Archives for October 2011

How Could This Happen To Me? Peter Stephan On Why The Wealthy Have Serious Tax Problems Today (Part 2)

Peter Stephan of the Tax Resolution Institute gave an in-depth interview at the beginning of October about the wealthy and their sudden increase in income tax difficulties. In Part 2 of this interview, Mr. Stephan shows how initial financial difficulties spiral out of control. Once the money crunch hits the home, wealthy families tend to make bad choices. After all, if they have a couple of kids in private schools or in college, what comes first: the education of the kids or their IRS income taxes? From the wealthy couple’s perspective, obviously the kids come first, but not according to the Internal Revenue Service.

How Did This Happen To Me?

How Did This Happen To Me?

Peter Stephan points out that such protective perspectives quickly become a recipe for financial disaster. Mr. Stephan repeatedly has seen wealthy couples in Orange County and the San Fernando Valley who were bringing in an average of $35,000 a month in income during the good old days. Suddenly that becomes $3,500 a month, and the family is suddenly no longer sustainable as a unit.

Buried in credit card debt with a second mortgage and with all the value taken out of their equity line, such families are no longer affluent. They find themselves in serious financial trouble, and they find the IRS notices in their mailboxes. When the C-504 notice evolves into a Notice of Intent To Levy from the Internal Revenue Service, action has to be taken before there is no turning back. It’s no use asking how this could possibly happen to you. As Mr. Stephan points out from his years of expertise and experience, tax problems can happen and do happen to everyone across the financial board.

When Finances Collapse, You Ignore Your Tax Bill

When Finances Collapse, You Ignore Your Tax Bill

Peter Stephan understands how hard it is for a successful business owner with serious financial obligations whose business suddenly drops off a cliff and is not coming back to health any time soon. Often there is a trickle down effect because they had family working in the business. Not only can they not sustain themselves, but also the crisis is like a contagious disease that the whole extended family catches. This type of financial disaster is what Peter Stephan refers to as the “Snowball Compound Effect.” What becomes essential is to recognize that the problem is not going to resolve itself and proactive steps must be taken.

When such new clients enter the office for a consultation, Peter Stephan is straightforward and honest with them. Mr. Stephan knows that other people tend to put on a happy face and promise pennies on the dollars. In contrast, Peter Stephan and the Tax Resolution Institute deal with real solutions that will solve a tax problem. Whether it is a bankruptcy where the delinquent income taxes can be discharged along with the credit card debt if the proper amount of time has passed or even Currently Not Collectible status, what is essential is to give the family the time to regroup and put their lives back on track.

Let Us Help You Make A Fresh Start!

Let Us Help You Make A Fresh Start!

Yes, the once wealthy couple might have to move into a smaller rental or send the kids to public school, but this is not the end of the world. What is the end of the world is to ignore an income tax tax problem and a financial crisis until there are no viable options left to take. In a majority of cases, less drastic measures are needed, and an Offer In Compromise or an Installment Agreement can work as a positive resolution.

The goal of Peter Stephan and the Tax Resolution Institute is to provide their clients with the best tax resolutions that work and solve the delinquent tax problem at hand. It is true that serious tax problems happen to wealthy people in this tough economy. If you take action and contact the Peter Stephan and the Tax Resolution Institute, viable tax resolution answers can be found as well.


How Could This Happen To Me? Peter Stephan On Why The Wealthy Have Serious Tax Problems Today (Part 1)

Peter Stephan of the Tax Resolution Institute gave an in-depth interview at the beginning of October about the wealthy and their sudden increase in income tax difficulties. In Part 1, Mr. Stephan describes how he is seeing so many wealthy families and individuals come to him with serious delinquent income tax problems with the Internal Revenue Service and their local state taxing agencies. In Part II, Peter Stephan explains how those tax problems continue to spiral out of control and offers potential solutions.

How Could This Happen To Me?

How Could This Happen To Me?

In well-to-do communities throughout Southern California, particularly in Orange County and the San Fernando Valley, Mr. Stephan has found a bevy of new clients in desperate need of help and wondering to themselves: “How could this possibly happen to me?” Peter Stephan explains how people with a history of a good income always believe that the next big job is just around the corner. For years, they have made tons of money, spending it almost as fast as it came in. They expanded their businesses, bought expensive homes, sent their children to private schools, and enjoyed the expensive toys of the affluent.

