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TRI Negotiates Installment Agreement For Irvine Public School Teacher With The California Franchise Tax Board

August 27, 2011 By
California Franchise Tax Board

California Franchise Tax Board

If you think the Internal Revenue Service is tough when it comes to delinquent income tax bills, you should try dealing with the California Franchise Tax Board and negotiating an Installment Agreement with them. The California FTB is going after delinquent income tax bills with a new ferocity given the lack of money in the state budget and California’s economic struggles. When an Irvine schoolteacher from Orange County found herself in serious tax trouble with the California FTB, she turned to the Tax Resolution Institute for help.

To begin with, let’s be perfectly honest: In this day and age, being a schoolteacher in California public schools is tough enough without being hassled by the Franchise Tax Board. California needs good teachers that will keep the standardized test scores highs and the kids doing well in class. When a wonderful Irvine schoolteacher encountered some serious financial setbacks and got into a tax bind with the California Franchise Tax Board, she found herself in serious trouble.

Irvine School Teacher PTA Appreciation

Irvine School Teacher PTA Appreciation

Since she was a schoolteacher in the excellent California public school system in Irvine, she thought that she should focus on paying her IRS income taxes and that California would wait. After a few years of delinquent tax bills, she realized that she was wrong and needed help in Orange County. As she expressed to TRI, “Please let me know what we should do at this point. I know that the FTB is not very flexible with due dates so it’s a little unnerving.”

When she came to the Tax Resolution Institute, her wages were about to be garnished and her family’s bank accounts levied. Since she had been sitting on the tax debt for several years, it had just grown and grown, increasingly getting worse. You must remember that if you do not take action, delinquent tax bills with either California Franchise Tax Board or the Internal Revenue Service do not simply go away. Instead, they compound interest on a daily basis while accruing serious back tax penalties. It is essential to take action and deal directly with the problem by consulting a respected tax professional like the Tax Resolution Institute.

Focus On Good Teaching, Not Delinquent Taxes

Focus On Good Teaching, Not Delinquent Taxes

Luckily, the tax lawyers at the Tax Resolution Institute were able to negotiate a very positive and workable Installment Agreement with the California Franchise Tax Board for the Irvine schoolteacher. By agreeing to a do a monthly direct deposit to the FTB, the Installment Agreement was negotiated for under $100.00 a month. Penalties were waived, and all the possible negative consequences went away. The response from the Irvine School teacher was nothings less than glowing: “Thanks again and just so you know – - – YOU ROCK!!! I can’t even believe that this has been taken care of so quickly. If only I would have found TRI 3 years ago – it would have saved me a lot of stress, sleepless nights and tears.”

Remember that if you need help with a delinquent tax problem with the Internal Revenue, the California Franchise Tax Board or any other State Taxing Agency, the Tax Resolution Institute is the place to go. Without a single complaint from any of our past clients and tons of positive feedback for past Installment Agreements and other tax resolution services, we provide the answer when you need help with a wage garnishment looming over your head. The Tax Resolution Institute can solve your delinquent tax problem.

Filed Under: California Tax Relief, Tax Relief, wage garnishment Tagged With: , , , , , , ,

Payroll Tax Resolution Services

May 23, 2011 By

If you fail to file and pay your payroll taxes you will face numerous problems. Unpaid payroll taxes lead to enormous IRS penalties and interest. Failure to pay payroll taxes can lead to a seizure of your business assets and may require you to shut down. Payroll tax problems can affect your freedom to conduct business.

Payroll Tax Problems Are Deadly

Payroll Tax Problems Can Shut Down A Business

You need to take some steps as early as possible to resolve payroll problems.  The penalties accruing for unpaid payroll taxes can more than double within just a few months. It is crucial to take immediate action when dealing with payroll tax problems.  Many businesses use their payroll tax withholdings to meet other operating expenses. Business forget or do not realize that the money collected from the employees share of federal tax, Medicare and FICA does not belong to them but rather is the employee’s pay that must be paid to the government.

