Florida IRS Tax Attorney

Dealing with a tax problem involving the IRS can be overwhelming mentally and emotionally, especially when you are threatened with a lien or a seizing of your own personal assets. If you are struggling with tax problems due to an unpaid tax debt you owe or other payroll or business-related taxes and you are currently living in Florida, finding help is possible with the assistance of a professional attorney. Working together with a Florida tax lawyer is possible regardless of the size of your debt and how long it has taken for you to begin working on your case.

The Advantages of Hiring a Tax Attorney

A tax attorney specializes in handling a wide variety of cases involving tax debt, payroll debt and even individual income tax returns that have not yet been filed. Although it may seem stressful, when you work with a tax lawyer you are able to feel more confident and positive about your case as the attorney is capable of communicating with the IRS and giving you the proper guidance needed for you to settle your case.

Services Available From a Tax Attorney

When you work together with a tax attorney to help you with solving your case and finalizing your financial debts, there are many options available that vary with each individual on a case by case basis depending on what is owed, your personal situation and whether or not you are currently generating an income. Depending on the details of your case, it may be possible to... ...read full post

If you live in Florida and you are experiencing issues and trouble with the IRS due to tax debt you may or may not owe, it is important to attempt to solve your tax problems as quickly as possible to relieve your debt and reduce any interest you may end up owing as well. When you are interested in working together with a Florida tax lawyer, there are a few ways to do so depending on the type of services you are seeking out.

What Can a Tax Lawyer Help With?

When you choose to work with a tax lawyer in Florida for the tax issues you are experiencing, it is possible to do so whether you are dealing with personal income tax problems, business tax-related inquiries or even an innocent spouse relief case to help with relieving your spouse of any debt or tax-related trouble you may have found yourself in. Whether you are behind on filing your tax returns, or if you believe you do not owe the money that is stated from the IRS, getting the help you need from a Florida tax lawyer is recommended.

Working together with a tax lawyer allows you to continue to focus on work and building your business while the financial aspect of your life is worked on by the attorney. There are various routes available to help you with your case that differ with each case on an individual basis and also based on your current employment and income status as... ...read full post

A experienced tax attorney can help for a variety of tax and business issues. In addition to the obvious need of legal help when facing IRS collections, a tax lawyer can also help companies structure themselves to best tax advantage allowing for the minimum taxes and greatest legal protections of any possible future tax dispute with the IRS or state government.

However the most urgent time to hire an experienced IRS tax lawyer is when an taxpayer or business is facing a large delinquent tax problem or a dispute over the amount of taxes owed.

Other than professional and technical benefits, working with a skilled tax attorney can offer the troubled taxpayer some peace of mind. An experienced tax lawyer will know the steps to take to halt intrusive IRS collections efforts during negotiation of the tax liability and may even reduce the amount owed to the IRS. It can be a big relief to know steps have been taken to bring the tax debt problems back under control.

Retaining An IRS Tax Lawyer Entitles You To The Attorney Client Privilege.

The single most compelling reason to use a tax attorney may be the attorney client privilege. Many are unaware of this but the only person exempt from testifying against you in a tax case is your attorney.

To put it in another light – if you chose to have a CPA help you during a tax problem the court can have your CPA and accounting firm testify against you! Obviously they would be... ...read full post

Taxes get the distinction of being called delinquent by the IRS under a specific set of circumstances. Once the due date of an tax liability assessment has passed or the time allowed for tax appeals has expired. Once this designation has been assigned to the back taxes the amount of delinquent taxes will be targeted by the IRS for collection procedures.

How to avoid collection actions on delinquent taxes

The obvious way is of course to pay the amount owed, however in most cases if a taxpayer could pay the amount owed the taxes would not end up as delinquent to begin with/ However it is important to act fast, even if you cannot pay the entire amount as there are options to help prevent drastic collections procedures from the IRS.

If possible pay with a credit card.

It is not a very appealing thought to pay a tax debt with a high-interest credit card but remember, the IRS has collections powers far beyond any credit card company, and they can use their authority to levy your bank account or even your wages – a credit card company would not be able to pursue the debt to that level.

Contact a qualified Tax Attorney and they can help negotiate an installment agreement.

This is away of paying the IRS debt in smaller monthly payments and preventing the IRS from taking more drastic measures. Again retain a skilled tax lawyer for help with negotiating an offer in compromise. Even if your petition to... ...read full post

If your Florida business has been drawing from the payroll trust fund to keep your lights on you will need help from a local payroll tax lawyer.

Few tax problems get the IRS’s attention like payroll tax issues. The IRS will pursue any laps in the payroll trust fund payments aggressively and the consequences of failing to either satisfy the amount owed or respond with legal representation will be severe.

If you are using the payroll trust fund money from your employee’s paychecks, it may seem to you a convenient way to get by in a tight spot, but the IRS will look at this as stealing from both your employees and the Internal Revenue Service at the same time!

