Tax Problems

Tax Debts and other IRS problems can come about from a variety of life's struggles. Every thing from loosing a job, filing improperly for years, simply not having enough to pay the debt, an inability to pay the payroll tax, or even being the victim of an identity theft tax scheme. Regardless of the source of the problems once you have a visit from an IRS collections officer your life will be thrown into disarray.

For many the first reaction will be shock, followed by panic. Depending on your specific situation it's understandable to be upset once the IRS has set their sites on you. Internal revenue agents have a variety of ways to pursue collection actions against you and none of them are pleasant. However when an IRS office personally shows up at your door one fact is certain - get legal help fast.

As a local tax attorney I will personally represent you and work to protect your interests from the IRS. Depending on the collection action or specific case our law firm has stopped harassment from IRS agents and even put a stop to sever collections actions like property liens, Bank levies and wage garnishment.

Each case is different and I understand how difficult a a time it can be, but you should know as a local attorney I will be in your corner... ...read full post

Owe the  IRS money? You should know the IRS can file a tax lien on your home in an effort to collect the tax liability.  This means that they are taking their legal claim to your property for having not paid the taxes that you owe them. That is critically important since you could potentially lose property that you consider to be in your ownership at the moment.

Clearly, no one wants to be put in a situation where they are having to pay an IRS tax lien. This would be a terrible situation where you would lose out on holding on to the things that matter to you. There are three steps that must be taken before a lien can be taken out on you. The first is for the IRS to assess your liability, then send you a bill for how much you owe, then if you refuse to pay in time the lien will take place. That is the very important part. There are steps that must be taken, but you can still get to the point where the IRS places a lien on you.

Once you have been given an IRS tax lien, it is important to try to defend yourself. You want to get a lawyer who can help you... ...read full post

An IRS levy is the Internal Revenue process of seizing property due to unpaid taxes. If a taxpayer has unpaid taxes, the IRS has the authority to seize property held by the debtor, including cash, jewelry, vehicles, future wages, real estate, investment assets and valuables.

The IRS has the authority to seize property owned by the debtor and held by a third party, such as bank accounts, wages and accounts receivable. It also has the authority to sell real estate owned by the debtor to pay the delinquent taxes. With a bank account levy, the IRS will take 100 percent of the balance in the account, up to the amount of the debt. On wages, the IRS may garnish over 50 percent, and is not subject to state law garnishment limitations. It is not unusual for the IRS to garnish as much as 70 percent.

Levy is often the last step in the collection process. Prior to that, the IRS will make an assessment of taxes and penalties owed. It will notify the taxpayer the amount of the assessment, which tax years are included and a breakdown of tax, interest and penalties, if any. It will send a Notice and Demand for Payment to the taxpayer and will provide time to... ...read full post

The saying goes, "Only two things are for sure in life: death and taxes." And for some, this could not be more true. Tax season can be a very stressful time of year for many, especially those who owe money to the government that they simply do not think they can afford to pay. So if you are one of many people who owes taxes to the government and is worried that you are soon going to be facing a levee on your bank account or garnishment of wages as a result, then you may want to look into the option of hiring a tax defense lawyer.

You might be surprised at just how much assistance a qualified and experienced tax defense lawyer may be able to provide you with, so long as you end up choosing the right one to represent you. After all, many tax lawyers out there these days that are available for hire will help when it comes to filling out legal paperwork prior to a trial, but are nowhere to be found when it comes to actually representing you on your day in court.

However, if you go with this particular tax defense attorney, you can enjoy the peace of mind in knowing that you will get the full representation that you need in order to have a... ...read full post

In the event that you owe taxes to the government, the IRS could seize your retirement account. Normally IRA accounts are shielded from creditors up to the one million dollar mark but this is only for normal creditors. If you are in a situation that you that you may owe money to the IRS then you will loose the benefit of not being taxed on the money that is in your IRA.

If the IRS seizes funds from your retirement account this could impact all your retirement savings. First, the IRS places a federal tax lien on your IRA for the payment of unpaid and past due taxes. Then the IRS sends you an intent to Levy. Once that has been sent the IRS will levy your IRA account by taking your money to pay your federal tax debt. Before the IRS levies your money they will provide you will the allotted time to pay the money that is owed which is usually 30 days from the time that you receive the bill. If there is a negotiated payment plan made with the IRS then you will be given extra time to pay off your IRS payments.

