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WHAT’S
THE ANSWER?
Q:
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The
IRS is asking me questions about my ex-employer
and what services I performed in my position for
that employer. The company has since closed and
I have a new job. Why are they asking me questions
and what should I tell them?
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A:
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Most
likely the IRS is asking about your old employer
and your duties in that company for the purpose
of determining who may be a "Responsible Person"
for any unpaid payroll taxes the company failed
to pay. This is a very SERIOUS problem which should
not be taken lightly. Before you answer any questions,
you must ask the IRS the purpose of their questions
and if in fact they are concerning unpaid payroll
taxes, you must immediately obtain professional
help for the following reason:
The IRS may be able to show that you were some how
a "Responsible Person" and assess a penalty
against you personally for part of the unpaid payroll
taxes. This would allow them to collect from you,
your assets or your income the payroll taxes that
your ex- employer failed to pay to the IRS. As you
can see this is not something to fool around with
regardless of your innocence.
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Q: |
Can
the IRS take my home if I don't pay the old taxes
I owe?
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A: |
Yes,
the IRS has the power to seize your home for unpaid
taxes and hold a public auction to sell your property.
You must owe over $5,000 before the IRS can take
this serious action.
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| Q: |
I
work as an independent contractor so the IRS can't
garnish my wages because I don't have any. I owe
approximately $23,467 for 1995 and 1996. Can they
garnish my independent contractor income?
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| A: |
Sure,
if they can find it. Any person or company that
pays you over $600 a year is required to file a
Form 1099 each year with you and the IRS. This Form
1099 tells the IRS among other things, who is paying
you, how much they paid you last year and where
you and the person paying you are located. The IRS
simply files a Notice Of Levy on the person or company
that is paying you and levies any amounts due
currently to you or amounts that come due to you
in the future. The company which receives such a
Levy Notice may not want to help the IRS collect
from you, but they have no choice. This company’s
added burden of dealing with IRS paperwork unfortunately
makes you more of a headache than other sub-contractors.
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| Q: |
I've
been making monthly payments to the IRS for an old
tax debt that was from my ex-spouse. I don't think
it's right that I have to pay off my ex-spouse’s
taxes. Is there anything I can do to just pay my
share of the taxes?
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| A: |
Yes you may be eligible for a
number of IRS programs to avoid paying this old
joint tax liability. These IRS programs are specifically
designed for taxpayers who can't afford to pay off
the old tax liability or where the taxpayers may
qualify as an "innocent spouse" because
they were not aware of the tax liability.
Either
of these programs could save you substantial amount
of money and give you back your financial freedom.
The Offer In Compromise provides taxpayers a way
to settle with the IRS for a much smaller amount
than is owed for all taxes, penalties and interest.
The less money and assets you have, the better candidate
you are for an Offer In Compromise.
Taxpayers
suffering from an old tax liability with an ex-
spouse may be a great candidate for the new innocent
spouse relief. The Tax Law changes of 1998 provide
a much more generous description of what situations
qualify for innocent spouse relief.
The
new innocent spouse law is retroactive, which means
that it allows taxpayers who currently owe back
taxes to file for this new innocent spouse relief.
This offer by the IRS to let taxpayers file for
innocent spouse relief on old tax liabilities is
only available for a limited time.
Both
of the options I've explained above can literally
change your life. You may be able to get out from
under the pressure of owing the IRS and Get on with
your life. I suggest that based on your situation
that you call my office and make an appointment
to discuss the particulars of your Case.
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| Q: |
Can
the IRS levy on my retirement income?
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| A: |
Unfortunately, they most certainly
can. The IRS can even levy your Social Security
and Pension Benefits. If you never take care of
your IRS Problems, you’ll probably work until you
die . . . . because you’ll never have the opportunity
to save or have anything put away for retirement.
Do yourself a favor and take the 1st step to ending
your IRS Problems. Waiting will not help you or
your family. Start now and in a short time you’ll
be like your neighbors, co-workers and friends,
enjoying life and not worrying about the IRS knocking
at your front door.
There
are solutions available to you that can prevent
this terrible disruption of your retirement security.(
I discuss this issue frequently during my free consultations.)
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| Q: |
The
IRS told me that I was "uncollectable"
and to just pay my current taxes on time and after
10 years my old taxes would "go away."
This sounds too good to be true, is it?
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| A: |
Yes. The IRS has an uncollectable
status which they assign to taxpayers who currently
do not have any ability to make payments on old
tax liabilities. This status is usually a temporary
status and can be changed at any time by the IRS.
