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Tax Attorney Mary King Resolves Serious IRS Tax Problems

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IRS Tax Help Blog

Taking Steps To Avoid An IRS Bank Levy

As the final weeks of tax season loom, many Americans find that they are unable to pay their balance due by the Apr. 15 deadline. If taxes are left unpaid long enough, usually around October or November, then the IRS has the right to place a levy on a person’s bank account or assets in order to collect the unpaid balance. Many people ask the question, “How can I stop IRS levy on my bank account?”

Pay the Balance Due as Quickly as Possible

While this first step may be common sense, it is also the simplest option. If taxes are unpaid, the IRS will begin sending notices of the balance due to the taxpayer. If the taxpayer deals with the unpaid taxes before the fourth or fifth notice, then it is likely that they will never see a levy. The IRS is required to give at least a notice of an unpaid balance, a notice of intent to levy and a notice of the right to a hearing. The first notice will come within a few weeks of the April deadline, but the other notices are usually spread several months apart, giving the average person plenty of opportunity to simply pay the balance. The only upset will be the penalty percentage that is added on to the balance every month it remains unpaid.

Request an Extension

If you know that you won’t be able to pay by the deadline, then it is better to request an extension. This shows the IRS that you are at least paying attention to the tax bill and making plans to pay the amount. Extensions can be requested for 120 days. You will still receive a penalty percentage, but this situation looks better in the eyes of the IRS, and they will not threaten a levy at least... full post

How To Get A Tax Lien Removed

A tax lien can be a burden. If you have a tax lien, then you may have problems selling your property or getting credit. The good news is that tax liens can be removed. Below are some of the steps that you will have to take to remove IRS tax lien:

Determine If You Qualify

You will need to determine if you qualify to have your tax lien removed. If your lien has been released because you have already paid what you owe, then you may be able to get it removed. However, even if you have not paid your entire tax debt, you may still be able to get it removed. If you owe $25,000 or less and have agreed to a direct debt installment, then you may be able to get the tax lien removed.

A direct debit installment is where the payments are automatically drafted from your account. There are other requirements that need to be met, such as successfully making three payments and not defaulting on another installment agreement.

You may also be able to remove IRS tax lien if you have filed your business and individual tax returns for the past three years. Additionally, if you are current on your federal tax deposits and estimated tax payments, then you may be able to get the tax lien removed.

Send An Application To Get The Lien Removed

If you believe that you qualify, then you can send in an application to get the lien removed. You will need to complete the IRS Form 12277. It is very simple to fill out and is only one page long. After you have complete this application, you will need to... full post

The Most Common Tax Problems That Bring IRS Criminal Investigations

It has often been said that tax avoidance is legal, but tax evasion is not. Many times the difference is a very fine line. There is nothing wrong with having a solid and comprehensive tax strategy within the parameters of allowable deductions and expenses, but there is clearly something wrong with complete disregard for the filing system and proper classification of input and output cash flows. Although there may be a questionable devil in the details, there are still three primary methods of cheating on your taxes. Those three are failure to file, tax fraud, and tax evasion.

Failure To File
Failure to file a tax return in general is the most common criminal offense among tax payers. Many individuals who do not owe a tax do not think they should file, but the Internal Revenue Service views filing as a separate issue from payment problems. However, the penalties are normally determined in relationship to the taxes owed. Individuals who owe a significant tax amount and fail to file can expect type of penalties from the IRS. It is important to always file a tax return regardless of your earning level because the bureau can still assess a penalty when no tax is due, and it is still a criminal issue.

Tax Fraud
Tax fraud can occur when the filing contains itemized entries that may be questionable or out of the ordinary, but most tax fraud actually occurs from understated earnings. This is especially true of businesses that deal primarily in cash. Cash flows that have no paper trail can be difficult to identify for the IRS, but it is not impossible sometimes. And, this practice can amount to a considerable level of income that is subject to taxation if it is standard procedure throughout the year. A business or sole proprietorship that generates... full post

What You Need To Know About Appealing An Offer Of Compromise Rejection

The complexity of bureaucracy creates headaches for about any third party participant. A person that finds themselves embroiled in that complexity will typically want to find legal representation to work through it. Dealing with the IRS or the government requires a very specific body of knowledge. Mistakes can result in even more time and money spent on the process. Thus, it is best to get an experienced professional involved early in the proceedings. A great example is appealing the rejection of an Offer of Compromise with the IRS.