There are ways to help form having your IRA levied by filing a 656 form for an offer and compromise if your believe that there is no way for your to pay... ...read full post

Even though the odds of being audited are low there is still a decent chance of a little more than 1% that an individual tax return will be audited. There are various factors that will increase your chances of being audited by the IRS which includes but is not limited to income level, whether there is an income discrepancy, losses that were claimed, the business that you are engaged in or various math errors. Just being aware of these red flags will lower your chances that the IRS will audit you.

1. Too Much Income

The individual rate of being audited by the IRS is 1.11% these odds will increase for higher income earners. Statistics show that people with an income of 200,000 or more per year will have an audit percentage rate of 3.93% . If your income is more than a million dollars than there is a one in eight chance that you will be audited. Anything that is less than 200,000 will drop the audit rate significantly. The higher the increase of income that is shown on an income tax return the higher the rate of an audit by the IRS.


2. Failing to Report all your taxable income

All reportable income on W2's and receipts must be shown on your tax return. If there is a mismatched amount of income than the IRS sends up a red flag and that taxpayer will then get a bill. If there is a... ...read full post

If you are not careful these days the IRS could get tough on the individual and crack down on foreign accounts and other holdings. Uncle Sam is finding ways to get back all the uncollected debt that has been missed which is a staggering 286 million dollars. This tougher enforcement of IRS tax assets means that the investor needs to make sure their accounts are in order quickly. This could mean additional paperwork for the IRA owner who have to file returns and also increase audits to IRA owners.

Tax penalties are tough for people who fail to take a required minimum distribution at age 70 can be hit with a 50% penalty. This same type of levy applies to required withdraws from an IRA which was inherited that includes Roth accounts. The contributions made to a Roth IRA differs because they are not tax deductible but the withdraws are tax free after holding requirements are met.

The IRS is also keeping a close eye on the amount of the contribution to make sure taxpayers are not putting too much money in them at a tax deductible rate. The limits for an IRA are 5,000 per. person and little more for people who are over 50 years of age.

Making excess contributions means that you contributed more that you were allowed by the federal government for that contribution year. If your contribution was too high in an amount of 6%... ...read full post

If you have ever found yourself on the receiving end of an IRS tax complaint letter, you are fully aware how troubling this can be. The Internal Revenue Service has significant power to make your life miserable and to wreck you financially. That is not to say they do not have a job to do, but their actions can often land clients in turbulent situations. If you find yourself on the receiving end of an IRS tax complaint letter there are a few things you should now. First, there is help out there, second, you are not alone, and third, you can fight it!

Tax complaint letters from the IRS can come at any point. A response is required, but you are not required to automatically admit your guilt. There is a chance for a fight. If you are facing wage garnishment then you should consult with a bar approved US tax attorney to aid you in your fight. This is the best way to avoid paying your back taxes and to ensure that you get a fair fight in trial instead of the IRS simply winning by default. Without hiring a qualified US tax attorney you run the risk of wage levy without actually owing anything. You also may end up with an unfair trial or not be given the proper time to prepare your defense. All of these things can be avoided by contracting with the proper tax attorney in your defense.

One important thing to remember when dealing with... ...read full post

The Trust Fund Penalty act was enacted in 1998 to assist in collecting back payroll taxes due to the government. These taxes can include payroll or federal excise taxes. A trust fund penalty recovery could spell disaster for the entrepreneur, corporate manager, director, officer or employee who fails to pay their taxes. The general rule for this that any person required to collect, truthfully account for and pay over any tax imposed by this title who will fully fails to collect such tax, or truthfully account for and pay over such tax or will fully attempts in any manner to evade or defeat any such tax payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.

Anyone who has a degree of responsibility can be liable regardless of title which is included as a director who is not an officer or employee as long as he was responsible for the payment of the withholding taxes. The IRS can asses those who are in the corporation who they find to be both willful and responsible for the nonpayment of their tax funds to the government. If business owners have financial trouble and they fail to pay these taxes because they do not have enough money... ...read full post

IRS tax liens are something that should be avoided if possible. No one wants to wake up one morning and find all the money in their bank account has been taken by the IRS. It is also embarrassing to have the IRS take money out of their paycheck at work. Most people find this a personal problem and do not want to share it with their employer. Of course worse then being embarrassed, is the problem of a big share of the money missing in the paycheck. It is a bad situation and one that calls for professional help.