The IRS is most concerned collecting unpaid payroll taxes. The employees withholding portion of payroll taxes is deemed as the Trust Fund portion.  As an employer, it is your duty to collect federal withholding taxes from your employees and pay it to the IRS.  Failure to pay the Trust Fund portion of the tax will result that portion being assessed to the Responsible Person/s (a “Responsible Person” is anyone that is a decision maker for the company that could affect how the payroll was dispersed.  For example business owners, board members, bookkeepers, accountants, attorneys, everyone on the bank signature card, etc.)

Dodging Payroll Taxes Is A No Win Scenario

Dodging Payroll Tax Problems Is A No Win Scenario

Penalties for payroll tax problems are much more severe than they are with other tax problems. It is more difficult to negotiate a payroll tax settlement. Long term Installment Agreements are generally not available for owing payroll taxes, because the IRS wants to ensure that the business can pay off the back taxes and continue to pay current payroll taxes.  Offers in Compromise are virtually always rejected for unpaid payroll taxes when the company remains in business because they feel that if the business cannot afford their current liability let alone their back payroll taxes.

If you find yourself faced with payroll tax issues pick up the phone or email us at the Tax Resolution Institute.  You do not want to waste any more time letting these issues remain unresolved.  Time is money…a lot of money in this case.

Filed Under: Payroll Tax Problems, Tax Resolution Services Tagged With: , , , ,

Nevada Tax Amnesty Program Does Not Effect IRS Payroll Tax Debts And Back Income Taxes

July 23, 2010 By

On June 30th, the Governor of Nevada announced the 2010 Tax Amnesty Program that ends on September 30, 2010. The program was authorized by the Nevada Legislature and signed into law by Governor Gibbons. For eligible taxes due and payable to the Department prior to July 1, 2010, the program provides for a one-time waiver of penalty and interest if the outstanding tax liability is paid in full during the amnesty period.

Nevada Tax Amnesty Program And The Ticking Clock

Nevada Tax Amnesty Program And The Ticking Clock

The tax amnesty only affects Nevada State taxes and not Federal taxes like IRS payroll tax debts and back income taxes. The problem is when an amnesty is announced, everyone with a tax problem, whether it is state or federal, seems to breathe a sigh of relief. If you have serious income tax debts or your business has been spending the trust fund and missing payroll tax payments, you should not be relieved. This state amnesty has no effect on your problems. If you want to find real IRS tax relief, contact the Tax Resolution Institute today and we can begin to find a resolution to your tax debt crisis.

Since Nevada has no state income tax, the amnesty only effects very specific tax debt problems. The tax types included in the amnesty program are as follows: Sales & Use Tax, Modified Business Tax, outstanding Business License fees payable to the Department due on or before September 30, 2009 (The Secretary of State now administers the business license fee), Cigarette Tax, Other Tobacco Products Tax, Liquor Tax, Bank Branch Excise Tax, Insurance Premium Tax, Tire Tax, Live Entertainment Tax (non-gaming), Short-term Lessor (Passenger Car), and Exhibition Facilities Fees, Property Tax that are Centrally Assessed, and Net Proceeds of Mineral Tax.

The Weight of IRS Tax Debt Problems

The Weight of IRS Tax Debt Problems

Although the clock is ticking on being able to take advantage of the Nevada Tax Amnesty Program, it is ticking even louder for Nevada residents with serious IRS tax problems. Please remember that the IRS never forgets. As the largest collection agency in the world, IRS debts always continue to accrue penalties and interest. In other words, that is one expensive clock and it has your name on it. Your personal income tax problems and your company’s payroll tax debts with the IRS will never just go away. If you want to find real IRS tax relief, contact us today for the very best in tax resolution services.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Payroll Tax Problems Tagged With: , , , , ,

Still Hooked: A Bungled Offer In Compromise In San Jose Leads To An Angry Taxpayer Finding Tax Relief With TRI

June 15, 2010 By

When it comes to an Offer in Compromise, there are no “Do-Overs” as a new Tax Resolution Institute client in San Jose found out after having his delinquent tax account poorly handled by an incompetent tax professional. For a qualified tax professional like the tax experts at TRI, an Offer in Compromise is an essential tool to help resolve a client’s tax problems with the Internal Revenue Service.

