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Tax Attorney Mary King Resolves Serious IRS Tax Problems

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IRS Tax Help Blog

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

What Is The Fresh Start Initiative And How Can I Qualify?

Struggling taxpayers may get some help from the Fresh Start Initiative that the Internal Revenue Service put into place in 2012. Qualified taxpayers can avoid the Failure to File penalty imposed by the IRS. The penalty is in addition to accrued interest on unpaid tax balances. Late payment penalties are also charged on balances that remain unpaid by October 15. A different installment structure of a Fresh Start program allows taxpayers to avoid federal liens and financial reviews.

The IRS recognizes tax relief need. The Fresh Start approach benefits struggling taxpayers and the nation’s tax system. Certain conditions must be met to qualify. The taxpayer must be unemployed for at least 30 consecutive days. Only one spouse of couples filing jointly needs to qualify. Self-employed individuals need to show a net income drop of at least 25 percent. Joint filers cannot earn over $200,000 per year. Single taxpayers are limited to $100,000. The tax balances cannot be more than $50,000. Form 1127A must be filed. The form cannot be filed electronically.

Since its inception, The Law Office of Mary King has one vision. They want to help Americans deal with aggressive tax collection policies of state and federal agencies. Tax issues can cause anxiety, depression, and stress. People trying to take on the agencies of their own volition can become overwhelmed when they feel they are at risk of property seizure or garnishments. Attorney Mary King can remove the burden. They know how to handle the issues. Their experience will be used to work for struggling taxpayers.

The IRS has an intimidating reputation. Until recently, whether the intimidation was or was not deliberately cultivated, little was done to dispel... full post

Is The Offshore Disclose Program Still Available?

The IRS had one goal when it announced the Fresh Start Program in February 2011. The goal was to make the process of paying for penalties easier for individuals. Over time, the program has been expended, but the goals are still the same.

What Is The Fresh Start Program

The program combines payment installments, lien releases, penalty assistance, and a program called Offer in Compromise so that taxpayers can settle their tax debts at a cost that is lower than they owe.

How The Program Waives Tax Penalties

In the past, when individuals missed the deadline in April, they received immediate penalties and interest charges. However, unemployed taxpayers who qualify for the Fresh Start Program can have their penalties waived for several months.

The extension option is available to people who were jobless for 30 consecutive days in 2012. Self-employed taxpayers must prove that their businesses decreased by 25 percent in 2012 so that they can qualify.

People who earned over $100,000 annually and couples who earned over $200,00 annually do not qualify for an extension. In addition, individuals who had a tax balance that was higher than $50,000 in 2012 also do not qualify.

The program’s purpose is to help taxpayers who are struggling because of ongoing financial problems. It give unemployed taxpayers an exemption from a penalty. Under the first slice of the program, taxpayers got a reprieve from tax penalties that they owned for federal tax returns in 2011. Though, they still paid interest on their unpaid taxes.

To qualify for this part of the initiative, 30 consecutive days of unemployment is required by the wage earner during 2011 or 2012. People who are self-employed must have... full post

How An Attorney Can Help When You Are Facing An IRS Tax Lien

A tax lien from the Internal Revenue Service (IRS) can be placed against a home or another valuable asset if taxes go unpaid. Liens affect credit, prevent the sale of assets and can lead to seizure of property over time. It is often a good idea to talk to an attorney if the IRS places a lien against your property. A tax defense lawyer can help with IRS liens in a number of ways.

Negotiate a Repayment Plan

The outcome that the IRS wants the most is to have all the back taxes repaid. Most people who owe back taxes are not in a financial position to repay the money in a single lump sum. An attorney can help in this situation by negotiating a repayment plan with the IRS. The lawyer has the knowledge and experience necessary to know how to frame your current financial situation to potentially create a favorable installment plan. This plan could allow you to repay the money over time while leaving enough to maintain your current lifestyle. The IRS tax lien will be removed once the money is repaid in full.