The IRS will not stop taking money until something is done. Most people are not able to find the right resources to make that happen. They are stressed and confused and not sure where to turn.

There are professional tax attorneys who work with this everyday. They can often stop a levy in 24 hours if the amount owed the IRS is under $25, 000. If it is more, it might take a couple of days longer. But, in the end, they will be able to stop the levy.

Find a good tax attorney as soon as possible for the needed help. Not any lawyer or attorney can do this. There are specialists who understand the laws and what needs to be done. IRS tax liens are nothing to be taken lightly. The IRS will send out certified letters to the... ...read full post

Many people owe the state or federal government tax money. The longer they put off paying, the more penalties are added to the bill. It continues to grow and some people cannot find a way out of this difficult circumstance. They aren’t sure who can help them and if they call or write the IRS, the situation often gets worse.

There are expert tax lawyers who are trained to help. It is their specialty and often it is necessary to contact one, to get help with stopping the IRS from levying wages, and bank accounts.

The IRS will send out a registered letter stating the fact that they are going to garnish the wages of the person who owes back taxes. The letter will also say they are going to take money out of the bank accounts of the taxpayer. This can be a very difficult thing to stop. It also creates several problems. The person owing the taxes will not have money to live on and will only be in worse shape. These people need help and most of them don’t realize that there are attorneys who specialize in helping taxpayers repay back taxes and stopping the levies. Many times they can get the levy stopped in 24 hours.

No one should ever overlook a letter that says that they are going to be levied by the IRS. There will no warning. Someone will go to pick up their pay check only to find that half of it went to the IRS.

It... ...read full post

At some point, everyone can expect to run into some kind of thorny issue with respect to their personal or business taxes. In the United States, the tax laws are so voluminous, convoluted, and complex that it is a genuine wonder why more of us don't find ourselves amiss of the many rules and regulations of the IRS. For the most part, people don't usually need the help of any kind of tax professional beyond their yearly visit to their tax preparer, but when serious matters come up, it pays to be educated about what one is up against, and who best to turn to when the time comes.

As one can imagine, there are different types of tax professionals. The duties of accountants and tax lawyers often overlap although they will frequently employ different approaches to their work. Accountants are adept at helping clients maximize their income by finding ways to prune expenses and minimize tax liability. Tax attorneys on the other hand begin their work by examining their work with an examination of how the law applies to their cases. This is so because they understand that the tax laws as written favor the taxpayer most of the time. When a taxpayer finds himself in any kind of serious trouble or dispute, there is no question as to whom to speak to... ...read full post

In the event that you find that you are unable to pay your taxes to the IRS, you should expect that they will come after you for that money. Those who are far behind on their payments can expect IRS levies to start to come into play. This means that they money that they earn at work can be taken from them in order to pay down those tax debts.

There are some things that the average individual can do to fight back against this system. For one thing, anyone can hire a lawyer to help them fight these levies. The tax lawyer will do what he or she can to try to get the IRS to back off, at least to some extent. The IRS would prefer to get some of their money rather than none of it, so they are often willing to negotiate. This is particularly true if they can tell that you are serious by the fact that you have hired a lawyer to help you out. When they see this, they are far more likely to try to meet you halfway somehow.

Your tax lawyer should be the best in the business. You want someone who has negotiated with the IRS in the past so that you know that his or her skills are top notch. There is no reason to hire someone who can not provide all of this to you. As such, it is important to search the Internet for those who... ...read full post

The best way to get rid of IRS tax liens is to pay the debt owned the federal government in full. Thirty days after the debt is paid, the lien will be released. That sounds easy, but for many people it is not. They do not have the funds to pay the amount owed.

A lien is different then a levy from the federal government. A lien is attached to the car, home or other assets someone may have. People who have an IRS lien will find it hard to get credit. It always shows up on a credit report. When someone files for bankruptcy, the lien will not be part of it. The debter will still owe the taxes and will continue to have the lien.

