Archives for September 2011

Southern California Couple Scammed Could Have Found Tax Relief With The Tax Resolution Institute

When innocent American citizens are taken advantage of by dishonest tax resolution companies who make false and misleading promises, it angers the tax experts at the Tax Resolution Institute. Tax scams not only hurt the innocent, the resulting tax complaints also darken the reputation of our industry. The mission of the Tax Resolution Institute is to help people with serious IRS and state tax problems obtain a favorable result, leaving them happy instead of desperate.

California Couple With IRS Income Tax Debt Scammed

California Couple With IRS Income Tax Debt Scammed

A perfect example of such a tax scam was recorded in a tax complaint that a Southern California couple recently posted on the Internet. After receiving notices from the IRS demanding payment for an income tax debt of over half a million dollars, the couple hired so-called tax resolution specialists from an advertisement they saw in a reputable media source. Upon contacting the firm, the couple was pressured into paying the firm’s full fee of over $4000 up front. Since they were promised a swift and speedy resolution to their IRS income tax debt for pennies on the dollar, they thought the offer made sense. What they did not realize is that when an offer sounds too good to be true, it usually is a red flag for a tax resolution scam.

After the couple submitted all requested paperwork and paid the fee up front, they were surprised when they did not hear from the scandalous company for several weeks and notices from the IRS continued to arrive in their mailbox, they tried to contact anyone at the company for an explanation. As the couple continued to receive notices and subsequent collection actions from the IRS in regards to their delinquent income tax bill, they were shocked that nobody they originally had worked with at the company would return their phone calls. When they did get in contact with anyone other than a secretary, they were treated rudely and inappropriately. They wrote the company multiple letters, called day in and day out, and did everything they could to get the tax resolution services they had paid for up front. But nothing happened and they realized they were the victims of a tax scam.

Bankruptcy and Tax Dischargeability

Bankruptcy and Tax Dischargeability

Due to the lack of response from the company and continued pressure from the IRS in regards to their income tax debt, the Southern California couple was forced to find new representation. With a bank levy and wage garnishment hanging over their heads, they had no choice but to hire a tax attorney. When the new attorney requested information from the dishonest tax resolution company originally hired, he was told that all of the case file contents were destroyed once the couple hired new representation. In addition, the couple had filed for bankruptcy with the belief that their IRS income tax debts would be discharged. Unfortunately, this was not the case. Their attorney did not tell them that taxes need to age before they can be discharged.

What is so frustrating is that if the Southern California couple had hired the Tax Resolution Institute, the outcome would have been radically different and positive. Once the couple contacted TRI they would have received a comprehensive consultation at no charge. Upon completing the consultation, the couple would have been given a concise estimate of costs. If they chose to proceed, they would have been sent agreement, including a power of attorney that would allow TRI to contact the IRS.  Once they had reviewed and signed this necessary paperwork, they would have made a partial payment of the overall fee and their tax case would have begun.

Once retained, TRI would have reviewed the previous Bankruptcy by completing a Tax Dischargeability Analysis (“TDA”) to determine if the taxes had “aged” sufficiently to be discharged.  If so, the tax attorneys at the Tax Resolution Institute would have made a case on behalf of the couple to the IRS and State. If the tax attorney did not allow the taxes to age sufficiently before “pulling the trigger” on the previous bankruptcy, TRI would proceed with efforts to negotiate on behalf of the client with regards to the collection issues.

The Tax Experts at the Tax Resolution Institute would find a solution to the couple’s delinquent income tax problems. Whether the solution was an Installment Agreement, an Offer in Compromise or Currently Not Collectible Status, the Southern California would have come away satisfied with the outcome. TRI would have remained in regular contact with the couple giving them consistent status updates and answering their questions and concerns as they arose. With an extensive list of satisfied clients and a impeccable reputation of delivering the best in tax resolution services, the Tax Resolution Institute is a light shining in the darkness of tax complaints, tax schemes and tax scams.

Orange County Alert: Serious Consequences For Unpaid Payroll Taxes For Business Owners

Due to a challenging economy,  number of big and small businesses in Orange County, ranging from Newport Beach to Irvine,are in constant struggle with their payroll tax deposits. Most of them have trouble keeping up with their unpaid IRS payroll taxes and they default on the trust fund. This article should serve as an alert to business owners in Newport Beach, Irvine and across Orange County that not covering your trust fund and failing to pay your payroll taxes can be the death knell for your company.

You should never treat payroll tax debt carelessly because it can lead to bank account and wage levies that can destroy your business. It is very dangerous to disregard or delay the resolution of such a tax debt because it could mean the end of your company. Unpaid payroll taxes are considered by the Internal Revenue Service as theft and the accompanying  penalties can include imprisonment. Unpaid IRS payroll taxes if not resolved immediately can lead to the padlocking of a business’ doors without a court order. Aside from that, unpaid IRS taxes will result to equipment seizure and contacting of clients to intercept payments owed. If it does not close your doors, such a tax scandal will destroy your reputation.

Fortunately, there are ways to get out of this financial tax mess. To get IRS tax relief for a payroll tax debt, you should contact a tax professional like the Tax Resolution Institute so action can be immediately taken. TRI can properly negotiate an IRS payment plan or an installment agreement. We can turn your IRS nightmare into a successful example of tax relief.