Independent Contractors and entrepreneurs who run their own businesses, particularly real estate brokers and high-end sales people, were slammed by the downturn in the economy. Suddenly their income was cut in half or more, and it does not appear to be coming back any time soon. The truth is that the recession and the contraction in the overall American economy hit everyone hard. When your family is used to having two big paychecks coming in every month, it is hard enough when one of those income sources is reduced.

Where Has All The Money Gone?

Where Has All The Money Gone?

Peter Stephan described how he has seen a multitude of couples where both parties were decimated when the economy in California went sour. The husband lost his job at the same time that the wife’s business went south, resulting in a sudden lack of cash for the first time in many years. How does a well-off couple maintain their lifestyle without the cash flow? Mr. Stephan calls such an attempt to not face reality a “Snowball Compound Effect” that just gets bigger and bigger.

First, the couple starts borrowing on their credit cards to pay their bills and support their family, leading to more and more debt. Second, as the recession hit the real estate market, their home value drops at the same time that their mortgage increases due to the variable rates. As the bills keep piling up and they can’t borrow any more money from friends and family, paying their taxes get lower and lower on the list of priorities.

The Weight of the Growing Debt can be Overwhelming!

The Weight of the Debt is Overwhelming!

If the family has their own business, they often stop paying payroll taxes as well, “borrowing” money from the Trust Fund. The IRS considers playing with payroll taxes and borrowing from the trust fund to be nothing less than theft from the Federal government. There is a reason why the trust fund recovery penalty is called the 100% Penalty. As the piling debt speeds up and bad decisions increase, Mr. Stephan described how you almost hear the Sonic Boom as the crisis gets wildly out of control.

In Part 2 of this article, Peter Stephan will show how and why the financial problems spiral out of control for a wealthy family in tough economic times, leading to a serious delinquent IRS income tax crisis. But there also is an answer. Mr. Stephan demonstrates how the Tax Resolution Institute can provide workable solutions that can provide real tax relief and lead to a new start before the crisis reaches the point of no return.


Question Of A Taxpayer In Trouble: If I Declare Bankruptcy Will My IRS Income Tax Debt Forever Go Away?

The answer to this common question is yes, but with specific conditions and reservations. The Tax Lawyers at the Tax Resolution Institute have the experience and the expertise to know when and how to use a bankruptcy to clear a delinquent IRS tax debt. Declaring and filing for bankruptcy can clear some types of IRS income tax debt.  There is an important reservation that must be understood. It will not clear, however, a federal tax lien that has attached to your assets.

Time Limits and IRS Tax Debts

Time Limits: Bankruptcy and IRS Tax Debts

If no IRS tax lien has been filed, income tax debt can be discharged and cleared from your record if some very specific requirements are met in either a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy proceeding.  If these requirements are met, not only can bankruptcy clear IRS income tax debt, it can get rid of state and local income tax debt as well. In other words, if done properly, your slate can be cleaned; you can start over without the burden of looming tax debt.

Timing is an important issue in clearing an income tax debt with the Internal Revenue Service. There are some other basic steps that must be followed. To discharge income tax debt, the following rules apply must be adhered to:

1) Your tax returns must have been due three years or more before the petition was filed. If they have not properly aged, this is a real problem;

2) Your tax returns have to have been filed more than two years before the petition;

3) The tax you owe must have been assessed against you by the government for at least 240 days before the case is filed;

4) Your tax returns must have been truthful and not fraudulent. They must be carefully checked over by a tax resolution specialist before the bankruptcy is filed; and,

5) You must not have been intentionally attempting to evade or defeat the tax when you failed to pay it.

Wipe Away IRS Tax Debt

Wipe Away IRS Tax Debt

In addition, there are some technical rules that can complicate a discharge of tax. If your case falls under such technicalities, your tax lawyer at the Tax Resolution Institute will warn you in advance. In the majority of cases, the delinquent income tax will be discharged if the above requirements are met. What is essential is to work with a Tax Attorney at the Tax Resolution Institute who knows how the laws work and knows when to use them effectively so they work for you. The goal is to wipe away your IRS income tax debt without creating additional problems.

If you have had a federal tax filed against you by the IRS, the income tax debt covered by the IRS tax lien becomes attached to any assets you own at the time it is filed.  As a result, since the lien is attached to the assets, the bankruptcy will not release the lien. What is worse is that it attaches to anything new you acquire so long as the lien is in effect.  This applies as long as you owe the income tax to the Internal Revenue Service.  Until the collection time limit expires or the tax debt is cleared, the federal tax lien will remain in place, and no other action can be taken. To learn more about whether a bankruptcy can help solve your delinquent tax problem, contact the tax experts at The Tax Resolution Institute. We can help solve your tax problem today.