A Bungled Offer In Compromise In San Jose

A Bungled Offer In Compromise In San Jose

When handled properly, an Offer in Compromise can lead to tax relief and future financial freedom for an embattled client with serious tax debts. If mishandled, a failed Offer in Compromise can make a bad delinquent tax situation that much worse. As a result, it is essential for taxpayers in trouble to choose a well-qualified tax professional with an excellent reputation of obtaining tax relief for clients like the Tax Resolution Institute.

When the tax company in San Jose screwed up the taxpayer’s Offer in Compromise, he was out both the money he paid them and the $150 application fee paid to the IRS.  In addition, he was still on the hook to the Internal Revenue Service. There is no credit at the IRS for a poorly handled OIC. Not only is taxpayer out the $150 application fee, they were also out the 20% down payment, the first of what was going to be his “periodic payments” on a successful deal when the offer was no accepted. In addition, he still owed the bulk of his back tax debt, including more penalties and interest.

Tax Problems of Silicon Valley in San Jose

Tax Problems of Silicon Valley in San Jose

As the tenth largest city in the United States and the largest city in Northern California, San Jose is a major Metropolitan center. As a consequence, San Jose suffers from the positives and the negatives of any such city. In the 1990s, San Jose’s location within the booming local technology industry earned the city the nickname Capital of Silicon Valley. Along with the vast success of the technology industry, a number of second-rate charlatans set-up business in a variety of subsidiary industries, including tax resolution.

Although the anonymity of our client remains a number one priority, it is important to know that he was an extremely successful technology executive. When he tried to start his own business with an inflow of capitol, he did not set-aside enough money to pay his income taxes with the IRS. After the business became a victim of the recessionary California economy, our client found himself in a bind with no money to cover his huge tax bill. What remains so upsetting is that he was taken advantage of and financially abused by a second-rate and so-called tax professional in his time of need. After what happened with the failed Offer In Compromise, our future client was angry, financially hurt and still on the hook for his delinquent tax debt with the IRS.

Luckily, the client found the Tax Resolution Institute online and was able to obtain real tax resolution from our tax experts before a bad situation turned into a catastrophe. Rather than negotiating another Offer In Compromise, the Tax Resolution Institute worked out a positive Installment Agreement for the client with the IRS that focused on the body of the tax debt and wiped away the interest and penalties. Back at work in San Jose and doing better, the client expressed real gratitude that he was able to find an answer to his tax problems and real tax relief that worked.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , , ,

Tax Relief Success in Sacramento: The California Franchise Tax Board Refunds Bank Levy To Taxpayer

June 11, 2010 By

For the Tax Resolution Institute, nothing is as satisfying as when we can provide real tax relief success for taxpayers that come to us for help. Before we dive into the true story, we want to note that certain details have been altered to protect the privacy of our client. The Tax Resolution Institute will never violate a client’s right to privacy and anonymity.

Recently, we received a letter from a happy Sacramento taxpayer who had received a large refund from the California Franchise Tax Board. What is so rewarding is that money that was previously levied by mistake was refunded in full to the client after the Tax Resolution Institute successfully handled his tax problem.

In the letter, the happy Sacramento client who had been facing huge income tax problems with both the California Franchise Tax Board and the IRS expressed his gratitude when he kindly wrote:

“I just wanted to drop you a line to let you know that the State of California has just sent us, not one, but two refund checks.  I take this to mean that the issue with them is resolved. Great job and thanks!”

Tax Relief Success For A Sacramento Taxpayer

Tax Relief Success For A Sacramento Taxpayer

When the Sacramento taxpayer first came to us, he owed a bundle of taxes, penalties and interests for various unfilled personal income tax returns. By the time the Tax Resolution Institute became involved, the client’s bank accounts were being levied by the California Franchise Tax Board to cover the unpaid state tax bill. Right away, the Tax Resolution Institute took action to protect the future financial security of our client.

By taking action on the delinquent tax debts, we stopped the IRS and local state taxing agencies from further levying his bank accounts or garnishing his wages. Without this action, the enforcement actions eventually would have expanded into possible asset seizures. The Tax Resolution Institute went through and prepared the unfiled tax returns. The preparation and submission of the unfiled returns took place on both the Federal and the State level.