Further more the collections efforts the IRS will employ to settle the tax debt are ruthless. They simply do not care if your Florida business survives or not – they want their money at all costs and will put a padlock on the doors and auction off all of the businesses assets to get it.

There is hope however! If you act before it’s too late a skilled Florida payroll tax attorney can put the collections efforts on hold while your tax settlement case is negotiated for your behalf. It’s important to get qualified legal help from a local Sarasota Tax Attorney and not from a large tax service. Only a local tax attorney will have the knowledge, skills and commitment to successfully represent a Florida business owner during a payroll trust... ...read full post

While there are many reasons to hire a local Sarasota tax attorney for tax problem resolution there are two major reasons above all others

Reason One – Confidentiality During Your Tax Case.

If you are in trouble with the IRS only an attorney can give you the attorney-client privilege. Why is the attorney-client privilege important for tax law cases? Easy - your attorney is exempt from testifying against you. That’s right, should your tax liability case go to trial, and you have chosen to work with a CPA or tax preparer for help, your CPA could actually be made to testify against you!

The very people most familiar with your tax and financial situation would be forced to spill the beans on any damaging information they may have during your trial. Don’t take this risk, only work with a certified tax attorney if the IRS is taking actions against you.

Reason Two – Expertise To Make the Right Decisions

Only a Tax lawyer will have the experience in achieving tax settlements. While a CPA may be familiar with some tax settlement programs, they will not have a full understanding of the and ins and outs of the various programs. Tax laws and codes are complex and many times change yearly. In addition there are many programs available a troubled taxpayer can use to settle or reduce the amount of tax liability owed but only an experienced tax attorney will know how to qualify you and to determine both the best program to... ...read full post

Learn The Truth About The OIC Program

By now, most troubled taxpayers looking for a way to resolve their IRS debt have seen commercials from large tax debt relief services claiming taxpayers paid tens of thousands of dollars by paying only pennies on the dollar. Reactions to these commercials by taxpayers vary from "Wow I wont have to pay all this tax debt" to "It's scam no one really gets out of paying that much money to the IRS".

The actual truth about the "Pennies on the dollar" is somewhere in the middle.

While it is true some taxpayers can negotiate their tax debt by paying only pennies on the dollar with the offer in compromise program, the IRS has a very strict set of rules and a small percentage of taxpayers will actually qualify for the OIC program.

To help understand the Internal Revenue's reasoning and motivation behind the OIC program it's important to remember the IRS is not allowing a negotiated settlement because they want to be nice. The IRS is accepting debt settlement offers for less than the amount owed because they feel they will either they will get their money faster, or that they would not otherwise be able to collect any funds at all.

To Qualify for an Offer In Compromise the taxpayer (or their tax attorney) must show either of the following:

Doubt of Collectability

- Doubt of collectability means the amount of tax liability is correct but the taxpayer will be unable to ever pay the full amount... ...read full post

As an IRS tax attorney, I recently have had a number of questions about whether or not the IRS can levy on Social Security benefits. Many people are under the impression that the IRS cannot take your Social Security benefits. However, just the opposite is true. The IRS can take your Social Security to satisfy a tax debt. In fact, not only can the Federal Payment Levy Program allow the IRS to dip into some Social Benefits paid to you, but it can also take money that you’ve received from:

- Federal employee retirement annuities,

- Federal payments made to you as a contractor/vendor doing business with the government (including Defense contracts),

- Federal employee travel advances or reimbursements,

- And some federal salaries.

If you have questions about the IRS taking your Social Security benefits or any other IRS related questions, please contact Tax Attorney Mary E. King at (941) 906-7585 for your free consultation.

... ...read full post

The word attorney signifies someone who knows the legality of things. In fact, when things go wrong in the hands of law, people are likely to run to the midst of attorneys. In the field of legality and law, these attorneys are the experts who can provide you with the ample insights you need and the advices that will possible let you be rid of the troubles.

More and more people are also aware that being attorneys who are able to play with the ups and downs of the law, they do earn handsome pays. Half of it is true. Why not? Their services often require a high payment.

More so, there are several people who desire to become attorneys. They think that their financial satisfaction can be achieved through being in the field of law. Indeed, in several states, there are lots of vacancies for several sorts of attorneys whether they are experts in the areas of business, estate, income, international taxes, or with properties.

The aspiring attorneys usually seek to have strong foundations and background from the finest law schools. They even prefer to get their degrees from stable and famous universities. They believe that their luck in landing a job will depend on the school of theirs which they will get affiliated with.

After graduating from the law school and passing the licensure exams, attorneys have the option to either work for the... ...read full post

The internet connects people to a lot of information. Through the internet, a person can find and access information regarding Florida tax attorneys any time of the day and from any type of location. However, the internet can also be a pretty confusing resource. A person can have some difficulty trying to find the kind of information about Florida attorneys that he or she wants.

