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Tax Attorney Mary King Resolves Serious IRS Tax Problems

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IRS Tax Help Blog

Consequences Of Payroll Tax Mistakes May Take An Attorney To Straighten Out

Payroll taxes represent one of the largest single income sources for the federal government, as well as many state and local governments. For this reason, the IRS and other taxing authorities take the matter of filing and paying payroll taxes very seriously. Failure to properly follow the law on deducting payroll taxes, filing the required forms and submitting the money in a timely manner can result in substantial financial penalties and can even result in criminal prosecution that can result in convictions requiring the guilty party to spend time in prison.

While properly reporting and paying payroll taxes is a serious matter, it is also a complicated one. Complying with the various tax laws and regulations is a difficult process and many individuals and corporations can unknowingly make errors in complying with the taxes. However, it makes little difference to the government whether a payroll tax error was intentional or unintentional. The government still wants its money and will generally assess a business with a tax penalty regardless of the reason that law was not followed.

When the IRS or other tax collection agency finds that a business has not followed the law, the agency can take a number of actions to collect on the debt. Some examples of collection techniques include placing a levy on the wages of the responsible party, placing a lien against the assets of the business or business owner and the freezing or seizure of bank account funds. Though legal corporate structures generally protect business owners from being personally liable for the financial obligations of the business, this is not always true in regards to tax liabilities. It is indeed possible, if... full post

Understanding The Trust Fund Recovery Penalty

For businesses that fail to pay their payroll taxes on time, the trust fund recovery penalty can cause severe harm. If the IRS decides to pursue this penalty, it may demand summary payment without any opportunity for a payment plan. Since the penalty is equivalent to 100% of the deficient amounts, it can be potentially devastating to a business. Additionally, anyone with signing rights to a business bank account can be considered liable for this penalty. Since this penalty can be so harsh, it is critical for those struggling with issues related to it to understand how to overcome the penalty. Below is a full overview of what business owners need to know about these tax issues.

1. Trust Fund

Unlike a trust fund used for inheritances, the IRS considers the segregated funds used for withholding to be a trust fund. When businesses fail to make their payroll tax payments on time, the IRS may come and demand immediate payment from this account. If funds are insufficient, the IRS may force the business to immediately shut down and seize assets directly from the bank account. Further, the IRS may be able to draw funds directly out of the bank accounts associated with the responsible parties for the business.

2. Recovery Penalty

The trust fund recovery penalty is imposed on anyone who willfully misuses funds that are intended for the IRS. Since most businesses that don't pay their taxes on time are struggling with financial issues, they may put off paying payroll taxes for later date. To the IRS, this constitutes willfulness and can result in personal liability. Since the tax is equivalent to 100% of the amounts owed, it can be extremely expensive and destroy the lives of business leaders.

3. Indirectly Liable Persons

Surprisingly, these fees can only be applied to indirectly liable persons. Those... full post

Three Ways Attorneys Can Stop An IRS Levy

Audit, lien and levy are three terms used by the Internal Revenue Service (IRS) that strike fear in the hearts of American taxpayers. Tax audits are methodical inspections and reviews of taxpayer records, liens are legal actions that can be attached to property for the purpose of collecting during future transactions, and levies are actual seizures of income and assets for the purpose of settling or adjudicating tax debts.

An IRS levy can be placed on individuals or businesses. Levies are the final step of a process that typically begins with an audit or an investigation that determines that taxes should be paid. A formal IRS document titled Notice and Demand for Payment would follow; should this ultimatum go ignored, the IRS would send the taxpayer a Final Notice of Intent to Levy and Notice of Your Right to a Hearing before physically taking funds or property.

Prevention is arguably the best defense against an IRS levy, but this is not always possible for all taxpayers. Once the IRS issues a Notice and Demand for Payment, there is a very strong chance that lien or levy action will follow unless the taxpayer has adequate and proactive legal representation. This means retaining a law firm whose attorneys are admitted to practice in federal tax court, and who are also experienced in removing IRS liens and levies. Many lawyers and Certified Public Accountants who offer lien and levy release services are not actually admitted to practice in U.S. Tax Court; thus, their services are mostly limited to completing forms and writing letters.

Experienced tax defense attorneys have various legal tools to help their clients when it comes to facing an IRS levy; here are three common strategies:

Filing an Appeal

Along with the Final Notice of Intent to Levy, the IRS includes a Notice of Your Right... full post

Only Trust An Experienced Attorney To Provide Relief For Tax Debt Problems

Are you a taxpayer who owes back taxes to the IRS or the state? Are you a small business owner who owes back taxes to the IRS or the state? In either case, you're not alone. Millions of Americans are plagued by back tax debts. Millions of small business owners struggle with problems caused by back tax debts. Tax problems don't go away on their own in either case. In fact, unchecked and unaided, they usually result in disaster for both the taxpayer and the small business.

