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Tax Attorney Mary King Resolves Serious IRS Tax Problems

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IRS Tax Help Blog

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

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

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