Here are some tips to help you out:

1) Know your purpose: Why are you looking for information about Florida tax attorneys? Is it mainly for research purposes or are you looking to consult with a lawyer? This will tell you what kind of information you need. There are two types of information that you can be looking for: contact information or comprehensive information. If you are doing research on Florida tax attorneys, then the second one would be the type of information you need. You should be looking at websites that offer explanations of how Florida tax attorneys can help you with various tax problems.

If, on the other hand, you want to avail of the services of a Florida tax attorney, then you should be looking for contact details. You won't need to visit websites with complicated explanations regarding tax laws and IRS techniques, you only need a brief description of a certain Florida tax attorney's services and contact details and you'll be done with your... ...read full post

So you did not file your income tax returns for at least ten years, and here you come back into the country finding out that the IRS had been contacting you through your old good address but to no avail. Until such time that they find out of your quiet return to the country, they will automatically send for you to pay your dues for those ten years of being unable to file your income tax returns.

So what you need to do is to get your documents ready and be ready as well to hear the shock of your life. The tax you owe them may be really high enough to let your eyes roll. But you've got no choice. It is either you pay your dues or you get convicted. Which choice would you then go for?

Having failed to file your personal income tax returns can put you in real hot water with the Internal Revenue Service. If you are placed in this kind of situation, it will be best for you to hire a tax attorney. Living in Florida never deprives you of the best legal services.

Being the busiest city, Florida has a wide range of tax attorneys who are experts in dealing with these sorts of cases. Once you approach any Florida tax attorney, you can feel assured and confident that your case will be suitably handled. Your Florida tax attorney will... ...read full post

Locating a good tax attorney in Florida requires a little bit of finesse and a large portion of resourcefulness. Here are some tips you can use:

1) Never underestimate a resource. Most people today are so caught up with the developments of technology that they rarely pay attention to existing sources of information. What you should learn about information is that it can be found everywhere. You should try to consider every type of source that you have at hand and search. If you really want to find a good Florida tax attorney, you should not just try to look for one but actually look for one!

The key to finding any type of information is to tear down any limits. You cannot just limit your search to the internet; you should try to use other sources too. Never underestimate any resource in your search for a great Florida tax attorney.

2) Know what you want. This translates to "be specific" when you are looking for a good Florida tax attorney, be sure that you know exactly what you are looking for. There are many tax attorneys out there and they all have different areas of specialization. In your searches, specificity will help you narrow down your list of prospects and actually get you results much faster.

A Florida tax attorney can be quite easy to find. However, finding a great Florida tax attorney can prove to... ...read full post

The procedures for the foreclosure of the tax liens vary from one state to another. There are some states which do not impose too much requirements from you as the taxpayer so everything will go on quite easy. You just have to petition your country court or go through all of the application processes with the aid of a Florida tax attorney.

The proceedings really eat up too much time and too much money. But such case can be more handled with a Florida tax attorney. There are states which make things harder. Once your property is held up for foreclosure sale, there is a possibility that you will be relieved of the property since it will be awarded to the highest bidder. But of course you will receive your lien.

If you are wondering as to how much percentage of the tax liens of your property will go straight to your pocket, it is important that you consult a Florida tax attorney who knows these things.

Being equipped with the necessary knowledge and skill on liens on the tax, your Florida tax attorney can provide you with the answers to your queries. Other states offer only up to ten percent of the tax liens. There are a number of states which impose the rule of having higher percentage amounts for property tax liens.

The foreclosure of any property does not come as a piece of cake. Investing... ...read full post

Tax is a very complicated matter, especially if you are facing the IRS. At first, it would seem like the IRS cannot be reasoned with. There are people who are so intimidated by the thought of the IRS that they are unable to even question the demands that the agency makes of them. Well, if you have experienced the various intimidation tactics used by the IRS, then what you need is a good tax attorney. If you so happen to live in Florida, then here are some good reasons to hire a Florida tax attorney:

1) Taxes are based on laws Many people think that accountants have something more to do with taxes than lawyers. Not many people realize the fact that since taxes are based on laws, then lawyers can help them more than accountants can. Hiring an accountant can help you with the computation of your taxes and in the rectifying of any error that you have made. However, there's not much help that a CPA can give you beyond that. A good Florida tax attorney will be able to help you with the different laws surrounding taxes and thus, can help you find a solution to your problem that's much more effective than correcting some entries.

2) Locality: One of the main reasons you should hire a Florida tax attorney is the locality. By getting a Florida tax attorney, you will be... ...read full post

Locating a good tax attorney in Florida requires a little bit of finesse and a large portion of resourcefulness. Here are some tips you can use:

1) Never underestimate a resource. Most people today are so caught up with the developments of technology that they rarely pay attention to existing sources of information. What you should learn about information is that it can be found everywhere. You should try to consider every type of source that you have at hand and search. If you really want to find a good Florida tax attorney, you should not just try to look for one but actually look for one!