As an individual taxpayer who owes money, you may be at or near the point where the IRS is about to attack your wages or your savings or your pension. Before it gets that much worse, let us help! With our experience in solving problems for the individual taxpayer, we can get tax relief for you in several ways, such as :

* Stopping a garnishment on your wages
* Preventing an IRS tax levy
* Setting up a payment plan you can afford

As a small business owner with unresolved tax problems and no end in sight, you already know how slippery is that precarious slope. Again, we can help you in several ways. Devising a plan to reduce accrued interest charges can ease the financial strain on your company. If the IRS has placed a lien on your business because of failure to resolve back taxes, we can help you to get the lien released.

Attorney Mary King will put her years of experience negotiating with the IRS to work for you. Once the IRS has formally engaged in tax debt negotiations in most cases collections efforts will stop, at least as long as negotiations are underway. Let an experienced Tax... full post

How Can A Tax Attorney Stop My Tax Debt Problems?

Uncovered tax obligations can throw a curveball into anyone’s personal finances. When the obligations exceed realistic payments that a taxpayer can make, the unfortunate phenomenon of tax debt emerges. Tax debt generates interest and further penalties if left unaddressed. Therefore, a tax relief lawyer familiar with the workings of agencies like the IRS can make a big difference in the final amount a taxpayer owes. Tax attorneys represent a taxpayer’s side of the story to the IRS and work to come up with a compromise that avoids undue financial strain on the taxpayer with due respect for tax law and what the IRS can reasonably expect to collect from a given client. Tax debt is not an insurmountable burden. Work with a qualified tax attorney to come up with a solution to tax debt obligations. These solutions may include:

•spread-out payment plans (installment agreements)
•an Offer in Compromise (OIC)
•filing an amended return with a smaller calculated tax liability
•temporarily register for “uncollectible status”

The burden of tax debt can be spread over time with an installment agreement. These are formulated after an assessment of a taxpayer’s assets, current and likely future income, current/future expenses and liabilities as well as a taxpayer’s individual situation and nature of the problem that generated tax debt in the first place. Installment agreements should be presented by a tax attorney when the taxpayer can make significant payments against the principal. Remember, installment agreements come with an interest rate, much like debt. If the client’s payments are not going to make a significant dent in the principal, installment agreements may not be a good idea. While installment agreements lighten the short-term burden and alleviate IRS pressure on a client, they do carry interest and penalties that increases with the length of time it takes to pay off a debt according... full post

What Assets Do The IRS Have The Power To Levy?

What Is A Tax Lien?

A tax lien is a notice saying that a person owes the Internal Revenue Service back taxes. There are two different types of liens. A silent automatic lien is one of the types of tax liens. The other type involves a notice that is sent from the Internal Revenue Service to the recorder’s office of the person’s county of residence. This type of lien will be reported to the credit bureaus, which will have a negative impact on a person’s credit score.

If a taxpayer does not pay his or her taxes, then he or she can expect to get a notice in the mail. Taxpayers can also expect to get a set of instructions explaining their rights along with the notice. However, if a person owes taxes and does not get in contact with the Internal Revenue Service, then he or she could have a levy placed on all or some of his or her property.

What Is A Levy?

A levy is the seizure of a person’s assets by the Internal Revenue Service. The Internal Revenue Service will use these method when all other attempts to collect the taxes have failed. Tax levy notices are typically issued to the financial institutions and employers of the delinquent taxpayer. However, it is important to note that not everyone who receives a levy notice will actually get their assets seized by the Internal Revenue Service. There are some factors that will determine whether a person gets his or her assets seized. Some of those factors include history of payments and geographic location.

Assets That Are Exempt

Even though the IRS does have the ability to take away most of a person’s assets, there are some things that they cannot seize. Below is a list of things that the IRS cannot seize:

•... full post

Aggressive Tax Avoidance Can Leave Businesses And Individuals With Scrutiny From The IRS

Few government agencies generate fear quite like the Internal Revenue Service. They often appear as both the investigator and the judge. This is usually the experience of the novice taxpayer who is being audited for possible tax evasion. Tax avoidance is legal, but there is a fine line between tax avoidance and tax evasion. The tax regulation codes are immense and there could always be an accounting technique that justifies questionable claims on a tax return. This is where having an experienced and effective tax lawyer is important.

The Internal Revenue Service routinely attempts to collect tax debt by using an IRS tax lien. This is a legal step that all taxpayers want to dodge, and having an experienced attorney who focuses on strong individual representation can stop or delay the process. Without solid representation, the government could easily realize the opportunity to force a decision and apply an IRS tax lien without respect for the defendant's rights to appeal or case presentation.