A levy is different and much worse. The IRS will take money from bank accounts, wages and any other source of income someone might have. No one wants to have a lien or a levy with the IRS. It causes major problems for most people and often people are not sure what to do.

When someone has a lien or a levy, they need to find the right help. It is out there and it is important to access it as soon as possible. Never wait until money is missing from a bank account or wages are gone from the paycheck.

Call a tax Attorney for help. They are experts at this and can help solve the problem. For many it is life changing to... ...read full post

Every year the number of tax levies increase because US taxpayers fail to question the accuracy of a tax notice. Congressional investigations have proven that the IRS makes the worst mistakes when it comes to issuing a tax bill, and yet thousands of U.S. taxpayers are unaware they can fight IRS levies.

The most common IRS tax cases involve individual taxpayers and small business owners. Why is this class of taxpayers targeted? It is easier to issue IRS levies on those who will not contest a tax levy.

Why Everyone Should Question a Tax Levy

The majority of levy notices issued by the internal revenue service are computer generated. More than one-third of those notices contain mistakes, and are not that difficult to resolve; however, the IRS will not take the time to review their work, nor will they explain how to contest their collection actions.

While the Internal Revenue Service has improved the time it takes to process tax returns, their performance certainly is questionable. In a report to Congress, The Government Accountability Office (GAO) pointed out the deficiencies in IRS internal controls, which has led to a high rate of mistakes on taxpayer bills. To add insult to injury, the IRS does not review or acknowledge their mistakes unless the taxpayer provides proof to the contrary, and even then it is difficult for taxpayers to protest.

Tax Attorney Secrets

Experts have the power to contest tax levies. The tax code provides procedural protections for taxpayers threatened with collection actions.

Taxpayers are typically not well-versed in... ...read full post

Even though there are a few things in life that will always be scary, entanglement with the Internal Revenue Service always seems to top the list for most people. Nothing seems to trouble individuals more than the thought of losing their financial security and their peace of mind all because of an error in your income taxes.

When it comes to your income taxes, do not be alarmed completely. There is help out there from which you can choose. In the end, you are the one that needs to recognize you will need to spend the necessary money and take things more seriously than what you did in the past. Don’t try to go through this ordeal on your own. If you try to do so, you may find yourself in more trouble than what you ever dreamed possible.

When faced with an IRS tax lien, many people don’t know where to start. Even though it seems as if you are stuck in a situation with no way out, plenty of options exist from which you can choose for your situation. If you have an IRS tax lien attorney on your side, they will help to walk you through the process from start to finish and ensure everything is properly addressed for you.

Hiring a Sarasota tax attorney will help provide you with the level of security you need to make sure you do not end up in a situation worse than what you are already in with the IRS. A... ...read full post

The sooner you contact a tax lawyer the better when it comes to dealing with the IRS. Penalties and late fees can pile up and they have the right to seize and even freeze your business and personal bank accounts until the matter is resolved or they are paid off.

Tax matters can be very complicated and one simple error during your filing can result in thousands of dollars in penalties. If the error was years ago and you are audited, the fees are retroactive from the time of the error and can pile up putting your entire financial future in jeopardy.

Tax debt to either the State or Federal government are not something that can be set aside and dealt with later. They need to be addressed as soon as you are aware there could be a problem. Since tax laws and regulations change frequently it can be very difficult for any one person to stay current on every little detail that has been changed.

Small business owners and those who are self-employed are at a higher risk of audit and penalties than the average taxpayer. The problem is these are also the same people who can not afford to have all their accounts frozen while the tax problem is sorted out. It is impossible to earn a living as a business owner if you do not have access to your bank account, yet the IRS expects you to earn the money to pay the penalties which keep adding up with... ...read full post

Yes, they are all famous recording artists, but they all also have IRS problems.

Most recently, R. Kelly had over $4.8 Million in federal tax liens filed against him by the IRS in Cook County, Illinois. The taxes that he owes are for income earned between 2005 through 2010.
In Lauryn Hill’s case, she failed to file tax returns for 3 years: 2005, 2006 and 2007. In addition to penalties and interest, she can also be facing prison time for failure to file.
Sharon & Ozzy Osbourne have had several tax liens filed against them by the IRS for failure to pay their federal taxes. The largest lien placed against them by the IRS was in the amount of $1.7 Million for their outstanding 2008 and 2009 taxes. To date, of that amount, approximately $719,000 has been paid to the IRS.

