Tax Debt – The Automated Collection System

The Automated Collection System (ACS) is the collection method most often implemented by the IRS. Millions of Americans nationwide have experienced or are currently experiencing this system. Often the first notification most taxpayers have that they have developed tax debt, the ACS is a largely computerized system and sends almost all of the notices and [...]

IRS Penalty Abatement – Reasonable Cause

The Internal Revenue Service charges IRS Tax Debt penalties and interest for failing to submit payment or file a tax return by the appropriate due date. While these charges are constructed to ensure proper and prompt payment and submission of documentation, they can add a substantial amount of debt onto the taxpayer’s initial liability, oftentimes [...]

Installment Agreements – Successful Tips

Whenever a taxpayer has a back tax problem, they must make sure that they deal with it right away. The first IRS program that many people go to is the Offer in Compromise program. But considering that approximately 85% of taxpayers with back tax issues do not qualify for an offer in compromise, negotiating an [...]

Getting Your IRS Tax Levy Released

Before an IRS Tax levy is placed on wages, bank accounts, tax refunds, etc., a Notice of Intent to Levy will be sent to the taxpayer, along with the individual’s rights to appeal the levy. If an individual does not respond in time to negotiate an alternate means of collection through any other IRS tax [...]

IRS Tax Levy – How To Protect Social Security Benefits

The Federal Payment Levy Program (FPLP) allows for certain Social Security (SS) benefits to be subject to an IRS tax levy. In fact, all benefits described in the Social Security Act, Title II, may be levied, which includes, Survivors, Disability Insurance, and Federal Old-Age Benefits. To pay a tax liability, a 15% IRS tax levy [...]

When Does Tax Debt Lead to A Tax Levy

Levies and liens are often confused. While a lien is merely a security for tax debt, a levy, on the other hand, is the process by which the asset is seized and sold to reconcile tax debt.
An IRS tax levy can be assessed after:
(1) The IRS sends a Notice and Demand for Payment;
(2) The taxpayer [...]

Do I Need a Tax Lawyer for my Offer in Compromise?

Often there are circumstances that arise when a taxpayer has accumulated a substantial tax liability that clearly exceeds any ability to pay in a lump sum. In this situation, the taxpayer should consider hiring an Offer in Compromise attorney to handle the negotiations with the IRS.
The IRS applies the same collection standards utilized in installment [...]