Offer in compromise: Think twice if the statute of limitations is almost up.

I often have clients who are very focused on an offer in compromise.  But before we plunge in, the first thing I do is check on how much longer the IRS has to collect the tax.
Here is why:
1.     An offer in compromise extends the timeframe the IRS has to collect by amount of [...]

Can I use my bank account again after an IRS levy?

A common question about the impact of an IRS levy on a bank account:
I just looked up my bank account balance, and saw that the IRS sent a levy to my bank.  The bank took almost $2,500 out of my account.  I am scared to put more money in the account – I do not [...]

Unpaid payroll taxes: The best way to make a payment.

I recieved a good question about how the IRS applies payments on employment tax liabilities.  The question was in response to my article and recent post about IRS trust fund investigations.
This is important.
If a business does not specifically designate the application of  a payment on an employment tax liabilty, the IRS will apply the payment [...]

I owe back taxes to the IRS. Now what? Part I of II

Every IRS problem has a solution.  Some solutions are quick.  Other workouts require more creativity, planning and patience.  When meeting with a client  - or during an initial telephone consultation – I like to discuss the following options and how each might fit in towards the ultimate goal of a fresh start:
1.   Offer [...]

I owe back taxes to the IRS. Now what? Part II of II

In addition to (1) offers in compromise, (2) bankruptcy and (3) uncollectible (See Part I, above), here are three more solutions to owing back taxes to the IRS:
4.      Statute of limitations on collection.  The IRS has 10 years to collect unpaid taxes – starting from when the IRS puts the tax liability on [...]

Trust Fund Interview and Form 4180

In today’s difficult economic environment, expect more businesses to resort to using payroll tax money to stay afloat and a corresponding increase in IRS enforcement measures. With bank lending tight, employee tax withholding is a ready —but dangerous—source of immediate operating capital.
But the IRS does not like being made an unwilling partner to a loan…
Read [...]

Who do you pay first – IRS debt vs. credit cards?

It is not unusual for my clients to find themselves indebted to two masters – the IRS and credit card companies.  Both want a piece of the pie, but there is not enough to go around.  So who do you pay first? How do you make both go away?
The IRS comes first.  Here’s why:
1.   [...]