Tax audit problems can occur quickly when the government sees an opportunity to collect a significant amount of money, even when they will bargain the amount of delinquent debt down to an accurate level. However, collective overreach is common, so there is an absolute need for an attorney who is focused completely on your case. Representation from small tax defense legal firms often yield this result better than hiring a large firm where your tax prosecution defense can become just another case.

Honesty is the hallmark of an effective tax relief attorney.

Hiring an attorney you can trust can help you avoid an IRS tax lien, as well as stop or reduce wage garnishments. ... full post

Getting Help After Your Accounts Have Already Been Levied By The IRS

An IRS levy is often the worst case scenario and should be handled with both urgency and a knowledgeable and reputable professional who specializes in IRS resolving problems.

Not only is the assistance of an experienced tax defense lawyer essential, it’s important to retain a tax relief law firm that meets personally with each and every client.

When an individual, family or business is facing a property lien or wage levy, they need a qualified tax debt attorney to represent their legal and financial interests in tax court.

IRS Levies

Unfortunately, many taxpayers have to face the enormous burden of an IRS levy, wage garnishment or trust fund seizure. These and other IRS procedures can result in the loss of private property and the assessment of heavy financial penalties. The IRS is authorized to seize property to satisfy an unpaid tax debt. Unlike a lien, which is a claim against taxpayer property to secure a tax debt, a levy allows the IRS to actually take possession of the property.

When a taxpayer does not pay a tax debt or negotiate an acceptable payment arrangement, the IRS has the power to seize and sell property owned by the taxpayer. IRS officials can initiate a levy if the following three criteria have been established:

  • Taxpayer received a notice of demand to pay overdue taxes

  • Taxpayer has ignored or refused to pay an overdue tax bill

  • Taxpayer received a final notice of intent to levy property

  • Taxpayer has received a notice of right to a hearing

Overdue taxes can result in the seizure and sale of any kind of real or personal property, including any of the following:

  • House, car or boat

  • Wages, bank accounts, dividends, retirement accounts, rental income, accounts receivables, life insurance policies and... full post

Don't Let A Tax Lien Ruin Your Summer

Receiving a letter directly from the IRS regarding a levy or lien placed against you can be stressful and at times, feel overwhelming and nearly impossible to deal with on your own. Whether you have experience with the IRS in the past or if you are simply in need of assistance for your case with the IRS, getting IRS tax relief is possible with professional agencies and individuals who specialize in tax relief, including tax defense attorneys.

Roles of a Tax Defense Lawyer

A tax defense lawyer is responsible for assisting you through the entire process of communicating and negotiating with the IRS themselves to find a solution that works for both you individually as well as the IRS. Seeking an IRS tax relief solution with the assistance of a tax defense attorney is highly recommended if you are unable to work with the IRS yourself or if you are unsure of the options and routes you have available to help resolve the issue at hand.

Hiring A Tax Defense Attorney Is Essential

Hiring tax defense attorneys to help with your case with the IRS is a way to find an IRS tax resolution without having to handle and file all of the necessary paperwork for your case on your own. When you have a tax defense lawyer by your side, it is also possible to determine the best route for you to take based on the evidence against you, your current income as well as the money the IRS believes you owe. Whether you are looking to make payments to the IRS, come up with a settlement or if you want to protest the amount you owe, an attorney can help through the entire process from start to finish. Having an experienced lawyer by your side is also a way to have a... full post

Small Businesses Are Particularly Vulnerable To Having Tax Debt Problems

Small business owners with their myriad of jobs they must do every day to keep their business running are often the most likely to get themselves into tax debt problems. Three of the biggest culprits leading to tax problems are a volatile income stream, disorganization and procrastination. All of these reasons are understandably present when often the busy pace of running a businesses where you have to wear many different hats to keep things running.

Volatile income is one of the biggest challenges that can face many types of small businesses, and really make taxes a difficult time. A few industries can really be feast or famine that not makes every day life more difficult, without a highly disciplined approach it can open the door to serious tax problems. For example real estate agents may have an exceptional year, closing on an unusually busy year with high-dollar home sales followed by a lengthy drought.  Without proper planning this can leave the business owner a high tax bill at a time when the money to pay is not available. This can lead to a backlog of large tax debt or more problems if the business owner gets a little too “creative” with their accounting.

The second big challenge form many busy small businesses can be disorganization. In business with just a handful of employees, there is often very little time for the owners to sit down and plan create an effective tax plan that will stay on top of things. Often when tax time comes around the business owner may have a difficult time gathering together enough of the financial records to create an accurate tax return. This can lead to claiming lots of deductions that the proof may not exist for and lead to having an audit. If an audit finds deductions... full post

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