The key to finding any type of information is to tear down any limits. You cannot just limit your search to the internet; you should try to use other sources too. Never underestimate any resource in your search for a great Florida tax attorney.

2) Know what you want: This translates to "be specific" when you are looking for a good Florida tax attorney, be sure that you know exactly what you are looking for. There are many tax attorneys out there and they all have different areas of specialization. In your searches, specificity will help you narrow down your list of prospects and actually get you results much faster.

A Florida tax attorney can be quite easy to find. However, finding a great Florida tax attorney can prove... ...read full post

Do you owe the government taxes? Are you being audited by the Internal Revenue Services? Are you being accused of committing tax crime? If you answer affirmatively in one or more of the aforementioned queries, then you certainly needed the services of a tax attorney. How can you be certain that you need tax attorney's services? Well, you have to consider several things. First, if you think that the tax problem will not complicate things if ignored then; the answer is on the negative. However, if it will worsen when ignored, better get yourself an attorney before it's too late to do so. You might be subject to penalties or worst imprisonment. Tax penalties include fines, liens, levies, interests, and other penalties. Moreover, in criminal cases failure to pay tax or employing tax fraud can put the taxpayer to jail.

So, you have decided to hire the services of a tax attorney. How are you to choose the right one?

Remember that attorneys may either have a field of specialization or opt to become a general practitioner. Moreover, in choosing a tax attorney, be sure that he is an expert on taxation. However, it should not end there. Also consider his reputation and past records in defending his clients. Be sure that he is of good standing in that particular field of law.

Also consider the attorney's fees. As you know, legal services are not cheap. In... ...read full post

Many people are wondering why there are so many lawyers running around in the country. Some share the opinion that there is entirely too much law. Whenever they encounter people such as Florida tax attorneys, they often ask themselves, "What do we need another one of those for?" To some people, a lawyer is a lawyer. In order to understand our need for Florida tax attorneys, why don't we try to see what they can do?

1) Help us with our fear Let's face it: for some people, the prospect of facing the IRS is even scarier than facing the FBI. This is because of the fact that the IRS is very good at intimidation tactics. This, after all, helps speed along a person's payment. A good Florida tax attorney can help you overcome this intimidation simply by letting you know exactly where you stand in the law.

Once a Florida tax attorney has helped you get over your fear of the IRS, you can begin to truly fix your problems. You can begin by questioning exactly why you have to pay what the IRS wants you to pay.

2) Research: A good Florida tax attorney does excellent research work. This is necessary if you intend to handle your problems wisely. Information is the key to reaching a viable solution to any problem. By researching on the problem that you are facing, a Florida tax attorney ... ...read full post

Most Florida couples file their joint income tax returns. Meaning, both of them are legally held to be individually and jointly responsible for the payment of the rightful sum of taxes. The spouse who has a limited source of income is made to be held responsible in the event that the other spouse fails to pay the correct total of the due taxes. The innocent spouse is by and large the one who usually gets into default with the seizures, audits, and tax levies.

Such situation will only be averted if the married couple files a separation or a divorce. It is during these occurrences when both parties get devoid of the fact regarding the exact amount of the taxes owed by one another.

During the time of the separation or divorce, the couple is advised to file their income tax returns jointly while this results to the payment of lower amounts of taxes. The situation becomes a medium for tax indemnification. This means that neither of them is to be held up responsible for the liabilities of each other with their own tax dues. The bad part to this is that the IRS will get its hand to the innocent spouse when one party fails to pay his or her dues regardless of their being divorced, separated, or being still together.

Isn't it such a stressful condition? This can be alleviated though. All you need... ...read full post

Two Ways You Should NEVER Deal with IRS Problems

If you had cancer, who would you want to see first?
a) Nobody. I’ll go it alone.
b) a Nurse
c) a Doctor
d) an Oncologist

An Oncologist, right? Why? Because an Oncologist is a physician that specializes in the treatment of cancer. Along that same line of thinking, if you had a problem with the IRS, would you go it alone? Don’t believe for a second that reading a couple books, a website or a couple emails about “how to deal with the IRS” will prepare you to deal with the IRS if you owe them money.

The IRS has employees who make a career out of extracting money from people who owe taxes. They deal with it every day. They’re good at it. This is something you deal with once in a lifetime (hopefully). Face it – you’re not good at it.
These people are trained to act like your friend and make you comfortable…and then use it to get you to say something you’ll regret.

You wouldn’t “go it alone” with a deadly disease – don’t go it alone with the IRS.

