News

On April 13th, 2011, ABC News ran a story exposing a National Tax Resolution Company's unethical business practices, taking clients' money and not representing them in the most professional way.

Tax Bankruptcy is a complicated legal topic that goes beyond the scope of a newsletter. However, we would like to share some basic issues that you need to understand if you're even considering bankruptcy as an option to relieve your tax debt.

One way to get out of IRS debt is to be declared "Currently Non-Collectible" (CNC) by the IRS. Note the term "Currently".... As the name implies, Currently Non-Collectible means the IRS considers that your current financial situation makes it impossible for you to pay your taxes and they determine that they cannot collect the money from you...at least not for now.

Every month I choose a very special Client of the Month. It's my way of acknowledging good friends and saying "thanks" to those who support me and my business with referrals, word of mouth and repeat business.

On April 8, 2009, in Houston, Texas, Carlos Garcia was sentenced to a year and one day in federal prison and ordered to pay $245,786 in restitution above the $700,000 already paid for filing false income tax returns for Taqueria Arandas No. 12 Inc., through which he operated a restaurant at 10403-A Gulf Freeway in Houston. Garcia pleaded guilty on October 24, 2008, admitting in pleadings filed that day that he had filed Corporate Income Tax Returns for Taqueria Arandas No. 12 Inc., for tax years 2001 through 2004 that under-reported sales by approximately $2,813,156.

On October 27, 2008, in Salt Lake City, Utah, David Roger Hemmert, was sentenced to 12 months and a day in prison and ordered to pay $134,614 in restitution for federal income tax evasion. Hemmert, owner and operator of Northwind Roofing, Inc. (Northwind), pleaded guilty in August 2008 to one count of tax evasion.

The IRS can take 15% of your Social Security payments to satisfy your tax debt. Prior to 1996, there was a $750/month "off limits" amount that had to be left for the Social Security recipient.

Is it really possible to pay the IRS "pennies on the dollar" and have the rest of your tax bill forgiven? Yes – it is possible...but it's not very likely. It's called an Offer-In-Compromise and it used to be the only legitimate way to negotiate an actual lowering of the amount of taxes owed to the IRS by a taxpayer...sometimes far less.  However, since the IRS has seen so much "abuse" of this particular method of tax relief in recent years, they have shown by their actions that they are less and less apt to accept an Offer-In-Compromise.

The IRS has recently released data concerning unemployment insurance claims in 2008 and the data revealed that benefits were collected by nearly 3000 individuals who are considered millionaires. Of those 3000, 806 made over 2 million and 17 made over 10 million.

The IRS has the power to assess penalties in over 147 different situations. Almost every person or business suffering from an IRS problem owes the IRS even more money because of penalties. What you probably don't know is that the IRS writes-off approximately 50% of all penalties. The IRS calls the act of "writing-off" or eliminating a penalty an "abatement". The IRS does not normally volunteer any information about the likelihood to do this. You MUST ask!