* What Is The Offer Of Compromise?
Simply put, an Offer of Compromise is a settlement with the IRS that comes in three forms. Instead of the full amount, the taxpayer agrees to make a single lump sum payment in exchange for a wipe of their original tax liability. The three forms the IRS recognizes are Doubt as to Liability, Effective Tax Administration, and Doubt as to Collectability. The IRS may decline an Offer of Compromise based on financial analysis of the applicant. The ability of the taxpayer to pay their obligation is measured by their reasonable collection potential (RCP).

In the event that the Offer of Compromise is rejected, the taxpayer does have the right to appeal the IRS's decision.

* The Requirements For An Appeal
Appealing a rejected Offer of Compromise can be a difficult process and there are specific criteria that must be met to appeal at all. The first detail is in the difference between a rejected and returned Offer of Compromise.

An Offer of Compromise can be returned for several reasons. Reasons may include a bankruptcy filing, clerical or administrative errors, not including the necessary information, not including the application fee, ... full post

Watch Out For Phone Scams Says IRS

Protecting your personal information is crucial to avoid identity theft and keep your data and finances safe. Sometimes, however, it can be difficult to discern whether the person requesting access to your information is legitimate, especially when they hide behind the name of a trusted organization or group.

Recently, the Internal Revenue Service (IRS) has warned of phone scams that attempt to collect your personal information fraudulently. Read on to learn more about these scams and find out what you can do to protect yourself.

Victims of the phone scam receive a phone call from a person claiming to be from the IRS, who says that the individual receiving the call owes taxes and must pay immediately through a prepaid debit card or wire transfer. The caller is typically very intimidating, threatening loss of business license, arrest, or deportation (for recent immigrants) if the balance due is not paid immediately.

These callers may sound legitimate, as they will typically know the last four digits of your Social Security number. In addition, they can even make it appear that the IRS is calling when you look at your caller ID. Follow up calls from the DMV or law enforcement may also have a fraudulent caller ID tag that appears legitimate. In addition, the caller will usually provide a common-sounding name as well as an IRS badge number.

The most important thing to remember is that the IRS will never contact you by phone, and will never ask you to give credit card information over the phone. In fact, the IRS doesn't even accept wire transfer or prepaid debit cards as payment for taxes due. If you receive any call from someone claiming to be the IRS, you can be fairly certain that it is scam. And if you're not sure, never give out your personal... full post

How To Become A Criminal In The Eyes Of The IRS

With so many people stressing out about owing more to the IRS than they can afford it may surprise you that it is not a crime to have delinquent tax debts.

However it IS a crime to not FILE your tax returns. Seems a simple thing to avoid right? But for many including Americans living over sees or those who may be going through rough times in one form or another, it is also easy to see how one could forget to file a return.

Most people would not expect to be dealing with a criminal issue for forgetting to file, but just as in the case of automobile registrations and drivers licenses, failing to keep things current will result in criminal penalties.

Whether you were studying abroad, injured or sick and in a hospital, out of work, procrastinated, forgot, or just plain did not want to file; if you failed to file your tax returns the IRS will classify you as a 'non-filer' and they take this seriously.

Often those who failed to file think they have escaped notice because the IRS has not contacted them about the issue, but the truth is they have not YET contacted you about the issue. According to the IRS every year more than 10 million Americans fail to file for one reason or another. That is a lot of people. However once the IRS discovered the scale of the problem they contracted out the development of a software program that can easily identify and keep track of who has filed and who has not.

Whether you have been contacted yet or not you can be sure the internal Revenue Service will become aware of your failure to file.

What ever your reason you do not want the IRS placing you in the non-file status. Once the IRS has... full post

IRS Filing Problems And Solutions From An Experienced Florida Tax Attorney - 3rd Installment.

I cannot afford to pay my taxes and an extension will not help!

Ok so after preparing your return, and double checking you have been able to claim all legal deductions you find that the amount you owe is so large that even a payment extension will not allow you enough time to pay the amount. Not a pleasant situation to be in, but you certainly are not the only one to be there.

Many in this situation may put of actually filing the return because they feel there is no possible way they can deal with the tax burden they owe. As a consequence they make the situation worse by delaying any proactive action and accumulating additional interest and penalties. Or they chose the to file, and fail to pay anything because they cannot pay the full amount. In time the IRS begins collection activities including harassing phone calls, letters which can lead to a slew of problems including liens on your property, bank account levies and wage garnishment.

Fortunately again there is a way to resolve this situation without getting into further trouble with the IRS, and it has a name – the Installment Agreement.

