

A taxpayer has several options when he or she first receives notice of delinquent taxes. The I.R.S. is very good at sending out notices. A tax lien never occurs before a person has had ample time to resolve a tax issue. Therefore, a person should contact the I.R.S. immediately once that person receives a notice. The individual could request a payment plan or a direct debit arrangement in which the I.R.S. takes money from the person’s debit or credit card.... full post

How Should Tax Records Be Kept? The Answers Are Surprising

How long to keep your tax records around is a common question with no simple answer, however to avoid being on the hook for serious tax debts accurate long-term record keeping may be required.

A general guideline is tax records should be kept for a minimum of 3 years if you live in a state that does not have an income tax such as Florida, or four years if your state does have an income tax.

Those dates are posted because the IRS has three years in which they can audit you for a given tax year, and in the case of states that have income taxes, they may share your tax information with the state should the state request them for up to four years.

However there are many situations when having your tax records for much longer is advisable. For example things can get complicated when the IRS is looking at records related to home sales.

Lets say that you have recently sold a home that you purchased back in the 80s.  During an audit the IRS may want to review the original closing statement from the time of purchase, any refinancing closing statements as well as any statements related to remodeling of the home. Photographs of the before and after will also be valuable in this case. The reason for keeping these detail records is, these amounts should be added together then subtracted from the amount you received when you sold the property to figure out any gains made in the sale. Additionally these documents will be the proof needed to support deductions claimed on a return. With out the proof your deductions may be invalid leaving you owing a lot more tax debt.

Another complex situation involving homes is if you have sold your previous home prior to May 7th 1997,... full post

posted by Mary E. King , in:
Tax Audits

Don’t Have To Pay Taxes Claims: False And Dangerous Frivolous Tax Returns Explained

It is imperative individuals are well informed when making decisions based on their tax returns. They should be careful of who they accept tax advice from and especially who they let prepare their tax returns. Frivolous errors can either be misguided or an intentional act to deceive the government. Some common frivolous tax arguments claims will be discussed, the law that abates the claims, and penalties that can be imposed on offenders.

Frivolous Tax Arguments and Contending Laws

1. Contention:
Some people propose they are not required to file a federal income tax. These individual’s point out in Form 1040 instruction book the Internal Revenue Service (IRS) states the tax system is voluntary.
In section 6011(a), 6012(a), and 6072 (a) of the IRS code states it is a requirement to file an income tax return.

2. Contention:

Some individuals argue it is voluntary to pay federal income taxes. These people propose the taxation system is strictly voluntary, claiming there isn’t a provision in the Internal Revenue code or any other Federal statue. These proponents demand the IRS to show them corresponding laws imposing on their taxes.
In section 1 of the IRS code it states the payment of taxes is not voluntary. This is further explained in section 6151, requiring taxpayers to submit payment with their tax return.

3. Contention:
Some individuals intentionally submit incorrect information by reducing their tax liability by filing a tax return with a lack of income and no tax liability “zero return”, although they have earned an income that is taxable.
As described in section 61, gross income encompasses any income derived from whatever source or services that have been provided.

4. Contention:
Based on section 6020 (b), some individuals argue the IRS is obligated to prepare... full post

posted by Mary E. King , in:
IRS Tax Myths

The Taxpayer Bill Of Rights

Many taxpayers are under the assumption that there is little they can do if they have a disagreement with the IRS. The good news is that this is simply not true. While all taxpayers have the expectation to pay the tax they owe in a timely fashion, those taxpayers also have legal rights in all of their dealings with the IRS. This is commonly called the Taxpayer Bill of Rights, and it is clearly outlined by the IRS. All taxpayers have the right to a fair and just tax system and quality service from the IRS.

The Right to Be Informed

All taxpayers have the right to be fully informed about tax law in a way that is easy for them to understand. They also have the right to be kept fully informed about tax decisions made by the IRS that affect them. This includes such things how much tax is owed and why, and the reasons why any penalties or fees are being requested. This means especially that the IRS cannot take an action without giving the taxpayer due notice of what they intend to do and why.

The Right to Pay No More than the Correct Amount of Tax

While a taxpayer has the obligation to pay taxes legally owed, they do not have to pay more than their share of tax. This means that tax charges, including penalties and interest must be accurate. It also means that all taxpayers are entitled to receive any tax refund owed to them in a timely manner. The IRS cannot keep more tax than is owed, even if the taxpayer accidentally overpays their taxes.

The Right to Challenge the IRS’s Position and Be Heard

After the person has received... full post

posted by Mary E. King , in:
Tax Solutions

Tax Liens Can Signal Further Action From The IRS Is On The Way - Resolve The Issue Before The Problems Get Worse

Every individual and business that earns income has to pay taxes on that income. However, there are many circumstances when a person or business cannot make the tax payments. When a taxpayer cannot make the payments and falls behind on paying his or her tax obligation, the IRS may take a number of different collection actions. One of these actions is the placement of an IRS tax lien. A tax lien is placed against the taxpayer’s property such as real estate, bank accounts and personal property. If a business defaults on tax payments, the IRS may place a lien against the property owned by the business.

Once a lien has been placed against a property, the property cannot be sold without the permission of the IRS. In the case of a bank account, the money in the account will be frozen by the lien and the account holder will not have access to the money. The purpose of the lien is to protect the IRS from a taxpayer disposing of assets without paying the tax debt. However, a lien does more than just freeze an asset. The IRS may take action to convert a tax lien into a tax levy. In the case of a tax levy, the IRS will seize the asset and then sell the asset to satisfy the tax debt. Though some time generally passes between the placement of a lien and the execution of a levy, a taxpayer who has a lien needs to take action to prevent the seizure and sale of a property.

Beyond just the risk to assets, IRS tax liens can also harm taxpayers in other ways. The placement of a lien is public record... full post

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