With the Federal Taxes, the Tax Resolution Institute negotiated a successful Installment Agreement for the delinquent tax debts. Wiping away the penalties and interests, the taxpayer received a payment plan that fit into his economic timetable. The Installment Agreement was workable and secure, satisfying all the parties involved.

California Franchise Tax Board Refund

California Franchise Tax Board Refund

The real tax resolution success came when the unfiled tax returns were filed with the California Franchise Tax Board. Upon accepting and processing the tax returns, the Tax Compliance Officer that not only did the client not owe any more money, but they actually were due a refund. In addition, the client’s bank accounts had been improperly levied and they were due a refund for the money that previously had been levied.

What a success for the Sacramento taxpayer! Thanks to the Tax Resolution Institute, no more enforcement actions were taken against them and they received two refund checks from the State of California. If you have a serious state or federal income tax problem, don’t you deserve to find out whether such positive tax relief is a real possibility for you?

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,

Released from Prison for Income Tax Evasion, R&B Icon Ron Isley has to pay $3.1 Million in Back Taxes to the IRS

June 1, 2010 By

Released from prison after completing a three-year sentence for income tax evasion, R&B icon Ron Isley of the legendary group The Isley Brothers, still has to pay off his back tax debt to the Internal Revenue Service. The 68-year-old singer was released on April 13, after a 2006 trial found him guilty of five counts of tax evasion and one count of willful failure to file a tax return. Isley was also ordered to pay $3.1 million in back taxes to the Internal Revenue Service.

R&B Icon Ron isley faces His Back Tax Debt

R&B Icon Ron isley faces His Back Tax Debt

Isley’s tax crisis never had to become so extreme and damaging. If he had contacted a tax professional as opposed to evading his tax payments, he would never have gone to prison. In addition, the tax experts at the Tax Resolution Institute could have found a payment solution for the famous singer.

The Hollywood Reporter reported that Isley was sentenced to 37 months in prison, instead of the maximum sentence, which would have sent him to jail for 26 years. Isley was imprisoned at a Federal Correctional Institution, and then completed his sentence in a halfway house following an early departure last October. The ‘Contagious’ singer requested a reduced sentence for health issues – he cited complications from a stroke and a bout with kidney cancer, but ultimately it was denied because the judge deduced that Isley was a “serial tax avoider.” If you are a serial tax avoider, please contact the Tax Resolution Institute and take action today.

Ronald Isley’s career allows for one of the best musical equivalents of the Kevin Bacon pop culture phenomenon “Six Degrees of Separation.” With brothers Vernon, O’Kelly and Rudolph and under the family moniker, Isley first landed on the pop music charts with the perennial party favorite “Shout” in 1959. Three years later, they beat the Beatles up the charts with their version of “Twist and Shout.”  The brothers’ later maturation as R&B and soul masters was arguably instrumental in pushing the evolutions of the genres themselves.

Income Tax Evasion Is A Lose-Lose Proposition

Income Tax Evasion Is A Lose-Lose Proposition

After being released, Isley was interviewed by comedian Steve Harvey.  Isley said: “I’m overjoyed to be home and to be able to do everything that I want to do. I’m in love with this record business and I’m in love with the fans and everything and I just couldn’t wait to get back to doing that. I’ve been thinking about it for 3 years and wondering what it was gone be like. It changed me a whole lot” The singer performed for the first time after being released on May 8 at a reunion concert in Atlantic City with his brothers.

Nevertheless, Isley greatly regrets his serial tax evasion that led to prison. It damaged his family, his career and his reputation with a permanent stain that can never be removed. Before you find yourself in such desperate tax straits, contact the Tax Resolution Institute. If you take action today, tax relief can be a possibility for you.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , , ,

Kevin Mitchell, former San Diego Padres baseball slugger, owes $5.3 Million in Back Taxes to California

May 28, 2010 By

Homerun-bashing San Diego Padres bad boy Kevin Mitchell, a member of the 1986 World Series champion New York Mets and the 1989 National League MVP, owes more than $5.2 million in delinquent state taxes, records in California show. Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres. Kevin Mitchell needs today to find real tax relief in California.