What about an accountant?
Most accountants spend 3 months out of the year dealing with taxes. They spend the rest of the time balancing books and preparing financial statements.
Just like having a good nurse can be a huge help to a cancer... ...read full post

Running a company or just running the personal finances is not always going to be so easy. In fact, those who do not follow the law and pay their taxes might run into a lot of trouble with the IRS. There are many out there who will turn to a tax attorney for the right amount of help. There are numerous tips to look into before hiring an individual for the much needed job. Those are in need of various services including strategic tax planning will need to make sure that they use this guide right now. This is the best way to seek a tax attorney - hire a business tax attorney within the shortest amount of time possible. Take note of the services that are offered to individuals and how the professional will be able to help. The sooner the search begins, the sooner the taxes can be taken care of so get started.

It is important to sit down and assess the current needs. Those who are thinking of opening their own business do need to ensure that everything is put in order, before the doors even open. This is going to include hiring the right people to guide the individual through the process so that they do not run into any trouble. The business owner needs... ...read full post

Warning by Florida Tax Attorney Highlights Importance of Checking Details When Preparing Taxes

Taxpayers should pay attention to every detail of their tax returns, according to Florida tax attorney Mary E. King.

That's because attorney Mary E. King said a variety of simple mistakes — including math errors, absentmindedness, inaccuracies as a result of rushing to complete returns, etc. — can all lead to nightmare scenarios if the Internal Revenue Service (IRS) targets them for an audit.

"Taxpayers should prepare their returns as if they were interviewing for a job,"Mary E. King said. "Like a job applicant wanting to make a favorable impression and be honest about their background, taxpayers should prepare returns that are complete and that they know are correct."

Attorney Mary E. King suggested several tips that taxpayers should remember to assure their returns are free of mistakes that include:

• Always using a calculator when preparing returns. This is important even for the simplest of additions or subtractions because a minor mistake can snowball into a larger one in terms of the final amount reported on a return.


• Taxpayers should never complete returns when they are tired or rushed. Attorney Mary E. King said that doing so can result in mistakes that may be minor but, as with math problems, IRS tax problems can worsen later as a result... ...read full post

Is it really possible to pay the IRS “pennies on the dollar” and have the rest of your tax bill forgiven? Yes – it is possible…but it’s not very likely. It’s called an Offer-In-Compromise - and it used to be the only legitimate way to negotiate an actual lowering of the amount of taxes owed to the IRS by a taxpayer…sometimes far less.

However, since the IRS has seen so much “abuse” of this particular method of tax relief in recent years, they have shown by their actions that they are less and less apt to accept an Offer-In-Compromise.
In a press release dated October 2004, the IRS stated “This program serves an important purpose. But we do warn taxpayers to watch out for unscrupulous promoters charging excessive fees to taxpayers who have no chance of meeting the program’s requirements,” said IRS Commissioner Mark W. Everson. “Taxpayers should not be duped by high-priced promises.” In fact, as of 2006, the IRS now rejects 85% of all Offers-in-Compromise.

Although an Offer-In-Compromise is one option for paying off IRS debt, it may not be the right option for you. There’s no sense in pursuing this payment option with 15% success rate if there’s little hope that it will be accepted.

In fact, if you choose to hire a lawyer to represent you before the IRS, it’s... ...read full post

When I counsel people dealing with IRS problems, I usually end up asking the one big nagging question ...“Why did you wait so long to do something about this?” Here’s the usual reply: “I thought I would end up going to jail.”

Let’s go ahead and get something straight about the IRS and prison time…

“If You’ve Accurately Filed Your Taxes You Cannot Get Sent to Jail.” If you’ve accurately filed your taxes, but you just haven’t paid them, you cannot get sent to jail. Owing the IRS money is not considered a crime.

However…Don’t be in a hurry to celebrate…By not taking action and facing your IRS debt problem, you could face any or all of the following severe consequences:

*Wage garnishment
*Seizure of your real estate
*Seizure of Social Security benefits
*Seizure of 401(k)’s, IRA’s
*Seizure of Cars/Boats/Houses
*Seizure of Accounts Receivable
*Seizure of Cash Loan Value of Your Life Insurance
*Seizure of Commissions Owed to You

If you’ve filed your taxes accurately, but you just can’t pay them…there is hope for you. There are six different ways available to pay your debt to the IRS and avoid the particularly nasty consequences mentioned above.

“You Can Go to Jail if You Haven’t Filed Your Taxes > OR < If You’ve Filed Your Taxes Inaccurately” Not filing your taxes is considered a crime by the IRS. You can receive one year of prison time for each year that you don’t file. Procrastinating only makes your chances of... ...read full post

I don’t know your financial situation personally, but I would venture a guess that if you have problems paying the IRS…that you may have credit card debt problems as well.

So I certainly don’t mean to throw “fuel on the fire” of a debt problem by making the following suggestion, but I’ll throw it out there as an option and only you’ll know if it is a legitimate option for you.
Did you know that the IRS accepts Visa, Mastercard & American Express?

With credit cards, according to the IRS website “you can pay current and past due Form 1040 balances along with current year Form 940 balances and current quarter plus the three prior quarters Form 941 balances.”
You may be thinking “isn’t paying the IRS with a credit card like robbing Peter to pay Paul?”