This means if your income increases or a certain
amount of time elapses, then the IRS computers will
kick your "uncollectable" case into the
collection mode and you’ll be contacted to start
making payments on your old tax liability.
The
big problem with "uncollectable" status
is that the IRS continues to add penalties and interest
to the original amount you owed. This usually results
in your original tax liability growing to such a
large amount that you could never pay it off. Many
taxpayers that are put
in
"uncollectable status" by the IRS are
never told about the additional penalties and interest.
The
IRS does have just 10 years to collect taxes from
a taxpayer, but the odds of your case staying in
uncollectable status for the entire 10-year period
are very low. In most cases, the IRS will attempt
collections somewhere along the line and at the
very least they will attempt to have you sign a
form allowing them more time to collect the taxes
beyond the 10-year period.
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| Q: |
I
hear people say they never file tax returns and
the IRS doesn’t do anything to them. Why should
I continue to file?
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| A: |
Taxpayers who get behind in filing
tax returns from time to time often make the problem
worse by never filing.
You
know the IRS is out there looking for you and you
want to start sleeping like a baby again. So what’s
the hold up? Well, most people with unfiled returns
are afraid of what will happen to them when they
get back in the system. By using an Attorney to
represent you, as you file these old returns, the
Attorney will be the contact person with the IRS.
They will deal with all the IRS communications,
and you can get straight with the IRS without worrying.
Sure
there are people who don’t file returns and haven’t
been caught yet, just as there are drunken drivers
that haven’t been arrested yet. But, over time,
many people are caught for both drunken driving
and income tax evasion. Taxpayers who fail to file
an income tax return each year can be criminally
prosecuted and receive jail sentences.
Hopefully,
this potential loss of freedom is enough to convince
you to file. It’s one thing to owe the U.S. Government
some money, but it’s an entirely different thing
to owe them part of your life. Many people brag
about getting away with certain acts until they
are caught. Don’t use other people’s bragging as
the basis for your own decisions.
If
you haven’t filed for awhile and you’re scared of
the consequences, don’t be. You can use a firm like
ours to represent you with the IRS and help slip
you back into the system.
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| Q: |
I
don’t mind paying the IRS for the taxes I owe, but
I can’t stand the thought of paying all the penalties
they hit me with. Is there any way to get rid of
the penalties?
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| A: |
Sure, the IRS will abate penalties
if you have "reasonable cause." This means
that you must have some excuse for your actions
other than "I forgot" or "I didn’t
feel like filing." You need something original.
I often write letters to the IRS requesting them
to abate the penalties for my clients that have
had penalties assessed against them.
These
letters can contain all kinds of reasons why my
client should have their penalties abated such as:
These letters can contain all kinds of reasons why
my client should have their penalties abated such
as:
Loss
of a loved one
Alcoholism
Depression
Gulf
War
Accountant’s
Advice
The
only possible way to have your IRS penalties abated
is to ask. I guarantee the IRS will not abate any
penalty if you don't at least ask. In most cases
the professional fees for requesting penalty abatements
are often very small in relation to the possible
savings. Before you dismiss your chances of the
IRS accepting your reasons for penalty abatement,
let me be the judge. Call
for an appointment to discuss the possibility
of saving hundreds or thousands of dollars in IRS
penalties.
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WHAT’S
THE ANSWER?
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Taxpayers
have the right to look at their own IRS file.
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Many
taxpayers would be surprised to see how much and
often how little the IRS actually knows about them.
Requesting such records is best done by an Attorney
who understands how the IRS works and can read the
coded documents in your file. The Attorney requesting
such information does not raise any red flags and
usually has the file information in 30 days. If
you're concerned about what they know about you,
we can take a quiet peek for you.
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Taxpayers
who find themselves at odds with the IRS should
never speak directly with the IRS, even if completely
innocent.
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Get
an Attorney who deals with them everyday to handle
the discussions.It's amazing how many IRS cases
are generated out of seemingly normal conversations.
Avoid worrying about IRS problems by having an experienced
Attorney take care of them. Your IRS Problems becomes
our problems. We can usually provide you immediate
help with any IRS problems.
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MYTH:
I can't afford to pay any taxes by April 15 ... so
I'll just file for an extension.
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Fact:
A taxpayer can obtain an automatic, four-month extension
for submitting Form 1040 by filing Form 4868 instead.
Payment of any estimated tax due is not required
with Form 4868 ... but a reasonable estimate of
the balance due must be provided. If you understate
the estimated tax due, the IRS can invalidate the
extension -- and assess late filing fees.
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Myth:
If I use the return label the IRS provides, I will
be more likely to be audited.