Am I The Only One? – Definitely Not! 1 in 6 Americans Need Effective Tax Relief For IRS Income Tax Problems

Whether you live in San Diego or Orange County, New York City or Irvine, a delinquent tax problem seems so overwhelming. When you have an IRS income tax problem and a delinquent tax debt, it feels like you are cursed and alone, falling into a dark hole with no escape. At the Tax Resolution Institute, we promise you that this is not the case. Over 26 million American citizens have an IRS income tax problem and need tax relief. Yes, 1 in 6 taxpayers are trying to get past the same difficult income tax hurdle. And there is an answer to your delinquent tax problem if you take an action today.

Delinquent Tax Problem Nightmare

The Insomnia of A Delinquent IRS Income Tax Debt

If you are really stressed-out and worrying all night long that the IRS is about to ruin your life, it is time to address the problem of your income tax debt. You are only alone if you isolate in your misery. Whether you are facing IRS tax liens, wage garnishments or asset seizures, we can help you find the tax relief you need. We have handled all the tough tax problems in the past and there is a tax resolution solution if you take action and contact us. The Tax Resolution Institute understands how tough and stressful a delinquent income tax problem can be when you face it alone. That is why we are here to help you.

When you have thousands of dollars in back income taxes, the IRS debt appears to be a looming monster that only grows and grows as interest and penalties increase its size. Luckily, the Tax Resolution Institute can provide the results that you secretly long for in the cold of night. With the experience and the expertise necessary to provide true tax resolution, we know how to free American taxpayers from severe IRS tax debts, resolving their delinquent income tax problems.

Helping American Taxpayers Find Tax Relief

Helping American Taxpayers Find Tax Relief

Then again, it is easy to talk the talk, and the tax resolution industry is filled with scammers and cheats. To provide you with peace of mind, the Tax Resolution Institute provides a free consultation and the best in tax resolution services. We will analyze your back tax problem and let you know whether or not we can help. Rather than false promises of pennies on the dollar resolutions, we deliver the real answers to resolve your delinquent tax debt and provide you with the tax relief that you need. Call us today!

Protect Yourself By Knowing The Difference Between A Federal Notice Of Intent To Levy And An IRS CP-504 Notice

Thousands of Americans who owe back taxes to the Internal revenue Service ignore letters and notices about their tax debt. They just want their troubles to go away, but the IRS will never go away. If you owe back income taxes to the IRS, you may receive a CP-504 Notice. This IRS notice begins with the same message every time: “Urgent! We intend to levy Certain Assets.” Although it appears like the IRS is about to take action against you, this actually is not the case.

Mock-Up of CP-504 Notice From The IRS

Mock-Up of CP-504 Notice From The IRS

Yes, IRS actions against you are coming, but not right away and you still have time to act. Although you do need to take proactive steps, a CP-504 Notice is very different from a Notice Of Intent To Levy. Once you receive a Notice Of Intent To Levy from the IRS, you must take immediate action as opposed to a CP-504 Notice because the clock is ticking and definitive action will soon take place.

Unless you have a tax resolution professional on your side like the Tax Resolution Institute, the Internal Revenue Service will not turn off the glare once you are in their spotlight. If you have back income taxes to settle, contact us and learn the options that make sense for you and will lead to true tax resolution and tax relief. To levy your assets, the IRS must first issue a Notice Of Intent To Levy. The Internal Revenue Service will take addiction collection actions like issuing a Federal Tax Lien, a Wage Garnishment or an Asset Seizure.

Final Notice Means Action Must Be Taken

Final Notice Means Action Must Be Taken

If you have received a CP-504 Notice from the Internal Revenue Service, it is because you have not responded to several previous notices for payment of your delinquent tax bill. The notice may be issued even if you have received “hardship” status. Such “Currently Not Collectible” status needs to be verified with the IRS. Even if you have already worked out an installment plan, you still may receive such a notice. As the largest bureaucracy in the country, the right hand of the IRS does not always know what the left has been doing. The other problem is that a separate CP-504 notice may be issued for each tax period in which you owe back taxes.

What is essential to understand is that if you do not respond promptly to the CP-504 notice, the formal Notice of Intent to Levy will soon arrive in your mailbox. Before this potential disaster happens, please contact the Tax Resolution Institute. We have the experience and the expertise that you need to find real tax relief and peace of mind.