The Installment Agreement allows a taxpayer to pay the amount they owe over time with a predetermined monthly payment or Installment. Of course the IRS always prefers to get their money as fast as possible and as such IRS agents can be less than forthcoming about programs such as the installment agreement. Also the IRS does not have to agree to an installment agreement and while it is possible to obtain one without professional help it is not advisable. Once you have entered into an installment agreement with the IRS you are bound to the terms, failing to make even one payment on time will be regarded... full post

IRS Filing Problems And Solutions From An Experienced Florida Tax Attorney - 2nd Installment.

For the second installment in the series we will be addressing another common issue that can cause taxpayers to get themselves into trouble with the IRS.

Being Afraid Of An Audit.

Problems from fear of being audited usually result in two things; either the taxpayer is afraid of being audited so they over pay on taxes they do not actually owe or worse, they are paralysed and rather than risk being audited they put off filing until it becomes a real problem to deal with.

Both problems have costly consequences, but they also both have the same solution:

Make your returns audit-proof.

This may sound like perhaps not taking all of the tax exemptions you may qualify to better “fly under the radar” but that is not the case.

While you certainly should not be accepting tax deductions that are false, legal tax deductions will save you quite a bit of money and not accepting them is no guarantee that you will not be audited anyway.

The other reaction of fear of an audit is often freezing up and putting off even filing your returns, will create far worse problems. If you are concerned that your taxes may be too high, or that you do not have all of the records to back up your claims, a better course of action is to file for an extension and then seek the help of a tax professional to straighten out your return. However if later becomes never then your IRS problems will be far worse than dealing with an audit.

So how do you “audit-proof” a tax return anyway?

To keep things simple, be sure to use IRS form 8275 with your return. Basically IRS Form 8275, is called a Disclosure Statement. Using form 8275 will help to make your return audit proof, by addressing any questions... full post

IRS Filing Problems And Solutions From An Experienced Florida Tax Attorney - 1st Installment.

As we closer to tax time in early 2014, many people will be the stress associated with filing federal tax returns. Anytime you have to divulge information to the IRS a certain amount of stress is understandable! However for some, it can be paralyzing and rather than dealing the problems or hiring a professional to help they put it off to another day. We will be posting a series of solutions to common IRS problems that we hope will be helpful for some, beginning with problems filing federal tax returns for individuals and businesses.

Common problems for those filing annual tax returns:

I cannot pay the amount I owe by April 15th

On the surface st least this is one of the most difficult problems to deal with but there are solutions. Delaying with this problem will make it worse as interest and penalties may accumulate and make the situation worse as time goes on and if the fees and compound interest go on too long it can really become out of control. You are not alone in this as on average the IRS will assess more 13 million penalties to taxpayers who are late.

Often the best way to avoid this situation is to attempt to get an extension on the amount of time they will allow you to pay the federal taxes owned. This sounds similar to the typical “getting an extension” but to be clear we are talking about the time to pay off the debt not the more common extension for more time to file a return (form 4868).

To file for an extension on the amount of time you have to pay back the taxes you will need to use IRS form 1127 called the “Application for Extension of Time for Payment of Tax Due to Undue Hardship”.

The... full post

When To Hire And Accountant And When To Hire An Attorney

A responsibility that is shared by all wage earners and businesses in this country is the requirement to pay income taxes at the state and federal level. While paying taxes and filling out tax forms is something that is done on an annual basis, the tax code has become very complex and has made filling out taxes correctly a challenge for many. For those that need help in preparing their taxes, hiring an accountant could be a great option. An accountant can provide a number of services.

Often individuals and business owners need help with a host of tax issues, but for some issues like substantial delinquent tax debts, only an experienced attorney would be recommended. Accountants and other tax professionals are more suited for day to day operations and none-distresses tax filing.

The first service that comes with hiring an accountant is that they will be able to prepare your taxes for your and will be able to reduce your tax liability as much as legally possible. Tax accountants are well aware in recent changes to the tax code, which could have an impact on your final tax bill. These changes could include new deductions and credits that could apply to your personal situation. If an accountant does find some tax deductions or credits, it could ultimately save you thousands of dollars.

An accountant can also help you by amending prior year tax returns. If you have just hired an accountant, it would be a good idea to have them review your tax returns from the past few years. An accountant will be able to review the old tax returns and may be able to find deductions and credits that you missed over the past few years. The accountant will then be able to complete an amendment to those prior year reports... full post

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