Not exactly. First, you’re not “robbing Peter” in this scenario. If you’ve been extended enough credit by your credit card company to pay off your IRS bill, it’s apparently because you have a good enough credit rating to justify the credit card company’s risk that you’ll pay the money back.

Now this is assuming that you tell the truth on your credit card application. Remember…lying on a credit application is a criminal offense…don’t do it.

Now I’m not suggesting that you don’t pay your credit card bill. But ... ...read full post

I hear varieties of this question frequently in my office. In this week’s blog, I have taken two examples from newspaper articles of examples of individuals who violated different sections of the tax code and unfortunately ended up in prison.

Former Wisconsin Restaurant Owner Receives Prison
Term for Evading Income Taxes

On February 27, 2008, in Madison, Wis., Sabi Atteyih was sentenced to 12 months plus one day in prison, to be followed by a three year term of supervised release for income tax evasion. On January 2, 2008, Atteyih pleaded guilty to evading his income taxes for 2002. While owning the Casbah Restaurant in Madison, Atteyih underreported his taxable income from the restaurant from 2002 through 2005 by $349,673 and he evaded income taxes totaling $128,938.

Minnesota Woman Sentenced for Failing to Pay Employment Taxes
On April 20, 2009, in St. Paul, Minn., Kara Kristine Sommer, of Burnsville, Minn., was sentenced to 18 months in prison and three years of supervised release for failing to pay the Internal Revenue Service (IRS) payroll taxes from employees of a construction business. According to her plea agreement, Sommer admitted withholding or causing to be withheld amounts for federal income taxes and Federal Insurance Contributions Act (FICA) taxes from the wages of employees of Frontier Construction, Inc., located in... ...read full post

Over the years as I have been representing clients who have IRS problems, the IRS has been strict in its official requirements for accepting an Offer in Compromise (OIC). However, over the past year, with the downturn in the economy, the IRS has relaxed its unofficial position on its requirements for accepting an OIC, as well as other tax debt settlement options. Therefore, I have seen more taxpayer clients who have been able to qualify for an Offer in Compromise.

Generally speaking, an Offer in Compromise is where the IRS accepts less money than the taxpayer owes to settle their outstanding liability with the IRS. The IRS will only accept an OIC when all other tax collection alternatives have been exhausted. Other IRS tax collection alternatives may be a short extension of time to pay, an installment agreement (making monthly payments until the debt is paid in full), full payment of the debt or hardship status. Hardship status is where the taxpayer is unable to pay anything against their tax liability at the present time. It is usually a temporary solution due to unemployment or illness. Finally, a taxpayer may qualify for a bankruptcy discharge of the tax liability.

When the IRS considers an OIC, it is looking at the taxpayer’s Reasonable Collection Potential (RCP). The RCP is how the IRS determines whether or not a taxpayer has... ...read full post

Men are governed by laws not by men. Moreover, almost every aspect of your life is invaded by the laws of the land. From the disposition your properties, to the expected norms in the society and eventually to the manner of paying tax contributions, no one is considered above the law. For that reason, there are things that you need to comply and consider in order to adhere to what the law expects of you.

Tax laws may seem complicated depending on the state you are in. Sarasota, Florida tax attorneys may have different legal advice compared to a tax attorney in Mexico. This is because the tax system of different states is diverse. Tax law, which is a codified system of laws that covers government levies on certain business or economic transaction, imposes taxes. These taxes are delivered back to taxpayers by way of government projects. If you failed to do your duty as a taxpayer, you will be punished.

Tax law is a sub-discipline in law schools. They are consultative in nature however; they can be used in litigation purposes. Tax law is crucial in business as well as personal planning matters. If you are facing an Internal Revenue Services (IRS) trouble, you need a Sarasota, Florida tax attorney to assist and defend you.

Tax laws demand that you keep tax records for the government to check. Records can also serve as proof of... ...read full post

According to a new report by the Treasury Inspector General, the IRS has waived essentially $1.4 billion in delinquent taxes between 2002 and 2008 by failing to file federal tax liens. In order to protect its claims against delinquent taxpayers, the IRS must file a federal tax lien, which establishes the IRS’ priority among other creditors. However, in certain cases, the IRS can decide not to file a tax lien. When the IRS agent decides not to file a tax lien, they must document the taxpayer’s file to state the basis for their decision not to file the tax lien.

According to this report, the IRS agents did not document the rationale for not filing liens for an estimated 2297 taxpayers who owed $72 million in delinquent taxes. The report also found that the IRS did not file liens on closed taxpayer accounts based upon a certain dollar amount. This certain dollar amount represented taxpayer’s whose accounts were closed based upon being currently noncollectible for tax years 2002 through 2008. These taxpayers were unable to pay anything on their accounts and consequently, the IRS did not conduct any collection activity on their accounts. As a result of this report, the Treasury Inspector General has made eight recommendations to ensure that in the future all IRS agents document their reasons for not filing tax liens ... ...read full post

Have you developed a false sense of security?