The IRS has special means of knowing who is responsible for failing to file payroll taxes or pay the Trust Fund. Never forget that the Trust Fund recovery Penalty is called the 100% Penalty for a good reason. The IRS can go after everyone in a business, including the owners, shareholders, officers, accountants and bookkeepers. In such cases, it is very risky to negotiate with the IRS on your own because there are legal and technical hurdles that can seriously hurt your case and your finances.

A qualified tax professional like the tax attorneys and CPAs at The Tax Resolution Institute can help protect and safeguard your future. Our tax professionals can negotiate for an IRS payment plan or Installment Agreement that suits your qualifications and financial condition. If you are experiencing a payroll tax crisis in Orange County  or anywhere else in the United States, contact the Tax Resolution Institute today for help.

Long Beach Attorney Almost Loses His Huntington Beach Home, Paying His Mortgage And Not The IRS

The recession in California has hit everyone across the board, and wealthy homeowners have found themselves often caught between paying their mortgage or the IRS. When they choose to pay the mortgage and ignore their income tax debts, disaster often results when the IRS catch up with them. A perfect example is a recent TRI client who works as a top attorney in Long Beach. He lives in Huntington Beach with his family in a beautiful, but very expensive beachfront home. And he came close to having his assets seized and having his home placed in real jeopardy.

Your Home Is Your Number One Asset

Your Home Is Your Number One Asset

When work at the Long Beach attorney’s firm slowed down significantly, he suddenly found himself caught in a bind. Unable to cover both his income tax debt and his mortgage payments, he chose to let the income taxes slide in order to protect his family and their home. Unfortunately, his attempt to protect his family backfired when the IRS caught up with him. Faced with a delinquent income tax bill that totaled over half a million dollars, including late fees and penalties, he was caught between a rock and a hard place. Without the money to pay the delinquent income taxes, would his family’s home be seized in Huntington Beach since it was his only asset that could cover the amount that he owed the IRS? Asset seizure is a fear of people with large delinquent income tax bills.

IRS Installment Agreement Makes Sense And Works

IRS Installment Agreement Makes Sense

Luckily, before his assets were seized, his wages garnished or his bank accounts levied, he contacted Peter Stephan and the tax experts at the Tax Resolution Institute. With extensive experience handling Orange County income tax cases, Peter Stephan has worked with the local IRS Revenue Officers. Putting his expertise to work, an Installment Agreement was negotiated for the Long beach Attorney that would protect his family’s home in Huntington Beach. In fact, it wouldn’t even dent his wallet all that much and there would be no asset seizure.

The Long Beach attorney was happily surprised when he learned that the amount owed monthly to the IRS under the terms of the Installment Agreement was $250 a month. Yes, that’s right, two hundred and fifty dollars a month on a half a million-dollar tax bill. If you live in Orange County and you have a serious income tax debt, please contact the Tax Resolution Institute for the best in tax resolution services before it is too late. We can help you today if you call toll free


Orange County Construction Firm With Clients From Newport Beach to Irvine Finds Payroll Tax Relief With TRI

When a major construction firm in Orange County failed to cover their payroll taxes and was caught by the IRS, the future of the company was put in jeopardy. The Internal Revenue Service considers the payment of payroll taxes to be an inviolable trust with business owners. A violation of such a trust is not taken lightly, and there is a reason why payroll taxes collected are referred to as the Trust Fund.

Trust Fund Recovery Penalty

Trust Fund Recovery Penalty

The Trust Recovery Penalty is one of the most severe financial penalties in the world. Known as the 100% penalty, the Trust Fund Recovery Penalty means that business owners have to match in a penalty amount whatever payroll taxes they missed. With active commercial projects from Newport Beach to Irvine, the Orange County construction firm was close to having its doors permanently closed. In addition, in a down economy where finances are tight, clients were holding off payments until work was completed.

Owing almost $200,000 to the Internal Revenue Service, the Orange County construction firm knew it was in a serious bind. Luckily, a local distributor had gone through a similar payroll tax problem and recommended the tax resolution services of the Tax Resolution Institute. Contacting Peter Stephan and the tax experts at TRI, the owners of the firm reached out for the best professional tax help available.

Since one quarter already has passed, the Trust Fund Recovery Penalty was going to be assessed and the firm did not have the funds on hand to cover the amount owed. The tax attorneys at the Tax Resolution Institute went into immediate action, negotiating with the Revenue Officer at the Internal Revenue Service. What was needed was penalty abatement, and this is exactly what the Tax Resolution Institute tax attorney achieved. The first quarter penalty was abated, and a viable Installment Agreement was negotiated.

OC Construction Firm Payroll Tax Relief

OC Construction Firm Payroll Tax Relief

When Peter Stephan came back with the tax resolution answer and the penalty abatement news, the owners of the Orange County construction firm were relieved to say the least. The Installment Agreement called for payments of $10,000 a month to cover the past payroll tax debt with no penalties. If the owners stay in compliance, their company’s doors will stay open. Moreover, their commercial clients from Newport Beach to Irvine would never hear about their delinquent payroll taxes. After all, who feels comfortable doing business with a company in the midst of a tax crisis?

If your company in Orange County is going through a payroll tax crisis, the Tax Resolution Institute can help. From Anaheim to Irvine, Fountain Valley to Newport Beach, we have helped Southern California businesses stay in business. In these challenging times, a payroll tax crisis does not have to mean the closing of your company’s front door.