San Diego Padres Slugger Kevin Mitchell Busted For Back Taxes By The California Franchise Tax Board

Kevin Mitchell Busted For Back Taxes By The Franchise Tax Board

Clearly, Mitchell mismanaged his baseball earnings with a combination of bad business management and poor tax planning. If Kevin Mitchell had come to the tax experts at the Tax Resolution Institute, he could have found a positive combination of preventive measures and tax relief solutions. Today, with the huge state tax debt and the bad publicity, Mitchell could still find real tax relief at the Tax Resolution Institute.

Kevin Mitchell was paid an estimated $20 million during a 14-year major-league career with the Mets, San Diego Padres, San Francisco Giants, and five other teams. Mitchell, a native San Diegan and now 48, had a stellar career early on with the Mets and Padres.

Kevin Mitchell was known as a bad boy because he is the only known player to be accused of decapitating a cat. Mets pitcher Dwight Gooden wrote in his 1999 autobiography, Heat, that he witnessed Mitchell decapitate his girlfriend’s cat with a 12-inch knife. Mitchell denied it, but his bad karma could be catching up with him.

Kevin Mitchell, however, is not the only San Diego resident to wind up on California’s list of the worse tax debtors. In fact, when the California Franchise Tax Board released its list of major individuals and corporations with the largest tax delinquencies, three of the top eight are from San Diego County. They are Jeffry C. Howard, $5.4 million, fifth; Kevin Mitchell $5.2 million, sixth, and Michael Fanghella $4.1 million, eighth. Since they are all personal income tax delinquencies, Kevin Mitchell finds himself right in the middle of the list of San Diego’s worse delinquent taxpayers.

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Former San Diego Padres Slugger Owes California $5.2 Million In Back Taxes

Since San Diego is right in the Tax Resolution Institute’s backyard and some of our most respected tax experts work and practice in San Diego, San Diegans like Kevin Mitchell with severe tax problems should contact the Tax Resolution Institute. The tax experts at TRI can find tax relief and real tax solutions for severe tax problems.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , ,

Poker Superstar Michael Mizrachi Has A Tax Lien Filed Against Him By The IRS And Owes $339,000 In Back Taxes

May 21, 2010 By
Poker Star Michael Mizrachi Owes Back Taxes

Poker Star Michael Mizrachi Owes Back Taxes

Michael “The Grinder” Mizrachi finds himself in a real serious bind these days.  The Sun Sentinel out of Fort Lauderdale reports that Mizrachi owes $339,000 in back taxes and had a tax lien filed against him by the IRS. In addition, Mizrachi lost his Hollywood, Florida home to foreclosure via an online auction last week.  Another home in Miramur was foreclosed on and sold as well, according to court records. Both properties were assessed this year at less than half of their purchase price. If Mizrachi had contacted a tax professional before the back tax debts with the IRS got out of control, he could have possibly saved the houses and avoided the bad press of the IRS tax lien filed against him.

Commenting on the matter, Michael Mizrachi would only say that his previous accountant was “doing a bad job” and that he had now “hired a better one” and was working on settling the liens. What Mizrachi needs is the  Financial stability is always going to be important to a poker player, as they are then able to focus their attentions on playing the game without all the extra pressures associated with cash flow problems.

Mizrachi’s tax attorney, Steven Chung, said, “Mr. Mizrachi is a victim of the real estate collapse and the recent recession. We are working to resolve his current situation, which was caused by the negligence of his previous professional advisors. We appreciate that several of his creditors, including the Internal Revenue Service, have been understanding and flexible.”

Mizrachi is part of Team UB.com, one of the biggest online poker rooms. From 2005 through 2007, Mizrachi was one of the top players in the game. After signaling the presence of a new star in the poker world by earning $325,000 in 2004, Mizrachi exploded in 2005 by finishing fifth at the World Poker Tour’s Jack Binion World Poker Open and winning the WPT’s L.A. Poker Classic less than a month later. The two final tables earned “The Grinder” over $2 million and pushed Mizrachi to cash seven times at the World Series of Poker that year. According to the HendonMob Database, Mizrachi has $7.1 million in tournament earnings in his career.

