The Internal Revenue Service mainly uses lien foreclosures when it’s going after the primary residences of people with overdue tax debts, but taxpayers don’t get the same legal protections as they would enjoy under the seizure process, according to a new report. The report, released last week by the Treasury Inspector General for Tax Administration, […]

This time last year, the IRS was processing federal returns with few problems — nearly 138 million by the third week in May. This year, with staff sent home because of the novel coronavirus, the agency has only processed 117 million returns, down 14 percent from last year, according to the latest statistics for the […]

Doubt As To Collectability The Offer in Compromise (OIC) for doubt as to collectability is a settlement initiated by a taxpayer based on a snapshot of the taxpayer’s financial situation.  In many cases, taxpayers can settle large tax debts for significantly less than they owe. The IRS will consider a client’s Reasonable Collection Potential (RCP), […]

The IRS has the power to garnish or legally seize any income you make to satisfy federal tax debt or taxes owed. Garnishments can apply to your hourly wages, salary, commissions, and bonuses. The IRS will contact your employer directly and require them to directly send the IRS a portion of your income. Your employer […]

The IRS officially launched the Fresh Start initiative (FSI) in 2011 in order to help taxpayers get a “fresh start” with their tax debt.  The goal of the program was to help taxpayers and small businesses with paying back taxes and avoiding tax liens. It was expanded in 2012, with new changes to existing resolutions […]

Cuts in the IRS budget from $14 billion in 2010 to approximately $12 billion in 2017 have resulted in staff reductions by about one-third during that time frame.  IRS staffing dropped to less than 10,000 agents for the first time since 1953. As a result of the cuts, audit rates have dropped for all income […]

Tax Fraud Blotter Fair Oaks, Calif.: Tax lawyer Hiram M. Martin, 71, who represented retired professional football player Antrel Rolle, has been sentenced to three years in prison today for fraudulently obtaining refunds for Rolle, stealing the refunds and then covering up his scheme by filing false documents with the Internal Revenue Service. Martin, who […]

Will my IRS debt ever just go away?  Will there ever be a time that the IRS will just leave me alone? Yes, and yes. The collection of most every IRS debt eventually ends, and that would include yours.  This is called the statute of limitations on IRS collections.  The Internal Revenue Code gives the […]

Information About IRS Wage Levies If the IRS levies (seizes) your wages, part of your wages will be sent to the IRS each pay period until: You make other arrangements to pay your overdue taxes, The amount of overdue taxes you owe is paid, or The levy is released. Part of your wages may be […]

Just about the most common problem self-employed people and partners make is failure to pay estimated tax payments.  It is hard enough being a small business, and rent is due or you have employees to pay.  But according to the IRS, you must pay them first. Taxes must be paid as you earn or receive […]