How do celebrities who make so much money get in trouble with the IRS? Most celebrities blame their financial planners, accountants, and business managers for their tax troubles. The celebrities rely on these individuals not only to assist them with their daily activities, but also with their finances. Perhaps they are making the wrong decisions about who to trust with their money. Celebrities can afford the have the best people in their corner, but that’s not always who they choose. Many times it is the person who will agree with them and be the “yes” person.
You may be asking yourself, “How does... ...read full post

Yes, they are all famous recording artists, but they all also have IRS problems.

Most recently, R. Kelly had over $4.8 Million in federal tax liens filed against him by the IRS in Cook County, Illinois. The taxes that he owes are for income earned between 2005 through 2010.
In Lauryn Hill’s case, she failed to file tax returns for 3 years: 2005, 2006 and 2007. In addition to penalties and interest, she can also be facing prison time for failure to file.
Sharon & Ozzy Osbourne have had several tax liens filed against them by the IRS for failure to pay their federal taxes. The largest lien placed against them by the IRS was in the amount of $1.7 Million for their outstanding 2008 and 2009 taxes. To date, of that amount, approximately $719,000 has been paid to the IRS.

How do celebrities who make so much money get in trouble with the IRS? Most celebrities blame their financial planners, accountants, and business managers for their tax troubles. The celebrities rely on these individuals not only to assist them with their daily activities, but also with their finances. Perhaps they are making the wrong decisions about who to trust with their money. Celebrities can afford the have the best people in their corner, but that’s not always who they choose. Many times it is the person who will agree with them and be the “yes” person.
You may be asking yourself, “How does... ...read full post

While IRS Tax Liens are not as serious as a levies, they are a warning shot across the bow and if action is not taken to satisfy the IRS, a levy or wage garnishment may be in the works. A lien will prevent a property owner from selling their home until the amount in question has been paid, or the lien has been removed by a court order. The way it works is should the property owner sell their property, the IRS will take the money owed from the amount from the sale. Obviously this will keep a property owner from choosing to sell any property with a tax lien.

New tax laws set in place in 2011 have made tax liens somewhat easier to remove. If the taxpayer owes less than $25,000 and is able to set up an installment agreement or other solution with the IRS, they may release the lien.

Below are several other ways under the law a taxpayer can have a lien released from their property. The first is obvious but unlikely to be a solution for most: Pay the total amount owed. Naturally for most taxpayers with a lien, if they could afford to pay the entire amount owed, they would have done so. However may people do not realize they can use credit cards to pay the IRS. A taxpayer may be able to use a combination of credit cards cash and loans to pay the IRS. This is advisable if possible because in... ...read full post

IRS wage garnishment can be stopped in essentially two ways; Either solve your tax problem or to cancel or delay the effects of the wage levy. Obviously it's better to resolve the IRS problem than to delay it however often an individuals situation may require some actions to delay or negate the wage garnishment, giving the troubled taxpayer time to resolve the tax issues.

Stop the Wage Garnishment - Resolve Your Tax Problems

By getting back into good standing with the IRS you will be able to stop a wage garnishment. You do not necessarily have to have paid the IRS in full to but enter into a negotiated settlement. Various programs are available to help taxpayers get back into good standing, an experienced tax attorney will be able to guide troubled taxpayer to the program that will work best for their specific situation. Below are some of the methods available to get back into “good standing” and halt wage garnishment.

Get an Installment Agreement – The IRS will stop a wage levy once you have entered into an installment agreement with them. An installment agreement works like other loans or credit cards: you must make your agreed upon monthly payments including interest until the amount owed is paid off. To stay in the installment agreement, the monthly payments must be paid on time. The amount paid each month must allow for the entire amount owed to be paid in full within 3 years.

Submit an Offer an Compromise – Many people may... ...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

Many people from all walks of life can end up with unwanted attention from the Internal Revenue Service. From the average Joe to self employed professionals to officers in large corporations. Even the odd politcian here and there ends up in the spotlight for serious tax problems.Further more tax problems also come in all shapes and sizes with many causes – everything from not filling, filling incorrectly, owing back taxes, payroll tax problems or even criminal tax evasion.

