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IS FILING BANKRUPTCY AN OPTION?

The decision to file or not to file for bankruptcy is a difficult one.  Tax and non-tax considerations must be evaluated prior to making a decision to file a bankruptcy to resolve your tax debt. One of the most important benefits of filing for bankruptcy is...

WHAT ARE MY OPTIONS IN DEALING WITH COLLECTION OFFICERS?

There are only a limited number of options in negotiating a resolution to tax payment issues with an IRS Collection officer. You may make payments over time (an installment agreement); you may submit an Offer in Compromise (this means you believe that you can never...

IS THERE A WAY TO FREEZE IRS COLLECTION ACTIONS?

Once you owe money to the IRS, their collection process becomes severe after a point, and can include the garnishment of wages or attachment of your bank accounts (levy actions), and seizure of your assets, both business and personal. Other than filing for Bankruptcy, the...

WHAT SHOULD I DO IF I OWE THE IRS PAYROLL TAXES?

When economic times are hard, many business owners choose to use the funds they collected and withheld from their employees’ payroll checks (trust fund taxes) to meet their business expenses. The employee’s share of FICA (Social Security tax) and income tax withholding is called trust...

WHAT EMPLOYMENT TAX ISSUES DOES THE IRS LOOK FOR?

One of the major issues the IRS often tries to establish in an audit is the reclassification of independent contractors to employees. This occurs when companies try to avoid paying employment taxes and worker compensation premiums (overtime, vacation and sick time, employer mandated 401(k) and...

WHAT PENALTIES CAN BE ASSESSED BY THE IRS AND HOW CAN I GET THEM ABATED?

MOST COMMON PENALTIES IMPOSED: The most commonly assessed penalties are: Failure to file timely (IRC 6651(a)(1)) Failure to pay tax timely (IRC 6651(a)(2)) Failure to make deposits on time (IRC 6656) Failure to make estimated tax payments (IRC 6654)   AUDIT PENALTIES: Accuracy related penalty (IRC 6662) Civil Fraud (IRC 6663)   The IRS imposes penalties...

WHAT IS THE IRS VOLUNTARY DISCLOSURE PROGRAM ABOUT?

A voluntary disclosure is a truthful, complete and timely disclosure by the taxpayer of a tax violation, before the taxpayer is contacted by the IRS. The procedure, if used correctly, may allow the taxpayer to avoid criminal prosecution and pay a fraction of the penalties...