Maybe the IRS placed a lien against your property as a “warning shot across the bow”, but you haven’t responded.

Sure, the tax lien can ruin your credit and make it virtually impossible to sell your house, but it doesn’t necessarily put a damper on your day-to-day finances.
Besides, the fact is – a tax lien doesn’t necessarily give the IRS what they really want…the tax money you owe them.

That’s when they start getting nasty…If you’ve been notified by the IRS either over the phone or by mail that you owe them, that’s all the warning you get.
The IRS can take your money if you don’t give it to them voluntarily.

If after contact, you don’t pay them completely and voluntarily - they have the right to take every penny that you owe from them…one way or another.
They don’t have to take you to court or sue you to get their money. If they’ve sent the collection notices and you’ve refused to pay or haven’t paid in full – that’s all they need to do.

That’s when it can get ugly:

• They can dip straight into your bank account and take your money


• They can garnish your wages or salary


• They can take your social security, 401(k) or IRA’s


• They can take any money owed to you – like accounts receivable or sales commissions

Plus, they can seize your property:

• Cars / Boats / Motorcycles / Homes / Vacation Property... ...read full post

Penalties and interest are adding up by the day if you haven’t paid the IRS what you owe them. And they’re adding up big-time if you haven’t filed at all.

Did You File and Not Pay?

If you did, there’s interest being compounded daily on what you owe, which is the quarterly federal short-term tax rate, plus 3%. As of this writing, the IRS is charging 8% per year.

In addition to interest, you’re also being charged a Failure-to-Pay Penalty, which is .5% of the tax owed for each month. There is no maximum for the failure-to-pay penalty. If you’re sent a number of notices from the IRS and you still don’t pay, the penalty increases to 1%.

What You Should Do If You Filed and Didn’t Pay?

The most obvious answer is to pay the tax debt.…it’s better to owe anyone other than the IRS. Why? Because the IRS has more power to collect in ‘mean and nasty’ ways than any collection agency you’ll ever deal with.

So what if you just can’t come up with the money? If you just don’t have the money, and you cannot get it, there are legal ways to negotiate with the IRS: Be declared Non-Collectible Status.

Have the debt reduced through an Offer-In-Compromise. Set up a monthly installment agreement plan. Set up... ...read full post

Do you owe back taxes? If so, realize that you’re not alone.

Even the world’s richest and most popular people owe back taxes, too. And the IRS will get their money, regardless of who you are. Just ask Jennifer Lopez.

Here’s what El Pais, the most widely read newspaper in Spain, had to say in 2007 about singer Marc Anthony, husband of singer/actress Jennifer Lopez:
“At least three companies he owns have not paid their taxes correctly and have been told to pay $2.5 million to the state and city of New York. They will also have to pay an additional $180,000 in fines.”

So much for anyone being “above the law”. The IRS usually gets their man, eventually (even if he spends a lot of time walking down the red carpet…).

What Are Back Taxes, And Why Should You Worry About Them.

Back taxes are simply taxes that you owe that you didn’t pay when they were due.
If you’ve underpaid taxes for any reason, the balance that you owe is considered back tax. You may have failed to report taxable income (intentionally or unintentionally, it doesn’t matter) - as the IRS sees it…you still owe them money in the form of a back tax.

Some people don’t have the money when the tax bill comes around, so they... ...read full post

If the IRS places a claim on your property as a tax lien, it shows up on your credit report and can greatly damage your credit score Florida IRS Tax Attorney Mary E. King advises.

The worst part is that you may not even be aware of the tax lien until you go apply for a credit card, car loan, home equity loan or to refinance. By that point lenders are hesitant to loan you any money.

Plus, an IRS tax lien may make it very difficult to sell your house. A buyer will be reluctant to buy since the IRS lien comes with the property and becomes his problem if you don’t take care of it Attorney King adds.

If you receive a “Notice & Demand of Payment” from the IRS and you don’t pay the tax bill, you have 10 days before the IRS can begin the process of placing a lien on your property.

If you don’t respond to the “Notice & Demand of Payment”, the countdown to a lien begins. You must act quickly. Realize this - a lien is just the beginning before even nastier IRS tactics begin, like wage garnishment and property seizure.

Your IRS tax troubles may have just begun if you’ve received a “Notice & Demand of Payment.” Attorney Mary E.... ...read full post

Are You Non-Collectible To The IRS?

One way to get out of IRS debt is to be declared “Currently Non-Collectible” (CNC) by the IRS. Note the term “Currently”…As the name implies, Currently Non-Collectible means that the IRS considers that your current financial situation makes it impossible for you to pay your taxes and they determine that they cannot collect the money from you…at least not for now.

