A Primer on Trusts
- August 7th, 2012
- David Greene
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People create trusts for different reasons. The three primary ones are (1) avoidance of probate, (2) asset protection from creditors and (3) the ability to control your assets and how they are used for a long time after your death.
Bankruptcy as a tool for eliminating delinquent taxes
- July 17th, 2012
- David Greene
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Bankruptcy can sometimes be used to eliminate delinquent taxes; however the current bankruptcy law is very restrictive and is a “needs-based” law. Some taxes will be dischargeable and some will not. Because it is a “needs-based” law fewer consumers will be able to use Chapter 7 bankruptcy as a
When to submit a second Offer in Compromise
- July 10th, 2012
- David Greene
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One can submit more than one Offer in Compromise for consideration by the IRS. There is no minimum wait time between Offer submissions. Why would one want to do that? The primary reason to submit another Offer is when the taxpayer’s circumstances have changed for the worse,
Offers Made To Delay Collection
- June 19th, 2012
- David Greene
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Some people ask me to file an Offer in Compromise for them that they and I know will not be accepted. They just want to delay collection of the tax as long as possible. However, I do not do that for my clients. If I know my client will not qualify for an Offer, I seek other ways to solve his or
Changes to the Offer In Compromise Program
- June 12th, 2012
- David Greene
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Approximately two weeks ago the IRS announced a new set of rules to help determine if a taxpayer is eligible for an Offer In Compromise. One of the biggest changes is in the number of months of disposable monthly income (i.e. income minus allowable expenses) one has to add to
Offer In Compromise or Installment Agreement – Part 2
- June 5th, 2012
- David Greene
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In my last blog I stated that if the taxpayer does not qualify for an Offer in Compromise, then we look at an Installment Agreement that is intended to pay the debt in full by making equal monthly payments. However, sometimes the IRS will accept a payment amount that will not pay in full by the time the Statute of Limitations for collection (ten years from date of filing) expires.
Which is better: Offer in Compromise or Payment Plan?
- May 31st, 2012
- David Greene
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If you qualify for an Offer In Compromise due to your current financial situation, then it is always better to do the Offer. Often we can offer the IRS a small fraction of the total amount you owe. If the Offer is
Are Offshore Credit Cards Illegal?
- May 22nd, 2012
- David Greene
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Americans can do business in any country where allowed by that country. Therefore, having an offshore credit card is not illegal. However, most of these cards are designed to evade income tax and that is
Are income taxes unconstitutional?
- April 24th, 2012
- David Greene
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Is the income tax illegal and unconstitutional? I get inquiries about this matter every year around April 15. First let me state that the collection of income tax by the federal government is legal pursuant to
Events That Trigger Audits
- April 12th, 2012
- David Greene
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Some tax returns are more likely to be audited than others. Why is this? I can think of eleven practices that lead to a greater risk of audit. First is using a “sketchy” tax preparer. This is one who promises large refunds and puts bogus deductions you did not authorize. Always review your return – you are legally responsible for its contents. Second is failing to file your taxes. Always file the return even if you cannot pay. This alone avoids several tax penalties. Third and fourth are owning a business and/or claiming a