Why? How? When? Making designated payments to the IRS

When you make a payment to the IRS, it will be automatically applied to your account in a manner that is in the IRS’s best interest.
But what is best for the IRS in handling your payment can be different from what is best for you.
In some situations, it is in your best interest to make [...]

IRS collection threats: Myth vs. Reality

My clients with IRS collection problem come to me with different ideas about what will happen to them because they did not pay their taxes.  Is the IRS going to show up one day and seize my house?  Levy on my income so I cannot provide for my family?  Shut down my business?  When do [...]

IRS problems? 3 things to know before you jump in.

The best way to get relief from an IRS collection problem is to consider the complete picture before jumping in.  A quick way out may be desired, but it is important to look carefully before you leap.
Here are three things that I recommend that you carefully consider before taking on an IRS problem:
(1)     [...]

Are your social security benefits being levied by the IRS?

I was recently interviewed by a journalist for a story about the hardships of having the IRS levy a retiree’s social security benefits.
The reporter, who is courteous and professional, would like to speak to anyone who has been affected by the IRS taking their social security.  
If you would be interested in talking to this reporter, please email me at howard@voorheeslevy.com and [...]

Offer in compromise: Here’s how to value your income in negotiating with the IRS

If you are considering an offer in compromise with the IRS, the amount of money you make can play a crucial role in your settlement.
In an offer in compromise, the IRS will take what you earn, subtract what you spend (provided it is within government allowances) and arrive out how much money you have every month to repay [...]

Filing Chapter 7 bankruptcy on the IRS? A step by step guide to getting it done

Chapter 7 bankruptcy is a powerful tool when facing the IRS – it can eliminate an entire tax liability if properly done. 
To help with your understanding of how a Chapter 7 bankruptcy can help you end an IRS problem, here is a step by step guide.  Hopefully, it will make the process a  little less intimidating.
Step 1.     Have you filed [...]

Defaulted on your IRS installment agreement? Where do you turn now?

You promised the IRS a monthly payment that your budget could no longer bear.  Or you tried so hard to repay your back taxes that you fall behind on this year’s return.  Your intentions are good, but this has caused your IRS installment agreement to default.  Where do you turn next?
First, it is important to know that the IRS must send you a notice of [...]

Knock, knock – the IRS is at my door – how should I handle it?

I received a call this week from a small businessman in Cincinnati who had an IRS Revenue Officer sitting in his living room.  Technically, he did not have to let the Revenue Officer in his house, but he did.  I am glad he called me. 
My client handled the situation correctly – professional, courteous and honest.  This [...]

IRS collections in troubled times

Everyday, I see how the IRS is responding to people hurt by the economy. The Journal of Tax Practice and Procedure asked me to write an article about it  - ”IRS Collections in Troubled Times.”
Current IRS enforcement is centered on recovering government money that was spent to stabilize the economy.  As a result, the IRS is [...]

Non-filers with mortgages: The IRS might be watching

I received a call from a Wall Street Journal reporter on a story he was writing on an IRS announcement that they might use mortgage interest payments to identify non-filers.
It goes like this:  You have not filed tax returns.  You are self-employed and your income is not reported to the IRS.  But you own a [...]

keep looking »