So, in other words, being declared CNC is a potential short-term fix to your IRS problem. But, in the end, you may still have to pay the taxes you owe (plus penalties and interest) once you start making more money.
The interesting thing about being declared Currently Non-Collectible is that can last indefinitely. If the IRS monitors your future W-2’s and sees that your income has not increased by 15%-20%, your Non-Collectible Status stays “current”.

The IRS usually gives you some breathing room and reevaluates your situation after 12-18 months. If by that time you’re showing positive cash flow, you may be put on a payment plan.
However, if you are declared CNC, it doesn’t get you off the hook for paying your taxes in future years. In other words, if you’re declared to be Currently Non-Collectible for the taxes due for years 2005-2007, you will still owe the taxes due for the years 2008, 2009 and... ...read full post

Renting out Your Spare Room to Cover Your Bills May NOT be the Answer!

The current housing crisis means that many homeowners are considering renting their properties as an alternative to selling, or even renting out spare rooms to help meet their mortgage payments. But homeowners desperate for additional income in these tough economic times may find themselves in trouble with the Internal Revenue Service (IRS) when it comes to renting property.

Leasing one’s home (or a portion of it) to meet mortgage obligations can lead to disaster with the Internal Revenue Service (IRS) if any money collected as rent is not reported as income.

The IRS has a series of guidelines that have to be met when it comes to paying taxes on rental income and failing to properly report them. This can lead to complications that include fines, interest, and possible garnishment of wages to collect the unpaid taxes.

Anyone who rents or leases property for more than 14 days is subject to paying taxes to the IRS. Add to the equation the fact that there are different rules on IRS tax liability based on how the property is rented and it becomes obvious that homeowners should seek the advice of an expert to prevent trouble with the IRS.

Obviously, in some cases renting property can result in... ...read full post

Last week, lawyers for actor Wesley Snipes were in federal court in Ocala defending him on charges of tax evasion. The lawyers have argued that Snipes did not receive a fair trial due to jurors who had made up their minds about his guilt prior to deliberating on the verdict in his 2008 tax evasion case. Snipes had originally been charged with failing pay his taxes from 1998 through 2000 on earnings of approximately $38 million. Since the trial, Snipes has been free on bond.

As a general rule, taxpayers cannot go to prison for failing to pay their taxes, unless the IRS finds that they committed tax evasion in the preparation of the income taxes. It is usually only when a taxpayer fails to file their income taxes that they can go to prison for failure to file. Don’t wait until the IRS is knocking on your door!

If you have questions about a tax related issue, please call tax attorney Mary E. King to discuss your situation at (941) 906-7585.... ...read full post

Penalties and interest add up by the day if you haven’t paid the IRS what you owe them. And they add up big-time if you haven’t filed at all. Every day that you put off taking care of your IRS problem only makes it worse.

Did You File and Not Pay?

If you did, there’s interest being compounded daily on what you owe, which is the quarterly federal short-term tax rate, plus 3%. As of this writing, the IRS is charging 4% per year.
In addition to interest, you’re also being charged a Failure-to-Pay Penalty, which is .5% of the tax owed for each month. There is no maximum for the failure-to-pay penalty. If you’re sent a number of notices from the IRS and you still don’t pay, the penalty increases to 1%.

What You Should Do If You Filed and Didn’t Pay?

The most obvious answer is to pay the debt. The IRS has more power to collect in ‘mean and nasty’ ways than any collection agency you’ll ever deal with. So what if you just can’t come up with the money? If you just don’t have the money, and you cannot get it, there are legal ways to negotiate with the IRS:

• Be declared Non-Collectible Status


• Have the debt reduced through an Offer-In-Compromise


• Set up a monthly installment agreement plan


• Set up a partial installment agreement (where... ...read full post

Why the IRS Deals So Harshly With Businesses That Don’t Pay Their Payroll Tax

Not paying payroll tax is something the IRS considers very serious. As an employer, you are responsible for withholding part of your employees’ wages to pay their: Income tax and FICA (Social Security & Medicare) tax.
Since the employees place their trust in you that you are taking this money out of their paycheck and are paying these taxes with their money, they are called "Trust Fund Taxes".
However, if for any reason you fail to pay this money - in the eyes of the IRS you have betrayed the “trust” of the employees and you have taken money that does not belong to you.
Therefore, the IRS can be particularly aggressive with businesses that don’t pay their payroll tax.

If you owe payroll tax, the IRS may exercise their authority to collect by using the Trust Fund Recovery Penalty (TFRP) against you. If it’s determined by the IRS that you are the responsible party for collecting the taxes, and you willfully failed to file them, you will be notified with the plan to assess the TFRP against you. You will then have 60 days to pay the tax or appeal.

If you don’t pay the tax or appeal, the IRS may do everything in their power to get the money, which may include the following:

• Seize your personal assets


• Place a lien against your property... ...read full post