Can an Offer in Compromise include current taxes?
- David Greene
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That sounds like a good plan; however, it will not work. In the first place, at this time one cannot file an Offer on 2012 taxes because they are not due until April 15, 2013. In order to make an Offer, one will have to file the 2012 taxes whether or not they are paid when filed,
Does a personal injury settlement have to be paid in an Offer in Compromise?
- David Greene
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Yes, the IRS will require that you include a personal injury settlement or any kind of law suit judgment as an asset and pay that to the government to retire the taxes. Thus an Offer in Compromise must be increased by the amount of the settlement. Our exemption statute
How can an IRS levy be prevented?
- David Greene
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The IRS can send one’s employer a Notice of Levy to withhold a portion of his paycheck. The employer will then withhold up to 60% of the paycheck depending on where the employee falls on a chart. Also, the IRS can freeze one’s bank account and seize funds in the account to pay
Tax Myths about Investments
- David Greene
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I will mention two myths about investments. First, is the myth of holding on to investments due to fear of capital gains tax. You should never hold an investment that has
Happy Thanksgiving
- David Greene
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Instead of dwelling on delinquent taxes and other legal problems today, I would like my readers to dwell on things we all can be thankful for in the Spirit of the Season. Like most folks, I do not enjoy paying taxes when I could be spending the money on my family. However, I realize that my tax
Comparison of a Trust and a Will
- David Greene
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One immediate difference is the cost. A will is cheaper to prepare than a trust and most attorneys can prepare wills, but do not know how to properly prepare trusts. However, cost should never be the deciding factor in planning your future.
Liens Compared to Levies
- David Greene
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A tax lien is a document recorded at the county register of deeds office which simply states that the individual owes the IRS the amount of money stated on the lien. If the person named sells real or personal property, that lien must be paid before the seller can convey clear title to the property. Thus a lien is a passive form of collection. In actuality, a tax lien arises when the tax is assessed. However, it is effective against third persons only after it is filed in the public records.
Offer in Compromise Not Available after Tax Evasion Conviction
- David Greene
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The Offer In Compromise program is available to anyone who owes back taxes, no matter how they arose, with one exception. If you are found guilty of fraudulently evading tax, you face criminal penalties and cannot do an Offer to pay restitution. I mention this because most schemes that
Does the IRS have to notify a taxpayer prior to a levy?
- David Greene
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The IRS must serve a Notice of Intent To Levy on a taxpayer by certified mail at least 30 days prior to executing a levy on wages or bank accounts. Hopwever, the definition of “service” is different for the IRS than for Court. In state or federal court, I must serve a defendant either in person or
Remedies for the Denial of the Child Exemption
- David Greene
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What can one do when she gets notice from the IRS that her dependent exemption has been denied? Usually, when the IRS denies the exemption for a child, it means that someone else filed before the one being denied and claimed the same child as an exemption. This usually arises when a stepparent and biological parent both claim the exemption. For the person who filed second, the