Michael Mizrachi's Poker Fame Does Not Stop The IRS

Michael Mizrachi's Poker Fame Does Not Stop The IRS

Mizrachi was active, however, in “swapping” pieces with other players in the poker community. The practice of “swapping,” where a player puts up a percentage of another player’s buy-in and earns that percentage back when a player cashes in a tournament, is something commonly done by poker players to hedge their expenses. The problem with the practice, as is known by poker players, is that the tax burdens go entirely to the winning player and the person who is on the other end of the “swap” doesn’t have any income taxes taken from his piece.

Mizrachi admits that he engaged in this practice and estimates that of the approximately $6.7 million he won from 2004 to 2007, approximately $3.7 million went to backers and “swapping” deals. As a result, Mizrachi owed a lot of taxes to the IRS on money that he was never able to actually bank. As time passed and he took no action, his tax debts led to tax liens and financial chaos.

Fellow poker pro Marc Levy of Boynton Beach pointed out the financial difficulties faced by many professional poker players these days, away from the glamorized media reports. As he explains: “If you’re in a $10,000 event every other week, that’s $240,000 just for buy-in, not to mention all your expenses. There are plenty of guys I know who do well playing poker but still go through their money.” Since professional poker players’ careers swing up and down in dramatic fashions, they often approach tax time with no money left to pay their income taxes. At this point, the job of a smart poker player is to leave the table and contact a smart tax professional like the tax experts at the Tax Resolution Institute.

If you’re facing an IRS Tax Lien, whether you’re a poker pro or not, the Tax Resolution Institute can help. Call 877-829-8370 today.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Lien Problems, Tax Relief Tagged With: , , , , ,

IRS Bounty: Connecticut Lawyer Convicted of Tax Evasion For Failing To Pay Income Taxes

May 17, 2010 By

David Thomas tried to outsmart the IRS by failing to report more than $120,000 in income. On May 14, long after the IRS had uncovered the lawyer’s extensive tax evasion in 2004 and 2005, U. S. District Court in Connecticut sentenced Thomas to three years of probation. Thomas, who has resigned from the practice of law, must pay over $80,000 in back taxes, penalties and interest. In addition, Thomas, 56, was ordered to perform 150 hours of community service after he pleaded guilty to one count of filing a false federal tax return.

Lawyer Sentenced For Federal Tax Evasion

Lawyer Sentenced For Federal Tax Evasion

If David Thomas had been honest and hired a tax professional, he could have avoided the sentence by being a respectable citizen and paying his taxes on time.  Nonetheless, the Tax Resolution Institute is aware that sometimes tax day comes and you do not have enough money on hand to cover your income taxes. Rather than lie to the IRS and commit the crime of tax evasion, call the Tax Experts at TRI. We can help you find a solution that will protect your reputation and help to ensure your future financial viability.

In the case of David Thomas, he simply tried to pull a fast one on the IRS. From 2004 to 2005, Thomas was hired by the Cedar Island Improvement Association to provide legal assistance. Cedar Island Improvement was installing an underwater pipe connecting the Town of Clinton and Cedar Island. During his time on the project, Thomas received $120,877 from the Association. For the tax years 2004 and 2005, however, the lawyer’s federal tax returns did not reflect the amount earned. In fact, the overall adjusted gross income was shown as zero in the tax returns that Thomas filed.

IRS Prosecutes Lawyer For Evading Back Taxes

IRS Prosecutes Lawyer For Evading Back Taxes

By committing the crime of tax evasion, Dave Thomas has lost his profession, his reputation and his ill-gained assets. If you owe back taxes and cannot cover the bill, do not make the mistake that Thomas made. The Tax Resolution Institute specializes in helping find tax relief for individuals with huge income tax bills and delinquent back taxes owed to the IRS.

Filed Under: Delinquent Tax Debts, Income Tax Problems, Tax Relief Tagged With: , , , , , , , ,