The one thing troubled taxpayers have in common is not their problems but the solution. IRS Tax Lawyers. IRS tax lawyers have the knowledge and experience to get federal tax problems back under control.

It’s important to note not every tax problem is the same, not every resolution will be the same, but overall there are a few main programs tax lawyers will relay on for many cases and they include most notably the offer in compromise, innocent spouse relief, installment agreements, currently not collectable or hardship status, penalty abatement, bankruptcy protection and reasonable cause.

A skilled IRS tax attorney will know which of these programs will be the correct choice depending on the circumstances the taxpayer is in. Many people have seen TV commercials advertising settling huge tax debts for “pennies on the dollar” however in most cases the tax payer will not qualify for such a program. However an attorney will be able to negotiate to either reduce the debt down or break the amount into payments, or delay the collection... ...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

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

Are you worried about your IRS problem? Losing sleep? Join the club. I hear that a lot. People will sit up at night and let their IRS problems eat away at them, night after night…causing them to lose sleep.

Is your IRS problem worth sacrificing your health…or your life? Stress can be a killer. Literally. Stress can lead to heart attack, hypertension, stroke, cancer, diabetes, depression, obesity, eating disorders, substance abuse, ulcers, irritable bowel syndrome, memory loss, autoimmune diseases (e.g. lupus), insomnia, thyroid problems and even infertility.

Procrastinating and hoping that your IRS problems will just go away is causing you a boatload of stress…But chances are that you may not have considered what that stress is doing to your body on a long-term basis.

What about the effects on your marriage? Numerous studies have shown that the money problems are the #1 source of arguments in marriage. Money problems caused by credit card debt, loss of a job, unforeseen expenses – you name it...all of these can be stressful on a marriage. But if you toss an IRS problem into the mix, you may have a recipe for disaster.

The IRS has more far-reaching power than any collection agency could. So if money problems cause arguments, IRS problems can cause absolute catastrophe. Divorce follows as a result, it introduces another whole host of problems emotionally and financially.

You have one chance at life (as far as I know…) don’t waste another minute worrying about the IRS. The average life... ...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

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

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

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

It is expected that the IRS will be more thorough in reviewing tax returns this year. It’s been rumored that tax increases will be necessary to reduce the budget deficit, but now Washington leaders are coming out and saying it.

Rep. Steny Hoyer(D-MD) said at the first of this month that increasing taxes to reduce the budget may be, “the only solution.” Hoyer also said a balanced approach is needed that “raises some revenue.”

As a result, American taxpayers will be expected to fork out more of what they earn, both during the years of the current recession and when it comes to filing their annual returns for years to come.

The Internal Revenue Service (IRS) will be even more aggressive in checking to make sure the United States Government gets every penny owed to it. The increased diligence that the IRS will employ in reviewing returns means that taxpayers will have to assure they are knowledgeable about the money that may be owed to the government.

That’s why consulting with a IRS tax attorney is important when preparing returns and in the event that taxpayers are audited to avoid costly IRS tax problems.

April 20, 2010 by Mary E King Florida Tax Attorney... ...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

IRS Releases Data That Shows Nearly 3000 Millionaires Collected Unemployment In 2008

The IRS has recently released data concerning unemployment insurance claims in 2008 and the data revealed that benefits were collected by nearly 3000 individuals who are considered millionaires. Of those 3000, 806 made over 2 million and 17 made over 10 million.

How is this possible you may ask? The fact is, unemployment is an insurance program that employers contribute to, it is not a welfare program based on need.

So, regardless of your income level, if you have lost your job and your employer paid insurance benefits, you are entitled to make a claim.

It is hard to think that a person making 10 million dollars a year would bother with a $300 a week check, but every penny counts when you are unemployed.

While this may seem outrageous, these numbers are really nothing compared to the actual number of people that filed for unemployment insurance in 2008. The actual number released from the IRS has shown that a total of 9.5 million individuals made claims during the year; an astounding figure.

These numbers are much higher than those in 2007. The IRS even refused to publish the amount of millionaires filling for claims in 2007 because the number was so low that... ...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

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