Make an Offer in Compromise

Another way an attorney can help is by making an offer in compromise to the IRS. This option means the tax defense lawyer will negotiate with the IRS in order to lower the overall amount owed. This can reduce the debt by a significant amount in some cases. The negotiated amount is then paid to the IRS and the lien is removed from the home or asset. A successful offer in compromise can resolve the situation quickly for ... full post

Three Ways To 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

Retain An Experienced Bank Levy Attorney To Fight An IRS Levy

It’s a difficult burden to bear when the IRS is threatening to seize your personal or business assets. Most taxpayers understand that it rarely makes sense to argue with the impersonal IRS bureaucracy, but choosing the right bank levy attorney can be equally frustrating. Those huge nationally advertised tax defense mills can be just as impersonal and frustrating to deal with. They’re good at attracting loads of clients and shuffling forms, but they just don’t provide the level of personalized service you and your family deserve.

Bank Levy Attorney

The most important decision that a struggling taxpayer has to make is to retain a bank levy attorney that is both authorized to represent their best interests in U.S. tax court and will take the time to sit down and discuss the unique needs of every client. No two tax cases are exactly alike, and a personalized approach is the only way to effectively respond to large tax debts, wage levies and property liens.

Quality information and honest answers provide a solid foundation for effectively reducing tax debts, stopping wage levies and removing tax liens. That’s exactly what a small business owner that’s facing payroll trust fund recovery penalties desperately needs. The loss of personal or business assets can absolutely devastate a taxpayer’s economic future. A knowledgeable tax defense lawyer is accustomed to taking full advantage of tax law provisions that protect taxpayer rights and make it possible for tax debt to be reduced or managed in a manner that benefits the taxpayer.

Tax Levies

The Internal Revenue Service is legally authorized to satisfy unpaid tax debt by seizing taxpayer property and debt. While a lien... full post

Getting Help For A Federal Tax Lien Will Free Your Property From The IRS

The government law obligates all businesses and individual taxpayers to file their income taxes every year. Missed filings and failure to report the correct amount of income can cause a discrepancy with the Internal Revenue Service. If a business or an individual taxpayer owes the I.R.S. money, the organization will gave that person notification of such a balance by way of certified mail. One of the hugest mistakes that people make when they receive such letters is ignoring the Internal Revenue Service. The I.R.S. is a strong government organization that outranks creditors. A balance of an owed debt to the I.R.S. is a serious matter that can end in an IRS tax lien.

What Should a Person Do About an I.R.S Debt?

A person who receives notice of a debt to the I.R.S. should read the notice thoroughly and take note of any phone numbers that the letter bears. Speaking with an attorney about the notice is not necessary at this stage, but it is an excellent idea. Once the I.R.S. has established that a party owes it a debt, then someone will have speak in that party’s behalf to come up with a reasonable repayment plan. The I.R.S. offers installment arrangements and direct debit arrangements. The organization is willing to work with a taxpayer or his or her attorney to resolve a debt. If the person makes no effort to return the funds, then the I.R.S. may issue a tax lien.

What Is a Tax Lien?

A tax lien is a procedure in which the I.R.S. takes ownership of one’s personal assets or business assets to secure the funds that the party owes. Such assets include homes, vehicles, businesses and personal property.... full post

Preparing For A Meeting With A Tax Attorney Can Help Speed The Process Of Stopping The IRS Collections

One of the most unsettling experiences for a person is finding themselves dealing with tax issues and the Internal Revenue Service. The reality is that when a person is confronted with a tax problem and having to face the IRS, he or she does not have to go it alone. Rather, there are some qualified, experienced, hands-on attorneys who are well versed in dealing with the IRS and in defending hard working taxpayers.

n looking for the most suitable tax attorney, a person needs to not only focus on a professional with experience but a lawyer that is authorized to practice before the U.S. Tax Court. Once an attorney has been selected to represent a taxpayer, there are a number of steps that need to be taken in preparation for meeting with a the tax lawyer.

Organized Supporting Documentation

A key step in preparing to meet with a tax lawyer is pulling together all of the documentation relating to the tax matters at issue. In the final analysis, if a person wonders whether certain documents are relevant, it is best to include them in the paperwork to present to an attorney. The lawyer is in the best position to determine what documentation is important to the case.

Make sure that any written communications with the IRS are pulled together for the lawyer. Odds are a taxpayer has received what might amount to a great deal of written material and communications from the IRS. Some of this documentation may seem like duplicates. However, even though certain communications from the IRS may look similar, they may in fact contain some different data or information. Once again, this is an area in which an attorney will... full post

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

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