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Fact:
Using the peel-off IRS label puts a tax return into
a "routine processing" mode, rather than
singling it out for special processing. Your return
is no more likely to be audited. Fact: Using the
peel-off IRS label puts a tax return into a "routine
processing" mode, rather than singling it out
for special processing. Your return is no more likely
to be audited.
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| Q: |
Why is
the IRS bothering me for my ex-husband‘s taxes?
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| A: |
Most
likely it’s because you filed a joint tax return
with your ex-husband and you’re liable for the taxes
owed on the return. When you signed the return,
he may have told you or you just assumed that he
was going to pay the taxes owed with the return.
It appears that he never paid what was owed for
the year in question.
If
the taxes owed were from income that your ex-husband
earned, then you may not be responsible for any
of his taxes. Even if you signed the return in question,
you may qualify for a new type of tax relief called
“innocent spouse” relief. This new tax law gives
taxpayers suffering from situations similar to yours,
the ability to request that the IRS only collect
the tax from the individual taxpayer who was responsible
for the income.
You
may qualify for this great new change in the tax
law and not even know it. Some of the new innocent
spouse relief measures are only available for a
limited amount of time and the clock is ticking.
If
you're currently stuck with a tax bill from an ex-spouse
then by all means contact me to discuss your options
under the new innocent spouse relief.
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| Q: |
My
small business is having a problem keeping up with
our payroll taxes because some of my customers are
not paying me. I'm scared to file my payroll tax
returns and then have the IRS show up and close
me down. Any suggestions?
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| A: |
The
best advice I can give you may not be what you want
to hear, but it will stop you from getting in deeper
trouble with the IRS and it should help save your
business.
This
is what you need to do. First, prepare all old payroll
tax returns and file them with the IRS even if you
haven't paid a penny of the taxes owed. Second,
pay your payroll taxes current for the period you're
in today. Third, stay current with all future payroll
taxes. If you do these three things you have substantially
reduced the likelihood of the IRS closing your business.
If
you can't do these steps, then most likely your
business is in serious trouble as well as your personal
assets. The IRS is somewhat reasonable with business
owners who get behind in payroll taxes, but who
have at least filed all required payroll tax returns
and are current for this period's payroll taxes.
However there is no guarantee that your business
is completely safe when you owe payroll taxes.
Dealing
with the IRS directly on payroll tax issues is a
very delicate situation. One wrong answer could
spell the end of your company. I suggest that any
business with payroll tax problems get immediate
professional advice and avoid any direct personal
discussions with the IRS.
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| Q: |
I
just filed my last 7 years tax returns. I had refunds
for the oldest 4 years, but owed taxes for the most
recent years. The IRS wrote me a letter that said
they were not going to give me my refunds, but that
I still owed for the other 3 years. What's up with
this?
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| A: |
The
IRS is only required to pay refunds on tax returns
which are filed within 3 years of the due date of
the return. It sounds like your four oldest returns
must have fallen into this area because you filed
them so late.
I
realize this doesn't seem fair, especially when
those refunds could have been used to pay off the
other years in which you owed taxes. Any other reader
who thinks he or she may be entitled to refunds
for years not yet filed should contact my office
immediately. It's bad enough to have to pay taxes,
but to lose a refund for filing late is a bitter
pill.
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Let
Me Tell You A Dirty Little Secret That The IRS Will
Never Tell You…
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"The
best time to deal with the IRS is when you're down
and out."
When
you think it can't get any worse, it’s the best
possible time to scrape together the money to hire
a professional to end the inevitable. You know in
your gut those IRS problems won't go away by themselves.
Having
a professional wrap his arms around you and your
family can give you the confidence to go on with
day-to-day living while you let him fight the fight.
This allows you to stop worrying about threatening
phone calls, certified letters or the KNOCK AT THE
DOOR ... it lets you concentrate on getting back
on your feet.
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Many
Taxpayers Make The Mistake of Not Taking Advantage
of The Bad Times in Life To End IRS Problems.
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Believe
me, taxpayers who are upside-down financially are
usually in fantastic shape for ending IRS problems.
Take advantage of this temporary condition. Life
will get better... but IRS problems will still be
there. Many taxpayers qualify for IRS programs that
allow them to pay only pennies on the dollar for
taxes, penalties and interest.
If
you or anyone else you know is imitating an Ostrich
... this is your chance to pull your head out and
get some free advice. What have you got to lose...
except your financial life and any chance of retirement.
Call
my office today to set a free confidential consultation
and discuss your options. If you know someone else
with IRS Problems, Call For Them. You'll be doing
them a great favor and it's FREE. Call
Today!
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