Collection Methods of the IRS – Part 2

• David Greene
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Last week I mentioned several methods of collection.  This week I will discuss seizures in more detail.  If a taxpayer still does not pay after a levy, the case will then be assigned to a particular revenue collection

IRS Methods of Collecting Delinquent Taxes

• David Greene
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When one does not pay taxes, he will first receive a friendly letter stating that he has overdue taxes and asking him to pay them in full.  This letter usually comes within six months to a year after the due date.  If he ignores this letter, his file will then be assigned to the ACS (Automatic Collection System) branch and

Tax Tips for the Unemployed

• David Greene
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This week I’ll discuss some tax tips that can help you if you’re unemployed.

First, calculate your taxes before the end of the year.  If you were unemployed for part of the year or held several jobs during the year, the amount of tax withheld may not be enough to cover your entire tax bill.  In October or November you should prepare a preliminary tax estimate to see where you stand.  If it looks as if you might owe additional tax, you can perhaps give to charity or donate more to your retirement account to offset the tax.

HAPPY THANKSGIVING

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My staff and I want to take this opportunity to wish for you a very happy and joyous Thanksgiving and  I want to thank you for being my clients, my readers and my friends.  Also, I want to urge all of my readers to dwell on things we all can be thankful for in the Spirit of the Season.  I’m sure that for every negative situation we face, we can offset it with a positive situation for which we can be thankful.   I do not like

Tax Tips For Newly Married Couples

• David Greene
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Generally a married person has two options for filing tax returns – joint or marred filing separately.  If the taxpayer files married filing separate and her spouse owes delinquent taxes, the IRS cannot seize any

Mixing Corporate and Personal Liabilities in an Offer in Compromise

• David Greene
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In my last blog I discuzssed this scenario for the situation where the company is unincorporated.  This week we look at a small corporation where one or two people own all the stock.  This analysis will usually also apply to an LLC or LLP.  First, if the corporation is still in business, two separate Offers will need to be filed.  This is

Will one Offer in Compromise suffice if a business owner owes both income and payroll taxes?

• David Greene
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If the company is a sole proprietorship (i.e., not incorporated) or a Partnership the taxpayer may be able to choose whether to file one or two Offers if he owes both kinds of taxes.  It does not matter whether the company is out of business or still in business.   It is assumed that the company reports the company income on a Schedule “C” under the taxpayer’s Social Security number on his 1040 form.  If so the taxpayer can file

When is Failure to File or Pay Taxes a Crime

• David Greene
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There is no question about the fact that one can face criminal charges and spend time in federal prison for failure to file and/or pay taxes.  There is “equality of opportunity” when it comes to this area.  The IRS does not care if the violator is an individual, business man, politician, “famous person” or anyone else.  They will go after anyone they feel has violated the law.

Will the IRS release a Levy based on economic hardship?

• David Greene
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Usually, in order to release a levy one must enter into an Installment Agreement or propose an Offer in Compromise.  One must also be current with all tax filings since 2004.  Without the proposed solution and

What events extend the Statute of Limitations for collecting tax?

• David Greene
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The IRS has 10 years to collect your income tax, but that time does not start running until you file the tax return and it is assessed (meaning entered into their computers).  If you do not file your return until  4 years after it is due, then the statute will not begin running until 4 years later also.  However, several events will temporarily stop the time from running and thus make the time to collect longer than 10 years