What is an IRS Lien?
- David Greene
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When the IRS assesses a tax against a taxpayer (income, payroll or other tax) a lien automatically arises by law to secure the payment of the tax. If the tax remains unpaid, the IRS will almost always record the lien at the Courthouse in which the taxpayer lives or owns property.
When can you file an Offer in Compromise based on Doubt as to Liability?
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If you are charged with delinquent taxes that you genuinely feel you do not owe, there is a process you can use to challenge the tax. It is the Offer in Compromise based on “Doubt As To Liability”. There is no filing fee for this Offer. As the name implies, you state to the IRS that you do not think you owe the tax. However, you
User Fee for an Installment Agreement
- David Greene
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If a taxpayer cannot pay his delinquent or current taxes in full or within 120 days, he can enter into a payment plan with the IRS to full-pay the tax over time. This is called an Installment Agreement. The IRS used to charge a user fee of $43.00 to set up the account for the Installment Agreement. However,
Procedure After Denial of Offer in Compromise
- David Greene
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When an Offer in Compromise is denied, one has several options to proceed. If the Offer Specialist is correct and the Offer cannot stand, one can simply abandon the Offer process and negotiate an Installment Agreement to full-pay the tax.
Are Delinquent Taxes Dischargeable in Bankruptcy?
- David Greene
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The current bankruptcy law ushered in sweeping changes in how bankruptcies are handled and what can be discharged. It is a very restrictive law. As under the previous law, some taxes will be dischargeable and some will not. Perhaps the biggest restriction is that many people who would have qualified to file for
What is a Dissipated Asset
- David Greene
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When negotiating an Offer in Compromise with the IRS, they will often say that you have a dissipated asset and they add the value of that asset (usually cash) to the amount that you have offered. A Dissipated Asset occurs when (1) you have delinquent taxes and (2) you obtain a sum of money from any source and (3) you spend that money on something other than the delinquent taxes.
How to decide when a worker is an Independent Contractor or Employee
- David Greene
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Many small business owners like to save the hassle of withholding taxes from the paychecks of their workers, so they pay them their entire pay and issue 1099’s at the end of the year instead of W-2’s. Are there any rules that determine when one can do this, or can each business owner decide on his own?
The Importance of a Power of Attorney – Part 2
- David Greene
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This week I’ll discuss in more detail why a general durable Power of Attorney is, indeed, important. The word “durable” refers to the fact that a general durable POA is valid even when the grantor of the power cannot act on his own. The POA is usually granted to a spouse or adult child but it can be granted to anyone you trust to handle your affairs.
The importance of a Power of Attorney
- David Greene
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A durable Power of Attorney (POA) is a document giving legal authorization for someone else to act on one’s behalf. This power is usually actually used only when and if the grantor of the POA is incapacitated, but it can be useful in many other ways also. It can save time and money for the person granting the POA as well as a lot of heartache for the loved ones of the grantor if that person is incapacitated.
How Are Prizes One WIns Taxed?
- David Greene
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Many people win prizes in various contests ranging from a free dinner to thousands of dollars (or millions in the lottery). Most people think this is free money to them because they did not “earn” it.